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A guide to Malaysia my 2nd Home (mm2h)

Everything You Need to know about MM2h
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Guide for foreigners buying property in Malaysia

Eat, Play, Invest, Love Malaysia

The Malaysia My Second Home (MM2H) is a programme promoted by the Malaysia Tourism Authority and the Immigration Department of Malaysia, to allow foreigners to stay in Malaysia for a period of ten years. Foreigners who fulfill certain criteria may apply, and a successful applicant is allowed to bring a spouse, an unmarried child under the age of 21, and parents who are over 60 years old. (source Wikipedia) 

Malaysia is a beautiful, safe, structured, and multicultural country. That’s why many expats put Malaysia on their favorite list when it comes to a second home. Many expats enjoy the diversity of city lifestyle, nature, beaches, and the strategic location in Southeast Asia. For people wondering if Malaysia would be a great second home, this is the ideal page for you. Malaysia My Second Home (MM2H) is designed for people who want to make Malaysia their new home.

What is Malaysia My Second Home (MM2H)?

Malaysia My Second Home (MM2H) is a government-run initiative set up to incentivize foreigners to live long-term in the country, provided you can meet all the requirements. For those that have plans to stay in Malaysia for a long period (multiple-year or decades), this is the ideal program. Although the process has quite a few steps and requires the applicant to fulfill specific conditions, overall many individuals experience it to be hassle-free. Although Propecia is not an official licensed MM2H agent, we do connect our clients with the right agents & agencies. Most individuals would use an official agent to apply for the program, however, it’s also possible to do this by yourself.

Why Malaysia My 2nd Home?

Benefits of Applying for Malaysia My 2nd Home (MM2H)

What are the Major Benefits of Malaysia My 2nd Home (MM2H)? There are many stories online about the long procedure and strict requirements of MM2H. Compared with many similar programs in other countries, MM2H is one of the most smooth incentive programs. Here’s why:

– With this MM2H program, your family and you will be approved for a ten-year multiple entry visa for Malaysia. You can remain in the country for the duration of the visa, or stay for extended periods. Also, will your Social Visit Pass will be renewable after the expiration date. 

– As a Social Pass visa holder, you also have the right to purchase any property in the country. Any foreigner may purchase any number of residential property in Malaysia, subject to the minimum price established for foreigners by the different states. They start from RM500,000 per unit for most states. However, for Kuala Lumpur, this minimum is RM1,000,000 per unit. The land is a state matter and it is important to check state laws before making any commitment, as the minimum purchase price is not standardized between states.

– Each MM2H participant is allowed to bring in his/her car OR to purchase a locally-assembled car without the need to pay import duty, excise duty, and sales tax. The condition for such importation is that the MM2H participant should be the owner of the motorcar for at least 6 months before obtaining the MM2H visa, as evidenced in the motorcar registration document.   

– Each applicant can apply for one maid subject to the prevailing guidelines of the Immigration Department.

– What’s more, Tax Exemption is given to remittance of offshore pension funds into Malaysia & any other foreign funds transferred into Malaysia.

Why invest in Malaysia?
Malaysia my 2n home requirements

Requirements for Malaysia My Second Home (MM2H)

The Malaysia my 2nd Home (MM2H) program is created for individuals of all ages and nationalities, However, keep in mind that there are quite a few requirements you need to qualify for. To make sure you can fulfill all guidelines, also check the official government website for any update: Click here

The biggest requirement for the government of Malaysia to approve your application is proof of your financial stability. Next to the financial proof, there is mostly documentation handling required. 

Before application of Malaysia My Second Home (MM2H)

For applications under the age of 50 years, here’s what you need to include:

– Proof of owning liquid assets that are above RM 500,000. These include bank accounts, stocks, bonds, or mutual funds. The liquid assets do not include any real estate investment. In the event you show any bank account statements as proof of liquid assets, make sure they’re of the last three (3) months that show a balance of RM 500,000 at least.

– Additionally, applicants need to show proof that they are earning at least RM 10,000 every month from a foreign country.

