Legal Checklist for Singaporeans Looking to Retire Abroad

With rising life expectancies, increased globalisation, and the flexibility of remote communication, more Singaporeans are considering spending their retirement years overseas. Popular reasons for doing so include lower costs of living, a slower pace of life, and proximity to nature.

Though a tempting option, retiring overseas raises cross-border legal, financial, tax and estate planning considerations, both in Singapore as well as in the destination country. This article provides a legal and practical guide for Singaporeans considering retirement outside Singapore. It focuses on common retirement destinations such as Malaysia, Thailand, and Indonesia, and highlights issues relating to visas, CPF, taxation, banking, estate planning, and property as set out below:

• Eligibility and residency options overseas
• Dual citizenship and residency implications
• Managing your finances in Singapore and overseas
• Estate planning and managing your assets when retiring overseas

With the right preparation and professional guidance, retiring abroad can be pursued with confidence and clarity, allowing you to focus on enjoying this next stage of life rather than worrying about legal and administrative difficulties.

Eligibility and Residency Options Overseas 

Overseas retirement usually requires securing a visa or residency status in the destination country. Below are retirement visa options for some countries that are popular choices for Singaporeans to retire in:

Malaysia – Malaysia My Second Home Programme

The Malaysia My Second Home (MM2H) programme offers a long-term residence pass for foreigners wishing to live in Malaysia. The programme allows applicants to receive a renewable multiple-entry social visit pass valid up to 20 years (depending on the MM2H category). However, applicants are not allowed to work or earn in Malaysia under the MM2H visa.

To be eligible for the MM2H visa, applicants must place a fixed deposit of at least USD 32,000 in a Malaysian bank (for applicants 50 and above who wish to live in the Special Economic Zone (SEZ) or Special Financial Zone (SFZ) in Johor) and buy a residential property in Malaysia worth at least RM 600,000 (for the MM2H Silver category). Applicants are also required to submit their health insurance details during the application and undergo a medical checkup in a clinic/hospital.

Visa periods last from 5 to 20 years and can be renewed after the expiry of each visa term. The MM2H does not automatically lead to Malaysian Permanent Residency or citizenship.

For more information on the eligibility and financial requirements of each MM2H category, please visit this website.

Thailand – Retirement visas (Non-immigrant O, O-A, O-X)

Thailand offers several retirement visa options for foreigners who want to stay long-term without working. The different kinds of Thai retirement visas differ in terms of period of validity:

The most popular Thai retirement visa is the O-A visa, which allows applicants to stay in Thailand for one year at a time, with the option to renew annually. Applicants of the O-A must:

• Be at least 50 years old
• Fulfil the necessary financial requirements by:
  • Maintaining at least THB 800,000 in a Thai bank account for at least 2 months before application,
  • Having a monthly income of THB 65,000, or
  • Having a combined security deposit and annual income totalling THB 800,000
• Have no criminal record
• Have no prohibitive diseases (e.g., Leprosy, Tuberculosis, Elephantiasis, drug addiction, third stage of Syphilis)
• Have insurance covering at least THB 40,000 for outpatient treatment and THB 400,000 for inpatient treatment

Do note that holders of retirement visas in Thailand cannot legally work in Thailand under these visas.

For more information on the O-A visa in Thailand, please visit this website.

Indonesia – Retirement KITAS and Silver Hair Visa

Indonesia’s Retirement KITAS allows foreigners to stay in Indonesia for up to one year with the possibility of yearly renewal for up to 5 years. After 5 years, the holder can apply for a Permanent Stay Permit (KITAP) in Indonesia.

To apply for the KITAS, you will need to:

• Be at least 55 years old
• Receive a pension income of at least USD 3,000 a month
• Submit health and life insurance documents when making the application
• Have a sponsor from an appointed travel agency that acts as your guarantor during your stay in Indonesia
• Have a statement confirming you will employ a maid or domestic helper
• Sign a lease agreement for 1 year in Indonesia

Indonesia introduced another visa scheme in 2023, known as the Silver Hair Visa, which allows foreigners to stay in Indonesia for a period of 5 years. The Silver Hair Visa can be renewed after the expiry of each term.

To apply for the Silver Hair Visa, you will need to:

• Be at least 60 years old
• Receive an income of at least USD 3,000 a month
• Place USD 50,000 into an Indonesian state-owned bank account

Both the KITAS and the Silver Hair Visa do not allow holders to legally work in Indonesia.

Dual Citizenship and Residency Implications

If you are a Singapore citizen considering holding citizenship in another country, do note that Singapore prohibits dual citizenship. If you want to hold citizenship in another country, you will have to give up your Singapore citizenship. However, acquiring a long-term overseas visa is not the same as acquiring citizenship, and will not affect your Singaporean citizenship status.

Managing Your Finances in Singapore and Overseas

CPF 

If you are a Singapore Citizen or Permanent Resident residing abroad, you will get to keep your CPF account. CPF provides monthly payouts from the Retirement Account when you reach the age of 65. You can also start to withdraw money from your CPF account’s Ordinary Account (OA), depending on whether you have set aside your Full Retirement Sum (FRS). For more information on monthly payouts and how much CPF savings you can withdraw at the age of 65, please visit this CPF website.

