Having grown a company and built wealth, the next things to consider are questions of where to live, where to start the next business, and what to leave to your children.

One of those options is Singapore. The difference in the tax burden is, of course, a major reason. However, if you choose your relocation destination based solely on tax rates, you will run into problems such as being unable to obtain residency qualifications, incurring higher-than-expected living costs, and remaining subject to Japanese taxation.

The appeal of Singapore lies in the ability to manage asset management, business, and family life together from an international hub. To make relocation successful, these three elements must be designed together with tax planning.

This paper explains the reasons why wealthy individuals and owner-executives living in Japan choose to relocate to Singapore, focusing on how they actually proceed with the move, while also comparing it with Switzerland and Hong Kong.

Why Singapore: Not Just Money, but People and Jobs Gather There

Singapore Economic Development Board (EDB) introduces that over 2,000 single-family offices have been established in the country. A family office is an organization that supports the asset management and succession of a single family.

This number does not represent the number of migrated Japanese people. The number of wealthy migrants and the number of family offices cannot be confused. However, it is clear that asset management hubs and specialists are concentrated in Singapore.

As assets grow, a simple bank account is no longer enough. Investing in multiple countries, selling a company, launching your next venture, passing wealth down to your children—each requires tax, legal, and financial experts. EDB also highlights the concentration of professional services that support everything from asset management and tax/ legal matters to trusts and philanthropy.

For the wealthy, value lies not simply in living somewhere with low tax rates, but in being able to build the next chapter of their lives in a place that expands their options for assets and business.

However, this does not mean that "all wealthy people are choosing Singapore." Which country is suitable depends on the type of income, the location of the business, and the family structure.

What's the difference in taxes? — Considering salary and investment gains separately

The explanation that "Singapore has low taxes" is insufficient as a basis for decision-making. Let's break down what is taxed and what is not.

The tax rates and tax scopes are respectively by the Inland Revenue Authority of Singapore (IRAS)individual income tax rate and Capital gains from investment assets and foreign income and dividend and estate tax and Corporate tax rate and GST tax rate Based on the individual's tax residency. Taxes imposed in the investment destination country will be considered separately.

The top tax rate of 24% does not mean that 24% is applied to all income.

It is a progressive taxation system where higher tax rates apply to the upper portions as income increases. In Japan as well The income tax rate is a progressive scale ranging from 5% to 45%. However, in Singapore, the tax brackets and deductions are different.

In Japan, resident tax and the special reconstruction income tax also need to be considered separately. What you should compare is not just the maximum tax rate, but the annual tax amount calculated by factoring in your income and deductions.

What is significant for the wealthy is the difference when they sell assets.

Even with the same 1 billion yen in assets, the tax burden changes depending on whether the annual income comes from salary, dividends, or capital gains from stock sales.

In Singapore, capital gains from the sale of stocks and financial instruments as personal investments are generally tax-free. Therefore, deciding where to conduct future asset management is an important topic for high-net-worth individuals.

However,Profits earned by investing one's own assets are not the same as profits earned as a business. Regarding cryptocurrencies, IRAS also Normal income taxation rules apply to business-related purchases, sales, and receipt of compensation. and explains that you cannot simply lump it all together and say, "In Singapore, all income related to crypto is tax-free."

Also, when selling shares in a Japanese company, you must simultaneously review Japanese taxation, tax treaties, and the exit tax described below. It is not a matter that can be resolved simply by moving right before realizing a large capital gain.

It's not true that salaries remitted from Japan are tax-exempt.

Working in Singapore in reality and receiving compensation from a Japanese company does not mean that the money is tax-exempt in Singapore just because it goes into a Japanese account.

IRAS is Working in Singapore for a foreign employer, citing it as a taxable case. The remittance route and the location where income is generated are different.

If you are a company owner, in addition to your own taxes, you consider whether the activities conducted in Singapore will also affect the company's tax liabilities. If you plan by looking only at the individual, this issue is easily overlooked.

With private banks, the relationship after opening an account is also important.

When managing assets after relocation, private banks are also an option to consider for consultation. This is a service tailored for high-net-worth individuals, where a dedicated representative serves as a continuous point of contact for consultations on wealth management, estate planning, and more. For example, At UBS's Singapore hub, in addition to asset management, we provide wealth planning with an eye toward the family's future. is guiding.

