Malaysia My Second Home Program
This program is aimed at retirees and persons of independent means that wish to establish residency in Malaysia. The visa does not allow working in the country, with certain exceptions, and does not entitle its holder to be eligible for a permanent residency permit, neither citizenship.
Applicants aged below 50 yearsApplicant must have liquid assets of at least MYR500,000, a monthly regular income of at least MYR10,000 and make a fixed deposit in a Malaysian bank of MYR300,000, half of which can be withdrawn to buy a house, purchase health insurance or pay for their children’s education.
After two years, part of the deposit may be withdrawn to use the car purchase concession, as long as a minimum balance of MYR150,000 is maintained during the entire stay in Malaysia under the program.
Visa holders may purchase property without restriction, provided that the minimum price established for foreigners in the state where they make the purchase is applied. Usually the minimum price is MYR1m, but there are states like Penang with a lower minimum. Buyers must receive state approval, which can take up to six months. They may also apply for a bank loan. Local banks will require proof of repayment capability, since repayment is normally required when the borrower turns 65-70.
Other benefits include the duty-free, excise and sales tax-free import of an automobile owned by the visa holder requesting an approved permit (AP). As long as the car has been purchased prior to the date of the application and the application is carried out within a period not exceeding 6 months after the issuance of the visa, and is imported within a maximum period of 2 years. Visa holders can also purchase a tax-free Malaysian car during the first year of the visa.
- A Malaysian sponsor is required to support the application and place a personal bond up to MYR2,000 before the visa is issued.
- Have medical insurance from any insurance company that is valid in Malaysia.
- Undergo a medical examination in any private hospital or clinic registered in Malaysia.
- Police clearance certificate from the country of origin to prove that the applicant has no criminal record.
No nationality is officially restricted
Dual citizenship is not recognized in Malaysia. To become a citizen of Malaysia, you must renounce your previous nationality.
- Evidence of Health Insurance
- Curriculum Vitae
- Original or Certified copy of Birth Certificate (if applicable)
- Original or Certified copy of Marriage Certificate (if applicable)
- Proof of net wealth
- Proof of income
- Bank Statement
- Original Police Clearance Certificate
- Medical Certificate
- Evidence of purchasing property (if applicable)
- Authorization letter to verify financial documents
- Job and Salary verification letter
- Certified copy of passport
- Covering letter
- dual citizenship No
- Family members included Yes
- land ownership Yes
- Physical residence required No
- Personal visit required Yes
- Language skills required No
- Interview required No
- Investment Single $200,000
- Investment Family 4 $200,000
- Minimum annual income $100,000
- Time to citizenship
- Time to permanent residency
- Visa-free countries 181
- Financing available No
It has a population of 30 million inhabitants, and its capital and most populated city is Kuala Lumpur, with 2 million people and more than 7 million in the whole metropolitan area. Its official language is Malay, although, as a former British colony, English is widely spoken, and around 30% of its population is of Chinese origin, besides Tamil and 7 other regional ethnicities. Its official currency is the Malaysian Ringgit (MYR).
Visa Free Travel
An individual is tax resident in Malaysia if he or she stays more than 182 days per year in the country.
Both tax residents and non-residents are taxed on income derived from Malaysia. Foreign-source income is usually not subject to taxation.
Personal income tax is levied at progressive rates from 0% to 28% on income exceeding MYR 1,000,000. Non-residents are taxed at a 28% flat rate. Dividends from Malaysian sources are treated as ordinary income, while interest is tax exempt. Both interest and dividends from foreign sources are tax exempt, whether remitted or not.
Capital gains derived from the sale of securities are tax-exempt. Those derived from the sale of real properties are subject to the Real Property Gains Tax at rates of 30% for properties held up to 3 years, 20% on the fourth year, 15% on the fifth year and 5% after 5 years.
There is a local property tax, which is 6% of the value of the annual rent according to the assessment of the local authorities. There is a stamp duty levied on the transfer of real property assets at a 3% rate, and at 0.3% on share transactions.
There are no taxes on inheritances and on an individual’s net worth.
Goods and Services tax is levied on certain goods and services at a 6% rate.
With regard to corporations, resident entities are taxed on their income accrued in Malaysia at a 24% rate. Reduced tax rates may apply to SMEs. Companies incorporated in the federal territory of Labuan may elect to pay a fixed amount of MYR20,000 or be taxed at 3% on their profits.
To learn more about Malaysian corporate taxation, legal framework and tax treaties, check out incorporations.io/malaysia.
This should not be construed as tax advice. We have access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances. Contact us for further information.
- Property tax No
- Transfer tax Yes
- Inheritance tax No
- Net worth tax No
- CFC law No
- Tax residency days 182
- Personal income tax rate 28%
- Capital Gains tax rate 30%
- Investment income tax rate 28%
- Territorial taxation Yes