All posts by : Acrabiz

Why is Singapore considered a tax haven for foreign investors?

A tax haven is generally a foreign country that offers foreign individuals and businesses little or no tax liability in a politically and economically static environment. Can Singapore be considered a tax haven? Myth or reality, we shall study it in this article.   

Tax in Singapore is imposed and collected by the Inland Revenue Authority of Singapore (IRAS). The most notable is income tax, which consists of corporate and personal taxes. Everyone who has met specific financial requirements has to pay it.

Singapore’s Corporate Tax Rate

To stimulate business activity, the government of Singapore has purposely kept the country’s corporate tax rate low. The more moderate cost of conducting business activities in Singapore draws the attention of multiple business people who come to the Lion City for company incorporation.

The rate taxed on wealthy foreign investors is relatively low; at just 22% for those in the highest tax bracket. The corporate tax rate is a flat 17% of all chargeable income earned by a company. This rate can be reduced through particular incentives which IRAS has put in place. Productivity Solutions Grant (PSG) and tax inducements are offered to start-ups in Singapore. Tax exemptions are also provided to foreign banks, global trading companies, and offshore funds. 

Personal Income Tax Rates

The personal income tax rates are also moderate. The highest possible tax rate in Singapore is 22%, which is one of the lowest-maximum in the world. Anyone who earns less than S$20,000 per year is relieved from paying income tax. Additionally, capital gains and some dividends are tax exempt.

The status of a tax haven requires an absolute level of confidentiality and privacy related to financial and tax matters. Considering Singapore having one of the world’s strictest legal systems, which guarantees the privacy of everyone who owns offshore bank accounts here, it is much appreciated by investors and high net worth individuals around the world. You don’t have to reveal the identities of beneficiaries of your businesses based in Singapore to the authorities. Companies in Singapore can be incorporated through the use of nominee directors and shareholders. There are also no regulations restraining nationalities of those who are allowed to open a company in Singapore.

For foreign investors finding the sweet spot to run a sustainable and profitable business, yet enjoying high standards of living, exceptional connectivity and accessibility to the rest of the world, Singapore is your haven.

Benefits of doing business in Singapore.

What is Annual Filing?

Under the Companies Act, all Singapore-incorporated companies are required to file Annual Returns (“AR”) with ACRA to ensure that the company’s information on ACRA’s register is up-to-date. All companies in Singapore are required to hold AGMs. The date of your company’s AGM must be declared to ACRA when filing your company’s Annual Return on BizFile. The AGM is a proper way for your company to present its financial statements (accounts) to shareholders (members).

Company officers may face enforcement action for failing to file their company’s annual return. 

Read: Steps to File an Annual Return

Appointment and Renewal of Nominee Director

A nominee director is a local individual whose name is on your business profile but does not take part in your business. According to Singapore’s companies law, it is compulsory to appoint a nominee director who is a legal resident of the Republic. This applies to foreigners setting up their companies in Singapore.  They will incorporate the company and may open bank accounts or perform other business activities as requested by the client.

Importantly, a nominee director ensures that the company complies with the requirements of the Singapore Companies Act. In addition, amendments were made to section 158 of the Singapore’s Companies Act with regards to the relaxing conditions for nominee directors to disclose information to nominating shareholders. This will facilitate more efficient management of groups with listed subsidiaries. Concerns relating to improper use of information or insider trading will be mitigated and governed under the Securities and Futures Act (SFA).

Read: Key Changes to Companies Act impacting Directors and CEOs

Auditing (Exemptible)

With the existence of economic opportunities and political stability, Singapore is a top business destination for investment and locating your business. Businesses must be accountable to the law, procedural and legally transparent.  All companies are subject to auditing of their bookkeeping at the end of each financial year. But, do you know that ‘small companies’ is exempt from having its accounts and financial statements audited? Yes, if it is an exempt private company with annual revenue of $5 million or less. Besides, your business should meet at least 2 or 3 following criteria for immediate past two consecutive financial years:

1. Total annual revenue of SGD 10 million or less；
2. Total assets of SGD 10 million or less；
3. No more than 50 employees.

