Singapore Permanent residency is becoming more and more popular among foreign nationals living in Singapore, but why is this such an attractive option? We’ll take a look at the advantages of obtaining PR, any possible disadvantages and will also provide some tips for your application.
Becoming a Permanent Resident
Advantages of Singapore Permanent Residence (PR)
- - Ease of Changing Jobs. As a PR, you no longer require a work pass to work in Singapore which means it’s easier to change jobs without having to worry about your EP being approved for your new role. Also, being a PR may open up new opportunities for you as many employers may only be looking for PRs or local citizens.
- - Income Tax Clearance. Tax clearance is required when EP holders cease employment in Singapore, regardless of whether the individual is simply changing jobs in Singapore or leaving Singapore permanently. This process requires the EP holder to settle all taxes and the employer is required to withhold monies payable to the employee. However, tax clearance is not required for PRs who are leaving Singapore permanently and they may continue to settle their taxes in arrears in the normal manner and no monies will be withheld by the employer for this purpose.
- - Central Providence Fund. PRs and their employers are required to make monthly contributions to the CPF. CPF is a comprehensive social security savings plan with benefits that encompass retirement, healthcare, home ownership, family protection and asset enhancement. Moreover, should you decide to leave Singapore at a later stage, you can cash out your CPF savings.
- - Purchasing Property. Expatriates, including PRs, are generally allowed to purchase non-restricted properties only (e.g. condominium apartments) and should they wish to purchase restricted properties (e.g. vacant land, landed properties, etc.) they would require the permission of the Singapore Land Authority. However, unlike an EP holder, a PR is eligible to purchase from the resale market public housing flats developed by the Housing and Development Board (HDB Flats).
- - Singapore Citizenship. Should they so wish, PRs are eligible to apply for citizenship after 2 years of obtaining PR.
Read more about Singapore Permanent Residence at Singapore Company Incorporation.
