Malaysia

Malaysia is a major Southeast Asian economy with strong infrastructure and a large expat ecosystem, often considered by internationally mobile families who want a stable base in the UTC+8 time zone.

For residents, personal income tax is progressive (headline up to 30%). Malaysia does not levy a broad capital gains tax, but does tax gains from disposals of Malaysian real property under the Real Property Gains Tax (RPGT) rules. Dividends are generally tax-exempt under Malaysia's single-tier corporate tax system, but a 2% tax applies to individual dividend income above MYR 100K from year of assessment 2025. Malaysia has no net wealth tax and no inheritance or estate duty.

Malaysia's foreign income rules have changed since 2022. In principle, foreign-sourced income received in Malaysia can be taxable, but the government has provided time-bounded exemptions. A key practical outcome is that many resident individuals can still receive foreign-sourced income in Malaysia tax-free, subject to conditions (including that the income was subject to tax in the country of origin and excluding partnership business income).

On immigration, Malaysia is not in the EU and offers residence permission primarily through work passes, family routes, and long-stay programs such as Malaysia My Second Home (MM2H). Tax planning should start with the tax residency test and evidence: the benefit of foreign income exemptions depends on documentation and on meeting the exemption conditions.