WEST MALAYSIA MM2H FAQs

WEST MALAYSIA MM2H Frequently Asked Questions

1. Is the MM2H programme connected to either permanent resident status or citizenship status in Malaysia?
It is not connected. The MM2H programme does not grant permanent resident status to its participants. It also does not enable anyone to become a Malaysian citizen. 
 
2. Can I work or do business in Malaysia under MM2H?
Only Platinum category permissible to have business investment activities and career opportunities in Malaysia.
 
3. I was a Malaysian before and now a citizen of another country, would that be a problem in applying MM2H?
No problem, you can apply MM2H with foreign passport.
 
4. I am not married but my partner and I have been living together for a long time. Can we apply for the programme?
If you are not married, you will have to apply separately and you will both need to qualify for the visa.
 
5. How long does the MM2H application process take?
The MM2H application processing time varies, it typically takes around 3 to 6 months for approval.
 
6. Are the fixed deposits required for each adult and child that apply for MM2H?
The fixed deposit placement only has to be made by the main applicant.
 
7. Can I place the Fixed Deposit in a Malaysian bank located in my country?
No. The fixed deposit account must be opened in any Malaysian bank or financial institution located in Malaysia.
 
8. Am I allowed to withdraw my Fixed Deposit for a few months and top it back later?
No. Participants are not allowed to do this, unless for an emergency purpose and with prior approval from the Ministry of Tourism.
 
9. Must foreigners buy new properties, (e.g. from developers), or can they purchase any property (second-hand or third-hand property)?
You can buy new or second-hand properties. Value of the purchased property according to the requirements and threshold for each category.

10. 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 or you can withdraw if you cancel your visa.

11. Can I place the fixed deposit in a Malaysian bank located in my country?
No. The fixed deposit account must be opened in any bank or financial institution located in Malaysia.

12. 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 and with prior approval from the Ministry of Tourism.

13. 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 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.

14. Did I need to come to Malaysia to do the stamping or other process?
Yes, you need to come only for visa stamping after approval. If you dont come to KL then you can simply courier passports, transfer the visa fee and others fee to us whilst in another place in Malaysia.

15. For cancellation of ex-wife mm2h visa, immigration needs ex-wife original passport to cancel right? Does ex-wife need to enter the country and have an entry record? Or just can courier over for cancellation will do?
Ex-wife not required to be in Malaysia but an application needs to be made to mm2h to cancel her visa.

16. If the client passport expired & overstayed, what will happen when exit back to the home country? Will it affect his /her renewal of MM2H on his/her new passport?
They have to clear and pay the fine for overstaying and extend the MM2H visa on the new passport.

17. Does the client have to be married? Now the client lives in the Netherlands and has a “registered partnership”.
As long as you can provide a legal document to prove your partnership should be fine.

18. Can the client ship our personal belongings duty-free?
Yes you can ship your items and you don’t have to pay the duty.

19. For an MM2H visa holder, Could the client receive any directors’ fees as both an investor and directors?
Yes, you can receive directors’ fees.

20. Can a Malaysian spouse apply for MM2H visa after the expiry of his existing spouse visa or rather not to renew his spouse visa upon expiring?
Client can still apply mm2h visa and renew the spouse visa once is expired, but once you got the approval letter has to terminate the spouse visa in able to get an MM2H visa stamped on your passport.

21. The client works online in the UK so would that be a problem for the client?
No Problem ,you can still work remotely under mm2h visa if you work from home as a freelancer.

22. Can the client sell the property? What capital gains taxation and other taxation that would apply?
Yes you can sell property, the capital gains tax for the sale of property depends on how many years you have owned the house.

23. The client is concerned about his children’s future here. What can they do after completing their studies if the MM2H program will not allow them to get permanent residence? Is there any way for foreigners to get PR in Malaysia.
Unfortunately, having an MM2H visa does not entitle applicants or dependents to get Permanent Residency and it cannot be converted to PR status. The MM2H visa is a 10-year visa which gives the flexibility for applicant and dependents to come in and out of Malaysia as many times as they like without any restrictions.

24. The client is 49 years old now and will be 50 in January next year. If the application is lodged when he is 49 but approved when he is 50 what rules will apply ?
The rules that apply shall be as at the time of submission and not approval.

25. Is there a required minimum amount to start a business under the MM2H?
The rules that apply shall be as at the time of submission and not approval.

26. Would there be any tax concessions on operating a business such as a restaurant or chain of restaurants ? Also would there be any restrictions on running the same?
Normal tax as any local private company. Restrictions based on business for foreigners but they can get a license if a local citizen is added.

27. If the client uses the MM2H program, how long do they have to be in Malaysia? (we intend to travel the world for several years, without being longer than 3 months in one particular country).
No, There is no minimum number of days to stay in Malaysia upon getting the visa except for aged below 50 which is 90 days, otherwise stay as long as you wish & leave Malaysia anytime as you please.

Investments

28. If the client purchases a Melaka property in which the value is only RM500K, can he use this property to withdraw FD(RM300K)? please advise?
Yes, MM2H participants are allowed to withdraw partial of the required Fixed Deposit from the second year onwards (RM150,000 for aged 50 years and below) for approved expenses related to house purchase. They have to maintain the balanced RM150,000 (for aged 50 years and below) of Fixed Deposit until they terminate from MM2H Programmed.
 
