Setting Up Your Finances in Singapore: Banking, Taxes, and More for Expats

Singapore offers a dynamic and well-regulated financial environment, making it an attractive destination for globally mobile professionals. For expats, understanding how to navigate banking, taxes, and personal finances in Singapore is essential to settling in smoothly and making informed decisions. 

This financial guide outlines the key financial considerations–from opening a bank account to managing insurance and investment–so you can establish a strong foundation for life in Singapore.

Understanding the Financial Landscape in Singapore

Singapore offers a stable and well-regulated financial environment, supported by the Monetary Authority of Singapore (MAS). The Singapore Dollar (SGD) is strong, and digital banking is widely adopted. 

Most financial services—from mobile payments to investment platforms—are accessible and efficient, making it easy for newcomers to manage their finances.

Opening a Bank Account in Singapore

Setting up a local bank account is one of the first steps for any expat in Singapore. Most banks in Singapore offer services tailored to foreign professionals, including multi-currency accounts and international transfer options.

Some of the major banks for expats in Singapore are:

• DBS Bank
• OCBC Bank
• UOB
• HSBC
• Standard Chartered

Required Documents to Open a Bank Account in Singapore

For expats to open a bank account in Singapore, you’ll typically need the following documents:

• Valid passport
• Employment Pass, S Pass, or Dependant Pass
• Proof of residential address (e.g., tenancy agreement or utility bill)
• Letter of employment or company-issued pass (in some cases)
• Completed application form (online or in-branch)

Some banks may request additional documentation depending on your visa type or employment status. Accounts can often be opened online, but in-person verification may be required.

Taxes for Expats in Singapore

Singapore’s tax system is straightforward and favorable for foreign residents. It operates on a territorial basis, meaning only income earned in Singapore is taxed. There is no capital gains tax, and personal income tax rates range from 0% to 22%.

Key Considerations

• Tax Residency: You are considered a tax resident if you stay in Singapore for 183 days or more in a calendar year
• Filing Requirements: Tax returns are submitted annually via the IRAS portal, with a deadline of April 15
• Double Taxation Agreements: Singapore has treaties with many countries that prevent double taxation, which is especially relevant for expats with income sources abroad.

For complex financial situations, consulting a tax advisor familiar with cross-border taxation is recommended.

Cost of Living and Budgeting Tips in Singapore

Singapore offers a high standard of living, but costs can vary significantly depending on lifestyle and location. Housing is typically the largest expense, followed by education and healthcare.

Average Monthly Expenses in Singapore

For expat families relocating to Singapore, understanding the monthly cost of living is key to building a realistic budget. While expenses vary depending on lifestyle and location, the following breakdown offers a general overview of what a family of four can expect to spend  each month:

Estimated Total: SGD 8,900–16,200 (USD 6,590–11,990) per month.

Smart Budgeting Tips for Expats in Singapore

Relocating to Singapore often comes with a shift in financial habits. Whether you’re adjusting to higher living costs or navigating unfamiliar systems, smart budgeting can make a significant difference in your financial wellbeing. 

Here are practical tips to help expats manage expenses effectively and build financial resilience in their new home:

• Set up a Local Bank Account Early: Use a bank with low foreign transaction fees and mobile budgeting tools

• Track Spending with Apps: Tools like Seedly, Revolut, or YNAB help visualize spending and set limits.

• Take Advantage of Hawker Centers: Dining at local food courts can significantly reduce meal costs without sacrificing quality.

• Use Public Transport: Singapore’s MRT and bus system is efficient and affordable–monthly passes offer good value.

• Review Insurance Coverage Annually: Ensure your health, life, and home insurance are aligned with your family’s evolving needs.

• Plan for School Fees: If your children attend international schools, factor in tuition, uniforms, and extracurricular activities.

• Build an Emergency Fund: Aim for three to six months of living expenses to cover unexpected events or transitions.

• Explore Employer Benefits: Some companies offer housing allowances, school subsidies, or insurance packages–maximize these where possible.

• Shop Smart: Use loyalty programs, buy in bulk, and compare prices across supermarkets and online platforms.
• Consult a Financial Advisor: Especially helpful for long-term planning, tax optimization, and investment strategy.

Insurance and Financial Protection in Singapore

While Singapore offers excellent public healthcare and a stable environment, foreign residents are not automatically covered under local schemes such as the Central Provident Fund (CPF) or MediShield Life. 

This makes private insurance—particularly international health coverage—essential for ensuring access to quality care and financial security while living in Singapore.

Why Insurance Matters for Expats in Singapore

Without adequate coverage, even routine medical visits or minor accidents can result in significant out-of-pocket expenses. Insurance helps mitigate these risks and provides peace of mind, especially for families, frequent travelers, and those with dependents.

Here are some reasons why insurance is important for expats in Singapore:

• No automatic coverage under local schemes: Expats are not enrolled in Singapore’s public healthcare system (e.g., MediShield Life or CPF), leaving them responsible for their own medical costs.
• High cost of private healthcare: While Singapore offers excellent medical care, private hospital fees can be substantial without insurance—especially for specialist consultations, surgeries, or maternity care.
• Limited employer coverage: Not all employers provide comprehensive health benefits. Even when they do, coverage may exclude dependents or international treatment.
• Global mobility and relocation risks: Expats often travel or relocate across countries. International insurance ensures continuity of coverage regardless of location.
• Access to top-tier facilities: Insurance enables access to private hospitals and faster treatment options, avoiding long wait times in public facilities.
• Protection for dependents: Families need coverage for children’s healthcare, vaccinations, and emergencies—especially if attending international schools.
• Financial security during emergencies: Insurance helps cover unexpected costs from accidents, critical illness, or hospitalization, reducing financial strain.
• Coverage for non-medical risks: Travel, home, and personal accident insurance protect against theft, property damage, and trip disruptions.
• Peace of mind: Knowing you’re protected allows you to focus on settling in, working, and enjoying life in Singapore without financial worry.

