Malaysia has a lot to offer retirees, from its sandy beaches and extensive rainforests to its dazzling capital city of Kuala Lumpur. On top of all this, it also boasts relativelyinexpensive living costs, so it’s no wonder American retirees are heading to Malaysia. If you want to retire in this southeast Asian nation, you’ll need to understand things like the culture, visa laws, taxes, and more. A financial advisor can also help you get your plans in order for a retirement abroad.
Cost of Living in Malaysia
One of the key factors when planning for retirement is assessing your cost of living during your golden years. You’ll need to account for housing costs, utilities, travel, and expenses associated with your lifestyle. Therefore, before you can decide if it makes sense to move to Malaysia, you’ll need to complete a cost analysis to decide if a life there fits within your budget. According to March 2022 data Numbeo, a website that collects pricing data from citizens, the average cost of living in Malaysia is 47.54% lower than in the United States. It’s important to note, however, that this number doesn’t include rent.
Renting in Malaysia is, on average, 76.9% less expensive than rent in the United States. Of course, your cost of living and rent will depend on your lifestyle as well as the city you choose to live in. For example, a one-bedroom apartment in the capitol of Kuala Lumpur will cost about $447 a month in the city center, and a one-bedroom apartment in the suburbs will cost on average $278. Whereas a one-bedroom apartment in the smaller community of Ipoh would cost, on average, $363 per month in the city center and $205 per month outside the city.
Many expats chose to live on the island of Penang, off the nation’s west coast. For $2,500 per month retirees can live “extremely well,” according to Internationalliving.com, and get a three-bedroom condo with a balcony overlooking the ocean. If you can do without such a view or don’t need to live right off the beach, $2,000 per month will more than suffice.
Visa Laws in Malaysia
American citizens can visit Malaysia and receive a visa on arrival for up to three months. When you move to Malaysia, you will need to go through the Malaysian Representative Office to arrange a visa. To get your visa, you will need approval from the Department of Immigration before applying.
Once you have gained approval, you will need to submit your passport and two photocopies of the ID page, two copies of the visa application form, two passport photos and a visa fee. You will likely also be asked for a bank statement, an invitation letter and two copies of your plane tickets. Then, the Malaysian Representative Office will evaluate your visa application and either approve or deny it.
Healthcare in Malaysia
Malaysia is known in the region for its affordable, high-quality healthcare. The CEOWORLD magazine ranks the nation’s healthcare system at 34th in the world. Malaysia was once colonized by the British, so many of the doctors speak English. Additionally, the medical system adheres to Western medicine standards.
To receive healthcare from a specialist, you simply go to the doctor’s office, register and wait to be seen. Unlike in the U.S., patients do not have to schedule appointments for months in advance and prescriptions typically cost about a third of what they do in the United States.
The cost of healthcare is also small in comparison to the U.S. A first-time doctor’s visit typically costs about $15-$65, depending on the needs of the patient, and follow-up visits are around $11-$20. If you need an overnight stay in a hospital, a private room will cost about $200. Specific tests typically cost less than $100, including ultrasounds and more.
Malaysia has a two-tier healthcare system: government-run and private. Expatriates can choose whatever hospital they want to go to and may pay out of pocket if they do not have insurance. The private hospitals are subsidized by the government, so those who can afford it typically opt for private care.
Residents of Malaysia can buy private insurance. A deductible is typically less than $70 and costs an average of $100 per month. This is significantly less than most insurance options at home.
Housing Costs in Malaysia
As you plan to move, one of the biggest factors you will consider is housing. Many retirees choose to live in Penang, an island state in northwest Malaysia. If beaches aren’t your thing, plenty of people choose Kuala Lumpur or the southern state of Johor. Depending on your tastes, the cost of housing can fluctuate.
The average home cost in Kuala Lumpur is about $220 per square foot. This in comparison to George Town, the capital city of Penang, where an apartment costs about $142 per square foot. When we compare these cities with New York City, where homes cost about $1,442 per square foot in the city, Malaysian homes are quite inexpensive.
Home Buying in Malaysia
The purchasing process is a bit different than in the United States but is relatively simple. As with home buying in the U.S., the first step is to do plenty of research. You will want to understand what types of homes you can buy and a little bit about the lending process. If you plan to build a home, you will want to start to research possible developers.