For applications ABOVE the age of 50 years. here’s what you need to include:

– You need to show proof of owning liquid assets that are above RM 350,000. Similar to the previous group, these include bank accounts, mutual funds, stocks, etc, but again no real estate investment or anything related to property. Any account statements submitted need to show at least RM 350,000 as a balance for the latest three (3) months.

– Similar to the previous group, also applicants ABOVE the age of 50 need to show proof that they are earning at least RM 10,000 monthly from a foreign country.

 

After approval of Malaysia My 2nd Home (MM2H)

Once the applicant gets the approval letter from the Government, they will have to deposit a fixed amount of money in the country. The amount that needs to be deposited also depends if the applicant is under or above 50.

For applications UNDER the age of 50 years, the fixed deposit is: RM 300,000

For applications ABOVE the age of 50 years, the fixed deposit is: RM 150,000 

What are the best ways to apply for MM2H?

People that like to apply for the MM2H program have two options

  1. A direct application (without the help of agents) 
  2. An application through a certified approved agent (By government). 

Both options have their advantages and disadvantages, which we will discuss a little later. 

First, we would like to mention that applying for the Malaysia My Second Home (MM2H) program is a very clear and straightforward process. After applying for the MM2H program, you’ll receive an approval letter from the Government. This all after you completed a set of formalities. After this, you will have an endorsed MM2H stamp on your passport, including a multiple entry Social Visit Pass. Take note though that the government is known to change application rules now and thenso it’s best to always stay updated during the application process.

Let’s go through the options of applying for an MM2H Program;

Can I Apply for MM2H Myself?

Apply Yourself

Choosing a direct application for yourself is a visible option. You save quite a significant amount on the agent fees. As the application is quite straightforward, the process is clear to follow. In the event you apply for the Malaysia My 2nd Home (MM2H) through your direct application, this is what you need to provide;

Application with an official MM2H agent.

The second option, and an easier process, is through a certified Malaysia My 2nd Home (MM2H) agent. Like any agency, this would require you to pay for the agency’s services. According to the MM2H guidelines, the maximum fees a certified agency can ask you is limited to RM 10,000.

As all the agencies also need to follow a standard procedure for their clients, each agent may have a separate application process. This is why it’s best to check a few agencies before you make the final decision. Make sure the agent has experience in earlier applications and get some credibility through testimonials and reviews. 

Choosing an agent

Always make sure to select an agency/agent who is certified and has legal documentation under the MM2H center. There are many registered agencies and over the past years, more have joined. You can find the whole list of registered agents here -> Click here 

 

– Letter of application; A cover letter clarifying your reason for joining Malaysia My Second Home program. 

– Copy of your resume; Make sure to include all information on your academic and work experience. Include also your experiences throughout your career. 

– Copy of the MM2H application form. Including your spouse, children, and parents. 

– Original copy and two photocopies of IM.12 Form. This is the Social Visit pass form. 

– Four coloured passport-size photographs (blue background)

– Copy of your passport (this includes all pages) with certification on pages with person particulars. If you just renewed your passport in the last 12 months, you also need to include the previous passport. 

– Letter of good conduct from your relevant government. This can be issued by the police department or the embassy of your home country.

– Fill out a self-declaration health form (RB 1) for you and your dependents. This can be downloaded from the MM2H website. 

– Certified copy of your marriage certificate (Only if this applies to you)

– Certified copy of your child’s birth certificate (only if this applies to you)

– Certified copies of bank statements dated for the latest three months

– Certified copies of payslips or income statements dated for the latest three months

 

Fees, Deposits, and Amount

Choices for Fixed Deposits & Withdrawal Option

As part of the overall requirements, you’ll also need to put in a fixed deposit amount into any bank within the country.

