In a nutshell, MM2H is a long term visa (up to 10 years) which allows the successful applicant, his spouse, children under 21 years and parents above 60 years multiple entry and exit from Malaysia. MM2H is overseen by the Ministry of Tourism in conjunction with the Ministry of Finance (Treasury Department) and the Home Ministry (Immigration Department). It is open to all foreign citizens save for citizens of Israel.
Other benefits:
a) Foreigner purchase of residential property from RM500,000/- and above in Penang state instead of the minimum purchase price of RM1,000,000/- for any property except for landed properties on Penang Island (whereby the threshold is RM2,000,000/-) without having to apply to the Foreign Investment Committee. An application to the State Authority is however still required for purchase by foreigners (Limited purchase of 2 units for each application).
b) Purchase of locally assembled cars/Import of applicant’s car without tax. For instance a locally assembled Honda City (S) normally being sold for RM85,493/- can be purchased by an MM2H visa holder for RM54,935 or a locally assembled BMW520i normally being sold for RM358,800/- can be purchased for RM253,156/-. There is however a restriction that the car cannot be sold for a period of 2 years from purchase.
c) Bring in a foreign maid from countries approved by the immigration policy of Malaysia.
d) Invest or start a business in Malaysia (subject to existing Government policies, regulations and guidelines which are in force for the relevant sectors)
e) Qualified MM2H participants aged 50 and above with specialized skills and expertise that are required in the critical sectors of the economy, are allowed to work not more than 20 hours per week.(eg. Doctor)
f) Foreign spouses of Malaysian nationals are eligible to apply for MM2H, subject to the terms and conditions of the MM2H programme.
g) Employment Pass holders who wish to participate in the MM2H programme can only submit their MM2H application 3 months before the expiry of the Employment Pass.
Note:
The MM2H applicant does not have to be present in Malaysia on submission of the application although he (and his spouse & dependants, where applicable) needs to be present with his passport upon approval for endorsement on to his passport at the Immigration Department.
1st DECEMBER 2014
PROCEDURE
First stage (Submission):
We will provide you with a list of items required and forms to be filled in and signed. Upon receipt of the same from you along with the initial fees, we will then submit these to the Ministry of Tourism on your behalf.
No.
required |
Document/Particulars
required
|
|
i)
|
5
|
Coloured
passport size photographs each of the applicant, dependants and spouse (where
applicable).
|
ii)
|
1
|
Copy
of Passport/Travel documents (all pages) with certification on the pages with
personal particulars of the applicant’s, dependant’s and spouse’s (where
applicable).
Note:
Copy of previous passport is
required if applicant/ dependent (s) has renew his/her passport within the
last 12 months.
|
iii)
|
1
|
Certified
true copy of the marriage & birth certificates of dependants (where
applicable).
|
iv)
|
1
|
Certified
true copy of the applicant’s latest 3 month’s bank statement/other related
financial documents to show financial capacity during stay in Malaysia (each
month credit balance of minimum RM500,000/- (in liquid assets) for aged below
50yrs and RM350,000/- (in liquid assets) for aged above 50yrs).
|
v)
|
1
|
Certified
true copy of the applicant’s bank account statements that shows the latest 3
months deposit for monthly income (either from salary / rental / interest
earned / shares / etc) or government approved pensions into the applicant’s
bank account. (must show minimum of RM10,000/- per month).
|
vi)
|
1
|
Letter
of application stating how the applicant intends to financially support his
stay, why and with whom do you intend to reside in Malaysia.
|
vii)
|
1
|
Resume
which include the following information;
*
Academic qualification
*
Working experiences
*
Skills or expertise acquired.
|
viii)
|
2
|
Application
form for the MM2 duly filled in (with our assistance) and signed.
Note:
Applicant and all the dependents
have to complete the Form individually.
|
x)
|
1
|
Authorization
letter from applicant to Malaysian My Second Home Centre to verify the
financial documents with the relevant financial institutions.
|
xi)
|
1
|
Self
declaration on your /dependants health conditions. (Form RB I).
|
xii)
|
1
|
Letter
of Good Conduct from your relevant government agency;
i)
The police authority of the applicant’s home country; OR ii) The Embassy of
the applicant’s home country based in Malaysia provided that the LGC issued
by the Embassy has made a reference to the respective police authority and
the LGC must be attested by the Embassy.
|
xiii)
|
3
|
IM.12
Form (1 original copy & 2 photostated copies). We will fill up for you
and signed on behalf of you as your sponsor.
