- December 12, 2022
- Posted by: leadgen-admin
- Category: Business plans
Why Become a Singapore Permanent Resident? Here are all the Top Benefits you can Reap
Often described as the ‘Lion City’, Singapore is also famous for its ideal location within South East Asia, which may be a reason for it being considered a hub for travel, technology, finance, and more. In addition, it also boasts excellent infrastructure, a top-notch islandwide transport network, a thriving business environment, a multicultural society, and effortless living. Add to that its governance system and international recognition, and you have the perfect environment to soar!
It’s no secret, then, that many people would love to attain PR status in Singapore, owing not only to the above-mentioned facts but also to the unique advantages a Permanent Resident receives in the country. Regardless of what work visa one has here, it is not as beneficial as holding a PR.
Before we list down the top benefits you stand to reap as a PR, here is a little information about Singapore’s PR status:
A PR is, essentially, a residential status given to foreigners who wish to reside long-term in Singapore. It is more beneficial than any visa but less inclusive in comparison to Singaporean citizenship.
Those who would like to take advantage of the job opportunities and conducive business environment in Singapore will greatly benefit from taking a PR here, as it will open new doors for them in the most unique ways. Here are all of the top benefits you can expect to reap as a PR here:
Low-cost Housing – You can buy resale (secondhand) HDBs after you have spent 3 years in Singapore, and need only pay half the stamp duty that a foreigner pays. This also means that you are not limited to buying expensive private property like foreigners.
Affordable Education and Public School Priority – If you are a PR and have kids below the age of 21, they get priority entry to the local public educational institutions (after Singapore citizens). They are also allocated more places in school, which is important for them at this crucial phase of life. Moreover, they can leverage Singapore’s world-class education system to their advantage. Government subsidies have made public schools widely accessible.
Central Provident Fund Plan – As per workforce law, a permanent resident has to contribute a small percentage of his/her salary to CPF, which is compulsory. The employer is also required to contribute certain funds to the CPF account, on top of the monthly salary. CPF functions as a retirement fund for old age, and also provides access to funds for buying a house, medical bills, insurance, and investments. CPF increases manifold on a long-term basis, and cannot be withdrawn directly until one is 55.
Tax Relief with Monthly CPF Contributions – The government in Singapore provides tax reliefs for top ups (limited to specific amounts) made to the Special, Retirement or MediSave account. These tax reliefs are subject to certain conditions, and can be viewed here.
Stable Career – With a PR, you don’t need to worry about reapplying for a work permit after each job change. Plus, there is always a big risk of having your work pass application rejected by the government or your employer, which means you will have to leave the country. As a permanent resident, you are safeguarded from such possibilities and are free to change your job as and when required. Most employers in Singapore also prefer to hire PRs, as they can avoid the tedious work pass application required for foreigners. Also, hiring a PR gives them a higher quota to hire additional foreigners, which is beneficial for them.
Coverage of Certain Medical Expenditures – Under the MediSave Maternity Package, a PR can use MediSave for pre-delivery medical expenses, delivery expenses, and daily hospital charges. Each procedure has a different withdrawal limit. In addition, there are also other medical subsidies provided by the government that PRs stand to benefit from.
Easy Loan Applications for Investments/Housing/Vehicles/Business – As a PR, you can borrow a loan from a bank to invest, start a business or buy a property or vehicle. There will be minimum processing time and lower interest rates for getting loans approved. Meanwhile, employment pass holders will face a tough time getting their loan approved, due to the high rejection rate and increased processing time.
A Stepping Stone to Singapore Citizenship – A PR is eligible to apply for citizenship in Singapore after fulfilling certain criteria. Once you become a Singaporean, you gain voting rights, increased subsidies for housing, and a powerful passport, which enables you to travel anywhere in the world, without the need for a visa.
Start a Sole Proprietorship in Singapore – As a PR, you are eligible to register for a sole proprietorship in Singapore. As a single owner, you can completely control the running of your business, make it easier to manage, and also more profitable. Please note, however, that having a PR does not exempt you from registration or any other conditions required under the respective professions for which professional registration to practise in Singapore is required. Examples of such professions include: medicine, dentistry, pharmacy, architecture, law, etc.
Apply for PR status for your Spouse and Children – As a PR, you are eligible to apply for PR status for your spouse and unmarried children (below 21) too. Your school-aged children will be prioritised, and will come second to Singaporean citizens when it comes to your choice of public schools. As for your parents, you can apply for long-stay visas for them so that they can reside with you for a longer term in Singapore.
Simplified and Automated Travelling to and fro Singapore – Whether you’re travelling for business or leisure, having a PR makes travelling a whole lot easier. You do not have to worry about complex visa procedures, and can benefit from the automated check-in facilities available at the state-of-the-art airport. While travelling, do keep in mind that all PRs have to hold a valid re-entry permit, to enter Singapore again. Take care to ensure that the re-entry permit does not expire outside Singapore, as this will prevent you from entering the city-state, and will lead to the loss of your permanent residence status.
Reside, Study, Work, Live, and Retire in Singapore – As a PR, you are only required to renew your re-entry permit once every 5 years. Having permanent residency with a valid re-entry permit enables you to move in and out of Singapore freely. You enjoy certain living and employment benefits that are only made available for Singaporean citizens.
Political Stability and Security – As Singapore has strict laws and regulations in place, peace and order has been maintained. Regular police and military patrol, alongwith surveillance has helped prevent many crimes from happening. Infact, the country is renowned for having some of the lowest crime rates in the world.
Business-Friendly City – When it comes to starting a business, Singapore has a top ranking, due to its reliable infrastructure. In fact, company registration here can be done within 1 day! In addition, Singapore is also well connected, and has strong innovative policies, significant government subsidies, and a convenient location within South East Asia. Plus, a PR can easily start his/her own business without the need for a Singaporean principle owner.
Retirement in Singapore – As a permanent resident, one has the right to retire in Singapore, and live out the rest of their years within the nation while enjoying the rights they have as PRs. This is an advantage that’s not available to foreigners, as they cannot apply for any retirement visa to help them retire in the city-state.
The above benefits clearly explain the benefits of Singapore’s coveted PR status, and how long-term residence here can do so much good for the person in question, as well as their families.
At SingaporePR.com.sg, we are committed to helping you utilise the available opportunities most efficiently. Please let us know if you have any questions or concerns regarding your PR application. Thank you for your time!