Moving to Malaysia: tax, residence and real costs (2026)
Malaysia: 0% on foreign income (individuals, until 2036) · up to 30% on Malaysian income. The cheapest route to residence is dE Rantau nomad pass (USD 24k a year income); MM2H Silver needs a USD 150k deposit: about USD 300 in fees doing it yourself, with no investment, with about USD 2,000 a month of income shown, in about 2 months. Living costs about USD 990 a month for one person in Kuala Lumpur, USD 530 in Kota Bharu, and around USD 500 on a bare-minimum budget.
Key facts
| Tax in one line | 0% on foreign income (individuals, until 2036) · up to 30% on Malaysian income |
| Foreign income | foreign-source income of individuals exempt until 2036 |
| Gains · dividends | 0 on most private gains (unlisted shares taxed since 2024) · 0 (2% on large dividends since 2025) |
| Wealth · inheritance tax | none · none |
| Cheapest residence | DE Rantau nomad pass (USD 24k a year income); MM2H Silver needs a USD 150k deposit |
| Money needed | About USD 300 in fees doing it yourself, with no investment |
| Time | about 2 months |
| Doable yourself? | Yes, with a checklist |
| Days you must spend there | 90 days for MM2H |
| Citizenship | practically none |
| Online business | 0% effective, about USD 400 a year to run: foreign-sourced income exempt to 2036; work done in Malaysia for local clients is taxed |
| Living (one person a month) | Kuala Lumpur ~USD 990; bare minimum ~USD 500; family of four ~USD 1,950 |
| Good for | foreign income exempt for individuals until 2036; Labuan companies (3% on trading profit with substance); low living costs |
| Common set-up | MM2H residence + foreign income kept abroad; Labuan company for regional trading |
Pros and cons
| Pros | Cons |
|---|---|
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Programmes
| Programme | All-in, one person | Months | Notes |
|---|---|---|---|
| MM2H (Silver/Gold/Platinum) | USD 160k | 6 | Deposits of USD 150k / 500k / 1 M for 5 / 15 / 20 years. |
Questions
- How much does residence in Malaysia cost?
- DE Rantau nomad pass (USD 24k a year income); MM2H Silver needs a USD 150k deposit: about USD 300 in fees doing it yourself, with no investment, about 2 months.
- Does Malaysia tax foreign income?
- Foreign-source income of individuals exempt until 2036. In one line: 0% on foreign income (individuals, until 2036) · up to 30% on Malaysian income.
- What does it cost to live in Malaysia?
- Living costs about USD 990 a month for one person in Kuala Lumpur, USD 530 in Kota Bharu, and around USD 500 on a bare-minimum budget (based on livingcost.org, 2026).
- Can I run an online business from Malaysia?
- Effective tax about 0% with the cheapest legal set-up, which costs about USD 400 a year: foreign-sourced income exempt to 2036; work done in Malaysia for local clients is taxed.
- What is the catch in Malaysia?
- MM2H rules change often
- What residence or citizenship programmes does Malaysia have?
- MM2H (Silver/Gold/Platinum): about USD 160k all-in for one person, ~6 months
Compare
- Hong Kong: 0% on foreign income · 15-17% on Hong Kong income · 0% on dividends and gains
- Singapore: 0% on foreign income · up to 24% on Singapore income · 0% on gains and dividends
- Thailand (LTR visa): LTR visa: 0% on foreign income · others: foreign income taxed when brought in · up to 35% local
- Philippines: foreigners: 0% on foreign income · up to 35% on local income
- Indonesia (Bali): first 4 years (experts): 0% on foreign income · up to 35% on local income
Compare all 53 places with your own income and budget →
Sources
- https://www.hasil.gov.my
- Living costs: based on livingcost.org (livingcost.org, June 2026), rounded