‘Billionaire Hub Vs Tax-Free Oasis’: Viral Thread On How Singapore And Dubai Differ – News18

Last Updated:November 01, 2024, 3:00 PM IST

An X user posted a thread where the person provided an interesting comparison between two cities — Singapore and Dubai.

A recent social media thread by Alessandro Palombo, who has lived in Dubai for four years and launched two businesses in Singapore, provided interesting comparisons of these two famous cities. On X, he referred to Dubai as “the tax-free oasis (in Lamborghinis)” and Singapore as “the billionaire’s hub (in flip-flops).” Palombo shared insights on which city might be better for different entrepreneurs and expatriates by comparing daily life, climate, business environments and more.

He began by noting the remarkable transformations both cities have undergone. For Singapore, Palombo called it a “fishing village” which transformed into a global financial hub in one generation and now manages over $2 trillion in assets. In contrast, he highlighted Dubai’s evolution: “From desert to metropolis in 30 years, with the Sheikh’s vision of a tax-free haven brought to life.”

Before comparing the two cities, Palombo shared some key statistics. He pointed out that Singapore is the safest city in the world with a maximum tax rate of 22% and ranks as the fourth largest financial hub globally. On the other hand, Dubai is the fourth safest city which boasts a 0% personal tax rate and has introduced a new 9% corporate tax with exemptions.

In his next tweet, Palombo discussed daily life in both cities. He described Singapore as having a “relaxed wealth scene with a great mix of city and nature,” along with “elite healthcare and education.” In his post, he called Dubai as a place with a “strategic timezone” where “wealth is on display” and “fast opportunities” are available.

Talking about the climate, Singapore has a “tropical, humid year-round” environment, with temperatures ranging from 25-32°C (77-90°F). Meanwhile, Dubai has a “hot desert” climate with “mild winters,” but temperatures can soar to 45°C (113°F) during the summer.

In terms of the business environment, Singapore ranks second in ease of doing business, while Dubai is ranked 20th. He described Singapore as a “gateway for Asian markets” and Dubai as a “bridge between East and West markets.” The company setup process in Singapore takes just 1-3 days, whereas it takes 3-5 days in Dubai. In terms of corporate tax, Singapore has a 7% rate, but there are extensive exemptions and incentives available. Dubai has a 9% corporate tax, with a 0% rate in Free Zones under certain conditions. Both cities allow for 100% foreign ownership.

Palombo discussed banking by stating that Singapore offers “ultimate wealth preservation,” with private banking that rivals Switzerland and over 700 family offices for asset protection. While Dubai’s banking system is “fast & flexible” with quick account openings. However, when it comes to digital banking, Dubai is not considered as efficient as Singapore.

Singapore has a “tough entry” for residency, with citizenship possible in 2 to 6 years, usually at a high cost. However, Dubai does not provide a path to citizenship, but it offers multiple visa options and an easy golden visa.

Finally, Palambo addressed challenges in both cities. For Singapore, he mentioned that the city has a “very high cost of living, especially housing,” along with “super expensive” cars and humidity. In Dubai, he pointed out that there is “little to no permanency,” “brutal summers,” and “controversial inequality.”

His detailed thread accumulated over 14 million views and received a wide range of reactions from social media users.