As investors and high-net-worth individuals look to settle in growing economies, Singapore has become one of the most popular options in Asia.
With a current GDP per capita of $84,734, business friendly tax policies and a high quality of life, the city has become an increasingly appealing option for entrepreneurs and investors alike.
And with the announcement of their Global Investor Programme (GIP), gaining residency there is now easier than ever….if you have the capital to invest.
What Is Singapore’s Golden Visa?
Singapore’s golden visa, otherwise known as their Global Investor Program (GIP) allows entrepreneurs and investors to achieve residency through investment.
Introduced in 2004, the programme is designed to give people easier access to Singapore’s lifestyle, in exchange for a boosting their economy.
Through the visa, applicants get:
- Permanent residency within 9-12 months.
- After two years of permanent residence, investors can apply for Singaporean citizenship.
- Singapore has no capital gains tax and no tax on foreign income, making it very appealing to investors.
- A high quality of life, with great trade links to the rest of Asia.
Once they have the visa for 2 years, applicants can apply for Singaporean Citizenship. However, it is worth noting that Singapore doesn’t allow dual-citizenship, so it does mean renouncing other passports.
It’s also worth considering that due to the country’s conscription laws, children of applicants will be eligible for military service.
What Are The Investment Options Under the GIP?
In order to gain residency through the visa, applicants have to choose one of the following investment options:
1. Investment In A Business (Option A)
Invest at least SGD 10 million (approx £5,855,750) in a new business or an existing business in Singapore.
The business must operate in one of the pre-listed approved sectors such as technology, finance, healthcare, logistics or clean energy.
The investor must present a five-year business plan and employ at least 30 people, including 10 new hires.
2. Investment In A GIP-Approved Fund (Option B)
Invest SGD 25 million in a government-approved investment fund that supports Singapore-based companies.
3. Establishment Of A Family Office (Option C)
Set up a Single-Family Office with at least SGD 200 million in Assets Under Management.
At least SGD 50 million of that SGD 200 million must be invested within Singapore under the 4 main investment categories.
The family office must hire at least five employees, 3 of which must be from Singapore.
More from Business
- Effective Ways To Increase Employee Productivity
- Crypto Clash: OKX vs. Coinbase
- Decant Index Transforms Rare Spirits into Mainstream Investment Vehicles
- What Are The Core Competencies For A Successful Career in Compliance?
- How Can Aspiring Private Bankers Build a Successful Career?
- Top Industries for Investment In Uruguay
- Which Industries Will Be Most Affected By The 2027 Landline Shutdown?
- How To Start A Business In Serbia
Who Is Eligible For The GIP?
Not everyone is eligible to apply for the GIP even if they have the money. In fact, the government wants to be sure that candidates show that they have a lot of business experience, in order to qualify.
All applicants will have to present a declaration of good character to vouch for themselves but they must also show a ton of business experience, including:
1. Business Owners
Own at least 30% of a company with an annual turnover of SGD 200 million for the past three years.
2. Next-Generation Business Owners
Must be part of the management team of a family business with an annual turnover of at least SGD 500 million.
3. Founders of Fast-Growing Companies
Must be the founder and largest shareholder of a company with a valuation of at least SGD 500 million.
The company must have had investment from reputable venture capital or private equity firms and can not be publicly listed.
The same criteria above also applies to those that own Family Offices.
How To Apply For The GIP
Getting residency through the GIP can take anywhere from 9 months to a year.
In order to apply, applicants will need to:
Submit application: Complete the online and paper forms along with all relevant documents. This includes a SGD 100 processing fee.
Attend an interview: If the application goes through, the investor is invited for an interview with the Economic Development Board (EDB).
Receive Approval-in-Principle (AIP): If approved, the applicant will get an Approval-in-Principle (AIP) letter, valid for six months.
Make investment: Then, the investor must make the necessary investment within these 6 months. Failure to do so puts them at risk of losing the visa.
Submit proof: The investor must share proof that they have made the investment, including any bank statements and share certificates.
Approval: The Immigration & Checkpoints Authority (ICA) will then share a final approval letter. From there, the investor has 12 months to go to Singapore and register as a resident.
The total application costs are around SGD 7,000
Is The Singapore Global Investment Visa Worth It?
Singapore’s golden visa (GIP) can be a great way to gain residency in this growing and exciting economy.
With a stable political environment, a good quality of life and strong public services, it’s no surprise that it’s such an appealing offer.
Whilst the investment threshold is high, working with a consultant can help you navigate the process easily.
So, if you are thinking of moving to Singapore, good luck!