Asia · Southeast Asia
Malaysia
The cheapest genuinely liveable long-stay residence in Asia, with territorial taxation of individuals and no inheritance tax — undermined by a decade of policy whiplash that makes it impossible to underwrite a twenty-year plan.
Tax position
- Income tax (top)
- 30% top marginal rate for tax residents; 30% flat for non-residents
- Capital gains
- No general capital gains tax for individuals. Real Property Gains Tax applies to Malaysian property at 30% within three years, tapering to 5–10% after five years (higher rates for foreigners). A capital gains tax on unlisted share disposals took effect for COMPANIES from 2024 — individuals remain outside it
- Wealth tax
- none
- Inheritance tax
- none — estate duty abolished in 1991
- Special regime
- Foreign-source income received by individuals in Malaysia is exempt through to 31 December 2036 under the current exemption order, subject to conditions. This is an exemption with an expiry date, not a permanent feature of the system — plan accordingly.
- Territorial
- Yes — foreign-source income generally outside scope
- CFC rules
- No
- Exit tax
- No
- CRS
- Participating
Closed — listed so you do not chase them
Is Malaysia actually right for your family?
We will tell you if it is not. That is the whole service.