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Malaysia, My Second Home : Application
- Frequently Asked Questions
   
 

General Questions

  1. What are the main incentives of this program?
  2. What do you recommended to improve my chances of approval?
  3. Do I have to stay in Malaysia after joining this program?
  4. Can the Social Visit Pass be extended after 5 years?
  5. After joining this program, can I apply for Permanent Residency?
  6. Who qualifies as dependents?
  7. How long will it take to know if my application is approved?
   
  Fixed Deposit
 
  1. Can I withdraw my fixed deposit after successfully joining this program?
  2. At which banks can I place my fixed deposit?
  3. Can my fixed deposit at the Malaysian financial institution be made in a foreign currency?
  4. With Malaysia's controls on foreign currency exchange, can I exchange my Ringgits back to a foreign currency when leaving the country?
  5. Do I need to pay tax on interest income made in Malaysia?
   
  Employment
 
  1. Am I allowed to work under this program?
  2. Can I set up my own company, shop or factory in Malaysia?
  3. Do I need to pay income tax?
   
  Home Purchase
 
  1. Can the purchase of a house in Malaysia valued at more than RM150,000.00 be considered as having fulfilled the financial criteria for this program?
  2. Can I apply for local financing from a bank in Malaysian if I purchase a house there?
  3. Are there any price restrictions on purchasing property?
   
  Car Purchase and Driving License
 
  1. What incentives do I have to purchase a car for use in Malaysia?
  2. What is an example of what I can save in taxes on the purchase of a car?
  3. Are there any time limitations to purchasing a car?
  4. If I purchase a second-hand car locally, is the purchase subject to sales tax?
  5. Do I need to take a driving test to drive in Malaysia?
   
  General Answer
 
Q: What are the main benefits of this program?
A:

All successful applicants enjoy the benefit of:


- Purchasing up to two landed properties in Malaysia (free-hold and lease-hold
permitted)
 - Bringing or purchasing one passenger vehicle tax-free (saving up to 300% in tax on a single vehicle)
- High-interest rates for fixed deposits (currently between 3.5-4.0% annual yield)
- Tax exemption on interest earned through the fixed deposit (see fixed deposit section below)
- Bringing one domestic helper with you
- Flexibility of staying in Malaysia as long as you wish (without the one-month limitation
of most tourist visas)


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Q:

What do you recommend to improve my chances of approval?
A: While you are required to place a fixed deposit and/or show proof of income, these are only the minimum requirements. In order to receive approval, you must show that you have a strong financial background by providing asset statements, bank deposit statements and proof of any additional income that you derive beyond the minimum required amounts. In other words, simply having RM300,000 in the bank and RM10,000 per month in income will not get approval. Furthermore, we recommend you apply with family members when possible.

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Q: Do I have to stay in Malaysia after joining this program?
A: After completing your landing visit to Malaysia, you are free to enter and leave the country without any restrictions.
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Q: Can the Social Visit Pass be extended after 10 years?
A: Yes. If you fulfill the criteria of the Social Visit Pass at the time of renewal, the Malaysian government ensures that the Social Visa Pass will be renewed.
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Q: After joining this program, can I apply for Permanent Residency?
A:

Yes, applicants may apply for Permanent Residency after holding the Social Visit Pass for a minimum of five years (Please note that the Immigration Department in Malaysia does not guarantee that you will successfully obtain a permit to stay permanently). However, your Social Visit Pass and Multiple Entry Visa will be renewed as long as you still meet the initial application criteria.

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Q: Who qualifies as dependents?
A: Applicants may apply their spouse and children under the age of 18 as dependents. All other persons must be shown to be financially dependent on the applicant to qualify as a dependent.
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Q: How long does the approval process take for my application?
A: Most applications will either be approved or rejected within 30 working days.
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Fixed Deposit

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.
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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.
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Q: Can the purchase of a house in Malaysia which is valued more than RM300,000.00 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.
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Q: Am I allowed to withdraw my fixed deposit for a few months and then topped 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.
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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.
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Employment

Q: Am I allowed to work under this program?
A: You are not allowed to work under this program. However, certain people with special skills may be able to apply for a work permit from the Immigration Department.
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Q: Can I set up my own company, shop or factory in Malaysia?
A: Yes, as long as you abide by the laws on foreign investment in Malaysia. For further information. please contact the Malaysia Trade & Development Office.
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Q: Do I need to pay income tax?
A: It is not necessary to pay offshore income tax. However, you must pay domestic income tax for income generated within the country.
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House Purchase

Q: Can the purchase of a house in Malaysia valued at more than RM300,000.00 be considered as having fulfilled the financial criteria for this program?
A: No. Participants are required to fulfill the fixed deposit requirement as the purchase of a house is not compulsory under this program.
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Q: Can I apply for local financing from a bank in Malaysian if I purchase a house there?
A: Yes. You may apply for a loan of up to 60% of the value of the property.
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Q: Are there any price restrictions on purchasing property?
A: You may purchase up to 2 properties, each of which must be worth at least RM250,000.
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Car Purchase and Driving License

Q: What incentives do I have to purchase a car for use in Malaysia?
A: A participant can choose to either:
1. Import one car subject to approved permit (AP), which is exempted from import duty, excise duty and sales tax
2. Purchase one locally assembled car (including foreign brands) in Malaysia which is exempted from payment of excise duty and sales tax.
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Q: What is an example of what I can save in taxes on the purchase of a car?
A:
Toyota Camry Mercedes Benz S-Class
Regular Sale Price RM170,000.00 RM800,000.00

Duty, Excise & Sales Tax

(Your Potential Savings)

 RM70,000.00 RM400,000.00
Purchasing Price under MMSH RM100,000.00 RM400,000.00

(All figures are strictly for reference only. Actual purchasing prices may vary significantly.)

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Q: Are there any deadlines to purchasing a car?
A: You must apply to purchase your car within 6 months from the date you receive your Social Visit Pass.

Processing of applications takes about 2 weeks. Applicants have another 6 months to finalize the purchase.

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Q: If I purchase a second-hand car locally, is the purchase subject to sales tax?
A: The government does not levy sales tax and excise duty on the private sale of a car.
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Q: Do I need to take a driving test to drive in Malaysia?
A: Malaysia recognizes all international driving licenses as long as your original license is still valid.