1. Fixed deposit amount for applicants BELOW 50 years of age

The fixed Deposit amount will be RM 300,000. After one year, the applicant can remove up to half of the sum (RM150.000)

2. Fixed deposit amount for applicants ABOVE 50 years of age

The fixed Deposit amount will be RM 150,000. After one year, an applicant can withdraw part of the amount (the minimum balance on the account should not go below RM 100,000)

 

Withdrawing Part of Your Fixed Deposit

You can with the approval of the government withdraw part of your Fixed deposit after one year. The purpose of this money can be for the purchase of a house, a car, for educational purposes, or medical expenses.

Request for Lowering Fixed Deposit Amount

In some cases, with the approval of the government, it is possible to lower the basic fixed deposit sum. If you have previously purchased a property in Malaysia with the minimum price of RM 1 million or more, you can add this to your application letter. 

Fees for application

The total fees for the Malaysia My 2nd Home (MM2H) application would differ depending on whether you are going to apply directly or through a certified agency/agent. In both scenarios, the application fees would include RM 90 per year for the renewal of the Social Visit Pass. This pass needs to be renewed yearly for each applicant, including spouse, children, and parents. 

Application Directly

– RM 90 for Social Visit Pass

– Security bond (depending on nationality)

– Fixed deposit amount (depending on Under or Above 50 years of age)

Application through a certified agent

– RM 90 for Social Visit Pass

– Agency/agent fees (maximum RM 10,000)

– Personal bond amount

– Fixed deposit amount (depending on Under or Above 50 years of age)

Studying in Malaysia

 

Studying in Malaysia is becoming more popular every year.

The country raises its standards to deliver exceptional education, with world-class colleges and universities.

Keep in mind the following points if your children plan on studying in Malaysia. 

A list of universities and colleges can be found by clicking this link

Universities & Colleges in Malaysia

Children 18 years and below

You will need to apply for permission to study for your child to study in a primary or secondary education institution. The documentation to apply would be:

– Letter of intent stating the reason for the application

– Acceptance letter from the education institution

– Completed Student Personal Data Form (available at the MM2H center)

– Copy of your child’s passport (all pages)

The processing timeline is stated as being 7 working days.

Children 18 years and above

After the age of 18, children need to obtain their visa if they plan on continuing to study in Malaysia.

If your children choose to study in a private institution in the country, then it is possible to apply for a student visa

They need to apply for this through their place of study. Check out Education Malaysia for further information.

Buying a house

At Taco & Co we are specialized in the assistance of buying/investing in properties for foreign buyers.

For the MM2H it’s not a requirement to buy/invest in a house

Please keep in mind that certain states have put a minimum property purchase value for foreigners.

For more information, make sure to contact Taco & Co team.

Through the needs and wishes, they will be happy to send the first option of selected properties. 

Importing a Car or Buying a Car

Planning to buy a new locally assembled car, this is what you need to know;

– You will be required to buy the car within two years after your visa has been approved. The duty exemption clause only applies for the first two years. If you fail to buy a car within two years, then you’ll have to pay extra money for taxes on the car.

These are the documents you will need:

– Copy of the MM2H approval letter from the Immigration Department of Malaysia

– Copy of the front and back pages of your passport.

– Copy of the MM2H multiple entry visa page on your passport.

– Copy of the car purchase order from the car dealership.

– Submit the chassis and engine number of the vehicle.

– Copy of the price quotation from the vehicle dealership.

– Copy of any bank statements, fixed deposit statements, or salary slips (over the last three months).

– Copy of the Sales and Purchase agreement of a property purchased under your name, or a tenancy agreement in your name.

Import Car in Malaysia

Deciding to import your car from another country, then these are the guidelines:

– Before you can bring it into Malaysia the car needs to be pre-owned for at least 36 months.

– The car needs to come from your last domicile country or the country of your origin.

– The car needs to be brought into the country within two years to be excluded from duty charges.

– You need to obtain an Approval Permit from the Ministry of International Trade and Industry to bring the car into the country.

 

Documents you will need for approval:

– Copy of the MM2H approval letter from the Immigration Department of Malaysia

– Copy of the front and back pages of your passport.

– Copy of the MM2H multiple entry visa page on your passport.