Note:
Applicant and all the dependents
have to complete the Form individually
|
NOTE:
All copies must be certified TRUE COPIES OF ORIGINAL DOCUMENTS by EMBASSY /HIGH COMMISSION / SOLICITOR/ JUSTICE OF PEACE / NOTARY PUBLIC / COMMISIONER FOR OATHS / GOVERNMENT OFFICIAL.
• Where original documents are not in English, translation must be done by a qualified translator.
• Dependent (s) refer to spouse and children aged below 21 years old (maximum 6 months before reaching 21 years old) and not married, parent(s) aged 60 years old and above.
• For applicants with children nearing the age 21, they must submit their applications at least 3 months before their children reaches the age 21.
Second Stage (Conditional Approval)
Upon the receipt of the approval letter from the Ministry [estimated to be 90 working days after submission of the application in the First Stage (provided the documentation is completed)] we will forward you a copy of the said letter and provide you with a list of items to be fulfilled within 6 months of the date of the Ministry’s letter of approval. Upon fulfillment of the items below, we will then accompany the applicant to have his passport chopped.
Items to be done within 6
months of the date of the Ministry’s letter of approval:
|
|
i
|
Approved participants and
their dependants must possess a medical insurance that is valid in Malaysia
(Foreign insurance eg. BUPA are valid provided the term of the insurance
extends to the applicants stay in Malaysia) except those who face difficulty
in obtaining a medical insurance due to their age or medical condition
|
ii
|
All applicants and their
dependants are required to submit a medical report to be done in Malaysia
|
iii
|
Aged Below 50 years
Aged 50 years and above
|
iv.
|
Applicant to be present in
Malaysia with passport for having approval chopped onto his passport at the
Immigration department
|
* Conditions:
a) The property has been fully paid and ownership documents such as title have already been issued. This amount does not include legal fees, transfer fees, commissions and any other related payments.
b) The property must cost a minimum of RM1 million OR
c) Several properties totaling RM1 million and above can be accumulated for this exemption.
The following documents are required to be submitted for the financial exemption:
* Certified copy of Sale and Purchase Agreement
* Certified copy of Transfer of Ownership / Transfer of Deeds (if applicable)
* Proof of mortgage loan payment (if applicable)
* Proof of Quit Rent / Assessment Rate Bill payment (if applicable)
* Certified copy of Title Deed / Land Title (if applicable)
The supporting documents must be submitted together with the new application to Malaysia My second Home Centre
Fees
Social Visit Pass – RM90.00 per year. (Maximum 10yrs subject to your passport’s validity)
Benefits:-
Each participant of MM2H is allowed to bring in one of his personal car OR to purchase one new locally - assembled car without the need to pay import duty, duty and sales tax.
I. Import Car:-
Applicant to IMPORT a motorcar from the participant’s country must be forwarded to the Ministry of Finance within a period of six (6) months from the endorsement date of Malaysia My Second Home (MM2H) social visit pass.
Conditions:-
The participant should be the owner of the motorcar for at least 6 months prior to obtaining the MM2H visa, as evidence in the motorcar registration document.
2. Purchase Car:-
An applicant to PURCHASE a new motorcar made or assembled in Malaysia must be forwarded to the Ministry of Finance within a period of one (1) year from the endorsement date of Malaysia My Second Home (MM2H) social visit pass.
Note:-
- Applicant must have obtained MM2H visa before placing order/import car to enjoy tax exemptions.
- Do not make an outright purchase of the motorcar before obtaining approval for tax/duty exemption from the Ministry of Finance. Hence a booking for a motorcar may be made prior to obtaining approval from the Treasury.
- Importation or purchase of motorcar must be for personal use only and not for commercial use.
- “Personal Car” is referred to a car, which was purchased by participant before joining the MM2H programme.
- Participants are only allowed to sell their imported/locally purchase car after 2 years from purchase.
