Looking through the Singapore PR Application Guide and starting the process to apply for Singapore Permanent Resident (PR) is now the ultimate goal of most foreign nationals who live in the city-state. But, what makes this option so attractive in the first place? Before you send in your application for Singapore PR status, make sure you know the positives and negatives that come with this.
Pros of Singapore Permanent Residence (PR)
Central Providence Fund
It is a requirement for PRs in Singapore and their employees to make CPF contributions every month. The Central Providence Fund is the comprehensive social security savings plan that comes with benefits such as healthcare, retirement, family protection, asset enhancement, and home ownership. You can also cash out all of your CPF savings once you decide to leave the country in the future.
Change Jobs Easily
When you are a PR, there is no longer a need for you to have a work pass just so you can work in the country. This means that you can change jobs easily with no need for you to worry whether your EP will be approved or not for your next role. Being a PR may also open up more opportunities for you because most employers may prefer to hire only the local citizens or PRs.
Income Tax Clearance
It is required to have tax clearance when an EP holder stops employment in the city-state, whether the person will leave Singapore permanently or is simply switching jobs. The process will require the EP holder to settle every tax while the employer must withhold the payable cash to the worker. But, there is no need to undergo tax clearance if you are a PR who will leave Singapore for good. You may also continue settling your taxes in arrears the usual way and the employer will not withhold any money for this particular purpose.
In general, expats with PRs included are only permitted to buy non-restricted properties such as condominium properties. If they want to buy restricted properties like landed properties or vacant land, they should get the permission of Singapore Land Authority. Unlike EP holders, however, PRs are eligible to buy from resale market public housing flats under the development of Housing and Developing Board or the so-called HDB flats.
If PRs wish to, they are also eligible to apply for Singapore citizenship two years after they obtained PR.
Con of Singapore Permanent Residence (PR)
Male children who acquired their PR status under the application of their parents are required to register for National Service once they reached the age of 16.5 years old. They are going to be enlisted for two years full-time National Service right away once they turn 18 years old, unless they are granted with a deferment for enlisting at later stage. After the completion of full-time NS, they still need to serve Operationally Ready NS for 40 days yearly until they turn 50 for officers and 40 for non-officers. However, not everyone might really deem it as a disadvantage that will stop them to start the process to apply for Singapore permanent resident (PR.)