– Copy of the vehicle registration card. Translate it into English if it is in a foreign language.

– Copy of the Approval Permit from the Ministry of International Trade and Industry.

– Copy of any bank statements, fixed deposit statements, or salary slips (of the past three months).

– Copy of any bank statements, fixed deposit statements, or salary slips (of the past three months).

– Copy of the Sales and Purchase agreement of a property purchased under your name, or a tenancy agreement in your name.

All these documents need to be approved and certified by a Malaysian Government Officer. They need to be uploaded into the tax exemption online portal. The application approval may take up to 15-20 working days.

 

Additional conditions (local purchase of a new car or importing of a pre-owned car):

– The maximum tax exemption is RM 150,000.

– The car can only be sold forward or transferred to another person after a minimum of 5 years.

– The tax exemption is valid for only one car only

Importing a second car

In the event you want to bring in a second car, you need to make a special application with the Ministry of International Trade and Industry. Here’s how you do it:

– First, you need to get a letter from the Ministry of Tourism confirming that you are currently a holder of an MM2H visa.

– Using this letter, apply to the Ministry of International Trade and Industry to obtain a special Approval Permit.

– Once you get the Approval Permit, your car is set to come into the country.

– At the entry point into the country, the customs officials will decide on the duty payable on the car.

Everything about working in Malaysia

Jobs in Malaysia

 

Under this Malaysia My 2nd Home (MM2H) program, you are not allowed to work in Malaysia and that’s why the government requests your financials during the application process. 

There is an exception though, as people ABOVE the age of 50 are allowed to work on a part-time basis. 

There are certain requirements for this situation, such as:

– A cover letter from the company

– An offer letter from the company

– An application letter from the company

– Any recommendation letters

– Copy of the company’s business license

– One copy of your passport (all pages)

– Completed DP 10 form (can be found at the Immigration Department)

Submit these documents to the MM2H center. From there, the MM2H Special Committee will approve your request. This process takes about 50 working days.

Hiring a helper in Malaysia

Maids or Helpers in Malaysia

 

Bringing in a helper/maid is possible via employment agencies or direct application. You can bring in one foreign national helper so long as you comply with the legal regulations. Here is a checklist of as stated by the current regulation – Employ Domestic Helper Checklist 

These include:

– Completion of certain forms such as:

● Domestic Helper’s Application Form

●     Form IM. 12

●     Form IM. 38

● Letter of intent stating the reason for a helper

● An approval letter from the Philippine Overseas Employment Administration (this applies only if your helper comes from the Philippines)

● A medical report was done in the helper’s home country

● One copy of the helper’s passport and approval letter

● One copy of your passport (this includes identity pages and the MM2H visa page)

● Two original documents of the Employment contract (stamp duty of RM 10)

● One copy of your property Sales and Purchase Agreement or one copy of the tenancy agreement

● One copy of your utility bill. This includes electricity, water or internet/television

● One copy of your marriage and/or birth certificate

– You need to place a personal bond with the government as well. The fees depend on the country of your origin and your monthly salary.

– Applying for a foreign helper, you either have children below the age of 15 or parents who are sick or dependent on helpers.

– Your helper needs to come from a country that is approved by the Government. These countries include Indonesia, Thailand, Cambodia, the Philippines, Sri Lanka, India, Vietnam, and Laos.

– The helper needs to be female, and between the ages of 15 and 45.

– The helper also needs to complete a medical examination that deems her fit for work.

It’s not fully clear how long the process will take. 

 

Pets in Malaysia

Pets are part of the family, so it’s important to also include them in the moving process. Make sure you know the general requirements of importing cats or dogs before you apply to anything. 

Make sure you understand these regulations before your pet comes in:

– You can check this website to make sure your pet is approved to come into Malaysia. Certain breeds of dogs are not permitted in Malaysia. For this check the latest updates on the approved websites. 

– Complete Application Form A to get an import permit for your pet. You need to submit this to the Department of Veterinary Services (DVS) at the Ministry of Agriculture and Agro-Based Industry.