Read: Key Changes Relating to Audit and Preparation of Financial Statements

Bookkeeping

All directors must ensure that the company keep proper records of their bookkeeping throughout the financial year.  Generally, the following documents are required to be properly filed by the company before finalizing at the end of each financial year, which include:

1. Sales invoice file
2. Payment Voucher file/Expenses file
3. Bank Statement file
4. Supplier Invoice file
5. Petty Cash file (if any)

All companies must bookkeep proper records by Singapore’s accounting practices and comply with the Singapore Financial Reporting Standards (SFRS).

At Acrabiz, we provide sound and reliable accounting and audit advisory services. We keep a better eye on your company’s books and help keep in check your companies’ financial health. Arrange a bookkeeping session with us to find out more.

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Who can apply for the Employment Pass (EP)?

Candidates who:

• Have a job offer in Singapore,
• Are in management, administration and other professional work, and
• Earn at least S$3,600 per month; or if
• You are a more experienced professional who meets a higher salary requirement.

Can I apply for EP with a high school diploma?

Yes, diploma holders who are professionals, highly skilled and experienced, earning higher salaries but do not hold graduate qualifications may also stand a good chance of EP approval.

Can I enter and leave Singapore freely after obtaining an EP?

Yes, you can enter and leave Singapore freely on a valid EP.

How does it benefit me, if I applied for EP?

• With EP, you do not need to apply for a visa within the validity period. You can freely return to and live in Singapore for a long time without any duration of residence.
• If you meet the minimum fixed monthly salary required for EP holders in Singapore, you can bring in family members on Dependant Passes (DP), such as your children. Your children can study directly in Singapore without having to apply for a student permit.
• Each EP holder is regarded as a tax resident of Singapore and will be issued a tax identification number, which you can use to open a bank account in Singapore.

Can I apply for Singapore Permanent Residence (PR) after I get my EP?

You can apply for ICA’s consideration after you have been working here on an EP or S Pass for some time.

How can I appeal if my EP application is rejected?

You can engage Acrabiz to appeal for your EP within 3 months from rejection, but we recommend you to contact us immediately. The appeal process isn’t simple or straightforward, as it may seem.

Is there an age limit for EP application?

No, there is no expressly stipulated age limit for EP Application.

Can I change employers after the EP application is successful?

Yes, you can. However, a new EP from your new employer is needed, unless you have other passes or visas that allow you to validly remain in Singapore.

Do I need a specialist to submit my EP application?

There is a huge amount of information which needs to be curated and a high volume of documents to be added to each application, notwithstanding the forms to be completed and submitted. It is highly advisable to engage a specialist with experience in this area to lessen the burden and ensure a successful application.

Can I submit the EP application myself?

To submit EP application by yourself, your company needs to activate a CPF online account followed by the EP online account. Then, your local director or secretary needs to register a CorpPass for you to log in and apply the EP. The whole set up process may take 1-2 months to complete and nominee director or secretary will most probably refuse you acting on behalf of the company in the submission. Moreover, the whole process is much more complex than you think. As a licensed firm by MOM, we can and are authorized to submit your application and communicate with MOM on your behalf.

What are the common additional documents that MOM will request during the EP application?

Some of the most commonly required documents may include:

• Latest Corporate Bank statement reflecting transactions
• Latest 3 months CPF contribution record
• The employment contract of the candidate indicating the position and salary
• Tenancy Agreement
• Latest sales contract secured by the company
• Justification for the EP application for the individual
• Justification for any document omission

How long does it take to approve EP?

It can take up to 8 weeks for approval. However, some of our clients got their EP within 2 weeks.

What is the duration of the EP?

An EP is usually valid for 1-2 years and can be renewed upon expiration.

Do I need to be in Singapore when EP is submitted on my behalf?

No. However if you want to enter or stay in Singapore before the EP is approved, you need a valid pass or visa.

Do I need to stay physically in Singapore during the validity of my EP?

No.

What is the requirement for EP renewal?

• You can apply to renew your EP up to 6 months before it expires.
• For instance, our clients submit their renewal when they receive the renewal forms by post, 3 months before the pass expires. Their application needs to reach us at least 2 months before the pass expires.

What is the requirement for EntrePass renewal?

• EntrePass holders will receive the renewal forms 3 months before their pass expires.
• Our clients will mail the completed renewal form to us 2 months before the pass expires.
• Renewal will be based on criteria such as the company incorporation, proof of business activities, and shareholding of the companies (i.e. at least 30%).

