The statistics paint a very interesting picture. UK bankers earn a huge amount of bonuses, see the chart extracted from the Business Times below.
Staggering Gap between UK and Singapore
The 2013 mean bonus levels in the UK was US$96,596 versus US$20,298 in Singapore. This is almost 500% difference using Singapore as a base!
Because of this huge gap, the after tax bonus in the UK still beats Singapore by a mile. The point I am making here is not so much the difference in Income Tax rates between UK and Singapore (which there is a big difference), but rather the huge difference in mean bonuses!
Just reflect upon this. If you think Singapore is an important financial center, just think where we stand against London, UK. Seriously, how much money do you think a Bank must make in order to pay out bonuses like those you see in the UK?
No wonder so many of my friends in Banking want to work in London and New York. Their income is much higher, even after paying so much UK tax.
Why does this matter?
London is UK's financial capital. The bankers earning these bonuses live there, and many of them do not own their apartments, they rent.
Therefore, landlords have a good market of highly paid bankers to let out their flats to.
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