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 exemptions, 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 MYR 500,000, a monthly regular income of at least MYR 10,000 and make a fixed deposit in a Malaysian bank of MYR 300,000, which can be withdrawn half to buy a house, purchase health insurance or pay children’s education.
After two years, part of the deposit may be withdrawn to use the car purchase concession.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 MYR 150,000 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 MYR 1m, but there are states like Penang with 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 import within a maximum period of 2 years. Visa holders can also purchase a tax-free Malaysian car during the first year of visa.
- A Malaysian sponsor is required to support the application and place a personal bond up to MYR 2,000 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 of 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 -
- Investment Family 4 -
- Minimum annual income $30,000
- Time to citizenship
- Time to permanent residency
- Visa-free countries 164
- Financing available No
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 interests are tax exempt. Both interests and dividends from foreign source 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% in 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%, and at 0.3% on share transactions.
There are no taxes on inheritances and on 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 MYR 20,000 or be taxed at 3% on its 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. Flag Theory | Passports.IO has 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
Flag Theory | Passports.IO and 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.
We will send you the application forms and provide assistance to complete the questionnaires, translate and authenticate supporting documents. Once done, we will submit it to the Immigration Unit, MM2H Centre.
After receiving the letter of conditional approval, you must visit Malaysia, make your deposit in a Malaysian bank and make a medical checkup at a Malaysian clinic or hospital.
After that, 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 takes within 3 months.
For further information on the Malaysia My Second Home Program and detailed procedures, contact us for a free private consultation.