29. What’s the average cost in health insurance for a couple (the main applicant is 53 and spouse is under 45)?
Getting insurance only comes after your application has been approved and your required insurance after approval would be in the region of RM3000 to 6000 per year depending on age.
 
30. Can I use my interest from the bond as proof of income?
Yes you can, please get a letter or statement from the bank to confirm that the latest 3 months’ interest have been credited into your bank account as proof.
 
31. After approval, I have to put USD150,000 in a new account in Malaysia for Silver package under my name right?
Yes, Fixed deposit is only required to place after approval.
 
32. 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/Sharehiolder 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.

For more information on investing in Malaysia, please contact:

Malaysian Industrial Development Authority (MIDA)
Level 4, Plaza Sentral
Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Malaysia

Tel: 603 2267 3633
Fax: 603 2274 7970
E-Mail: promotion@mida.gov.my
Website: www.mida.gov.my 

HEALTH, Employment & Education

33. Can I know any differences between government and private hospitals for mm2h holder & pure foreigner? Can mm2h holders enjoy the local Malaysian rate at gov hospital?
As a general rule in Malaysia you are advised to go to private hospitals as the government hospitals do not always have the same quality and facilities. The cost of seeing a doctor is very reasonable and it is relatively easy to see a specialist and unlike some countries you do not require a referral from a General Practioner (GP) before you can get access to them. Charges for a consultation usually run around RM50 – RM100 for a GP and RM100 – RM250 for a specialist.
 
34. I and my wife can work on this MM2H visa in Malaysia?
No, you are not allowed to work as an employee of a Malaysian company unless you are under the Platinum package. Once you get your MM2h visa stamp on your passport, you can own your own business.
 
35. If I’m in the midst of applying for a working permit, I got the VDR but haven’t done body checkup and also haven’t got the employment pass on the passport yet. But now I want to apply mm2h, what is the process. Please advise?
You can still apply for MM2H but once you got the approval letter you have to terminate the employment pass to be able you to get an MM2H visa stamped on your passport.
 
36. For renewal after 10 years do we need the latest 3 months bank statement and payslips?
Generally not required.
 
37. For FD certs which are 10 years ago, do we need to provide the latest updated version?
Yes. A bank statement showing the FD is still there is necessary. 

38. If my MM2H visa is already expired 6 months ago and I did not renew it, can I still withdraw my FD from the bank?
Yes, you can but must you proceed with the MM2H termination and withdraw FD accordingly.

39. I cancelled my son’s MM2H visa to apply for a student visa. After his graduation can he apply for his MM2H visa as my dependent?
You can apply MM2H visa if your son is still below 21. If your son is above 21 he/she cannot be under the same application he must apply on his own and need to fulfil his own MM2H requirements.

40. My husband is an MM2H holder. We just got married but we don’t have a marriage certificate. Can I do apply as a dependent under his name without a marriage certificate?
Yes, you can apply as long as a legal document is provided such as an affidavit. Extra charges apply.

41. Does a child below 7 years old need a Student Visa to attend kindergarten here?
Children below the school going age of 7 are not required to apply for a Student Visa. They need only apply for a Social Visit Visa.

42. If my children are already married and want to study in Malaysia with her husband, do they need to papply for MM2H visa?
Not necessary. They can apply for a Student Visa once they have obtained places of study in Malaysia.

House Purchase

43. What is the maximum price of the property that I can purchase as a MM2H visa holder?
There is generally no upper limit but MM2H and state terms apply.
 
44. In the event of unforeseen death is the participant able to hand over his Malaysian assets to any of his beneficiaries smoothly?
Yes, provided he/she has a Will which clearly states 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. We provide such services as well at additional costs.
 
45. Do I need to obtain prior approval from Foreign Investment Committee (FIC) for the purchase and sale of my house?
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 under this programme. In addition, they are required to send a copy of the approval letter obtained from the respective State Authority which has authorized the purchase or sale of the property concerned to FIC for information.
 
46. Am I subjected to the property gains tax if I make a gain from selling my property?
Yes.

Car Purchase

47. Is a participant who buys a second-hand local car eligible for tax exemptions?
Second hand cars are transacted on a willing buyer, willing seller basis and the government do 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.
 
48. If I need to change my car, do I have to pay back the tax exemptions?
The following situation may apply:
• If the car is sold it will be subject to the applicable tax/duty according to the prevailing rates.
• If car is involved with an accident and 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 car only once.
 
49. When can I sell the car, which has been given all the tax exemptions?
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.

Income Tax

50. If we were to retire in Malaysia do we need to still put in a tax return in Malaysia for foreign income earned?
If there is a tax treaty between your country of origin then you may not need to file a tax return unless you have Malaysian income.
 
51. 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. Please refer to www.hasilnet.org.my for more details on the tax structure.
 
52. Is the interest for fixed deposits taxable?
Interest earned by an individual from fixed deposit account is exempted in the following situations:
• Period exceeding twelve months or more any amount of interest.
• Period not exceeding twelve months interest on fixed deposit account of up to a maximum of RM100,000.00.
 
53. Does the participant have to submit any personal tax declaration to the Income Tax Department of Malaysia, like Malaysians have to?
Yes if they derive Malaysian income.

54. I am a German in 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 Malaysia government. Is this true?
Under this Programme, pensions remitted to Malaysia are exempted from tax.