What matters is not just having an account with a famous bank, but whether you can work with a representative who understands your goals. We will discuss when and in which currency money will be used for living expenses, how much capital to retain for the business, and what level of price decline is acceptable. We will share these conditions and review the mechanics, risks, and fees of the proposed products. Ideally, we would also coordinate investment consultations with the bank alongside tax verifications in both Japan and Singapore.

How to compare private banks in Singapore, Switzerland, Hong Kong, and elsewhere will be covered in detail in a separate article, "Comparing Global Private Banks: How to Choose Based on Minimum Deposit, Fees, and Services."

There is also value in being able to live with my family and continue my business.

In which language should the children be educated? How should we handle travel and business between Japan? Will the spouse work as well? What should we do if our parents need nursing care?

These are not listed in the tax rate tables, but they are conditions that determine whether migration will continue. Even if educational environments and professional services are available, it does not necessarily mean they will suit one's own family.

In education, you first check for available spots at your desired school, the language of instruction, admission requirements, commuting distance, and tuition fees. The selection criteria differ among local schools, international schools, and Japanese schools. Dedicated selection system for foreign students entering public schools in Singapore and it cannot be assumed that moving will automatically grant admission to the desired school.

Even if a relocation is tax-reasonable, it will not last if the family cannot make a living. It is easier to make a plan if you check the location relative to schools or work and then narrow down where to live, rather than deciding on housing first.

Even the wealthy will need qualifications to live there.

This is the first point to check in the relocation plan.

Owning assets, opening a bank account, establishing a company, and staying long-term to work are all different things. ACRA (Accounting and Corporate Regulatory Authority) also requires foreigners to have a work pass to move to Singapore and operate a business. explains that

Simply creating a foreign corporation does not mean that the business owner can continue living there freely. Those who wish to retire from work and live solely off asset management must also check which status of residence is available to them.

Compare the main migration routes

The basis is from MOM (Ministry of Manpower)EP and EntrePass and ONE Pass, of EDB GIP This is. The table compares typical routes and does not list all qualifications based on family relationships or the like.

When considering working for my own company, I first look at the EP conditions.

For owner-executives, an approach to consider is actually managing and conducting business activities at the local subsidiary and reviewing the EP corresponding to those duties. However, being a shareholder does not guarantee permit approval.

The current minimum fixed monthly salary for an EP is 5,600 Singapore dollars for general industries and 6,200 Singapore dollars for the financial sector. This is the level for those aged 23 and under, and the required amount increases with age. For those aged 45 and above, it is 10,700 and 11,800 Singapore dollars, respectively.

Furthermore, as a rule, a score of 40 points or more on COMPASS is required. COMPASS is a system that evaluates not only the individual's salary and qualifications, but also the company's human resource composition. While there are exemptions for high salaries,It is not a system where you can just start your own company, set your own salary to the minimum amount, and get it approved.

Additionally, For new applications filed on or after January 1, 2027, the minimum salary threshold will be raised. For general industries, it is 6,000 Singapore dollars for those 23 and younger, and the criteria by age will also change. Regarding renewals, since the new criteria will apply to passes expiring on or after January 1, 2028, business plans must be formulated by looking ahead not only to the time of application but also to renewal.

Permanent residency for investors requires both a large financial investment and strict conditions.

Government response regarding GIP in February 2026 Then, the methods shown are investing SGD 10 million or more in a business, investing SGD 25 million or more in a designated fund, or setting up a family office with assets under management of SGD 200 million or more, of which SGD 50 million or more must be allocated to designated investments.

This does not mean that anyone can purchase permanent residency just by preparing that amount of money. There are the applicant's business track record and requirements for each system, and it is also necessary to confirm the conditions for continuing investment and operation.

Also, the establishment of a general family office, tax incentives for funds, work visas for executives, and permanent residency through the GIP are all separate schemes. If you lump these together and understand it as "you can immigrate if you set up a family office," the actual conditions will become obscured.

For family migration, consider a DP (Dependant's Pass).

I need a visa not only for myself, but also for my spouse and children to live together.A DP (Dependant's Pass) is a pass that allows family members of certain work pass holders to stay in Singapore.It is.

Key requirements for Dependant's Passes (DP) issued by MOM for families of Employment Pass (EP) holders is as follows.

