The Singapore Government has announced expanding the scope of golden visa scheme to attract investment. The new changes announced is coming in to effect from March 1, 2020.
The Golden visa scheme known as ‘Global Investor Program (GIP)’ offers permanent resident status to foreign investors who invest atleast S$ 2.5 million (US$ 1.8m)
Singapore remains the richest and most prosperous country in the world, attractive for investors. Â Singapore ranked No.1 competitive economy in the world, N0.2 Â in the world in the ease for doing business. Besides these Singapore has strongest passport, world class education, healthcare with highest standards of living.
Previously investors are required to invest only in GIP funds and businesses. Under the new GIP rules, investors can now invest in four categories businesses and family offices. These 4 categories can now apply for golden visas
- Established Business Owners
- Next Generation Business Owners
- Founders of Fast Growth Companies
- Family Office Principals
These investors have 3 investment options and can invest this money in 25 approved investment sectors
- Invest S$2.5 million in a new business entity or in the expansion of an existing business operation.
- Â Invest S$2.5 million in a GIP fund that invests in Singapore-based companies.
- Â Invest S$2.5 million in a new or existing Singapore-based single family office having Assets-Under-Management (AUM*) of at least S$200 million.
It is important to understand business applicants must have experience and track record to apply for this program. The business turnover must be atleast $200 million or more.
Successful applicants will be issued a Re-Entry Permit (REP) valid for 5 years. The REP is a permit that allows you to maintain PR status when you are out of Singapore. This can be later extended to another three or five years.
A valid Re-Entry Permit (REP) is needed each time a permanent resident (PR) travels abroad. The REP allows you to retain your permanent residence while you are outside Singapore
There is an application fee of S$7,000.
If GIP application is approved, Approval-in-Principle (AIP) will be issued for permanent residence status by the Singapore Immigration & Checkpoints Authority (ICA), which is valid for 6 months. You will be required to make your investment within the 6-month period of your AIP PR status. Applicant must formalize his/her Permanent Residence status in Singapore within 12 months from the date of the final approval letter.
All applicants undergo due diligence checks done by EDB of Singapore. One of the conditions include the investment of S$2.5 million must be made from your personal bank account in sole name opened in a Singapore-registered bank in Singapore.
As of June 2017, a total of 1,826 Global Investor Programme (GIP) applicants have been granted permanent residency since the programme’s inception in 2004, according to Ministry of Trade. Of these 1 investor has been revoked of their permit and 67 citizenships were granted for GIP investors
What you should know
- Singapore restricts dual citizenship – This means you must renounce your previous citizenship. This program may be attractive to those who renounce citizenship (eg. Americans)
- Military service –Â All male Singapore citizens and permanent residents, unless exempted are required to serve National Service (NS). Those who reach 16.5 years must register for enlistment.
- Re-entry permit – You must use re-entry permit to enter singapore when you exit, if not it will break your permanent residency delaying your citizenship time.
- Citizenship – You can apply to become citizen of Singapore through investment after becoming Singapore Permanent Resident (PR) for at least two year. It is also a fastest route.
The Global Investor Program (GIP) is administered by Contact Singapore, a division of the Economic Development Board (EDB) that advises entrepreneurs and business owners who are interested in relocating to and investing in Singapore. The Singapore Economic Development Board (EDB), a government agency under the Ministry of Trade and Industry, is responsible for strategies that enhance Singapore’s position as a global centre for business, innovation, and talent.
You can download new EDB factsheet here
