Regime Rate
0%
on foreign-source income (territorial)
Standard Top Rate
30%
without this regime
Duration
10 years
renewable multiple-entry visa
Target Profile
Long-stay expats
Malaysia
Tax Savings Illustration
Example: €150,000 Annual Gross Income
Under MM2H
€36,000
Standard Rate
€45,000
Annual Saving
€9,000
Eligibility Requirements
Who qualifies?
- Minimum liquid assets: MYR 1.5 million offshore (~€310k) for Standard track
- Minimum monthly offshore income: MYR 40,000 (~€8,200)
- Fixed deposit in Malaysia: MYR 1 million (~€210k) — partially withdrawable after year 1
- Valid health insurance covering Malaysia
- Clean criminal record from home country
How the Regime Works
Full details
MM2H provides a 10-year multiple-entry social visit pass, renewable indefinitely. Malaysia's territorial tax system means income from employment/business outside Malaysia is generally not taxed in Malaysia. Since January 2022, some foreign-source income remitted to Malaysia may be taxable — local tax advice is recommended. The programme was reformed in 2021 with higher financial requirements. Sarawak and Labuan tracks offer lower entry thresholds.
Regime vs Standard Rates in Malaysia
| Tax Type | Standard Rate | Under This Regime | Saving |
|---|---|---|---|
| Foreign income (offshore) | 30% | Generally 0% (territorial) | Full exemption typically |
| Malaysian-source income | 1–30% progressive | 1–30% | Standard rates apply |
| Capital Gains (shares) | 0% | 0% | No CGT in Malaysia |
| Corporate Tax | 24% | 24% | Unaffected |
| VAT (SST) | 8% service | 8% | Unaffected |
Frequently Asked Questions
Who qualifies for the MM2H?
The MM2H is available to long-stay expatriates seeking permanent residency alternative. Key requirement: minimum liquid assets: myr 1.5 million offshore (~€310k) for standard track. The regime lasts 10 years.
How much tax do I save with the MM2H?
On a gross income of €150,000, standard Malaysia income tax is approximately €45,000 (30% top rate). Under the MM2H, it is approximately €36,000 — a saving of €9,000/year. Actual saving depends on income composition and individual circumstances.
How do I apply for the MM2H?
Applications for the MM2H are submitted to the Malaysia tax authority, typically within the first year of establishing residency. You will need proof of prior non-residency, evidence of qualifying activity or income, and valid residency documentation. A qualified local tax advisor is strongly recommended for the application process.
Other Special Regimes to Compare
Disclaimer: This information is for general guidance only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making residency or tax planning decisions.