PROCEDURE FOR CAR PURCHASE
Applicant must have obtained MM2H before placing order within 1 year from the endorsement date of Malaysia My Second Home (MM2H) Social Visit Pass.
STAGE:-
1) SUBMIT FOR APPROVAL:-
(2-3 weeks to obtain)
I) FORM
MM2H/07 (1) (Applicant)
II) A
certified true copy of letter of approval from the Immigration Department.
III) A certified true copy of the international
passport of;-
- the page with personal
particulars; and
- the page with multiple
entry visa as well as the word MM2H Programme
IV) Quotation for the motorcar
IV) Motorcar purchase order form
2) SUBMIT FOR APPROVAL
CUSTOMS CLEARANCE;-
Upon securing approval
at Stage 1, the successful applicant has to furnish the car company, i.e. the
Mercedes/BMW headquarter the approval letter to obtain the details of the car
purchased, i.e. a specific motorcar allocated for him, chassis number and
engine number and to be returned to the Ministry of Finance.
3) CAR COMPANY TO
PROCESS & DELIVER YOUR CAR TO YOU
HERE ARE A LIST OF FREQUENTLY ASKED QUESTIONS. SHOULD YOU REQUIRE FURTHER INFORMATION, PLEASE DO CONTACT US.
Can successful applicants be allowed to work in Malaysia?
Qualified MM2H participants aged 50 and above with specialized skills and expertise that are required in the critical sectors of the economy, are allowed to work not more than 20 hours per week.
What would the status of my Visit Pass be?
Successful applicant will be issued with a Social Visit Pass and a Multiple Entry Visa for up to 10 years.
Do I need to be in Malaysia when applying for a renewal?
Submission of applications can be done on your behalf for a fee although applicants (including spouse and dependants where applicable) must be in Malaysia at the Immigration Department for their passport to be endorsed.
How long are my children permitted to stay in Malaysia once approved under this program?
All children are permitted to stay in Malaysia under MM2 until 21 years old.
What is the minimum requirement to stay or visit Malaysia per annum?
There is no need for minimum stay or visit to Malaysia per year.
I would like to import my own car to Malaysia and invest in some properties. How do I go about it and what are the regulations?
For a separate fee, we will assist in the application to the Treasury department to import your existing car into Malaysia free of excise and import duties. Please do not hesitate to contact us with your specific questions on the procedures, costs and timelines for the purchase of property.
What type of Insurance policies & medical check-ups are required?
The insurance policy (whether by a foreign or Malaysian insurer) should insure you against illness, accident or death during your stay in Malaysia. We can point you to the appropriate insurer and doctor for a medical check-up.
Is the Visa on an annual renewal? If yes, what is the procedure and cost per application?
The Visa can either be on an annual or 10 year period. In the event that your visa or passport expires, we can assist in renewing your visa/endorsement on to your new passport for a nominal fee.
Is our income generated from Oversea or outside Malaysia subjected to Malaysia Income Tax?
Generally, all income generated outside Malaysia is free from Malaysian Tax although this is not our area of expertise and you are advised to seek the advice of tax consultants. Again, we can point you in the right direction should you require this advice.
Can I withdraw my fixed deposit any time during my stay in Malaysia?
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.
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.
Am I allowed to withdraw my fixed deposit for a few months and then topped it back later?
No. Participants are required to place their fixed deposits on annual auto renewal basis.
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.
Do kindergarten level child need a Student Visa to attend kindergarten here?
Children below the school going age (that is 7 years old) are not required to apply for a Student Visa. They need only apply for a Social Visit Visa.
If my children are already married and want to study in Malaysia with their husband, do they need to pay the fixed deposit?
Not necessary. They can apply for a Student Visa once they have obtained places of study in Malaysia
Do the participants have any special entitlements?
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 (January 2010) is RM500,000.00 for most states.
Can I purchase a house for residential purpose and a shop lot to be rented out?
No, you are only allowed to purchase residential properties.
Do I have to pay the yearly assessment and quit rent for my houses like the locals?
Yes.
In the event of unforeseen death is the participant able to hand over his Malaysian assets to any of his beneficiaries smoothly. Does the Government have any restriction on this matter?
