Singapore
Singapore taxes company profits at 17% but exempts a big slice of the first S$200,000, pays dividends tax-free and has one of the best reputations of any low-tax country. Living there is expensive and the work passes are selective – for most readers it’s a company and holding location, not a new home.
Our verdict
Great if you want an Asian hub company that banks, investors and tax offices take seriously, or if you can qualify for a pass and afford the city. Skip it if you’re looking for a cheap, easy residence or plan to run the company from Europe – then it’s taxed where you sit.
Great for
- Founders with real business in Asia who want a respected hub
- Venture-backed or tech founders who qualify for an EntrePass or Employment Pass
- Holding and treasury companies that need top-tier banking and treaties
Skip it if
- Solo freelancers looking for a cheap place to live
- Anyone who wants to run the company from Europe with no one in Singapore
- People who want an easy residence permit or a second passport
Key numbers at a glance.
- Corporate tax
- 17%
- partial exemption on the first S$200,000; start-up exemption for the first 3 years
- Effective on €100k profit
- ≈ 8%
- ≈ 5.7% as a new start-up, halved again by the 2026 rebate (cap S$40,000)
- Dividend WHT
- 0%
- one-tier system, dividends tax-free for shareholders
- Personal income tax
- 0–24%
- progressive for residents; foreign-sourced income exempt
- GST
- 9%
- registration from S$1 million taxable turnover
- Setup time
- 1–2 days
- online via ACRA, through a registered filing agent
- Running cost
- ≈ €5,000 / year
- incl. nominee resident director, secretary, accounting
- Minimum stay
- 183 days
- for personal tax residency; work passes assume you live there
- Currency
- SGD (Singapore dollar)
The Nerdy Index.
15 criteria, each scored 0–10 by a published formula or rubric. Pick who you are – the index re-weights what matters for you.
CompanyResidence
Company 69/100
Tax on distributed profits17% 5.8/10
Corporate tax plus dividend withholding on €100,000 profit paid out to a non-resident owner. Transparent entities (US LLC) pay nothing at company level – the owner pays at home, so they get a neutral 5.
Tax on reinvested profits17% 5.1/10
Tax while profits stay in the company (Estonia and Georgia: 0%).
Running cost≈ €5,000 / year 6.7/10
Typical yearly cost to keep a small trading company compliant: registered office, accounting, tax filings, audit if mandatory, government fees. Excludes local staff and office rent.
Context: Nominee resident director (about S$2,000–3,000), company secretary, registered address, bookkeeping, tax and annual ACRA filings for a small audit-exempt company – roughly S$7,500. Without a nominee, because you live there, it’s closer to €3,000.
Setup speed & remote formation1–2 working days 10/10
Typical working days from signed documents to a registered company. +1 point (max 10) if it can be done fully remotely.
Context: ACRA registers most companies online within a day once the name is approved; a registered filing agent can do it for you without travelling.
Banking accessNerdy assessment 6/10
How easy it is for a foreign-owned company to open and keep a business account (local bank or regulated EMI) that works for international payments.
Our assessment: Big local banks are picky with foreign-owned companies run through a nominee director and usually want to meet the owner; digital business accounts open in days. With a work pass and real operations it gets much easier.
Reputation & treaty network~100 treaties · no list 10/10
Number of double tax treaties in force, minus penalties for blacklists that make banks and tax offices nervous: EU list of non-cooperative jurisdictions (Annex I), EU watchlist (Annex II), FATF grey list.
Context: About 100 comprehensive tax treaties (PwC lists 98), including Germany, Austria and Switzerland; on no EU or FATF list.
Substance burdenNerdy assessment 5/10
How much real presence (director, office, staff, board meetings) the company needs locally to be respected as tax resident there and to keep the bank happy. Higher score = lighter burden.
Our assessment: By law one director must live in Singapore. For tax residency and treaty benefits, control and management (board decisions) must be in Singapore, and gains on foreign assets are taxed without economic substance.
Residence 65/100
Personal tax for a new resident0% (dividends) 10/10
Effective tax a newly arrived resident pays on €100,000 of income from their own (foreign or local) company, using the best regime realistically available to an entrepreneur (non-dom, flat tax, territorial, special regime). Social security excluded.
Context: Tax resident taking €100,000 as dividends from their Singapore or foreign company: one-tier dividends and foreign-sourced income are tax-free. A salary, often needed for a work pass, is taxed at 0–24%.
Residency accessNerdy assessment 3/10
How realistic it is for a non-EU entrepreneur to get a residence permit that also gives tax residency: requirements, cost, time, approval odds. EU citizens usually have it easier – noted in the reason.