The salary required to obtain one's own EP and the salary required to apply for a family member's DP are not necessarily the same. Since there are separate requirements for family members of an EntrePass or ONE Pass, we will check them in combination with the principal applicant's route.

Parental accompaniment is not a DP, but Considering a Long-Term Visit Pass (LTVP), and for EP holders, conditions such as a fixed monthly salary of 12,000 Singapore dollars or more for the main applicant There is.

Also,Just obtaining a DP does not mean your spouse can freely work at a local company. When employed, such as EP, S Pass, and Work Permit holders for DP holders, Work qualifications and permits corresponding to work styles I will check. When running your own business, there is also a system to apply for a Letter of Consent (LOC) depending on the conditions.

When considering permanent residency, you need to look ahead to your children's future as well. that for males who obtain permanent residency through parental sponsorship or similar means, National Service obligations will arise. also explains.

There are tax matters that need to be sorted out before leaving Japan.

Withdrawing your certificate of residence and becoming a non-resident for tax purposes are not the same thing.

The National Tax Agency defines "address" as the center of an individual's daily life and determines it based on objective facts. explains that

I obtained a residence status in Singapore. I submitted a notification of moving abroad in Japan. Those two things alone do not allow us to conclude that you have become a non-resident under the Japanese Income Tax Act. We will confirm where your actual life is located, including your residence, family, and occupation.

It is not as simple as the rule: "If you spend 183 days abroad, you won't be taxed in Japan." Tax residency determination in Singapore and that in Japan are separate. If you are considered a resident in both countries, adjustments based on the tax treaty will also be considered.

If the target assets are 100 million yen or more, check the exit tax.

In Japan Exit tax There is a system that, when certain residents leave the country, taxes unrealized gains by deeming subject assets to have been sold, even if they have not actually been sold.

The basic requirements are that the value of the subject securities, etc., is 100 million yen or more, and that, in principle, the total period of having an address or residence in Japan within the 10 years prior to departure exceeds 5 years.

The 100 million yen mentioned here is not the amount of unrealized gains. Nor are all assets evaluated together at once. Not only listed stocks, but also unlisted stocks held by owner-executives are targets that cannot be overlooked.

For example, individuals whose company stock has significantly increased in value need to check exit taxation first, even if they relocate before selling the shares. Tax deferral comes with conditions such as collateral and notifications, and it should not be simply thought of as "postponing taxes."

Japanese real estate income and inheritance tax may remain even after emigration.

Even if you emigrate, such as income generated from Japanese real estate, domestic source income subject to taxation in Japan remains. For each source of income, we will organize which country to file the tax return in and in which country taxes will be deducted.

Inheritance is subject to a completely different determination. Just because there is no estate tax in Singapore does not mean that Japan's inheritance tax will also disappear. Under Japan's inheritance tax, even foreign assets can be subject to taxation depending on the domicile, nationality, and past residency history of the heir and the decedent. There is.

The explanation that "inheritance tax becomes zero immediately if a parent and child migrate" and "anyone can make everything tax-free after 10 years" leaves out too many conditions. It needs to be organized by family, including the location of assets.

Compare not just the tax burden, but the amount of money you keep after moving

If you live in Singapore, we will break down the specific costs for housing, education, health insurance, temporary returns to Japan, and corporate maintenance. You cannot determine the financial viability of relocation based on a single item like "income taxes will go down."

Special care is required when buying a house. IRAS Additional Buyer's Stamp Duty (ABSD) As a rule, the tax rate for housing purchases by foreign nationals who are not permanent residents is 60%. While exemptions and reductions based on nationality may apply and require individual verification, the tax burden is too heavy to casually decide to buy a home first upon moving.

For example, if both the purchase price and market value are 3 million Singapore dollars and the applicable tax rate is 60%, the ABSD alone would amount to 1.8 million Singapore dollars. The taxable base is the higher of the purchase price and the market value. This does not include standard buyer’s stamp duty and other taxes. This is a sample calculation and does not represent current housing market prices.

The metric for comparing potential relocation destinations is the remaining cash after subtracting the cost of continuing to live in that country from your after-tax income. Furthermore, we evaluate education, business opportunities, and family satisfaction, which are not reflected in tax amounts.

Compared to Switzerland and Hong Kong, what are the differences?