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.
Can I keep pets in my condominium?
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.
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 does not levy any sales tax and excise duty on such transactions. As such tax exemptions do not arise.
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?
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, 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 on a one time basis.
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.
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.hasil.gov.my for more details on the tax structure.
Is the interest for their fixed deposit taxable? Some say it is taxable, other 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?
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.
Is income remitted from abroad taxable?
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.
Does the participant have to submit any personal tax declaration to the Income Tax Department of Malaysia, like Malaysians have to?
Yes.
If the participants have to submit income tax return to the Income Tax department, are they entitled to any exemptions under the programme?
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.
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, pension remitted to Malaysia is exempted from tax.
FEES & COSTS
Application for MM2H Pass:
Fees: RM8,000/- (for main applicant, subsequent dependents RM500/- per person) [Prior to submission: upfront RM4,000/-, balance on obtaining approval depending on nationality]
Telephone, courier & miscellaneous charges: RM300/-
Travel: RM500/-
Social Visit Pass: RM90/year
Application for Treasury Approval:
Fees: RM3,000/-
Travel & Misc: RM150/-
Application for Maid Approval:
Fees: RM3,500/-
Travel & Misc: RM50/-
Journey Performed Visa (for countries with no visa treaty with Malaysia e.g. India and Non-Commonwealth countries) – RM500 /-
RESUME
Name :
Passport No :
Address :
Place of Birth :
Date of Birth :
Age :
Nationality :
Marital Status:
EDUCATION
WORKING EXPERIENCE
SKILL
[NOTES TO THE COVERING LETTER]
[Your address]
Date:
Malaysia My Second Home Centre (MM2H)
Ministry of Tourism Malaysia
Level 23 B, Menara Dato Onn
Putra World Trade Centre
60695 Kuala Lumpur, Malaysia
Dear Sirs,
Application to join Malaysia My Second Home Programme
I refer to the above.
[Tell the Ministry of tourism:
- why you like to participate in
the MM2H programme/why you like Malaysia;
-
who you will be bringing with you to Malaysia under the MM2H programme (eg.
Spouse and/or dependants under 18yrs)
- how you intend to finance yourself (state
& show evidence your source of finance) and your dependants during your
stay]
Yours
faithfully,
[SAMPLE COVERING LETTER]
[Your address]
Date:
Malaysia My Second Home Centre
(MM2H)
Ministry of Tourism and Culture
Malaysia
Level 1, No. 2, Tower 1,
Jalan P5/6, Precinct 5,
62200 Putrajaya,
Malaysia
Dear Sirs,
Application to join Malaysia My
Second Home Programme
I honourably refer to the above
mentioned subject.
I am
a _______________[** nationality] born on _____________[**date] in
________________[**country of birth]. After I finished my education I worked as
a ___________________[**occupation] in different companies. In
__________[**year started work] after further education in _________[**type of
degree/diploma] I was offered a job as ________________ [**occupation] at the
Dept of__________[**state department] at __________[**state name of present
company/government ministry etc] in _______________[**name of country] where
I’ve been working for the past ______[**number of years] years. As my
retirement is approaching soon, I’m very excited in joining the MM2H Programme
with my dear wife [**and (number of children under 18yrs if applicable)
children]. When I visited Malaysia for the first time in _____[**year/if
applicable] it was clear that if I ever would get the chance to stay there for
good after my retirement, I wouldn’t hesitate a second. Meanwhile, I have been
in Malaysia for more than ___[**number of occasions] times and it would be
really a dream come true if I would be accepted in this programme. I especially
appreciate the great food, the friendly, helpful people and the high standard
of living. My stay in Malaysia would be fully supported with my savings, the
pension from my employer, the old age insurance (AHV) and last but not least
I’m owning a fully paid condominium at ________________[**address] in
Penang/Kuala Lumpur (purchase price of RM……..)[**amend as appropriate]. As for
the financial criteria requirement, I would comply with the fixed deposit of
RM150,000.00/RM300,000.00[**amend as appropriate]
Yours
faithfully,
Source:
Messrs KHAW CHEOW POH & ASSOCIATES
Advocates & Solicitors
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