Our assessment: No investor or ‘own company’ route for ordinary founders: the EntrePass needs venture funding, IP or an accelerator, the Employment Pass a high salary plus COMPASS points, the ONE Pass S$30,000 a month.
Minimum stay183 days 4/10
Days per year you need to spend there to keep your permit and your tax residency (whichever is stricter, using the most flexible programme).
Context: Personal tax residency needs 183 days in a calendar year, and work passes assume Singapore is where you live and work.
Cost of living91.9 (Singapore) · Singapore 1/10
Numbeo Cost of Living Index (excl. rent, New York = 100) for the city most expats choose.
Context: Numbeo cost of living excluding rent – on New York level; rents and cars are among the highest in the world, hawker food among the cheapest.
Safety77.7 (Singapore) · Singapore 7.8/10
Numbeo Safety Index for the same city (0–100, higher is safer).
Context: Very low crime; strict laws and strict enforcement are part of the deal.
Rule of law & stability92nd percentile 9.2/10
World Bank Worldwide Governance Indicators, Rule of Law percentile rank (0–100). Measures how predictable courts, contracts and property rights are.
Context: World Bank WGI 2025, Rule of Law: Singapore ranks above about 92% of 215 economies – efficient courts and strong contract enforcement.
English in daily life & businessOfficial language 10/10
EF English Proficiency Index score. Countries where English is an official or everyday business language count as 700.
Context: English is an official language and the language of government, courts, business and schools.
Mobility & long-term optionsNerdy assessment 5/10
What the residence gives you beyond the country: Schengen/EU access, permanent residence and citizenship path, passport strength of a future citizenship, dual citizenship allowed.
Our assessment: Pass holders can apply for permanent residence, but approval is discretionary and unpredictable; citizenship requires giving up your other passport.
Numbers checked September 2026. Click any row for the formula, our reasoning and the source. How the Nerdy Index works
Residency & visa routes.
EntrePass
For founders of a Singapore private limited company holding at least 30%, if the business is venture-backed or innovative: e.g. S$100,000 from a recognised investor, a recognised incubator or accelerator, own intellectual property or research ties. Renewals depend on business spending and local hires.
Employment Pass
Your own company can employ you if it pays at least S$5,600 a month (more with age, S$6,000 from 2027) and you score 40 points under COMPASS – hard for a new company without local staff.
ONE Pass
Five-year pass for top earners with a fixed salary of S$30,000 a month or equivalent achievements; lets you start and run companies.
Tax residency
183 days in a calendar year (or across two years, or three consecutive years of work). Residents pay 0–24%; dividends from Singapore companies and foreign-sourced income are not taxed.
Why Singapore
- Top-tier reputation with banks, investors and tax offices
- About 8% effective tax on €100,000 profit thanks to partial exemptions
- Tax-free dividends and no withholding tax
- Nearly 100 tax treaties, including Germany
- Company formation in a day, English everywhere, courts that work
- Individuals pay nothing on foreign-sourced income
Watch out for
- Requires a locally resident director – a nominee costs money and carries risk
- Work passes are selective; there is no simple ‘move with your company’ visa
- Among the most expensive cities in the world, rent above all
- Company profits above S$200,000 are taxed at the full 17% at the margin
- Foreign income becomes taxable once remitted, and offshore gains need real substance
- Run from Europe, the company is taxed where you manage it
Singapore is the low-tax country that nobody calls a tax haven. It has a 17% headline rate, a treaty network of about 100 countries, some of the world’s best banks and courts – and a partial exemption system that brings the tax on a small company’s profit well below 10%.
It is also one of the most expensive cities on the planet, and it doesn’t hand out residence permits to anyone with a laptop and a company. For most of our readers, Singapore is a place to put a company or a holding, not a place to move to. Here’s how it works as of September 2026.
Is it for you?
Be honest about which of two very different things you want.
The company, run by people in Singapore. If you have real business in Asia – clients, suppliers, a team – a Singapore company is the respected default. Banks, investors and counterparties know it, treaties protect payments, and dividends leave the company tax-free. This also works for a regional holding, as long as the decisions are genuinely taken in Singapore.
You, living in Singapore. That’s possible if you qualify for a work pass: a venture-backed or innovative startup (EntrePass), a solid salary from your own company (Employment Pass) or top-earner status (ONE Pass). Then the personal side is attractive too: dividends and foreign income are tax-free, salaries are taxed at 0–24%.
