Ultimate Guide to Expatriation in Malaysia: The beauty of the Malay Peninsula
Last Updated on 3 January 2025
Malaysia🇲🇾 is fast becoming the new paradise for remote workers, thanks to its low cost of living, tropical climate, and stunning beaches.
Malaysia, an Southeast Asian country like Indonesia, offers a range of options, from big cities like Kuala Lumpur to smaller ones like Penang.
Language and Currency
The primary language spoken in Malaysia is Malay, and the local currency is the Ringgit.
Taxation in Malaysia
Here’s what you need to know about Malaysian taxation:
- Resident status: A person is considered a tax resident in Malaysia if they stay more than 182 days within the Malaysian territory during a calendar year.
- Income tax rates: Tax residents in Malaysia are subject to progressive income tax rates ranging from 1% to 30%. For example, an annual income of €50,000 would be taxed approximately €10,000 (20% effective tax rate).
- Corporate tax rates: Resident companies in Malaysia are taxed at a standard rate of 24%. Under certain conditions, a reduced rate of 17% may be available on a portion of the company’s profits.
- Dividend tax rates: Dividends paid by a Malaysian company to a resident individual are not subject to tax.
- Crypto taxation: Gains from cryptocurrencies are not taxable if they are occasional. However, they may be considered professional income in the case of continuous/active trading.
Administrative Procedures for Moving to Malaysia
To move to Malaysia, you’ll need to obtain a residence visa. The Malaysian government welcomes remote workers and offers a visa specifically designed for them, called the DE Rantau visa.
Requirements for the DE Rantau visa include:
- A valid passport for at least 14 months at the time of application
- Minimum annual income of $24,000
- Clean criminal record
- Health insurance for the visa’s duration
- Working in the digital sector (digital marketing, web development, blockchain, etc.)
- Proof of remote work with clients outside of Malaysia
The DE Rantau visa is valid for up to 12 months and can be renewed once, allowing you to stay in Malaysia for up to two years. The visa costs 1,000 MYR (€220) for the applicant and 500 MYR (€110) per dependent.
Best Cities to Live In
Here are the top cities to live in Malaysia:
- Kuala Lumpur: The Malaysian capital, Kuala Lumpur, is a modern city offering all the services you need. The cost of living is relatively low, with a monthly budget of around €1,400, including a nice apartment in the city center. The city is popular among remote workers, making it easy to meet entrepreneurs from around the world. English is widely spoken, and the average internet speed is 11 Mbps.
- Penang: Penang is an island located very close to mainland Malaysia. This is where you’ll find some of the most beautiful beaches in Malaysia and the world. The island offers a mix of traditional culture with many practiced religions, as well as modernity. Penang is very popular among remote workers, and English is the primary language spoken. The cost of living is quite low, with a monthly budget of around €700. The average internet speed is 13 Mbps.
Cost of Living
Compared to Europe, the cost of living in Penang is approximately 50 to 75%% lower. However, this will depend on your lifestyle.
Kuala Lumpur is becoming increasingly expensive since Covid and you should know that alcohol is not cheap in this country!
- Studio apartment in the city center: €250-€300 per month
- Hotel night: €20/night
- Basic meal: €2.30/person
- Beer (0.5L): €3.50
- Coworking space: €75/month
- Internet subscription: €30/month
Opening a Bank Account in Malaysia
Once in Malaysia, you’ll need to open a bank account for your daily expenses. The two most interesting banks for expats are:
- CIMB
- May Bank
To open a bank account, you’ll need to visit a branch with your visa and identification documents. As an expat, opening a multi-currency account with TransferWise can be extremely useful for your daily life.
Benefits of TransferWise include:
- Free multi-currency account
- Free MasterCard debit card
- No account opening or maintenance fees
- Fast and reliable international transfers
Climate in Malaysia
The climate in Malaysia is tropical, with generally sunny skies and temperatures around 30°C (86°F). However, the weather can be less pleasant during the rainy season, which lasts from October to December.
Conclusion
In conclusion, Malaysia offers an attractive destination for remote workers, with a low cost of living, beautiful landscapes, and an excellent quality of life. The country’s taxation system and visa options make it a top choice for digital nomads and entrepreneurs.
FAQs
- Is English widely spoken in Malaysia? Yes, English is widely spoken in Malaysia, especially in major cities like Kuala Lumpur and Penang.
- Is it easy to find accommodation in Malaysia? Yes, finding accommodation in Malaysia is relatively easy, with a wide range of options available, from modern city apartments to beachside villas.
- What is the healthcare system like in Malaysia? Malaysia has a well-developed healthcare system, with both public and private hospitals offering high-quality medical services.
- Is Malaysia safe for expats? Yes, Malaysia is considered a safe country for expats. However, as with any country, it’s important to take normal precautions and be aware of your surroundings.
- Can I drive with my home country’s driving license in Malaysia? Yes, you can drive in Malaysia with your home country’s driving license for up to three months. After that, you’ll need to obtain a Malaysian driving license or an international driving permit.