Key Insurance Types for Expats in Singapore

With limited access to public schemes and varying healthcare costs, expats need to understand which types of insurance offer the best protection for their lifestyle, family, and long-term plans. 

Below are the key insurance categories to consider, each serving a distinct purpose in safeguarding your financial and personal well-being.

Why International Health Insurance Is the Best Choice

For most expats, international health insurance offers the flexibility and comprehensive coverage that local plans often lack. Key advantages include:

• Global Portability: Coverage continues even if you relocate to another country.
• Private Hospital Access: Enables treatment at top-tier facilities without long wait times.
• Direct Billing: Many plans offer cashless access to care, eliminating upfront payments.
• Customizable Benefits: Plans can be tailored to include maternity, dental, vision, and wellness services.
• Emergency Evacuation: Coverage for medical transport and repatriation in critical situations.

Pacific Prime CXA specializes in helping expats compare international health insurance plans from leading providers, ensuring you find coverage that fits your lifestyle, budget, and long-term plans.

Retirement Planning and CPF for Expats

Planning for retirement as an expat in Singapore requires a proactive approach, especially since most foreign professionals are not automatically enrolled in the country’s CPF scheme. 

CPF is a mandatory savings and social security program for Singapore citizens and permanent residents (PRs), covering retirement, healthcare, and housing needs.

What Expats Should Know:

• CPF Contributions: Only PRs are required to contribute. Contributions are split between employer and employee and are capped based on age and income.
• Non-PR Expats: Those on Employment Passes or S Passes are not eligible for CPF, which means retirement planning must be done independently.
• Voluntary Contributions: Some PRs may opt to make additional voluntary contributions to CPF for tax relief and long-term savings.

Retirement Planning Options:

• Private Pension Plans: Offered by insurers and financial institutions, these plans allow for flexible contributions and investment choices.
• Investment-Linked Policies: Combine life insurance with long-term savings, ideal for those seeking protection and growth.
• Offshore Retirement Accounts: Useful for expats planning to retire outside Singapore, especially in countries with favorable tax treatment on foreign pensions.
• Employer-Sponsored Plans: Some multinational companies offer retirement benefits or matching contributions—review your employment package carefully.

Tip: Start early and consider your retirement destination, currency exposure, and tax implications. A financial advisor can help structure a plan that aligns with your goals and mobility.

Investing in Singapore as an Expat

Singapore’s investment landscape is transparent, well-regulated, and globally connected—making it an attractive base for expats looking to grow their wealth. 

Whether you’re a seasoned investor or just starting, there are multiple channels available to suit different risk profiles and financial goals.

Investment Options in Singapore:

• Brokerage Accounts: Local banks (e.g., DBS Vickers, OCBC Securities) and international platforms (e.g., Saxo, Interactive Brokers) offer access to global markets.
• Robo-Advisors: Digital platforms like Endowus, StashAway, and Syfe provide automated portfolio management with low fees and diversified strategies.
• REITs (Real Estate Investment Trusts): A popular way to invest in property without direct ownership. Singapore-listed REITs offer exposure to commercial, retail, and industrial assets.
• Unit Trusts & Mutual Funds: Available through banks and financial advisors, these pooled investment vehicles offer diversification and professional management.
• Gold & Commodities: Some platforms allow trading in precious metals and other alternative assets.

Considerations for Expats:

• Tax Implications: Singapore does not tax capital gains, but your home country may. Understand cross-border tax rules before investing.
• Currency Exposure: Investing in SGD-denominated assets can help hedge against currency fluctuations.
• Liquidity Needs: Choose investments that align with your time horizon and potential relocation plans.

Tip: Work with a licensed financial advisor who understands expat needs and can help you build a globally diversified portfolio.

Ready to Secure the Right Coverage for Life in Singapore?

Managing your finances in Singapore goes beyond banking and taxes—it’s about protecting your health, family, and future. Insurance plays a key role, especially for expats who aren’t covered by local schemes and face unique risks abroad.

Pacific Prime CXA helps simplify your insurance journey. As a trusted broker, we compare plans from top providers and guide you toward coverage that fits your lifestyle, budget, and long-term goals—whether you’re solo, with family, or planning ahead.

Contact us today for a FREE, no-plan comparison!

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Grace Dandan

Content Creator at Pacific Prime

Grace is a content creator with over 7 years of experience in the digital marketing space. She has a Bachelor’s Degree in Communication Arts from De La Salle University, which provided her with foundational skills in news writing, TV and film production, photography, and media. She has worked in different industries, including journalism, editorial, social work, fintech, beauty and eCommerce, providing a variety of digital works not limited to social media content, blogs, articles and presentation decks.

At Pacific Prime, Grace focuses on simplifying complex concepts on international health insurance to make these topics easily accessible and understandable for our target audience. Being a Filipino born in Hong Kong, she understands the struggles of most immigrants and expats in finding the right insurance solutions while in another country. Her goal is to redefine most people’s perception of insurance, that it is an investment for one’s protection and future.

In her spare time, Grace is either at home or at Hong Kong Disneyland. She loves reading, watching movies and K-dramas, and attending dance classes.

Latest posts by Grace Dandan (see all)

• Setting Up Your Finances in Singapore: Banking, Taxes, and More for Expats - September 1, 2025
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