What are the factors that the Authority will consider in approving my EP?

• Generally, the authority may consider the applicants’ salary, qualifications, work experience and nature of the employment.

What happens if my first EP appeal was rejected?

• You can re-appeal for your EP application if you are rejected on the first attempt.

How long does the application of Dependent Pass take to approve?

• Generally, it takes 1-2 weeks.

Can I submit an EP and DP application together?

• Yes.

Can I apply for Singapore PR?

Yes, you can apply for Singapore PR through the following channels:

• EP or S Pass holders
• Through the GIP programme
• Through sponsorship

Open a Corporate Bank Account in Singapore

According to the World Bank, Singapore is the most convenient country to do business and the most competitive Asian country in the world. After decades of rapid development, Singapore has become a global metropolis of “trade centre + financial centre + headquarters economy + investment centre”. To open a corporate bank account in Singapore, Singapore companies/offshore companies are free to settle international trade funds, and there are no exchange controls, funds can be transferred freely, and various currencies can be freely convertible through bank accounts in Singapore.

READ: Banks here extend aid for retail, business customers

Procedures and requirements

Requirements and procedures to open a corporate account are quite similar across various banks in Singapore, we have compared and summarised the requirements of 4 selected banks for their corporate bank accounts.

The physical presence of signatory/directors in Singapore to sign relevant documents (usually requires two directors). PS: Due to the coronavirus pandemic, many banks are accepting video calls to fulfil the requirement of the physical presence of signatories.

READ: Singapore banks pledge no job cuts due to Covid-19

Commonly required documents:

• Completed KYC Form
• Passport/NRIC of Directors, Signatories, and Ultimate Beneficiary Owners.
• Proof of residential address (ID card, utility bills dated recent 3 months)
• Completed and signed Corporate Account Opening Forms
• Board of Directors Resolution
• Incorporation files (Bizfile, Constitution)

Introduction of Selected Banks in Singapore

DBS Bank is one of the largest banks in Singapore and Southeast Asia. The bank’s strong capital position earned its reputation to be the first bank ever to concurrently hold three of the most prestigious global best bank honours: The World’s Best Bank 2019, Euromoney, Global Bank of the Year 2018, The Banker and Best Bank in the World 2018, Global Finance. DBS has branches and offices in mainland China, Dubai, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, Myanmar, Philippines, Taiwan, Thailand, Vietnam, United Kingdom and the United States.

UOB Bank is a leading bank in Asia with a global network of more than 500 branches and offices in 19 countries and territories in Asia Pacific, Europe and North America. Recognised as an excellent and professionally managed financial institution, UOB earns a series of accolades and awards from leading publications and organisations in the financial services industry, such as the Triple A Country Awards 2019, ABF Corporate & Investment Banking Awards 2018 and AsiaMoney’s Best Awards 2019 for Best Digital Bank (Singapore).

OCBC Bank has a global network of over 600 branches and representative officers in 18 countries and territories. The bank was awarded World’s Best Bank (Asia-Pacific) in 2019 and consistently ranked amongst the top 5 Safest Banks in the world by Global Finance magazine, Asian Banker named OCBC Bank Singapore’s strongest bank for 2018-2019, and fifth strongest bank in Asia-Pacific. OCBC, being the oldest established Singapore bank and the second-largest financial services group in Southeast Asia has fought off stiff competition to win the Euromoney award for Asia’s Best Bank for SMEs in 2019.

Citibank has been in Singapore since 1902 and is represented in nearly every asset class. Citi Singapore is the largest foreign banking employer in Singapore, and it is home to strategically important hubs, Innovation Labs and the Asia Pacific Citi Service Centre (CSC). Recently, it earned its Awards for Excellence 2019 by Euromoney for Best Investment Bank in Singapore. In 2017, Citi was awarded ‘Best Bank – Global’ by The Asset Triple A Country Awards, Best International Bank in Singapore by Asiamoney, Best Bank in Singapore by Euromoney and Best Foreign Bank in Singapore for the 20^th year by FinanceAsia. Citi Singapore was also awarded the Best Bank for Corporate Social Responsibility (CSR) in Singapore by Asiamoney for 2017.

You may refer to the following table for information on minimum balances and fees of corporate account banks.

