Penang is the place where you can count on for retirement and a place to live in. Alongside Singapore and Thailand, it is one of the top choices for foreign property investors.
According to an Asian property trends survey conducted online last year, two of its cities, Penang and Kuala Lumpur ranked 9th and 10th most favourite locations among foreigners for property investments.
The survey indicated that 55% of the respondents were looking for high end properties in the RM327,157 (US$100,000) to RM1.6 million price range with 15% keen to invest in property ranging from RM1.6 million to RM3.2 million.
The Malaysia My Second Home (MM2H) programme allows citizens of other countries to retire and reside in Penang with their spouses, children, parents and even in-laws.
Successful applicants will be granted a social visit pass initially for 10 years, which is renewable thereafter subject to the validity period of the applicants’ passport.
Applicants are expected to be financially capable of supporting themselves on this programme in Malaysia.
Upon application:
i. Applicants aged below 50 years are required to show proof of liquid assets worth a minimum of RM500,000 and offshore income of RM10,000 per month.
ii. Applicants aged 50 and above may comply with the financial proof of RM350,000 in liquid assets and off shore income of RM10,000 per month. For those who have retired, they are required to show proof of receiving pension from government approved funds of RM 10,000 per month.
iii. New applicants who have purchased properties worth at least RM 1 million qualify to place a lower fixed deposit amount upon approval.
Successful applicants are required to comply with the following financial criteria upon receipt of the ‘Conditional Approval Letter’ from Immigration Department of Malaysia.
Upon Approval : Aged Below 50 years old
* Open a fixed deposit account of RM300,000.
* After a period of one year, the participant can withdraw up to RM150, 000 for approved expenses relating to house purchase, education for children in Malaysia and medical purposes.
* Must maintain a minimum balance of RM150,000 from second year onwards and throughout stay in Malaysia under this programme.
Approved participants who have purchased and own property which were bought at RM1 million and above in Malaysia may comply with the basic fixed deposit requirement of RM 150,000 on condition that the property has been fully paid and ownership documents such as grant and land title have already been issued. This amount may not be withdrawn until the participant decides to terminate his participation in MM2H programme.
Upon Approval : Aged 50 years and above
* Can either choose to: - Open a fixed deposit account of RM150,000 ; OR - Show proof of government approved pension funds of RM10,000
* After a period of one year, participant who fulfills the fixed deposit criterion can withdraw up to RM50,000 for approved expenses relating to house purchase, education for children in Malaysia and medical purposes.
* Participant must maintain a minimum balance of RM100,000 from the second year onwards and throughout his/her stay in Malaysia under this programme.
Approved participants who have purchased and owned property which were bought at RM1 million and above in Malaysia may comply with the basic fixed deposit requirement of RM 100,000 on condition that the property has been fully paid and ownership documents such as grant and land title have already been issued.This amount may not be withdrawn until the participant decides to terminate his participation in MM2H programme.
Incentives
All approved applicants will enjoy special benefits by the Government for this unique program. The incentives/benefits include :
1. You will receive a 10-year Social Visit Pass and Multiple-Entry Visa
2. After10years,it is guaranteed renewable if you didn’t violate the laws & rules of Malaysia.
3. Duringthese10years,you are free to stay in Malaysia and travel as often as you like.
4. You can import your car or purchase a new car(CKD)tax-free.It is a great savings.
5. School going children will be giving student pass to further their studies at international colleges and universities.
6. Allow to employ a maid.
7. You are allowed to invest and actively participate in business.
8. For housing loan,you can obtain up to 80% as compared to normal 60% for foreign applicants (subject to credibility).
9. No need to obtain Foreign Investment Committee(FIC)approval for purchasing properties in Malaysia.
10.Oversea income is not taxable in Malaysia. Under this programme, for those countries that have a double taxation agreement with Malaysia, your private pension fund remitted to Malaysia is exempted from tax.
Announcement
In line with the Immigration Circular No. 6 of 2009, the following improvements have been made to the Malaysia My Second Home (MM2H) Programme, with effect from 13 February 2009:
1. Qualified MM2H participants aged 50 and above with specialised skills and expertise that are required in the critical sectors of the economy, are allowed to work not more than 20 hours per week.
