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.
Investment in Real EstateApplicant is required to have purchased houses for a total value of at least MYR1,000,000 within 5 years prior to the visa application.
In addition, he or she must make a fixed deposit in a Malaysian bank account of MYR150,000 if the applicant is under 50, or MYR 100,000 if he or she is equal to or older than 50.
- 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. Senior applicants who are denied coverage because of their age are exempt from this requirement.
- 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.
- Show evidence of ownership and full payment of property
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
ProceduresPlease sign in to view
Our qualified attorney in Malaysia will handle all paperwork, and guide you through each step of the process to ensure that it is as fast, efficient and pain-free as possible.
First, our lawyers will conduct a due diligence check on you to ensure that you are eligible and meet the criteria to apply for the program.
If you have not purchased property in Malaysia, we can provide you access to our network of developers in Malaysia in order to find the most suitable property according to your needs.
Once the property is purchased, we will send you the application forms and provide assistance to complete the questionnaires, and translate and authenticate supporting documents. After that, we will submit it to the Immigration Unit and the MM2H Centre.
After receiving the letter of conditional approval, you must visit Malaysia, make your deposit in a Malaysian bank and undergo a medical checkup at a Malaysian clinic or hospital.
Once done, you may collect your visa, provided that you file evidence of deposit (if applicable) and the medical certificate, together with a proof of health insurance and a letter of good conduct issued by your country to the Immigration Unit. The whole process usually takes within 3 months.
For further information on the Malaysia My Second Home Program and detailed procedures, contact us for a free private consultation.