READ: Banks here cut deposit rates in line with global markets

Other Things to look out on opening a corporate bank account

The bank’s reputation. Reputation is one of the most valuable and fragile assets that a bank can have, assessing a bank’s reputational risk is an extremely important process for all companies considering which banks to go for. After all, reputation is the key to building public and consumer trust.

Physical and digital presence. While we see banks prioritizing and driving digital banking, some customers prefer the physical presence of banks. Both are equally important and it is worth spending some effort to consider which suits your needs and preference.

Banking convenience and banking hours. Sunday banking, extended banking hours, retail banking centres, banker assisted lobbies and virtual banking, etc., are just a few ways the banks had provided for banking convenience. Institutional consumers should consider their operational needs and identify which services would truly help their businesses grow.

Automated, self-service and digital banking. Automation is a growing focus in global banking and many banks are rolling out the top-notch automation technologies, especially artificial intelligence, to connect customers, allowing them to perform a fleet of financial transactions.

Fees and banking charges. More than just a price war, banks are revising their pricing guides for transparency and delineating their scope of products & services. Bank fees are nominal fees for a variety of account set-up and maintenance, and minor transactional services for retail and business customers. Fees can be one-time, ongoing or related to penalties. Particularly you may want to check the account maintenance and minimum balance fees.

Relationship managers and advisors. Some banks provide corporate relationship managers to be the liaison between business customers and the bank. They are the key person representing the bank. However, some customers prefer not to have a relationship manager, so you should check with the bank if a manager is assigned to be your liaison.

Customer services and support. Customer service in banking is one of the most important ways to keep customers coming bank. Look out for friendly, knowledgeable bank employees who are well trained, positive and can address your concerns and provide the solutions. Assess how the customer service responds to you questions and complaints in a thorough and timely manner by interacting with them through face-to-face meetings, telephone, mail fax and email.

Keep your required paperwork and documents organized. A positive and good experience does not depend solely on the bank. You must put in the effort to ensure that your paperwork is complete and accurate. The banking and finance industry is strictly governed and heavily regulated by the Monetary Authority of Singapore, you must prepare all the documents before making arrangements with the banks to open your corporate bank account.

READ: OECD: Economic Outlook for Southeast Asia, China and India

At Acrabiz, we provide consultancy and corporate bank account opening services. Contact us to find out how you can open a bank account swiftly.

Overview of corporate income tax

Did you know that Singapore doesn’t have Value-Added Tax, but the Goods and Services Tax (GST) instead? How does zero percent GST for businesses providing international services sound to your company? What is the tax exemption scheme for new start-up companies?

In this article, we will provide an overview of corporate tax in Singapore, GST rates for local and international services, tax exemption schemes and corporate income tax rebates.

Overview of Corporate Tax in Singapore

Singapore generally imposes income tax on a territorial basis, so only oncome accruing in or derived from Singapore or foreign-sourced income received or deemed received in Singapore is subject to Singapore income tax. A company is taxed on the income earned in the preceding financial year. This means that income earned in the financial year 2015 will be taxed in 2016. With effect from YA 2010, a company is taxed at a flat rate of 17% on its chargeable income regardless of whether it is a local or foreign company.

Goods and Services Tax (GST)

Implemented on 1st April 1994 in Singapore, Goods and Services Tax (GST) Act is a broad-based consumption tax levied on the import of goods (collected by Singapore Customs), as well as nearly all supplies of goods and services in Singapore. In other countries, it is commonly known as the Value-Added Tax (VAT).

Presently, the Inland Revenue Authority of Singapore (IRAS) acts as the agent of the Singapore government and administers, assesses, collects and enforces payment of GST. The current rate of GST is 7%. If your annual taxable supplies exceed $1million, it is compulsory for you to register for GST. Otherwise, you may choose to register for GST voluntarily after careful consideration.

Zero GST on Businesses Providing International Services

Your services are considered international services, which are zero-rated (i.e. GST is charged at 0%), if they fall within the provisions under Section 21(3) of the GST Act.  Depending on the nature of your services, you may be required to determine your customer’s belonging status (i.e. whether the customer is a local or an overseas entity) before your supply of services can be zero-rated.

