Unlike similar programmes offered by other countries, the Malaysian government did not attach a host of special benefits and privileges to the visa.
The key attraction for the programme comes from the length of the visa and the natural attractions of Malaysia, which are many.
You can read more about what resident expats have to say about living in Malaysia in this article.
It should be noted that the rules shown in this website are for west Malaysia and Sabah only. The rules and requirements for Sarawak are different as they control their own immigration. If you plan to live there it has separate terms and conditions (read more here) We can assist with both a visa for Sarawak and west Malaysia but if you wish to live if Sabah you will have to find an agent based there
The following are some of the benefits which come with the visa.
A five year visa (renewable)
Successful applicants will receive a five year which is longer than the visas given by most other countries. At the end of the five years you can renew it.
The initial visa is issued for the period the main applicant’s passport is valid. In fact, it usually expires a little before the passport expiration. Once a new passport is obtained it is easy to apply for the balance of the five-year visa,
It should be noted that this visa does not lead to Permanent Residency (PR) or citizenship. Obtaining PR in Malaysia is a difficult and lengthy process and citizenship is close to impossible.
Tax Free Income
Malaysia does not currently impose tax overseas income so any money transferred into the country will be tax free. However, there are regulations about reporting large transfers of money so make sure you properly report it. Banks will help with this but people arriving with large cash sums have found themselves in trouble.
Some MM2H visa holders have their income taxed at source in the country where it is paid. Countries with double taxation agreement with Malaysia will usually authorise deductions to cease if the tax payer shows he has registered for tax in Malaysia. This can be done even though there is no tax payable in this country.
There is no inheritance tax in Malaysia so any assets can be passed on free of Malaysian tax.
House Purchase
Participants can buy a house in Malaysia although there are some restrictions. Foreigners can usually only buy a property priced over RM1,000,000 but, as property is controlled at a state level, it depends on which state you live in. Some states set lower (and higher) limits. It is not necessary to have an MM2H visa in order to buy a house in Malaysia.
You can apply for a bank loan in Malaysia for the purpose of purchasing a property. The bank will usually want you to repay the loan before reaching the age of 65 or 70. All property purchasers have to receive state approval, which can take up to six months to secure.
There is a capital gain tax, on any profits, of 30% if you sell within 5 years and thereafter 5%
Duty Free Car
This benefit was initially offered but has now been withdrawn. It is better to buy a new, or second hand car, which is locally assembled as they are cheaper than the ones imported fully built up.
If you have other questions about MM2H or would like us to be your agent, please contact us through our free Help Desk. Our company Borneo Vision (MM2H) Sdn Bhd is an approved agent for the programme. We can submit your application without you being here. You only need to come to Malaysia when it is approved. Check out “Six reasons to use us as your agent”.