FAQ

FIXED DEPOSITS

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

Can I place the fixed deposit in a Malaysia bank located in my country?
No. Participants have to open a fixed deposit account in any Malaysian local bank or financial institution in Malaysia.

Can the purchase of a house in Malaysia which is valued more than RM1,000,000 be considered as having fulfilled the financial criteria for this programme?
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.

Am I allowed to withdraw my fixed deposit for a few months and then topped it back later?
No. Participants are not allowed to do this, unless for an emergency purpose but with prior approval from the Ministry of Tourism.

When can I withdraw my fixed deposit?
After a period of one year, the participant may withdraw his/her fixed deposit for approved expenses relating to:

  • Purchase of a property in Malaysia
  • Purchase of a vehicle in Malaysia
  • Education for children in Malaysia
  • Medical purposes

What happens to the interest from the fixed deposits?
You can keep the interest earned from the fixed deposits.

 

INVESTMENT

Can I open a restaurant, book shop or clinic in Malaysia under this programme?
Yes. Participants under this programme are allowed to have their own businesses as a Director/Shareholder of the company, terms apply. They are also allowed to invest in local companies as an inactive partner. They are allowed to run a company in an executive position as one of the company directors. Participants can participate in the local share market.

 

EMPLOYMENT

I am a qualified doctor in US. How can I get to work in a Malaysia hospital or a private hospital?
Under Malaysia My Second Home Programme, participants are NOT allowed to work. However, you can apply to the Human Resources Ministry seeking special approval for you to work in Malaysia because of your special expertise. If you are successful, you will be issued a work permit or Employment Pass. You may join Malaysia: My Second Home Programme at the end of your work permit if you decide to continue your stay in Malaysia.

 

EDUCATION

Do kindergarten level child need a Student Visa to attend kindergarten here?
Children below the school going age (that is 7 years old) are not required to apply for a Student Visa.

If my children are already married and want to study in Malaysia with their husband, do they need to pay the fixed deposit?
Not necessary. They can apply for a Student Visa once they have obtained places of study in Malaysia.

 

HOUSE PURCHASE

Are the participants entitled to any special entitlements?
All participants are allowed to purchase residential properties at more than RM1,000,000 each according to the 2014 lastest budget update.

Can I purchase a house for residential purpose and a shop lot to be rented out?
No, you are only allowed to purchase residential properties.

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

In the event of unforeseen death is the participant able to hand over his Malaysian assets to any of his beneficiaries smoothly. Does the Government have any restriction on this matter?
Yes, provided he/she has a Will which indicated clearly to whom the properties are to be given. 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.

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)?
Participants can purchase any type of housing properties provided that it has been issued with CF (Certificate of Fitness).

Am I subjected to the property gain tax if I make a profit from selling my house?
Yes. The gain tax will be according to a tax rate structure.

 

CAR PURCHASE

What incentives do I have when buying a car in Malaysia?
You can choose to either: Import one car subject to approved permit (AP), which is exempted from import duty, excise duty and sales tax Purchase one locally assembled car (including foreign brands) in Malaysia which is exempted from payment of excise duty and sales tax.

How much can I save in taxes on the purchase of a new car in Malaysia?

Car Models Normal Sale Price Price under MM2H Your Savings
BMW 528i M Sports F1 RM 409,800 RM 282,517 RM 127,283
Mercedes C200 Elegance RM 261,888 RM 187,211 RM 74,677
Honda Accord 2.0 VTi-L RM 149,815 RM 98,511 RM 51,304
Nissan Grand Livina (MPV) RM 89,813 RM 66,472 RM 23,341
Toyota Fortuner 2.7 RM 178,079 RM 113,845 RM 64,234
(All figures quoted are retail prices in Ringgit Malaysia and without insurance; they are strictly for reference only; please refer to your car dealer for actual and current purchasing prices)

Can I buy a second-hand local car and eligible for tax exemptions?
Second hand cars are transacted on a willing buyer & seller basis and the government does not levy any sales tax and excise duty on such transactions therefore tax exemptions do not arise.

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?
Given the following situations: *If the car is repaired and sold, it will be subject to the applicable tax/duty according to the prevailing rates. *If car is written off, taxes will be waived. If the participant wishes to buy another car, their application will be processed on the merit of each case. Under normal circumstances a participant of this program is allowed tax exemption for a new car on a one time basis.

When can I sell the car, which has been given all the tax exemptions?
You can only sell the car after two years. Cars that have been exempted from taxes and duties under this program 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 before any sale or transfer can be permitted.

I would like to import my own car to Malaysia and what are the regulations?
Under MM2H program, you are allowed to bring in personal car with duty / tax exemptions. We can provide you with the procedures to do it yourself or you may engage us an agent to do so. You must apply to import your car within 6 months from the date you receive your MM2H Visa.

What is the deadline for me to purchase a new car?
You must apply to purchase your car within 12 months from the date you receive your MM2H Visa.

 

INCOME TAX

What kind of taxes are the participants of this programme normally subjected to?
Income tax is imposed on income earned from investments in local companies and local share market.

Is income remitted from abroad taxable?
From year of assessment 2004 onwards, all income remitted from abroad is not subject to tax.

What are the advantages to using an agent?
Agents have a higher knowledge on the most recent updates with regards to the programme and are more familiar with the application process therefore making it easier for applicants. Agents are also able to submit the documents on your behalf and only when your presence is required, they will then guide you to the specific department in Malaysia. Using an agent will also allowing them to act as your sponsor which avoids the need to place the cash bond with the government. The cash bond usually cost up to RM2,000 per person depending on your nationality. You save up to RM2,000 per person!

Do I have to move to Malaysia as soon as I get the MM2H Visa?
There is no minimum time spent in Malaysia required for you to retain the Visa. The Visa allows MM2H Visa holder to come and go as they please.

I have a de facto, can he/she apply under my application?
If you are not married, you have to apply it separately as the Government of Malaysia does not recognize de facto.

Malaysia My Second Home

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