Tax Exemption Scheme for New Start-up Companies

For newly incorporated Singapore companies which are Singapore tax resident, Singapore has introduced the tax exemption scheme to encourage entrepreneurship and to aid growth of local business. To qualify, the company must not have more than 20 shareholders throughout the basis period if:

• All the shareholders are individuals directly and beneficially holding the shares; or
• At least one shareholder is an individual beneficially and directly holding at least 10% of the ordinary shares of the company.

Change of Tax Exemption Scheme for New Start-Up Companies in Y2020 onward

The maximum exemption for each YA is $125,000 ($75,000 + $50,000).

The tax payable rate is based on 17% included chargeable income after $200,000

Tax Exemption on First $300,000 of Chargeable Income (where any YA of the first 3 YAs falls in YA 2010 to YA 2019)

The maximum exemption for each YA is $200,000 ($100,000 + $100,000).

The tax payable rate is based on 17% included chargeable income after $300,000

Rebate on Corporate Income Tax

In the Budget 2020, businesses will get a rebate on corporate income tax and some enhanced tax treatments in moves aimed at improving their cash flow. Companies will be granted a rebate of 25 per cent of tax payable, capped at $15,000, for the year of assessment 2020 – a move that will cost the Government about $400 million. The tax treatment enhancements include automatic extension of interest-free instalments by two months for payment of corporate income tax on estimated chargeable income. Companies should note that:

1. It has to be filed within three months of a company’s financial year end.
2. Thy will be allowed to carry back the unabsorbed capital allowances and trade losses of up to the three immediate preceding years of assessment.
3. They can opt to accelerate the write-off of the costs of acquiring plant and machinery and renovation incurred for the year of assessment 2021.

Read: Singapore Budget 2020: Companies get 25% corporate tax rebate, other measures to improve cash flow

Need support with your corporate taxes or rebates that your company can claim?

Let Acrabiz help you with you as your bookkeeper, tax controller or business consultant for your accounting and finance department today!

Business Organisations in Singapore

In Singapore, companies are principally governed by the Companies Act (Cap 50, 2006 Rev Ed) (hereinafter “the Act”). It should be noted though that specific types of companies may, in addition to the Companies Act, be regulated by other statutes.

Business organisations can either be incorporated or unincorporated. Incorporation involved creating a separate legal entity. The separate legal entity created can incur its liabilities and have its own rights that are distinct from those of the owners or creators of the entity. The most common forms of incorporated organisations are the company and the limited liability partnership, though there are others such as statutory boards and management corporations. The most common forms of unincorporated organisations are the sole partnership, the partnership and the limited partnership, though there are others such as business trusts.

Read: Comparison of Business Entities in Singapore

Setting up a wrong type of organisation to run a business may affect the business and may affect the owner of the business, although it may be possible to dissolve one form of structure and set up another. Generally speaking, the cost of setting up the wrong type of organisation may be higher than running the business.

Know the Types of Business Organisations First

Importantly before you start your business in Singapore, get to know about the types of business entity you could choose from.

There are 4 main types of business structures to choose from. They are:

1. Sole-Proprietorship (one owner) or Partnership (two or more owners)
2. Limited Partnership (LP)
3. Limited Liability Partnership (LLP)
4. Company

1.Sole-Proprietorship (one owner) or Partnership (two or more owners)

Definition: A business owned by 1 or more person

Registration requirements: Singapore Citizen/Singapore Permanent Resident/EntrePass

Legal status:

• Not a separate legal entity
• Owner/Partners has unlimited liability
• Cannot own property in the firm’s name
• The owner is personally liable for debts and losses of the business, Partners personally liable for partnership’s debts and losses incurred by other partners

Tax: Profits taxed at owner’/partners’ personal income tax rates

2. Limited Partnership (LP)

Definition: A partnership consisting of two or more persons, with at least one general partner and one limited partner

Registration requirements: If all general partners are ordinarily resident outside Singapore, they must appoint a local manager who is ordinarily resident in Singapore.