It’s the wrong choice if you want a cheap place to live, an easy residence card, or a Singapore company you run from your kitchen in Hamburg. The last one is the classic mistake: a company managed from Germany is taxed in Germany, and your Singapore nominee director won’t change that (see place of management).
The company
The vehicle
The standard is the private limited company (Pte. Ltd.). Registration with ACRA happens online through a registered filing agent and usually takes a day once the name is approved. Minimum capital is S$1. The legal must-haves: at least one director who is ordinarily resident in Singapore (citizen, permanent resident or work pass holder), a company secretary within six months, and a local registered address. Foreign founders without a pass usually hire a nominee director – which works, but you’re appointing someone with legal duties and access to your company.
How profits are taxed
- Corporate tax: 17%, but with a partial exemption: 75% of the first S$10,000 and 50% of the next S$190,000 of chargeable income are exempt.
- Start-up exemption for a new company’s first three years: 75% of the first S$100,000 and 50% of the next S$100,000 (not for investment holding or property development companies).
- 2026 rebate: for the 2026 year of assessment, a 50% corporate tax rebate capped at S$40,000 (enhanced in April 2026).
- Dividends: one-tier system – no withholding tax, tax-free for the shareholder.
- Foreign income: taxed when received in Singapore; foreign dividends, branch profits and service income are exempt if they were taxed abroad at a headline rate of at least 15%.
- GST: 9%, registration from S$1 million taxable turnover.
Worked example: €100,000 profit (≈ S$150,000), established company, no rebate, dividend to you.
| Step | Amount |
|---|---|
| Profit before tax | S$150,000 |
| Exempt: 75% of S$10,000 + 50% of S$140,000 | –S$77,500 |
| Chargeable income | S$72,500 |
| Corporate tax (17%) | –S$12,325 (≈ 8.2%) |
| Dividend | S$137,675 |
| Withholding and personal tax | S$0 |
| Total tax | ≈ 8.2% |
As a new start-up the bill falls to S$8,500 (5.7%), and the 2026 rebate halves whatever is left. Beyond S$200,000 of profit every extra dollar pays the full 17%. Compare scenarios in the tax calculator – note that it works with the 17% headline rate.
Costs
Registration costs a few hundred Singapore dollars in government fees. Running a small, audit-exempt company costs around S$7,500 (≈ €5,000) a year with a nominee director, company secretary, registered address, bookkeeping, tax return and ACRA filings. If you live there and act as director yourself, it’s closer to €3,000. Small companies don’t need an audit.
Banking
Singapore’s banks are among the best-capitalised in the world – which is exactly why they’re selective. A foreign-owned company with a nominee director, no local staff and no Asian business often gets turned down or asked to visit in person. Digital business accounts open quickly and handle most day-to-day payments. With a work pass, a local address and real operations, the big banks become much friendlier. More options in our banking guide.
Substance
Singapore taxes companies by control and management: the company is tax-resident (and gets a certificate of residence and treaty benefits) if the board makes its strategic decisions in Singapore. Since 2024, gains from selling foreign assets are taxable unless the company has real economic substance in Singapore. A holding with a nominee director and no people won’t pass that test – and your home country’s CFC rules will look at it anyway (CFC rules).
Living there
Residency routes
| Route | For | Key requirements |
|---|---|---|
| EntrePass | Startup founders | Pte. Ltd. with 30%+ stake; VC funding of S$100,000+, recognised incubator, own IP or research ties; renewals tied to spending and local hires |
| Employment Pass | Employees, incl. of your own company | From S$5,600 a month (more with age; S$6,000 from 2027) plus 40 COMPASS points |
| ONE Pass | Top talent | S$30,000 a month fixed salary or outstanding achievements; 5 years |
| Permanent residence | Long-term pass holders | Discretionary; no published formula |
The honest summary: there’s no “move with your company” visa for ordinary small businesses. A consultant with a one-person company rarely meets COMPASS, and the EntrePass is designed for startups with investors or intellectual property.
Personal tax
Residents pay progressive rates from 0% to 24% on Singapore employment and business income. Dividends from Singapore companies and foreign-sourced income are tax-free for individuals, even if you bring the money into Singapore (except through a Singapore partnership). There’s no capital gains tax, no inheritance tax and, for foreigners, no CPF social security contributions.
Days
You’re tax-resident with 183 days in a calendar year (or through the two- and three-year concessions for employees). In practice, a work pass assumes Singapore is where you live and work – it’s not a part-time residence.
