Frequently Asked Questions

General Enquiries

If you have a Malaysian wife/husband, may you still apply for the MM2H program?

Previously, if you had a Malaysian spouse you were not eligible for the MM2H visa and were required to apply for the ‘Spouse Visa’. Fortunately, the rules have changed and you may now apply if you have a Malaysian wife/husband.

Do I have to move to Malaysia as soon as I get the MM2H visa?

You do not have to move to Malaysia or even spend a minimum amount of time each year. The visa allows you to come and go as you please.

I am not married but my partner and I have been living together for a long time.
Can she apply for the program?

If you are not married, you will have to apply separately and you will both need to qualify for the programme.

Will I get PR (Permanent Residency) status if I apply for MM2H?

Unfortunately, having an MM2H visa does not entitle applicants to Permanent Residency and it cannot be converted to PR status. The MM2H visa is a 10-year visa which gives the flexibility for applicant to come in and out of Malaysia as many times as they like without any restrictions.

Can I open or buy a business in Malaysia under MM2H?

Setting up a business or buying one is permitted but you are not allowed to become involved in the day to day running of the business. In that case you need to apply for a work visa

Can participants buy tax free cars?

MM2H applicants are no longer allowed to import or buy a tax free car.


Housing Enquiries

Do I have to buy a property if I am approved?

The programme does not require any property purchase. According to research by TEG Media, around 20 percent of applicants who move here choose to rent properties or stay in serviced apartments.

Must foreigners buy new Malaysia property only, such as from developers, or can they purchase any property, such as from individual owners (second hand or third hand property)?

Each state in Malaysia sets its own rules regarding property purchase. Usually any property over RM1,000,000 can be purchased by a foreigner but some states have slightly different rules and some states set lower limits for people with the MM2H visa..

If I purchase a property must I still place a fixed deposit?

Yes, you have to place the fixed deposit although it can be reduced if you buy a property, buy a car, have medical expenses or to pay to have your children educated in Malaysia

Financial Enquiries

Are the financial deposits required for each adult and child that apply for MM2H?

The fixed deposit placement only has to be made by the main applicant. Dependents are not required to place one.

When can I withdraw my fixed deposit?

You can only withdraw the Fixed Deposit when you leave the programme. A partial withdrawal is permitted after one year, but those over 50 and above must maintain a minimum of RM 100,000 on Fixed Deposit, and those under 50 – RM150,000. A partial withdrawal is only allowed to cover the following – property purchase, car purchase, education of children and medical expenses.

My pension and other income are taxed at source. Even though it is not taxed in Malaysia, I still pay tax in my home country so I receive no financial benefits.

If your country has a double tax agreement with Malaysia (such as the UK and Germany), then you can register with the tax authorities in Malaysia, even though you have no tax liability in this country. You can then show this to your home country’s tax authorities, who may authorise your pension to be paid tax free.

What is my liability for tax in Malaysia?

Overseas income is not taxable in Malaysia although it may be taxable in the country from which is it paid. Some MM2hers have managed to obtain exemption from their home country taxes on the basis of taking up residence in Malaysia. Any income earned in Malaysia is taxable in Malaysia. There is no inheritance tax in Malaysia. Foreigners are liable to a 30% real property gains tax in Malaysia if they sell within 5 years of acquisition and 5% thereafter.

Is the interest on the fixed deposit taxable?

There is no tax on the interest from the Fixed Deposits which are placed for under RM 100,000. For this reason the banks will usually split your Fixed Deposit into placements which are individually less than that amount.

How much interest will I earn on the fixed deposit, and can I keep this money?

You may keep the interest on the Fixed Deposit. Interest paid to foreigners varies from bank to bank, but is currently around 3.0 percent.

Is it possible to open a Malaysian bank account from abroad?

Once you have obtained the MM2H approval and you have a bank account in your home country, then you can usually arrange to open an account with their branch in Malaysia. Otherwise you can open one when you have collected the visa and move here.

Is it allowable, once you have been conditionally approved, to enter the country and go to a local bank to deposit cash and open an account?

Most clients will open their FD account once they arrive in Malaysia. Setting up the FD account is simple but transferring the money from your home country to the bank account here can take several days. Due to immigration law, you are only allowed to bring a certain amount of cash with you so make arrangements for this.