Looking at Singapore alone, the difference in taxation on investment gains stands out. However, Switzerland and Hong Kong also have systems where individual capital gains are, in principle, tax-exempt. Therefore, the tax exemption on investment gains alone is not the deciding factor for choosing Singapore.

The tax system in Switzerland Explanation by the Federal Tax Administration Inheritance tax Government Information And Hong Kong payroll tax rate table and Scope of profits tax and Abolition of the inheritance tax is based on. Neither means that Japanese taxation disappears, and real estate, etc., will be considered separately from listed stocks and the like.

Hong Kong's standard salaries tax rate is 15% on net income before personal allowances up to HKD 5 million, and 16% on the excess. Because it is compared against the amount calculated by applying progressive tax rates to income after allowances, introducing it simply as a "maximum tax rate of 15%" is not accurate.

In Switzerland, even though capital gains from the sale of private equity are generally tax-free, the net assets held are subject to cantonal and municipal taxes. If you compare only income taxes and assume that "Switzerland is the same," you will misjudge the annual tax burden on wealthy individuals. It is necessary to calculate the taxes down to the specific canton and municipality where you actually live.

The status of residence is not the same either. New CIES in Hong Kong is a system that requires an investment of 30 million Hong Kong dollars or more in a specified target. Japanese nationals are also eligible, but there are conditions such as the asset holding period and the maintenance of the investment, and permanent residency is not automatically granted through investment alone.

Working in Switzerland for Japanese people is As a non-EU/EFTA national, high qualifications and similar requirements are needed. It is a system. There are also conditions for non-working stays, for example Retirement route guided by the Canton of Zurich Then, individuals must be 55 or older, have a special personal connection to Switzerland, and possess sufficient financial resources. The possibility of other routes will be reviewed on a case-by-case basis.

The order of comparison is not "choose a country with a low tax rate first and figure out how to live there later," but rather "compare asset, business, and family conditions among the countries where you can actually live." The reason for choosing Singapore also becomes clear for the first time in this comparison.

Side note: Parents in Singapore, children in a Swiss boarding school as a choice

When considering education for the ultra-wealthy, Swiss boarding schools are also an option. A boarding school is a residential school where children live and learn in dormitories. It is a choice that separates the parents' place of residence from the child's educational environment.

So, how much will it cost? Let's look at the official fees for two representative schools as examples.

What is the price? Le Rosey official terms and conditions and Official tuition guide for Beau Soleil According to. Since the latest publicly available version of Le Rosey that could be confirmed is for the 2027/28 academic year, this is not a comparison using the same academic year. The conversion to yen is to show the scale.Assume 1 Swiss Franc = 200 JPYwhich was done and does not reflect current exchange rates.

Moreover, the listed amount does not cover everything. For Grades 6 to 10 at Beau Soleil, an additional annual fee of 26,460 Swiss francs and travel expenses of 8,490 Swiss francs are added, and just with these three published items alone171,990 Swiss francs per year, approximately 34.4 million yen at the same assumed exchange rateThis is separate. Freshman application fees, uniform costs, and individual additional expenses are separate.

Le Rosey also expects separate registration fees, uniforms, insurance, and additional course-related costs. Both schools require a deposit, but these refundable funds, returned after reconciliation, should be budgeted separately from the annual fees.

It is possible to spend over 30 million yen per year on the education of a single child. This is the scale of expense to expect when considering this type of school. While the cost of tuition alone cannot determine a school's worth or how well it suits a child, education involves a decision-making process just as significant as tax rates when it comes to the migration of the wealthy.

If the parents live in Singapore and the child studies in Switzerland, you must also consider accommodation during holidays, communication with guardians, and travel expenses. Furthermore, a child's enrollment does not automatically mean the parents will receive a Swiss residency permit.

Proceed with Singapore immigration in this order

1. Inventory assets and income

Categorize cash, listed stocks, company stock, real estate, and crypto assets, and organize their holders, acquisition costs, current values, and unrealized gains. At the same time, list salaries, executive compensation, dividends, rent, and planned sales.

Not only the amount of assets, but also what kind of income will be generated in the future is important. The order of consideration also changes between someone who will sell their company within a few years and someone who will live off long-term holding assets.

2. Verify the status of residence and actual work conditions

Whether you will work for a local company, operate your own company's business locally, or consider programs for investors, we will review the routes available to you and your family.

