Cost of Living & Taxes for Foreigners in Singapore
Foreigners living and working in Singapore enjoy high salaries and a world-class infrastructure, but they must also navigate the city’s high cost of living and tax obligations. If you’re wondering, “How much is tax for foreigners in Singapore?”, understanding your tax liabilities and expenses is essential for effective financial planning.
At Emvertex Credit, we offer tailored financial solutions, from personal loans for foreigners to debt consolidation plans, ensuring that expats can manage their finances effectively in Singapore.
Understanding Taxes for Foreigners in Singapore
Resident vs. Non-Resident Tax Status
Singapore’s tax system differentiates between residents and non-residents:
- Tax Residents: Foreigners staying in Singapore for 183 days or more in a year are taxed progressively from 0% to 22%.
- Non-Residents: Foreigners in Singapore for less than 183 days face a flat tax rate of 15% on employment income or the progressive resident tax rate—whichever is higher.
Singapore Non-Resident Tax Rates
- For non-residents, different types of income are taxed as follows:
- Employment Income: 15% flat or progressive resident rates (whichever is higher).
- Director’s Fees, Consultation Fees, and Other Payments: 22% flat tax.
- Rental & Other Non-Employment Income: 22% tax.
Non-residents cannot claim tax reliefs or deductions, making it essential to plan tax-efficiently.
Foreigner Income Tax in Singapore: What to Expect
If a foreigner qualifies as a tax resident, their progressive tax rates apply.
Foreigners earning S$60,000 annually would pay about S$3,350 in taxes, significantly lower than the 15% non-resident flat tax of S$9,000.
Breakdown of Major Expenses for Expats in Singapore
Housing Costs
- Condo Rental: S$3,500 – S$8,000 per month.
- HDB Rental: S$2,500 – S$4,500 per month.
- Buying Property: Foreigners pay 60% Additional Buyer’s Stamp Duty (ABSD).
Transport Costs
- Public Transport: S$100 – S$150 per month.
- Ride-Hailing Services: S$10 – S$30 per ride.
- Car Ownership: Expensive due to COE (Certificate of Entitlement).
Food & Grocery Costs
- Hawker Centres: S$5 – S$10 per meal.
- Mid-Range Restaurants: S$20 – S$50 per meal.
- Monthly Grocery Bill: S$300 – S$800, depending on household size.
Healthcare & Insurance
- Public Healthcare: Subsidised but not for foreigners.
- Private Health Insurance: S$200 – S$500 per month.
Education for Children
- International Schools: S$20,000 – S$40,000 per year.
- Local Schools: More affordable but limited spaces for foreigners.
How Foreigners Can Optimise Tax Payments in Singapore
Tips for Reducing Tax Obligations
- Stay in Singapore for 183+ Days – Qualify for resident tax rates and save significantly.
- Claim Tax Reliefs – Resident foreigners can deduct course fees, parent relief, and other allowances.
- Maximise CPF Contributions (if PR status applies) – Tax-deductible for Singapore PR holders.
- Negotiate with Employers – Request tax-equalised salary packages.
How Emvertex Credit Can Help Foreigners Manage Finances
Emvertex Credit provides customised financial solutions for foreigners, ensuring smooth financial management in Singapore.
Personal Loans for Foreigners
Flexible loan options to cover living expenses, medical bills, or emergencies.
Business Loans
Startup funding and expansion financing for entrepreneurs.
Debt Consolidation Plans
Reduce high-interest debt and manage payments efficiently.
Flexible Repayment Terms
Affordable instalments suited to expat cash flows.
Conclusion
Singapore offers a high quality of life, but foreigners must prepare for high living costs and taxes. The question “How much is tax for foreigners in Singapore?” depends on residency status, with non-residents paying more due to the 15% flat tax rate.
By planning tax-efficiently, choosing the right housing, and managing expenses wisely, expats can enjoy a financially secure life in Singapore.
For those needing financial assistance, Emvertex Credit provides tailored personal loans, debt consolidation, and business financing solutions—helping you stay in control of your finances while living in Singapore.
📞 Need financial assistance? Contact Emvertex Credit today!