Legal status:

• Not a separate legal entity
• The general partner has unlimited liability
• The limited partner has limited liability
• Cannot own property in the firm’s name
• General partner personally liable for debts and losses of the LP

Tax: Profits taxed at partners’ personal income tax rates (if individual)/ corporate tax rate (if corporation)

3. Limited Liability Partnership (LLP)

Definition: A partnership where the individual partner’s liability is generally limited

Registration requirements: At least one manager ordinarily resident in Singapore

Legal status:

• A separate legal entity from its partners
• Partners have limited liability
• Can own property in LLP’s name
• Partners personally liable for debts and losses resulting from their wrongful actions
• Partners not personally liable for debts and losses of LLP incurred by other partners

Tax: Profits taxed at partners’ personal income tax rates (if individual)/ corporate tax rate (if corporation)

4.Company

Definition: A business form which is a legal entity separate and distinct from its shareholders and directors.

Registration requirements: At least one shareholder (could be a foreigner). At least one director is ordinarily resident in Singapore.

Legal status:

• A separate legal entity from its members and directors
• Members have limited liability
• Can own property in the company’s name
• Members not personally liable for debts and losses of the company

Tax: Profits taxed at corporate tax rates

Foreign Companies Considering Expanding Your Business to Singapore

If you are a foreign company planning to expand your business in Singapore. Here are options for Singapore company incorporation you may wish to know before proceeding further.

Before you decide on your business type, please note:

• A Singapore Representative Office would not be applicable if you do any income-generating activities.
• A Singapore Branch Office must have the same business activities and name as the parent company.

Read: Choosing a Business Structure

While some businesses choose to act on their own, others turn to Acrabiz or service providers for assistance. Designating us as your appointed agent has many advantages. Our clients have benefited from our physical availability to act for them all the time. Our works are organised and as the gatekeeper between your business and the authority, you can be assured the authorities will receive high-priority, quality paperwork every time. Nothing is accidentally lost or forgotten.

Need support to incorporate the right type of business? Let Acrabiz help you as your business advisor and corporate secretary!

What is GST?

Goods and Services Tax or GST is a broad-based consumption tax levied on the import of goods (collected by Singapore Customs), as well as nearly all supplies of goods and services in Singapore. In other countries, GST is known as the Value-Added Tax or VAT.

In Singapore, GST is charged at the prevailing rate of 7%.

Taxable and Non-Taxable Goods and Services

Refer to the tables to find out which goods or services are taxable or not.

Taxable Supplies

Non-Taxable Supplies

When do you have to register your business for GST?

If your annual taxable supplies exceed S$1million, it is compulsory for you to register for GST.

Possible scenarios

Hereabouts are some possible situations you might face in your business for better understanding when GST is applicable.

Scenario 1. Local sales exceed 10% of total sales.  

Company A has overseas IT contracts worth S$1-2 million. It is confirmed that no GST is payable for international service. However, if total revenue with local income exceeds S$1 million in this financial year-end, should the company register for GST? Should it register after the end of the fiscal year? And after registering GST, should they also pay GST for the previous local sales (IT consultancy, web design, etc.) worth about S$300,000?

You will be liable to register for GST if your taxable turnover at the end of any calendar year is more than S$1 million (retrospective view) or if at any time, you can reasonably expect your taxable turnover in the next 12 months to be more than S$1 million (prospective view).

Retrospective view

From 1 Jan 2019 onwards, at the end of any calendar year (regardless of your business financial year-end), the total taxable turnover made in Singapore from 1 Jan to 31 Dec (i.e. consecutive months) is more than S$1 million.   

If your taxable turnover for the calendar year 2019 did not exceed S$1million, you will not be liable to register for GST under retrospective view.

However, if at any point in time, you forecast and expect the taxable turnover to exceed S$1 million for the next 12 months, you will be liable to register for GST. You will need to register on the 31st day from the date of the forecast.

You can only start charging GST from the effective date of GST registration given to you after approval.

The previous local sales of $300,000 were earned before the company registered for GST. Those are not liable to pay GST.

Scenario 2. Local sales are below 10% of total sales.

For example, sales revenue total is S$5 million.

Example 1

Total sales are S$5 million. Local sales (S$300,000) is 6% of total sales, but the taxable turnover has exceeded $1million (local sales S$300,000 + international service S$800,000). The company is liable to register for GST.

Example 2

Total sales are S$5 million. Local sales ($300,000) is 6% of total sales, but taxable turnover did not exceed S$1million (local sales S$300,000 + international service S$500,000). The company is exempt from registering for GST.

GST registration liability is assessed on the total value of taxable supplies exceeding S$1 million and not in terms of the percentage of local sales to total sales.

How to rent an apartment in Singapore?

