Google co-founder Sergey Brin will be setting up a family office in Singapore, joining a sizeable pool of billionaires that have done the same.
Singapore is now home to more than 200 family offices and around US$20 billion assets under management. It is no coincidence that many wealthy individuals have chosen to manage their assets in Singapore. We have very competitive tax rates, corporate tax is at 17% in Singapore whilst maximum personal income tax payable is 22% regardless of income.
However, there are other countries that can offer the same if not even more favorable corporate tax. Some examples are Bahamas, Bermuda and Bahrain, where they don’t tax income at all.
Singapore could edge ahead of these other countries because of its location as well. Asia has definitely been rumored to be the next centre for economic growth. Singapore also fares at the top in terms of safety and political stability. We boast low corruption and increased transparency.
Most importantly, these individuals have come to Singapore to grow their wealth. And Singapore has made the deliberate choice to make sure that the country is conducive for these family offices to succeed. As such, the most important element of all are our wealth friendly regulations.
Singapore has introduced a new tax efficient structure, the Variable Capital Companies (VCCs) for family offices to easily operate. The Monetary Authority of Singapore (MAS) is also looking to allow single family offices to manage VCCs.
Singapore is in the right spot. Political uncertainty and economic instability is widespread in the world right now, and Singapore stands out as a prime location for high net worth individuals to settle in.