The approval to work part-time is subject to the following conditions:
a) The application is approved by the MM2H Special Committee; b) The work contract needs to state that the MM2H participant is working part
time and to attach the work schedule; and c) Total number of hours of week does not exceed 20 hours.
2. MM2H participants are allowed to invest and actively participate in business, subject to existing Government policies, regulations and guidelines which are in force for the relevant sectors.
3. Foreign spouses of Malaysian nationals are eligible to apply for MM2H, subject to the terms and conditions of the MM2H programme. Alternatively, they have the option to apply for the Spouse Programme.
4. The ten-year Social Visit Pass is extended to all Silver Hair and MM2H participants who were previously approved under the five-year Social Visit Pass, subject to the validity of their passports.
5. Employment Pass holders who wish to participate in the MM2H programme are exempted from the “cooling off period” on the condition that their application to participate in MM2H programme is submitted 3 months before the expiry of the Employment Pass.
6. ID-Cards will be issued to MM2H participants with permanent address in Malaysia. This is validated by submitting the Sales and Purchase Agreement or Tenancy Agreement in Malaysia.
7. Age limit of unmarried dependent children is raised from 18 years to 21 years. A declaration stating that the child is unmarried and all expenses during the stay in Malaysia will be borne by the principal participant of the MM2H program is required.
8. ‘Dependants’ include unmarried children aged 21 years and below, step- children, disabled children and parents.
Frequently Asked Questions
General Questions
Q1: What are the main benefits of this program?
A: All successful applicants enjoy the benefit of: 1. Purchasing properties (free-hold and lease-hold permitted) in Malaysia FIC pre-approved 2. Bringing or purchasing one passenger vehicle tax-free (saving up to 300% in tax on a single vehicle) 3. High-interest rates for fixed deposits (currently 2.5% – 3.0 % annual yield) 4. Tax exemption on interest earned through the fixed deposit (see fixed deposit section below) 5. Bringing one domestic helper with you 6. Flexibility of staying in Malaysia as long as you wish (without the one-month limitation of most tourist visas)
Q2: Who grant the approval of MM2H application?
A: The Ministry of Tourism Malaysia and the Immigration Department of Malaysia.
Q3: 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.
Q4: Do I need to be in Malaysia when applying for a renewal?
A: Yes, all participants MUST be present in person with their passport in Malaysia to receive the MM2H visa endorsements from the Immigration of Malaysia. All renewals must be done three (3) months prior to the expiry date. You may do the renewal yourself or you may engage us to assist you.
Q5: 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.
Q6: 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.
Q7: After joining this program, can I apply for Permanent Residency?
A: No. Under this programme participant is not allow to apply for Permanent Residency.
Q8: Can I use my existing non-cash assets in Malaysia to fulfill the MM2H condition?
A: No, they cannot be considered equivalent to the fix deposit requirement stated in the Conditional Approval Letter by the Immigration of Malaysia. However, we strongly advise you to include whatever assets you have in Malaysia or elsewhere as your supporting financial documents when you make your MM2H application.
Q9: Who qualifies as dependents?
A: Applicants may apply their spouse, unmarried children below the age of 21 and parents above the age of 60 as dependents. All other persons must be shown to be financially dependent on the applicant to qualify as a dependent.
Q10: How long does the approval process take for my application?
A: Most applications will either be approved or rejected within 2 months.
Q11: What were the main reasons applications were being rejected?
A: Most rejected cases were due to the failure in showing proof of strong financial status. As mentioned above, applicants with just enough cash available for the required fix deposit and meeting the minimum requirement for monthly income will not be approved.
Q12: If I have been staying in Malaysia for years, can I apply for MM2H?
A: Yes, provided you have a valid Social Visa at the point of application and are able to fulfill all the requirements. The application can be done while you are in Malaysia.
Q13: How would I know if Malaysia is suitable for me?
A: we can assist you to make a familiarization trip to visit Malaysia so that you can see the country personally and evaluate the advantages of living or retiring in Malaysia.
