The Singapore Way to Geoarbitrage and Live Abroad for Less

This post was originally posted on Planner Bee.

Singapore is a global financial hub. It is efficient, safe, and full of opportunity. But it’s also expensive. As the cost of living keeps rising, some Singaporeans and PRs are looking abroad not only for adventure but also for financial freedom.

This is where geoarbitrage comes in. It is the strategy of earning in a strong currency, like SGD, while living in a country with a lower cost of living. What used to be popular mainly among Western digital nomads is now gaining traction in Southeast Asia. More remote workers, freelancers, and even early retirees are starting to explore this option.

But can geoarbitrage really work for Singaporeans? And what are the trade-offs to consider? Read on to find out more.

What is geoarbitrage?

Geoarbitrage is a term coined by author Tim Ferriss in The 4-Hour Workweek. It refers to making the most of cost differences between countries by earning more in one place and spending less in another.

For example:

• You earn S$5,000 a month but live in Thailand, where a comfortable lifestyle might cost just S$1,500 a month.
• You can then save or invest the rest.
• You might choose to live more comfortably or retire earlier.

It’s not only about avoiding high costs in Singapore. It’s about creating a lifestyle that offers more freedom and better use of your money.

Geoarbitrage is no longer just for digital nomads or retirees. More mid-career professionals and young families are starting to explore this option for a better work-life balance. Remote work has unlocked new opportunities to live in places where life feels slower and costs are lower, without giving up a steady income. From bustling cities like Kuala Lumpur to tranquil spots in Bali or Chiang Mai, more Singaporeans are choosing destinations that offer modern infrastructure, safety, and affordability. They want to make their dollar go further while enjoying new and meaningful life experiences.

Have you thought about these before moving abroad?

Before deciding to relocate for geoarbitrage, it’s important to weigh both the benefits and potential drawbacks.

On the positive side, relocating to a country with a lower cost of living can significantly boost your savings rate, offer exposure to new cultures and lifestyles, and open doors to early or mini-retirement opportunities.

But there are trade-offs to think about. These include handling visa and residency requirements, securing reliable healthcare and insurance, dealing with currency fluctuations, and managing the emotional side of being far from family or familiar surroundings. For those relying on systems like Singapore’s CPF, contributions may stop while working overseas, which could affect long-term retirement plans.

Tax implications

If you live abroad while earning income from Singapore or other countries, tax matters can get a bit tricky. Singapore uses a territorial tax system. This means income earned overseas is usually not taxed unless brought into the country. But this does not always mean you are free from tax responsibilities.

Here are some things to keep in mind:

• If you work remotely for a Singapore company while living overseas, you are still seen as employed in Singapore and may be taxed there.
• If you stay long-term in countries like Thailand or Portugal, you might become a tax resident there. This could mean paying local income taxes, even on money earned from abroad.
• You also will not be making CPF contributions while living overseas. You will need to plan for your retirement by building up private savings or investments instead.

Tip: Always check if Singapore has a Double Taxation Agreement (DTA) with your host country. Speak to a tax advisor if you’re unsure.

From tech job to Thai paradise: One Singaporean’s geoarbitrage journey

Source: MustShareNews

A compelling example of geoarbitrage among Singaporeans is the story of Chen Shao Chun, a 39-year-old former Google employee who relocated to Chiang Mai, Thailand, after being laid off in 2024.

Despite this setback, Chen leveraged his substantial investment portfolio and diversified income streams, including teaching digital marketing at the National University of Singapore (NUS), coaching, and YouTube content creation, to sustain a comfortable lifestyle in Thailand. He now works between four and eight hours a week, which includes his NUS teaching commitment.

In Chiang Mai, he pays about S$580 a month for a luxury condominium with several pools, a water slide, a fully equipped gym, and a Pilates studio. This is a big change from his previous condo in Singapore, which cost him around S$3,150 per month. His total monthly expenses, including food and groceries, are about S$1,000. His weekly return flights to Singapore for work cost roughly S$320.

Chen says his new lifestyle is a significant improvement, allowing him more time for personal pursuits and family. He acknowledges that his situation is unique and may not be replicable for everyone, but it exemplifies how geoarbitrage can be a viable strategy for those with the right resources and flexibility.

Read more: How to Become a Digital Nomad, Even With No Experience

Is geoarbitrage right for you?

Before making the leap, it’s essential to evaluate your financial readiness, adaptability, and long-term plans.

1. Start by assessing your ability to earn a stable income remotely or passively, ideally in strong currencies like SGD or USD. This will help you stay financially secure while living abroad.
2. Next, make sure you have sufficient emergency savings in place. Access to good healthcare and overall stability can differ a lot from country to country.
3. Think as well about how ready you are for a change in culture and lifestyle. This will affect how easily you settle into a new place.
4. Lastly, look ahead. Have you planned for your long-term needs such as CPF contributions, insurance, and estate matters?

Taking time to consider these points can help you decide if geoarbitrage fits your financial goals and personal situation.

Read more: What’s an Emergency Fund and How Much is Enough?

Is geoarbitrage your path to financial freedom?

Geoarbitrage is no longer just an idea. It has become a real option for some Singaporeans who want to make their dollar go further while enjoying a good quality of life. But it’s not a one-size-fits-all solution that suits everyone. It requires careful research, proper planning, and the willingness to handle some uncertainty.

If you want to spend less and live more, geoarbitrage could open the door to a new chapter where your money works harder and your lifestyle feels freer.

Read more: How To Avoid Living Paycheck to Paycheck