Q:

I received a three-month tourist visa every time I come to Malaysia, and since I’m only planning to spend a few months here every year, why should I join the MM2H programme?

A:

In this case, there is no critical need for you to join the programme. Any foreigner can buy property in the country and the MM2H programme does not give any additional benefit in this respect. However, an MM2H visa can make it easier for you to obtain certain services, such as open a bank account or obtain a credit card, and use the special lanes in airports set up by the Immigration Department, which will usually speed up your entry.

Q:

Who can apply and how do I go about doing it?

A:

Anybody over the age of 18 from any country recognized by Malaysia can apply, unless they are married to a Malaysian. It is basically targeted at retirees, holiday home purchasers and people wanting to educate and accompany their children in Malaysia. To apply, you must use an approved agent by the Malaysian Ministry of Tourism.

Q:

Do I have to come to Malaysia as soon as I obtain an MM2H visa?

A:

No, you don’t even have to spend a minimum amount of time here every year – the visa allows you to come and go as you please. However, you will lose out on the tax-free car option if you do not apply for it within a certain time-frame after your visa has been approved.

Q:

I have been living with my partner for 20 years but we never got married. Can she apply for the programme too?

A:

If you are unmarried, you partner would have to apply separately, meaning you will individually need to qualify for the programme.

Q:

With the many changes the programme has been under-going over the years, should I be worried that I won’t be able to renew my visa when it becomes due?

A:

The government has assured all applicants that they will be able to stay in the programme under the same rules and conditions as when they first applied, assuming they follow the rules and the laws of the country. Even people married to Malaysians, who were approved before the rules were changed, excluding this category, are being allowed to stay in the programme and renew their visa.

Q:

What should be my financial status?

A:

You must have a monthly income exceeding RM10,000 and show evidence of assets that should be worth more than the Malaysian government’s Fixed Deposit requirement.

Q:

I am over 50 years old but my pension of RM10,000 a month is from a major company. Why do I have to place a Fixed Deposit?

A:

At this time, the Malaysian government will only waive the Fixed Deposit requirement for those who receive a government pension exceeding the equivalent of RM10,000.

Q:

Can I set up a company in Malaysia?

A:

You may buy or invest in a company in Malaysia. You can also be a director and attend board meetings, but you cannot be involved in the company’s day-to-day management nor have an office in the company’s premises as it might imply you are working there. Furthermore, any income derived from this investment would be liable to local taxes.

Q:

If i am offered a short-term consulting job, can I take it?

A:

Currently, the rules are quite strict on this matter. If the work is in Malaysia, you have to obtain permission from the immigration Department before accepting the job. This may or may not be approved. However, if the work is entirely outside the country you are free to take it without advising Malaysian authorities.

Q:

Can I withdraw my fixed deposit any time during my stay in Malaysia?

A:

Participants are not allowed to withdraw the fixed deposit for the whole duration of the one year period, unless for emergency cases and with prior approval from the Ministry of Tourism.

Q:

Can I place the fixed deposit in a Malaysia bank located in my country?

A:

No. Participants have to open a fixed deposit account in any Malaysian local bank or financial institution in Malaysia.

Q:

Can the purchase of a house in Malaysia which is valued at more than RM250,000.00 be considered as having fulfilled the financial criteria for this programme?

A:

No. Participants are required to fulfill the fixed deposit requirement or monthly off-shore income for age 50 years and above as the purchase of a house is not compulsory for participants under this programme.

Q:

Am I allowed to withdraw my fixed deposit for a few months and then top it back later?

A:

No. Participants are not allowed to do this, unless for an emergency purpose but with prior approval from the Ministry of Tourism.

Q:

When can I withdraw my fixed deposit?

A:

After a period of one year, the participant may withdraw his/her fixed deposit for approved expenses relating to house purchase, education for children in Malaysia and medical purposes OR when he/she decides to terminate his/her stay in Malaysia by first informing the Ministry of Tourism of his/her intention at Malaysia My Second Home Centre. Participants can apply to withdraw part of their fixed deposit for emergency cases such as medical purposes, etc. with prior approval of the Ministry of Tourism.

Q:

Can I open a restaurant, book shop or clinic in Malaysia under this programme?

A:

No. Participants under this programme are NOT allowed to have their own businesses. However, they are allowed to invest in local companies as an inactive partner. They are allowed to attend Company’s Board Meetings as one of the company directors but they are not allowed to have an office in the company. Participants can participate in the local share market.