Q14: When exactly will I obtain the MM2H 10 years Social Visit Pass with Multiple Entry Visa? A: Upon fulfilling all the conditions of approval as listed in the Conditional Approval Letter, we will then accompany you to the Immigration Department of Malaysia to settle the visa fees and to obtain your MM2H visa.
MM2H Visa
Q1: What is MM2H Visa?
A: MM2H Visa is a ten (10) years Social Visit Pass with Multiple Entry Visa. Successful applicants will be issued MM2H visa as long as the holders do not violate the rules and regulations of the Immigration Department of Malaysia. The MM2H visa is renewable / extendable at the end of the 10 years period provided if you fulfill all criteria set by the Immigration of Malaysia.
Q2: If my passport is valid for the next three (3) years, will I receive the full ten (10) years visa endorsement? A: The MM2H visa endorsement will be given based on the validity of your passport. You will entitle to receive up to ten (10) years visa if your passport is valid for the next ten years. If your passport is only valid for 3 years, you will only be given a 3-year visa. You may receive the balance of the ten-year visa upon renewal of your passport.
Q3: What is the minimum day to stay in Malaysia per year after obtaining the MM2H visa endorsement? A: There is no minimum day you require to stay in Malaysia per year. You may visit and leave as you wish with no restrictions after you obtained the MM2H visa endorsement.
Fixed Deposits
Q1: Which banks am I required to place my fixed deposit?
A: You may place your fixed deposit at any financial institution, including foreign banks with local branches in Malaysia.
Q2: Can my fixed deposit at the Malaysia bank be made in foreign currency?
A: The fixed deposit for this programme MUST be made in Malaysian Ringgits; any amount beyond the stated requirement can be made in most foreign currency.
Q3: How to open Fixed Deposit Account in Malaysia?
A: By presenting the original MM2H Conditional Approval Letter and your passport, you may open the Fixed Deposit account at any bank in Malaysia.
Q4: Can I open a current account with the banks in Malaysia?
A: By presenting the original MM2H Conditional Approval Letter and your passport, you may open a personal saving and current accounts in Malaysia.
Q5: Can I withdraw my fixed deposit any time during my stay in Malaysia?
A:Some banks allow periodical withdrawals of interest earned on your Fixed Deposit. This is subject to the bank's policy and negotiation at the time of opening your account with the bank concerned. Please refer to banking portal www.bankinginfo.com.my for current rates and terms.
Q6: 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.
Q7: Can the purchase of a house in Malaysia which is valued at more than RM500,000.00 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.
Q8: 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.
Q9: 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.
Medical / Health Insurance
Q1: How can I complete the required medical check-up and what type of medical insurance policy should I purchase? A: We will assist you to complete your medical check-up requirement and to purchase the required medical insurance; you will have to pay to the respective parties directly for the fees premium incurred.
Q2: Can I receive medical treatment in Malaysia?
A: Yes you can receive medical treatment from any clinics, medical centres, hospitals throughout Malaysia.
Investment
Q1: Can I open a restaurant, book shop or clinic in Malaysia under this programme?
A: MM2H participants are allowed to invest and actively participate in business, subject to existing Government policies, regulations and guidelines which are in force for the relevant sectors. For more information on investing in Malaysia, please contact: MIDA Headquarters
Malaysian Industrial Development Authority (MIDA) Block 4, Plaza Sentral Jalan Stesen Sentral 5 Kuala Lumpur Sentral
50470 Kuala Lumpur Malaysia Tel: 603-2267 3633 Fax: 603-2274 7970 Website : www.mida.gov.my Email: investmalaysia@mida.gov.my This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Education
Q1: Should I apply MM2H for my children who are / will be attending school in Malaysia?
A: Not necessary, children only need to have the Student Pass to attend schools here and to live with their parents in Malaysia.
Q2: 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 Visa.
Q3: 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.
Q4: Can the children of successful applicants attend school in Malaysia?
A: Yes, they may do so by having Student Pass and they should be insured throughout their stay in Malaysia.
House Purchase
Q1: Are the participants entitled to any special entitlements?
A: All participants are allowed to purchase residential properties at the minimum purchase price for foreigners established by the respective state governments. The current minimum price (Jan 2010) is RM500, 000.00 per unit for most states.
Q2: 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.
