The number of Americans renouncing their citizenship for long-term residency in Singapore has accelerated over the past two years, reaching a hundred last year.
Tax debates have driven US businessmen and high-income individuals to the financial hub, which has the lowest personal and corporate taxes in Asia. Singapore and Hong Kong kept individual income-tax rates lower than 20% compared with 35% in the US, Ernst & Young reports. Taxation systems are also simpler than in the US and other countries. Singapore attracts foreign investments because of its lighter tax burdens coupled with a stronger economic growth in Asia.
Facebook co-founder, Eduardo Saverin, recently decided to renounce his US citizenship for a permanent residence status. His decision could mean at least US$39 million in tax savings alone. Mr. Saverin’s spokesman, however, said that his decision has a business motive, rather than that of personal finances. Saverin has been living in Singapore since 2009 and felt “attracted” to the beautiful and convenient place, especially in doing business in Asia.