– After receiving an import permit (which should take about a day to process), your pet is ready to come into Malaysia.

– Your pet may also need to undergo a quarantine period after coming to Malaysia. Make sure to check with the Department of Veterinary Services beforehand.

Are Pets Allowed in Any Type of Property?

In the event, you bring a pet to Malaysia, make sure the property allows a pet. Many condos, apartments, service apartments, and flats don’t allow pets in their residences. Mostly landed properties, bungalows, and villas are mostly all pet friendly. Check with Propecia which properties are suitable for pets and animals. 

Extending your Malaysia My 2nd Home (MM2H) Visa

When you reach 10 years and still want to call Malaysia your home, you can apply for a renewal of the MM2H pass. This is the following procedure; 

– A letter of intent, stating your reason for the renewal

– You need to submit your original passport and a copy of it

– One copy of Form IMM. 55

– One copy of Form IMM 38

– The original and a copy of the fixed deposit

– The original and a copy of a confirmation letter from the bank

– The original and a copy of the conditional approval letter

– The original and a copy of the health insurance was taken out.

– An original medical Report

You need to submit these documents in person to the MM2H center in Putrajaya. Processing time is around 14 working days.

Terminating your Malaysia My 2nd Home (MM2H) Visa

In the event you wish to cancel your MM2H visa, then this is possible. Here you can find a complete checklist – Checklist.

These are the following steps;

To withdraw the fixed deposit, you need to submit the following documents to Malaysia My 2nd Home (MM2H) center in Putrajaya:

– A letter of intent, stating the purpose of withdrawal

– Copy of your passport identity page and the MM2H visa page.

– Copy of the conditional approval letter

– Copy of the fixed deposit certificate

– Copy of the return flight ticket

Terminating the Social Visit pass, submit these documents to the immigration department in Putrajaya:

– A letter of intent stating the purpose of termination

– The authorization letter received from the MM2H center stating that you can withdraw the fixed deposit.

– Your original passport

– The original and a copy of the return flight ticket.

After you received the approval letter and terminated your visa, you can withdraw any remaining fixed deposits at your bank. Make sure you show your original passport (with canceled Social visit pass), your original fixed deposit certificate, and the approval letter from the MM2H center.

Also, don’t forget about your refundable security bond! Here’s how you can collect it:

Submit the following documents to the MM2H center in Putrajaya:

– Security Bond Refund Upon Termination (Guidelines for security bond refund)

– A letter of intent, stating the purpose of the refund

– The original security bond receipt

– One copy of the identity and social visit pass pages in the passport

– any bank statements

– One copy of the conditional approval letter

– One copy of the termination letter (Should have been received during the cancellation of the fixed deposit)

– One copy of the return flight ticket

The whole termination process should take about two/three weeks.

Some final points

  1. All copies of documents or certificates are to be certified by a legal entity. This includes government officials, representatives, embassies, high commissions, solicitors, and advocates.
  2. If you need to have stamp duty on certain documents, you can have them done at the Stamp Duty office in the Inland Revenue Board.
  3. Most of the time you’ll need to present the required documents in person at the headquarters.
  4. The Finance minister has just announced that starting from the year 2020, the threshold for foreigners to purchase urban high-rise properties has been reduced from RM1mil to RM600,000. This gives additional advantages to foreign property purchasers.

Considering the factors above, 2020 is the year for foreign investment in the local property market. Malaysia My 2nd Home (MM2H) is probably the easiest and the most direct outlet for foreigners to acquire Malaysian assets, but it is not the only avenue available.

Looking to invest in Malaysian properties, but don’t know where to start? Contact one of our Independent Property Investment Specialists to learn more.

 

Contact Us

Although we are not a licensed Malaysia My 2nd Home Agent in Malaysia, we do refer to our partners that have high success rates in completing the applications. If you would like to know more, or have any questions regarding the MM2H, or would like us to recommend you to one of our partners, please reach out to us via our contact page.