“Synopsis”
Singapore continues to be one of the most attractive destinations for investors in Asia. With its transparent legal system, low taxes, and pro-business policies, the city-state offers a secure and efficient environment for resident investors. Whether you’re investing in real estate, stocks, or starting a business, understanding the investment laws in Singapore is essential. This blog breaks down the key legal, tax, and regulatory considerations for resident investors in Singapore in 2025.
1. Who Qualifies as a Resident Investor in Singapore?
A resident investor in Singapore is typically a Singapore citizen, permanent resident, or long-term pass holder (such as an Employment Pass or EntrePass holder) who actively invests in local or international assets while residing in Singapore.
2. Business Structures for Investors
Singapore offers several legal structures for setting up a business:
- Private Limited Company – Most common and offers limited liability
- Limited Liability Partnership (LLP) – Ideal for professional services
- Sole Proprietorship – Simple but with personal liability
All entities must be registered with the Accounting and Corporate Regulatory Authority (ACRA).
3. Regulatory Bodies and Legal Framework
Key regulators include:
- Monetary Authority of Singapore (MAS) – Oversees financial institutions and capital markets
- Economic Development Board (EDB) – Supports business and investment growth
- ACRA – Handles business registration and compliance
Relevant laws include:
- Companies Act 1967
- Securities and Futures Act 2001
- Significant Investments Review Act 2024
4. Taxation for Resident Investors
Singapore’s tax regime is one of the most investor-friendly in the world:
- Flat corporate tax rate of 17%
- No capital gains tax in Singapore
- No dividend tax
- Double Tax Agreements (DTAs) with over 90 countries
- Partial tax exemptions for startups and SMEs
These benefits make Singapore ideal for tax-efficient investment planning.
5. Real Estate Investment Rules
Resident investors can freely purchase:
- Condominiums and apartments
- Commercial and industrial properties
However, buying landed residential property requires approval under the Residential Property Act. Also, Additional Buyer’s Stamp Duty (ABSD) may apply depending on the number of properties owned.
6. Financial Market Access
Resident investors can invest in:
- Singapore Exchange (SGX) listed stocks and bonds
- Unit trusts and ETFs
- MAS-regulated funds and securities
All fund managers must be licensed or registered with MAS.
7. Global Investor Programme (GIP)
High-net-worth individuals can apply for Permanent Residency (PR) through the Global Investor Programme (GIP) by:
- Investing S$10 million or more in a business or fund
- Setting up a Single Family Office with S$200 million in assets under management
- Creating jobs and contributing to Singapore’s economy
8. Sector-Specific Restrictions
While Singapore is open to investment, some sectors have restrictions:
- Media and broadcasting – Foreign ownership capped at 49%
- Banking and finance – MAS approval required for significant stakes
- Legal and healthcare services – Require local licensing and qualifications
9. Environmental and Compliance Laws
Singapore enforces strict environmental and anti-money laundering laws:
- Carbon Pricing Act
- Environmental Protection and Management Act
- Corruption, Drug Trafficking and Other Serious Crimes Act
All investors must comply with KYC and AML regulations.
10. 2025 Policy Updates
Recent updates include:
- Introduction of the Significant Investments Review Act 2024 for national security screening
- Enhanced digital licensing via the National E-Licensing System (NELS)
- Expanded tax incentives for green and sustainable investments
- Revised GIP application fee and eligibility criteria
Conclusion
Singapore offers a transparent, low-tax, and innovation-driven environment for resident investors. Whether you’re investing in property, launching a startup, or managing a fund, the legal framework is designed to support growth while ensuring compliance. With the right strategy and understanding of the law, Singapore remains one of the best places in the world to invest in 2025.