If you renounce your Singapore citizenship and permanently emigrate, you may close your CPF account and withdraw your CPF savings. If you do not elect to do so, your CPF account will be automatically closed in the month following your renunciation. Any remaining savings in the account will stop earning the prevailing CPF interest but will earn interest similar to commercial bank interest rates until 31 March 2027. Even if your CPF account has been closed, all the remaining savings can be transferred to a bank account at any time.

Banking, investments, and insurance policies

You may keep your Singapore bank accounts while abroad, but you should update your bank on your residency status to avoid regulatory issues. Banks also require updated tax residency details for account holders.

Your Singapore investment portfolios, such as stocks and bonds, remain intact while you are residing overseas. However, you should consider possible currency fluctuations that might result in a loss of value of your assets in Singapore. You should also be aware of the reporting requirements of the jurisdiction you are living in, such as if they require reporting of overseas assets for tax treatment reasons.

You should also review existing health, life and travel insurance policies before moving overseas. Some Singapore health plans may exclude coverage overseas. You may wish to check with your current insurance policies to confirm if your coverage extends to the country you are moving to. If it does not, you should obtain insurance in the country you are moving to or change insurance plans in order to protect yourself in the event of an emergency.

Taxation 

Singapore taxes individuals on Singapore-sourced income regardless of whether the taxpayer resides inside or outside Singapore. This means that, even if you are residing outside of Singapore and are considered a non-resident for tax purposes in Singapore, you will still be taxed on Singapore-sourced income (income derived from or accruing in Singapore). However, non-residents are not allowed to claim personal tax reliefs, which are reserved only for tax residents of Singapore.

For example, if you retire abroad and are considered a non-resident for tax purposes in Singapore, but continue to receive rental income from renting out property in Singapore, the rental income will be taxed in Singapore. As follows, if you receive Singapore-sourced income, you will have to file annual tax returns and update your records with the Inland Revenue Authority of Singapore (IRAS).

As a resident in another country, you might also be liable for taxes overseas on pensions, rental income, or investment returns, depending on the destination country’s tax system. If you find yourself facing the possibility of being taxed twice, you might want to find out if you can avoid such a situation if both Singapore and the destination country have entered into a Double Taxation Agreement.

Estate Planning and Managing Your Assets When Retiring Overseas

Writing a will

If you are of retirement age, you are strongly encouraged to make a will so that your assets go to recipients of your choice after your death. This ensures that your dependents are taken care of even after your death, which is especially important if you have minor children.

If you have already made a will and are intending to retire overseas, you should consider making a separate will for your overseas assets, if any. This is because foreign countries might have different inheritance/probate laws that differ by jurisdiction, so it may be more prudent for you to consult a lawyer to produce a separate will for overseas assets.

Lasting power of attorney

In Singapore, you may have already created a lasting power of attorney (LPA), which is a document directing who will be in charge of managing your affairs in the scenario that you lose mental capacity. However, a Singapore LPA may not be legally recognised in other countries. In such a case, you should investigate whether a local LPA or equivalent exists or is required in your destination country to achieve the same effect as the Singapore LPA.

For example, Malaysia and Indonesia do not have any equivalent of the LPA system. In Thailand, a Power of Attorney can be drafted to remain in effect if the principal becomes incapacitated, but there is no codified equivalent to a Singaporean LPA in Thailand.

You may visit our other article for more information on LPAs.

Advance medical directives

Similarly, you may also have made an advance medical directive (AMD) in Singapore, which is a document that states you do not want any extraordinary life-sustaining treatment to prolong your life in the case you become terminally ill and unconscious. You should also find out if a separate equivalent of an AMD is required in the country you are retiring in, according to the laws of that country.

For example, Malaysia and Indonesia do not have the equivalent of an AMD. However, in Thailand, there is the possibility of drafting a ‘living will’ that allows you to refuse health services that serve only to prolong life. The living will must fulfil certain requirements to be legally valid and enforceable in Thailand, such as including one’s identification number and the specific type of extraordinary life-sustaining treatment one does not wish to receive..

You may read our other article for more information on AMDs.

Property ownership and transfers

Before you move overseas, you should decide whether you will sell, rent, or retain your property in Singapore. This will depend on your financial goals, property type, market conditions, and future return plans. You may also need to take into account any dependents living in your property, as this may affect your ability to sell or rent it out.

If you rent out property in Singapore while living overseas, you can collect passive income, as retirement visas usually do not allow you to work in the destination country. However, you may have to pay tax on the rental income accrued in Singapore, as stated above.

If you are considering buying property overseas, you may be faced with the restrictions and requirements of the destination country. For example, in Malaysia, foreigners are only allowed to purchase property that is at least RM 1 million, though this varies by state.

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Retiring abroad can be an enriching and rewarding chapter of life, but it requires careful coordination between Singapore law and the laws of your retirement country. Understanding different visa types and eligibility in the destination country is also critical. Your CPF and tax planning must also be coordinated with your retirement destination’s financial system. Estate planning is also a key consideration when considering overseas retirement, and more preparation may need to be made if you have an overseas property.

If you wish to find out more about retiring in another country, you can visit the relevant immigration websites of the countries you are looking at for retirement. For broader estate planning matters, you can contact an estate planning lawyer for further advice. Such a lawyer will guide you on how to ensure a smooth legal transition of wealth and care for your dependents, if any, and assist you with any cross-border estate planning questions you might have.