For more information on investing in Malaysia, please contact:

Q:

I am a qualified doctor in US. How can I get to work in a Malaysian hospital or a private hospital?

A:

Under Malaysia My Second Home Programme, participants are NOT allowed to work. However, you may apply to the Human Resources Ministry seeking special approval for you to work in Malaysia because of your expertise. If you are successful, you will be issued a work permit or Employment Pass. You may join Malaysia: My Second Home Programme upon expiry of your work permit should you decide to continue your stay in Malaysia.

Q:

Do kindergarten level children need Student Visas to attend kindergarden here?

A:

Children below the school going age (of is 7 years) are not required to apply for Student Visas. They need only apply for a Social Visit Visas.

Q:

If my children are already married and want to study in Malaysia with their husbands, do they need to pay the fixed deposit?

A:

Not necessary. They can apply for a Student Visa once they have obtained places of study in Malaysia.

Q:

Are the participants entitled to any special entitlements?

A:

All participants are allowed to purchase two units of residential properties at more than RM250, 000.00 each except for certain areas in Sarawak (above RM350,000.00).

Q:

Can I purchase a house for residential purpose and a shop lot to be rented out?

A:

No, you are only allowed to purchase residential properties.

Q:

Do I have to pay the yearly assessment and quit rent for my houses like the locals?

A:

Yes.

Q:

In the event of unforseen death can the participant Malaysian assets be handed over smoothly to any of his beneficiaries. Does the Government have any restriction on this matter?

A:

Yes, provided he/she has a Will which indicates clearly to whom the properties are to be given to. If not the next of kin of the participant will have to apply to the Government to have his properties released to them as the rightful heirs.

Q:

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)?

A:

They can purchase any properties from any individuals.

Q:

Do I need to obtain prior approval from Foreign Investment Committee (FIC) for the purchase and sale of my house?

A:

Participants under this programme are not required to obtain prior approval for the purchase and sale of houses from FIC. However, they must write to the Ministry of Tourism giving details of the house (location as well as price) so that a letter can be issued to them certifying that they are eligible to purchase the said property on this programme. In addition, they are required to enclose a copy of the approval letter obtained from the respective State Authority authorising the purchase or sale of the property concerned for FIC's information.

Q:

Am I subject to the property gains tax if I make a profit from selling my house?

A:

No.

Q:

Does a participant who buys a second-hand local car eligible for tax exemptions?

A:

Second hand cars are transacted on a willing buyer, willing seller basis and the government does not levy any sales tax and excise duty on such transactions , as such tax exemptions do not arise. However, second hand cars which are imported are subject to sales tax and import duty at the point of entry.

Q:

If I had a car accident and as a result I need to change the car, do I have to pay back the tax exemptions?

A:

The following situations applies :

Q:

When can I sell the car, which has been given all the tax exemptions?

A:

A car that has been exempted from taxes and duties under this programme can be sold or its ownership transferred provided the prevailing taxes and duties on the car have been paid prior to the transaction. However, for imported cars , the condition stipulated in the AP should be complied with before any sale or transfer can be permitted.

Q:

What kind of taxes are the participants of this programme normally subjected to?

A:

Income tax is imposed on income earned from investments in local companies and local share market. Apart from this, gains from the sale of landed property are also subjected to real property gains tax which is presently waived. Please refer to www.hasilnet.org.my for more details on the tax structure.

Q:

Is the interest for the fixed deposit taxable? Some say it is taxable, others say it is not taxable , if the deposit amount exceeds RM100,000.00 OR if the deposit period is one year. What is the exact regulation?

A:

Interest earned by an individual from fixed deposit account is exempted under the following situations:

Q:

Is income remitted from abroad taxable?

A:

Before year of assessment , 2004 income remitted from abroad to Malaysia (apart from pension) is subject to tax. However, from year of assessment 2004 all income remitted from abroad is not subject to tax.

Q:

Does the participant have to submit any personal tax declaration to the Income Tax Department of Malaysia, like Malaysians have to?

A:

Yes.

Q:

If the participants have to submit income tax return to the Income Tax department, are they entitled to any exemptions under the programme?

A:

They will only be taxed on the income earned in Malaysia after taking into account the personal tax allowances. The income will be taxed according to a progressive tax rate structure.

Q:

I am a German with which my country has a 'double taxation agreement’ with Malaysia. I have an early pension and if I stay in Malaysia for at least 184 days, my pension scheme will not be taxed by the German Government and will also not be taxed by the Malaysian government. Is this true?

A:

Under this Programme, pension remitted to Malaysia is exempted from tax.