Budget 2026: Should You Stay in Singapore or Leave?

    12 February 2026
    8 min read

    You're considering your options—stay in Singapore, relocate to London, Dubai, Sydney, or the US. Budget 2026 just gave you fresh data. No new taxes, AAA fiscal health, and a $155B investment in the future—versus rising taxes globally. Here's the honest comparison.

    Singapore vs The World: Post-Budget Scorecard

    FactorSingapore (Budget 2026)Alternatives
    Capital gains tax0%UK: 18-24%, US: 15-20%, Aus: 25-50%
    Wealth taxNoneFrance, Spain, Norway have wealth taxes
    Top income tax22% (above $320k)UK: 45%, US: 37%, Aus: 45%
    Corporate tax17% (40% rebate in 2026)UK: 25%, US: 21%, Aus: 30%
    Fiscal surplus$15.1B (FY2025)Most countries running deficits
    Credit ratingAAAUS: AA+, UK: Aa3, Aus: AAA
    Carbon tax$45/ton (highest in Asia)EU: ~€50-100/ton
    Defence spending3% GDPNATO target: 2%

    What Budget 2026 Signals About Staying

    PM Wong explicitly called Singapore a "trusted hub: stable, secure, well-governed." That's a direct pitch to internationally mobile talent. The signals:

    • No wealth taxes: While the UK, France, and Nordic countries tighten, Singapore doesn't mention it
    • No capital gains tax: Your investments grow tax-free—a massive edge over almost everywhere else
    • AI hub positioning: Google, Microsoft, 60+ AI centers of excellence, quantum computing companies choosing Singapore
    • Nuclear energy cooperation: Long-term energy security signal—Singapore is planning decades ahead
    • $15.1B fiscal surplus: While the US, UK, and EU struggle with debt, Singapore is running surpluses

    What Budget 2026 Signals About Leaving

    Honesty requires acknowledging the pressure points:

    • EP minimum at $6,000: The bar for staying on Employment Pass is rising. If you're borderline, it's a concern
    • BEPS Pillar 2 (15% minimum tax): Singapore's corporate tax advantage narrows for MNCs from FY2027
    • Highest carbon tax in Asia: Energy costs will keep rising
    • Cost of living: Despite payouts, housing and food remain expensive vs most Asian cities
    • Property ABSD: 60% for foreigners buying residential property—effectively prohibitive

    The Remote Work Angle

    If you work remotely for a global company, Budget 2026 reinforces Singapore as an excellent base: zero capital gains on your stock options, strong internet infrastructure, AI hub ecosystem for career growth, and political stability. The 17% corporate tax (with 40% rebate) makes it attractive if you run a consulting entity.

    Financial Planning for Mobile Professionals

    • SRS: Foreign professionals can contribute $35,700/year for tax deductions, and invest in gold ETFs through SRS
    • Portable wealth: Gold is GST-exempt, capital-gains-free, and physically portable. If you might relocate, it travels with you
    • Gold vs Bitcoin: For mobile professionals, both serve as jurisdiction-agnostic stores of value. See our Gold vs Bitcoin comparison

    Read More Budget 2026 Guides

    Frequently Asked Questions

    Is Singapore still tax-competitive after Budget 2026?

    Yes. Zero capital gains tax, no wealth tax, top income rate 22%, and corporate tax at 17% with 40% rebate. The BEPS Pillar 2 narrows the MNC tax gap slightly, but Singapore's overall tax regime remains among the world's most competitive.

    Should I stay in Singapore or relocate after Budget 2026?

    Budget 2026 reinforces Singapore's strengths: fiscal surplus, AAA rating, AI hub positioning, and tax stability. The main concerns are rising EP minimums and cost of living. If your career is in AI/tech/finance, Singapore's investment signals strongly favour staying.

    How does Singapore compare to Dubai for mobile professionals?

    Both have zero income tax for individuals (though Singapore has a progressive rate up to 22%). Singapore offers stronger rule of law, deeper capital markets (SGX-NASDAQ bridge), and better AI infrastructure. Dubai offers lower cost of living and zero income tax. The choice depends on industry and lifestyle.

    Does Budget 2026 affect PR application strategy?

    Indirectly: higher EP salaries strengthen applications, and community involvement through the SG Partnerships Fund demonstrates integration. The government's tone towards skilled foreign talent remains positive. See our foreign professionals guide.

    Is gold a good portable asset for mobile professionals?

    Yes. Gold is GST-exempt in Singapore, has no capital gains tax, and is physically portable. Unlike property or CPF, it's not jurisdiction-locked. A 5-15% allocation provides location-independent wealth preservation.