After you decide to move to Singapore, one of the most significant challenges is finding accommodation that fits your needs and requirements. Here is some information on how to rent a flat or house in the Lion City.

City Areas

Singapore might be one of the smallest countries in the world, but it has a well-developed infrastructure with multiple areas. Numerous factors can affect your preferences on where to stay, such as office location, school or preschool availability if you move with children, distance from Singapore MRT stations, etc. 

Singapore is divided into five regions, which consist of 28 districts.

Singapore map. Picture: iProperty.sg

Each region has its pros and cons. The central area is close to the city core, central business district and many tourist attractions. In the western part, a crucial commercial centre is budding; this is where Jurong East is located. The eastern region is close to Changi Business Park and Singapore Changi Airport; The northeastern part is a mainly residential area, and the northern region is more intimate to the border with Malaysia.

Accommodation types

Here are three types of housing available in Singapore:

HDB flats

These are public housing managed by the Housing and Development Board of Singapore. Commonly referred to as HDB. 

Approximately 79% of the residents live in public housing. The housing estates usually have preschools, schools, supermarkets, clinics, hospitals, food courts (hawker centres) and sports facilities. 

Condominiums

If you enjoy strata living and higher-class housing estates, you can choose the condominiums, which usually provides 24-hour security service, swimming pools, gyms and barbecue pits.

Private houses

Even though in this land-scarce country, there are still many landed houses available for rent. These also include traditional shophouses in the city centre or terrace houses and bungalows in the lush green estates in the northern region of Singapore.

Renting the whole unit or just a single room is another option you can consider, depending on your budget. 

Rent Prices

Just as any developed countries, rent prices tend to be lower the farther you are from the city centre. Nevertheless, the price also depends on the type of housing, size, furnishings, and distance from transportation and amenities. Unsurprisingly, the rent prices will vary between units in the same estate.

In general, the price of renting a bedroom of a shared apartment starts from S$800. Rental of a one-bedroom flat usually starts from S$1700 per month.

Finding an Accommodation

To find a property to rent, you can refer to property websites, go through property agents, or search in Facebook groups and forums. 

The most popular property websites in Singapore are:

1. PropertyGuru https://www.propertyguru.com.sg
2. 99.co https://www.99.co 
3. iProperty https://www.iproperty.com.sg/rent/ 
4. Gumtree https://www.gumtree.sg
5. STProperty https://www.stproperty.sg
6. SRX Property https://www.srx.com.sg
7. Singapore Expats Forum https://www.singaporeexpats.com 

The fastest and hassle-free way is to engage a housing agent’s service. The agent hunt for the house or room according to your budget, bring you for viewing and facilitate the tenancy agreement process. 

Property agent fees

Note that for rental of housing in Singapore, agents can collect fees from only one party – either the landlord or the tenant. If the agent works for the landlord – you don’t have to pay any fees, but you would only view properties of landlords with whom agent works.

If you want an agent to look for properties without connections to specific landlords, you must pay the agent’s commission yourself. Usually, it starts from half of the 1-month rental for the accommodation you rent eventually. The commission depends on the length of the lease.

Sometimes you can find ads from landlords directly on forums or Facebook groups, which is the cheapest alternative, but you are on your own.

For someone who wants to settle into their lodging fast, they should consider engaging a housing agent.

Renting Procedure

Once you find the place you want to rent, you should go through the following procedures:

1. Make an offer

In this stage, you can bargain about the price and confirm your intentions with the owner. 

2. Sign a Letter of Intent

The letter confirms your intention to rent the place from the landlords and indicates that he will stop searching for tenants. Before signing, you should negotiate all the rental terms and conditions, such as repairs and maintenances that you will be responsible for, minimum lease term, security deposit, etc.

Often you need to pay the good faith deposit together with the Letter of Intent. This payment goes towards your security deposit after you sign the tenancy agreement. The security deposit is usually one (1) month’s rental for a one-year lease or two (2) month’s rental for a two-year contract. 

Make sure you fully understand your liabilities and the landlord’s recourse in the tenancy agreement.

3. Sign the tenancy agreement

4. Pay the rent

Be sure to pay on the date agreed in the agreement. Usually, you need to pay by a bank transfer from a local bank account. If you do not have an account, learn how you can open a bank account.