Daily life
Numbeo puts Singapore’s cost of living (excluding rent) at 91.9 – New York territory. Rent, cars and international schools are eye-watering; hawker centres, where a great meal costs a few dollars, are the famous counterweight. The city is spotless, efficient and very safe (Numbeo safety index 77.7), English is an official language, and Changi airport connects you to all of Asia. The trade-offs: heat and humidity all year, strict laws with strict enforcement, and a pace that suits ambitious people more than beach-bum founders.
The catches
What can go wrong
Managed from home.
A Singapore company run from Europe is taxed in Europe – nominee or not.
Nominee directors.
Legally required without a resident director, but a real legal position with real access. Choose a licensed provider and set clear terms.
Remittance trap.
Foreign income a company brings into Singapore is taxable unless an exemption applies; offshore gains need substance.
Work passes.
No investor visa for ordinary founders. Plan the pass before you plan the move.
Cost.
Company costs are moderate; living costs are among the highest in the world.
Step by step
Setting up in Singapore
Decide the role
Company only (with people in Singapore) or company plus move? That decides passes, directors and costs.
Check your home country
Map management, CFC and exit rules before you incorporate.
Appoint a filing agent
A registered corporate service provider handles the ACRA filing, secretary and, if needed, a nominee director.
Incorporate
Name approval and registration – usually one day.
Open accounts
Apply to a local bank with a clear business plan; use a digital business account as a start.
Apply for a pass
EntrePass or Employment Pass through your company if you plan to move; then register your home and tax residency.
FAQ
Is Singapore a tax haven?
No – 17% headline tax, around 100 treaties and on no EU or FATF list. Small profits are taxed lightly thanks to exemptions, which is a policy, not a loophole.
Can I get residence by setting up a company?
Not automatically. You need a work pass, and the company must meet its criteria – funding or innovation for the EntrePass, a high salary and COMPASS points for the Employment Pass.
Do I pay tax on my dividends?
Not in Singapore: one-tier dividends are tax-free. If you live in Germany, Germany taxes them.
What does a Singapore company cost per year?
About €5,000 with a nominee director and outsourced compliance, closer to €3,000 if you live there yourself.
Wondering whether Singapore or Dubai fits your plans better? Try the Jurisdiction Finder or book a strategy session. This guide is general information, not tax or legal advice.
Sources
- IRAS – corporate income tax rates, rebates and exemptions
- IRAS – working out tax residency
- PwC Worldwide Tax Summaries – Singapore, corporate
- PwC Worldwide Tax Summaries – Singapore, individual
- Allen & Gledhill – YA 2026 rebate enhancement
- Ministry of Manpower – EntrePass
- Ministry of Manpower – Employment Pass
- Ministry of Manpower – ONE Pass
- ACRA – setting up a local company
- Numbeo – Singapore
Sources & fact check.
Every number on this page comes from one of these. Last checked September 2026. Tax law changes – confirm with a licensed advisor before acting. Nothing here is tax or legal advice.
- Official IRAS – corporate income tax rates, rebates and exemptions 17% rate, partial and start-up exemption, rebates iras.gov.sg
- Official Ministry of Manpower – EntrePass eligibility EntrePass criteria mom.gov.sg
- Official Ministry of Manpower – Employment Pass eligibility EP salary and COMPASS mom.gov.sg
- Official Ministry of Manpower – ONE Pass ONE Pass threshold mom.gov.sg
- Official ACRA – setting up a local company registration, resident director acra.gov.sg
- Advisor PwC Worldwide Tax Summaries – Singapore corporate exemptions, receipt basis, rebate taxsummaries.pwc.com
- Advisor PwC Worldwide Tax Summaries – Singapore individual personal rates, foreign-sourced income taxsummaries.pwc.com
- Advisor Allen & Gledhill – YA 2026 CIT rebate enhancement 2026 rebate 50%, cap S$40,000 allenandgledhill.com
- Index Numbeo – Singapore cost of living and safety cost of living, safety numbeo.com
- Index EU list of non-cooperative jurisdictions (Council, February 2026) EU Annex I / II status consilium.europa.eu
Similar to Singapore: the closest alternatives.
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Switzerland
11.85% corporate tax in Zug, about 5% income tax on CHF 100k – and a price tag to match.
Corp. tax11.85%Dividends15%Residency
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0% retainedRemote setup€€€
USA (LLC)
A US LLC in days, from your sofa – no US tax without US business, but your home country gets the final word.
Corp. taxpass-throughDividends0%Residency
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United Kingdom
The Ltd banks trust and the LLP that’s transparent – formed online in a day. Low tax it isn’t.
Corp. tax≈22.1%Dividends0%Residency
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