No tax on capital gains
No wealth tax or inheritance tax
A Singapore Pte. Ltd can be taxed in the owner’s home country
Singapore offers one of the most business-friendly and internationally respected environments for company formation. With a territorial tax system, no capital gains tax on disposal gains and attractive tax exemptions for foreign-source income, it is particularly appealing to entrepreneurs and HNWIs building cross-border structures.
A Singapore Private Limited Company (Pte. Ltd) provides a high level of legal certainty, access to the international market and a stable financial system and not limited to Asian one. The jurisdiction permits foreign ownership, has no exchange controls and is not on any EU blacklist. Incorporation is quick and efficient, and the system is fully digitalised.
Singapore is widely regarded as one of the most attractive jurisdictions for international entrepreneurs not only because of its efficient legal infrastructure and banking system, but also because of how foreign-source income is treated for tax purposes. Singapore applies a strict territorial tax regime. This means foreign-source income such as dividends, interest and capital gains remains fully exempt from corporation tax as long as it is not remitted to Singapore or, if remitted, the exemption conditions are met. As a result, foreign-owned companies with no local income often benefit from an effective tax burden of zero. Despite the headline corporation tax rate of 17%, Singapore grants generous tax exemptions for new companies and foreign-source receipts, which significantly reduces the actual tax payable.
This framework has led many respected institutions, including academic and economic research bodies, to classify Singapore as a tax haven – albeit a transparent and well-regulated one. Importantly, this does not reflect badly on the jurisdiction. On the contrary: Singapore fully meets OECD, FATF and BEPS framework requirements and continues to offer strong banking and legal certainty. With no capital gains tax on disposal gains, no withholding tax on dividends and no estate or inheritance tax, it is a preferred jurisdiction for entrepreneurs and HNWIs seeking long-term asset protection and strategic cross-border planning. In addition, the Singapore Private Limited Company (Pte. Ltd) allows 100% foreign ownership, limited liability, fast digital incorporation and access to a globally respected banking network. For clients focused on wealth structuring, IP ownership and mobile global business models, Singapore remains one of the world’s most reliable and future-oriented destinations.
We provide a complete legal and tax strategy tailored to your business objectives. Let’s check whether Singapore is right for you.
| Tax Burden | Banking | Reputation | Bureaucracy | Legal Security | Costs | |
|---|---|---|---|---|---|---|
| Singapore | 0% |
|
|
|
|
from EUR 2,950 |
| USA | 21-0% |
|
|
|
|
from EUR 1,900 |
| Hong Kong | 0% |
|
|
|
|
from EUR 1,900 |
| Cyprus | 15% |
|
|
|
|
from EUR 1,900 |
| Malta | 5% |
|
|
|
|
from EUR 2,500 |
| Ireland | 12,5% |
|
|
|
|
from EUR 1,950 |
| Trust | 0% |
|
|
|
|
from EUR 4,900 |
| England | 25-19% |
|
|
|
|
from EUR 1,000 |
Your country of residence may apply tax and reporting requirements to foreign business activities and dividend income, including in certain cases even where profits are not distributed.
Depending on your personal circumstances, a suitable holding structure may be required to comply with tax rules and avoid unnecessary tax risks.
To assess which jurisdiction and structure best meet your requirements, please use the contact form and describe your plans in as much detail as possible.
Our advisers will be happy to review your case and advise you accordingly.
