Swiss banks could see assets from Western European clients fall 28 % to 623 billion Swiss francs, or $668 billion, by 2014 because of the deals to tax undeclared accounts, the Boston Consulting Group said in a report. Singapore and its rival, Hong Kong, look set to benefit.
Together, the two Asian hubs manage $1 trillion in offshore funds, with about 75 % of that coming from within the region. But Singapore and Hong Kong may overtake Switzerland — now the largest global offshore wealth center, with assets of about $2.1 trillion — in 15 to 20 years, Boston Consulting said.
Singapore, with tax rates that top out at 20 % and no capital gains tax, is already synonymous with wealth. Safe and clean, the city-state bills itself as a tropical refuge with exclusive residential enclaves, a marina for superyachts, two casinos, fine dining, high-end boutiques and an annual Formula One race that brings in the global jet set.
Rich residents include Eduardo Saverin, the co-founder of Facebook, who has called Singapore home since 2009. The Brazilian-born Mr. Saverin, who renounced his U.S. citizenship this year, was in the eighth spot on a Singapore rich list published by Forbes magazine, with an estimated net worth of $2.2 billion. The list also included immigrants like the investor Richard Chandler, born in New Zealand, who had $2.9 billion, and the property developer Zhong Sheng Jian from China, with $1.4 billion.
A 10 % property duty imposed on foreigners, part of efforts to cool the housing market, has done little to dissuade the ultrawealthy — many of them Chinese, Indian, Malaysian and Indonesian — from plowing money into Singapore real estate.
Australian mining tycoons are also moving in. Gina Rinehart paid 57 million Singapore dollars, or $47 million, for two units at Seven Palms Sentosa Cove, a luxury beachfront condominium, according to Singapore’s Business Times newspaper, while Nathan Tinkler recently moved his family to Singapore.
