What Happens When You Lose Your Singapore Permanent Resident Status?

Over the years, Singapore’s dedicated efforts to enhance its digital infrastructure, national stability, and economic prosperity have attracted a global talent pool to work and live here. Consequently, a substantial number of individuals within this global talent pool choose to establish permanent residency, constituting approximately 540,000 (as of June 2023) out of the country’s overall population of 5.92 million people.

In 2021 alone, around 33,400 individuals were granted Permanent Residency (PR) status, but it is also noteworthy that an average of 3,370 PRs lose their status annually. Although losing PR status doesn’t preclude individuals from continuing to work in Singapore, the decision carries certain implications, which become evident upon returning the Singapore Blue IC.

#1 Less Flexibility Over Employment Opportunities        

One of the main benefits for foreigners in obtaining a PR is that they no longer need to obtain a valid pass (also known as a work visa) such as an Employment Pass, EntrePass, or S Pass to work in Singapore. This gives one greater movement and flexibility in career choices, including being eligible to apply for jobs for Singaporeans under the Fair Consideration Framework (FCF), including civil service positions.

However, once you lose your PR status, you must obtain the relevant work visa again, which will depend on your qualifications and skills if you wish to continue working in Singapore. As a foreigner, the hiring company must pay a levy and adhere to its foreign worker quota to employ you, unlike Singaporeans or PRs. You will also not be able to maintain your position in the civil service as a foreigner.

#2 No Longer Eligible To Receive CPF Contributions

The Central Provident Fund (CPF) is a social security system that helps Singaporeans and PRs alike save for their housing, healthcare, and retirement needs. Typically, CPF members receive an annual compounded interest rate of between 2.5% and 4.04% on their savings.

As a foreigner, you will no longer be eligible to receive CPF contributions or maintain your account.

Once you are no longer a PR, you can close your CPF account and transfer your CPF savings to your bank account at any time. Otherwise, it will automatically close on 1 April 2024, and any remaining savings in your account will earn the commercial Singapore bank interest rate until 31 March 2027.

However, if you continue to reside or work in Singapore after losing your PR status, you can only close your CPF account from 1 January 2024.

Read Also: Guide To CPF: What New Permanent Residents In Singapore Need To Know

#3 Foreigners Pay A Higher Income Tax Rate

One of Singapore’s competitive advantages is its low individual and corporate tax rates, which allow Singaporeans and PRs to pay much less in taxes compared to citizens elsewhere.

Residents in Singapore benefit from progressive tax rates ranging from 2% to 22% (which will be increased to 24% from YA 2024) on income earned above $20,000 in a specific year of assessment.

If you continue working in Singapore as a foreigner, the tax authorities will levy a flat rate of 15% or the progressive resident tax rate on your employment income, whichever is higher.

Additionally, for other non-employment-related income such as rental income from properties, pensions, and director’s fees, the tax rate for non-resident individuals of 22% (which will be revised to 24% from YA 2024) will apply.

#4 Cannot Hold HDB Flat As A Foreigner

Singapore has one of the highest property ownership rates in the world, at around 90%. This is largely due to its public housing scheme, which allows residents to purchase subsidised Housing Development Board (HDB) flats.

PRs can buy resale HDB flats after residing in Singapore for three years, while new build-to-order (BTO) flats remain reserved for Singapore citizens.

When you give up your PR status, you cannot retain your current HDB flat (if you currently own one) as a foreigner and would need to sell your flat. This means you will not be able to continue staying in or renting out your existing HDB flat.

Read Also: [BTO Guide] Eligibility Criteria For Buying A HDB In Singapore

#5 Property Purchases Will Incur A Higher Additional Buyer’s Stamp Duty (ABSD)

The government first introduced Additional Buyer’s Stamp Duty (ABSD), an additional tax payable by buyers on the higher of the purchase price or market value, on 8 December 2011, in an attempt to moderate demand for residential property. However, the property market has remained strong, and since then, the government has implemented many rounds of cooling measures to revise the ABSD rates.

Currently (or after 27 April 2023), a PR buying the first residential property has to pay 5% ABSD, 30% for the second residential property, and 35% for the third and subsequent property purchase.

However, once you give up your PR status, you will be recognised as a foreigner, which incurs an ABSD of 60% for the purchase of any residential property.

Read Also: How Much Buyer’s Stamp Duty (BSD) And ABSD Singaporeans, PRs And Foreigners Need To Pay – And When

#6 No Longer Eligible For Healthcare Subsidies

Another advantage that PRs have over foreigners is the healthcare subsidies they receive at government polyclinics and hospitals. While they may receive less than Singapore citizens, they enjoy much lower costs compared to foreigners, who are billed at the full cost of treatment.

The table below shows the charges between the three groups: Singaporeans, PRs, and Foreigners, for basic medical consultation and dental services by the two polyclinic operators.

Medical Consultation & Treatment Fees
	Singaporeans	PRs	Foreigners
SingHealth
Medical Consultation	$16.30	$32.30	$67.60
Dental Services – Scaling and Polishing	$45.40 to $84.60	$22.60 to $42.30	$68.40 to $126.40
National Healthcare Group
Medical Consultation	$16.30	$36	$65.88
Dental Services – Scaling and Polishing	$19.30 to $32.50	$29.20 to $48.70	$42.01 to $79.27

 

#7 Children Will No Longer Enjoy Subsidies At Government Schools

PRs receive an advantage over foreigners in terms of education benefits for their children attending government schools, including those with autonomous status. The school fees are categorised into four categories: Singapore citizens, permanent residents, ASEAN international students, and non-ASEAN international students.

Similar to other government subsidies, while Singapore citizens receive the highest subsidy among other government subsidies, permanent residents receive the second highest subsidy, which is still lower than the amount payable by international or foreign students.

However, once you lose your PR, your children will be charged as international students, as per the table below:

Institution	Singapore Citizen (per month)	Permanent Residents (per month)	ASEAN International Students (per month)	Non-ASEAN International Students (per month)
Primary	$6.50 to $13	$230 to $268	$490 to $528	$825 to $888
Secondary	$5 to $25	$440 to $520	$840 to $920	$1,600 to $1,770
Junior Colleges & Millennia Institute	$6 to $33	$520 to $607	$1,070 to $1,127	$1,950 to $2,127

 

#8 Lose Eligibility To Apply For Singapore Citizenship

If you are 21 years old or older and have spent two years as a permanent resident in Singapore, you would be eligible for Singapore Citizenship. Once you lose your PR status, you lose your eligibility to apply for Singapore citizenship.

Read Also: Singaporean Permanent Residents’ Roadmap: Key Personal Financial Schemes And The Decisions You Have To Make

Having Second Thoughts: Can You Apply Again To Be A SPR Even If You Gave Up Before

Even though you lose your PR status, you can still apply to become a Singapore PR in the future. However, the re-application will be considered on its own merits under the prevailing conditions at that time. You will also need to re-instate whatever CPF contributions (with interest) you had previously withdrawn.

Another important point to note is that the serving of the National Service for second-generation male Permanent Residents is a key obligation to those who become Singapore PRs under the sponsorship of another person (e.g., their parents or spouse). This group of individuals who do not serve their full-time NS obligations and are renouncing or losing their status may face unfavourable consequences in their family members’ applications for long-term immigration facilities, their ability to sponsor such facilities, their renewal of Re-Entry Permit, or their applications for Singapore citizenship.

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