Singapore Investors: US Investment Guide
Asia-Pacific's premier routing hub with tax treaty benefits and no capital controls
Singapore Investment Overview
Tax Treaty
Dividend Rate
Visa Eligible
Capital Controls
Singapore is the premier financial hub for Asia-Pacific investment into the United States. With no capital controls, a comprehensive tax treaty, E-2 visa eligibility, and a world-class banking system, Singapore offers both direct investment pathways and serves as a routing hub for investors throughout Southeast Asia.
Singapore as Asia-Pacific Routing Hub
Singapore serves as a strategic staging point for Asian capital flowing to the US:
Common Source Countries
- Indonesia (significant capital controls)
- Malaysia (moderate controls)
- Vietnam (strict controls)
- Thailand (some restrictions)
- Philippines (reporting requirements)
- China (strict controls)
Why Singapore
- No capital controls whatsoever
- Common law legal system
- US tax treaty with reduced rates
- World-class banking infrastructure
- English language jurisdiction
- Political and economic stability
Typical Structure
- Singapore Pte Ltd holding company
- US LLC or C-Corp subsidiary
- Major bank relationship (DBS, OCBC, UOB)
- Clean wire trail to US investment
- Proper substance in Singapore
Banking Partners
- DBS Bank (largest SE Asian bank)
- OCBC Bank
- UOB (United Overseas Bank)
- HSBC Singapore
- Standard Chartered Singapore
- Citibank Singapore
US-Singapore Tax Treaty
Withholding Rate Reductions
The US-Singapore Tax Treaty provides favorable withholding rates:
| Income Type | Standard Rate | Treaty Rate | Notes |
|---|---|---|---|
| Dividends (portfolio) | 30% | 15% | Under 10% ownership |
| Dividends (direct) | 30% | 5% | 10%+ corporate owner |
| Interest | 30% | 0% | Complete exemption |
| Royalties | 30% | 0% | Complete exemption |
Limitation on Benefits
The treaty includes anti-treaty-shopping provisions:
Qualifying for Benefits
- Singapore tax resident required
- Substantial business activities
- Not a mere conduit company
- Ownership by treaty country residents
- Active trade or business nexus
Substance Requirements
- Local directors and management
- Physical office presence
- Employees in Singapore
- Bank accounts actively used
- Board meetings in Singapore
Entity Formation
Recommended Structures
Singapore investors have several structuring options:
Direct US LLC
- Wyoming or Delaware formation
- Single member: disregarded entity
- No US tax if no US business
- Good for real estate
- Simplest structure
Singapore Pte Ltd + US Sub
- Singapore holding company
- US LLC or C-Corp subsidiary
- Treaty benefits available
- 5% dividend rate possible
- Better for multiple investments
US C-Corporation
- 21% US corporate rate
- 5-15% dividend withholding
- Best for active US business
- E-2 visa compatible
- US investor attraction
VCC (Variable Capital Company)
- New Singapore fund structure
- Flexible sub-fund creation
- Good for fund managers
- Umbrella for multiple investments
- Professional investors only
US Real Estate Investment
Tax Treatment
| Tax Type | US Treatment | Singapore Treatment |
|---|---|---|
| Rental income | Up to 37% (elect ECI) | Foreign-sourced, may be exempt |
| Capital gains | FIRPTA 15% withholding | No capital gains tax |
| Estate tax | Treaty provides relief | No estate duty in Singapore |
| Dividends from US REIT | 30% withholding (no treaty reduction) | Foreign-sourced income |
Popular Markets
California
- Tech sector connections
- Direct Singapore Airlines flights
- Strong appreciation history
- High state tax (13.3%)
New York
- Financial hub parallels
- Premium property market
- High combined taxes
- Strong rental demand
Texas
- No state income tax
- Growing tech presence
- Lower entry prices
- Strong growth markets
Florida
- No state income tax
- Vacation rental potential
- Diverse markets
- Strong foreign buyer market
E-2 Treaty Investor Visa
E-2 for Singaporean Nationals
Singaporean citizens are eligible for E-2 treaty investor visas:
Requirements
- Substantial investment ($100K+ typical)
- Active business operation
- Majority ownership (50%+)
- Direct and develop business
- More than marginal enterprise
Benefits
- 2-year initial term
- Renewable indefinitely
- Spouse can work (EAD)
- Children can attend school
- Apply at Singapore Embassy
Singapore Tax Considerations
Territorial Tax System
Singapore's territorial system offers significant advantages:
Foreign Income Exemption
- Foreign-sourced income not remitted: exempt
- US rental income may qualify
- Capital gains: no tax in Singapore
- Dividends from overseas: may be exempt
When Singapore Taxes Apply
- Income remitted to Singapore
- Income deemed Singapore-sourced
- Passive income of residents (exceptions)
- Business income with SG nexus
Frequently Asked Questions
Can I use Singapore to invest on behalf of regional partners?
Yes, but the structure must have genuine substance and the ultimate beneficial owners must be properly disclosed. Singapore authorities require transparency about beneficial ownership, and the US requires BOI reporting. Conduit structures without substance may be challenged by tax authorities.
Do I need a Singapore company to invest in the US?
No, you can invest directly as an individual through a US LLC. However, a Singapore holding company provides treaty benefits (especially the 5% dividend rate for substantial holdings), additional liability protection, and may offer Singapore tax advantages depending on your situation.
What about CPF for US investments?
CPF (Central Provident Fund) cannot be used for direct US real estate or business investment. CPF Investment Scheme (CPFIS) has limited approved investments. Personal savings or business funds are typically used for US investments.
How does the GIP relate to US investment?
The Global Investor Programme (GIP) grants Singapore permanent residency to investors. While this can facilitate US investment through Singapore, GIP is for immigrating to Singapore, not the US. For US residency through investment, consider the EB-5 program or E-2 visa.