What is the Malaysian Premium VIP visa?

Why Malaysia is a good option for expats in Asia

More people are starting to look towards Malaysia as a place to live and do business from in Asia.

Malaysia ticks many boxes for expats; relatively low cost of living, first world level infrastructure, excellent English proficiency, and close proximity to the rest of Asia.

For business owners or expats who are investing in the region, Malaysia also provides a strategically located, low-cost entry point for doing business and investing in Singapore.

The Malaysian Premium Visa Programme (PVIP)

The Malaysian PVIP visa is aimed at wealthy investors. It provides a residence by investment option for expats wanting to establish themselves in one of the up-and-coming business centers of Southeast Asia.

The PVIP visa gives you access to Malaysia for 20 years, and it can be extended for a further 20 years.

You will have multiple entry privileges to come and go as you please.

The Malaysia PVIP Eligibility Criteria

To be eligible for the premium visa programme you will need to demonstrate that you have a monthly income of RM 40,000 (Approximately USD 8,600), or an annual income of RM 480,000.

The applicant will need to deposit RM 1,000,000 (USD 214,000) into a licensed Malaysian bank account.

The money cannot be touched for the first year. After this time, 50% of the deposit amount can be withdrawn to fund a property purchase, medical or education expenses.

There is an application fee of RM 200,000 for the main application and a further RM 100,000 for dependents.

Each year you will have to pay an annual fee of RM 2,000.

You will also need to provide a certificate of good conduct from your home country.

How does the Malaysia PVIP compare to the MM2H?

The Malaysia My Second Home visa is Malaysia flagship residence by investment program. Here is a comparison between the PVIP and the MM2H under the current set of rules.

The PVIP has a high application fee (RM 200k). And while the benefits are similar under the MM2H Platinum visa. The lower level MM2H options offer a lower point of entry for applicants who don’t want or don’t have the kind of money that is required for the PVIP visa.

The MM2H has a minimum age for the main applicant of 25 years. The PVIP has no age restrictions.

One big advantage to the MM2H is that there is no monthly income requirement under the current set of rules. The PVIP requires RM 40,000 of income per month.

The MM2H has a mandatory property purchases requirement. While with the PVIP, purchasing a property is optional. Those who like the flexibility of renting may prefer the PVIP visa for this reason. Applicants can withdraw 50% (RM 500k)  after the first year for this purpose.

The PVIP has no minimum stay requirement. Whereas the MM2H requires you to stay in Malaysia for at least 60 days each year.

The PVIP is a 20 year renewable visa whereas the MM2H offers various commitment levels, starting at 5 years and ranging through to 20 year renewable visas.

You are allowed to do business, engage in employment and undertake education on the PVIP visa.

The MM2H only allows you to work if you are on the Platinum tier of the visa. You can register a Malaysian SDN BHD company but you will require a work permit if you want to work while in the country. You are not allowed to study on the MM2H visa.

Who is the PVIP visa good for?

The Malaysia Premium Visa Programme is good for wealthy expats who are looking for a good long term visa option in Southeast Asia. If you have the money to invest in this program, you can secure your future, your place in Asia for 40 years.

The PVIP gives expats the opportunity to come to Malaysia and build a life here. You have more rights for working and doing business in the country. It gets you closer to the entitlements that you would have with permanent residency.

The fact that there is no minimum stay requirement and quite good rights lends itself to being an excellent back pocket offshore option for expats looking to diversify or internationalize their lives. If you like to move around and be mobile then this could suit you.

Are there any other options for moving to Malaysia?

If the application fee is undesirable to you, you may consider the MM2H.

If the MM2H is still too costly for you, the Sarawak S-MM2H can be a good option. You only need RM 7k of monthly income on this one.

Malaysia has a 2 year digital nomad visa that allows you to legally work in the country. For this you need to show an annual income of just USD 24k.

For more established businesses that want to lower their taxes, you might consider a Labuan Directors visa.

Thailand, the Philippines and Indonesia also have options.

Do foreigners pay tax in Malaysia?

PVIP visa holders will be taxed under the regular Malaysian Income Tax Act.

If you are present in the country for at least 182 days in a tax year, you may be considered a resident for tax purposes.

For tax residents, money earned inside Malaysia is taxed at the regular marginal rates ranging from 0-30%.

Foreign sourced income that is remitted into Malaysia is not taxed under certain conditions until the end of 2026.

Non-residents will pay a flat rate of 30% on locally sourced income. There are exemptions available if you are in Malaysia for no more than 60 days in a tax year.

Next steps

Malaysia is one of the most popular Asian countries for expats to base themselves in. It is a place you might consider if you are looking for an Asian experience that is more in line with what you may be used to back home. The infrastructure is modern and it is a great place to work from.

If you would like some assistance with setting yourself up in Malaysia with one of its many visa options, we can help.

Thanks for reading.