When starting a company, create a plan that can explain the customers, the services provided, the management's duties, sales, and the source of funds for paying salaries. Do not confuse the task of setting up a registered company with the task of making a business viable.

3. Simultaneously estimate family living expenses and the tax burden on the Japanese side.

We will narrow down school and housing options and create an annual budget. At the same time, we will organize the exit tax, tax returns before and after departure, income remaining in Japan, and inheritance and gift taxes.

Selling major assets before the tax estimation is complete, or signing a long-term housing contract without knowing the status of residence for family members, narrows your options.

4. Proceed with necessary corporate establishment, applications, and contracts

We will proceed with corporate establishment, work visa applications, dependent family applications, and school and housing procedures along the chosen route. Since the required documents vary depending on the route, we will not use a uniform order, but instead verify mutual conditions.

In preparation for explaining to the bank, we will also prepare documents showing the background of asset formation and the source of funds. These include contracts and deposit records in the case of a company sale, or transaction histories in the case of investments. Those who hold crypto assets should make sure their acquisition, trading, and transfer histories can be traced back.

5. Relocate actual life and work, and manage them continuously

Even after relocation, we manage status of residence renewals, personal and corporate declarations, changes in family circumstances, and activities in Japan. If returns to Japan increase or the reality of the business changes, the initial tax assessment will also be reviewed.

Migration is not complete the day a visa is granted or the day you board a plane. It is only realized when you are able to continue your life and work thereafter.

Conclusion: What you gain from relocation is the tax difference and future options.

Singapore is a leading destination for affluent individuals who take an international approach to wealth management, business, and their family's future. The treatment of investment gains is attractive, and the concentration of financial and professional services that support it is also significant.

However, to receive those benefits, it is necessary to meet the requirements for the status of residence, transfer your primary base of living, and adjust your business and tax affairs to reflect actual conditions. It is not something that can be resolved simply by creating a paper address or a foreign corporation.

What is important to you is not the general theory of whether Singapore is profitable or not,When you factor in your assets, income, family, and next business, will your life after relocation become better?That is the decision.

Over 100 relocation support achievements from both Japan and Singapore

Our firm has supported over 100 people in moving to Singapore. Relocation is not completed simply by setting up a local company and securing a visa. It is necessary to proceed simultaneously with preparations for living and doing business in Singapore and tax procedures when leaving Japan.

Singapore side: The first 3 procedures to tackle

For immigration involving running your own company in Singapore, the first thing you should tackle is1. Corporate establishment, 2. Work visa acquisition, 3. Bank account openingAre the following three. Our office provides these as a one-stop service.

These three are preparations on the Singapore side. In practice, some parts will proceed in parallel, and the order of application and opening will be adjusted according to the scheme being used and the bank's requirements. Visa issuance and account opening are each subject to review by the respective authorities and banks.

Japanese side: Non-resident determination consulting and tax agent services

Our firm also provides consulting services to help clients qualify as "non-residents" for Japanese tax purposes. We will organize your and your family's housing, work, travel to and from Japan, and any businesses left in the country, and examine your status as a non-resident based on the reality of your life and business after relocation.

The "non-resident certification" referred to here is not a procedure to acquire status simply through a specific notification. The classification of Japanese residents and non-residents is determined based on objective facts such as the center of one's livelihood. We also provide support prior to relocation in organizing the facts and materials that support that decision.

Furthermore, our firmAs a tax representative, I will also handle the Japanese tax procedures that remain after your emigration. A tax representative is a role that handles matters related to national taxes—such as submitting tax returns, receiving documents from the tax office, and making payments—on behalf of an individual living abroad. We handle this. We also provide ongoing support if you have income that still needs to be reported in Japan after relocation, such as Japanese real estate income.

Being able to consult through a single point of contact regarding Singapore-side "corporations, visas, and bank accounts" and Japan-side "non-resident determination and tax management." That is our office's relocation support.

First, please tell me about your current asset allocation, sources of income, family situation, timing of relocation, and future plans for sales or starting a business. Tailored to your relocation plan, we will formulate concrete procedures from both the Japanese and Singaporean sides.

This article is a general commentary based on public information confirmed as of September 12, 2026. The application of tax and residence status regulations depends on individual circumstances. Please check the latest regulations and requirements before taking action.