Q3: Do I have to pay the yearly assessment and quit rent for my houses like the locals?
A: Yes.
Q4: In the event of unforeseen death can the participants Malaysian assets be handed over smoothly to any of his beneficiaries. Does the Government have any restriction on this matter? A: No. Participants may transfer their property to their next-of-kin provided they have made a will to this effect. In the event of lack of documentation, the next-of-kin may claim the inheritance upon proof of identity and kinship.
Q5: 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: Participants can purchase any type of housing properties provided that it has been issued with CF (Certificate of Fitness).
Q6: Is the RM500,000.00 foreign property ownership regulation applies to landed property only? A: No, it also applies to other properties with strata titles such as condominiums, apartments and service apartments.
Q7: 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 information.
Q8: Am I subject to the property gains tax if I make a profit from selling my house?
A: No.
Q9: Can I apply for local financing from a local bank to purchase a house in Malaysia?
A: Yes, you may apply for the loan in Malaysia subject to the terms and conditions of respective banks or financial institutions.
Q10: Can you assist me if I would like to invest in some properties?
A: Yes, we can assist you in your search for the right properties to invest.
Q11: Can I keep pets in my condominium?
A: The By-laws of the Strata Title Act state that a parcel proprietor is not allowed to keep any animal in his parcel or on the common property which may cause annoyance to any other proprietor.
Car Purchase
Q1: What incentives do I have with owning a car in Malaysia?
A: You can choose either: - Import a car subject to approved permit(AP), which is exempted from import duty, excise duty and sales tax - Purchase a locally assembled car(including foreign brand) in Malaysia which is exempted from payment of excise duty and sales tax.
Q2: Is 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.
Q3: I would like to import my own car to Malaysia and what are the regulations?
A: Under MM2H, you are allowed to bring in personal car with duty / tax exemption. We can provide you with procedures to do it yourself or you may engage us to do so for you.
Q4: Is there any deadline to purchase a new car?
A: You must apply to purchase your car within six (6) months from the date you receive your MM2H visa. Processing of applications takes about 2 weeks. Applicants have another 6 months to finalize the purchase.
Q5: 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: Given the following situations: i. If the car is repaired and sold , it will be subject to the applicable tax/duty according to the prevailing rates.
ii. If car is written off, taxes will be waived. iii. If the participant wishes to buy another car, his / her 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 on a one time basis.
Q6: When can I sell the car, which has been given all the tax exemptions?
A: A cars 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 before any sale or transfer can be permitted.
Income Tax
Q1: 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. Please refer to www.hasilnet.org.my for more details on the tax structure.
Q2: 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 in the following situations:-
i. Period exceeding twelve months or more – any amount of interest. ii. Period not exceeding twelve months – interest on fixed deposit account of up to a maximum of RM100,000.00.
Q3: 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.
Q4: Does the participant have to submit any personal tax declaration to the Income Tax Department of Malaysia, like Malaysians have to? A: Yes.
Q5: 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.
Q6: 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.
Driving License
Q1: I have an international driving license; do I still need to sit for a driving test to obtain a driving license in Malaysia? A: Malaysia recognizes all international driving licenses. Therefore you do not need to obtain a new driving license in Malaysia as long as your international license is still valid. You may convert your foreign driving license to Malaysian Driving license according to the rules and regulations by the Road Transport Department. You may request us to furnish you with the detailed information and procedures on how to do it yourself.
Import Duty
Q1: if I wish to bring in personal belongings, what are the procedures and are the goods subject to tax? A: Used personal and household effects that have been used for a period of not less than 3 months and will not be disposed of within 3 months after date of importation into Malaysia are not subject to tax. However, the participants of MM2H must make declaration with the Customs as per their requirements. We can provide you more details on the procedures accordingly.
To Bring In Foreign Maid
Q1: How to bring in a foreign maid from the country of origin of participant?
A: You are allowed to bring in a foreign maid subject to the approval from the Immigration Department. We can provide you more information on the procedures of this.
My Next Home (MM2H) Sdn Bhd Tel: +604-2108122 begin_of_the_skype_highlighting +604-2108122 / +604-2108121
Email info@mynexthome.com.my
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