Once you have done some research and have an idea of what area you want to live in, hire a real estate agent. They will be able to help you through the rest of the process and give you a good idea of how much you can expect to spend.
The first thing you will want to consider is if you have enough for a down payment in your desired area. Most people make a down payment of at least 10% of their home’s total value. You will also be required to pay stamp duties, legal fees, and a sales and purchase agreement fee.
The next step is to apply for a loan. Foreigners can get a loan in Malaysia. The amount you can purchase depends on your credit score and income. Once you have procured the funds for your home, you will want to hire a lawyer. Your real estate agent might be able to help you choose a good lawyer that has worked with other foreigners in the past. The lawyer will help you draft and sign any loan agreements and the sales and purchase agreement.
Then, you will make an offer and close the deal. While the process is straightforward, buying a home in Malaysia can take several months, so do your research upfront and be prepared to work with your real estate agent and lawyer to find the best property for you.
Taxes in Malaysia
Malaysia only taxes income earned in Malaysia. Therefore, if you are only earning retirement income from a pension or Social Security, you will not be required to pay taxes on your income. If you do work in Malaysia, you will be taxed up to 30% depending on your income bracket.
As a U.S. resident, you will be expected to file taxes in the United States each year. You will have to report any foreign bank accounts as well. If you earn any money outside of the U.S., you can use a few different provisions to reduce your U.S. taxable income. These include the foreign earned income exclusion, the foreign tax credit and the foreign housing exclusion, among others. If you’d like to forecast your tax burden more specifically, you may want to consult with a tax expert who is familiar with both U.S. and Malaysian tax laws.
Bottom Line
Malaysia has everything from beaches to jungles and is, therefore, an attractive place to retire. Buying a home in Malaysia is relatively simple, and individuals do not get taxed on income earned outside of the country. Overall, Malaysians are very friendly and welcomes foreigners who want to retire there.
Tips for Retiring Overseas
- Consider talking to a financial advisor about making a plan for retiring overseas.Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- An essential part of saving forretirementis making sure the money you save remains untouched. Dipping into your savingsmay seem tempting if you’re low on cash, but you’ll pay for it down the line. Consider creating anemergency fundinstead.
Photo credit: ©iStock.com/FilippoBacci, ©iStock.com/stockstudioX, ©iStock.com/Sam Song
Ashley Kilroy Ashley Chorpenning is an experienced financial writer currently serving as an investment and insurance expert at SmartAsset. In addition to being a contributing writer at SmartAsset, she writes for solo entrepreneurs as well as for Fortune 500 companies. Ashley is a finance graduate of the University of Cincinnati. When she isn’t helping people understand their finances, you may find Ashley cage diving with great whites or on safari in South Africa.
FAQs
To qualify for a retirement visa for Malaysia, you must fulfill the requirements below: You must be at least 35 years of age. You must be able to support yourself during your time in Malaysia. If you are under the age of 50, you must have liquid assets worth a minimum of RM 500,000 (appx.
How much does it cost to retire in Malaysia? ›
The general rule of thumb is a target replacement rate of 70%. This is assuming that mortgage costs amount to one third of income and that they are generally paid off just before retiring. If you are earning RM8,000 by the time you retire, your retirement fund or income should allow you about RM5,600 a month.
Can US citizens live in Malaysia? ›
American citizens can visit Malaysia and receive a visa on arrival for up to three months. When you move to Malaysia, you will need to go through the Malaysian Representative Office to arrange a visa. To get your visa, you will need approval from the Department of Immigration before applying.
Is it better to retire in Thailand or Malaysia? ›
Retiring in Thailand can be difficult if you aren't as familiar with the country. However, English is commonly spoken in areas with a higher tourist rate, helping make Thailand a top retirement destination. As a retiree, Malaysia arguably has a greater quality of life to cost ratio than anywhere else on the continent.
How long can I stay in Malaysia as a US citizen? ›
Immigration officials will place an entry stamp, known as a social visit pass (visa), in your passport authorizing a stay of up to 90 days. Travelers may apply to the Malaysian Immigration Department for extensions, which may or may not be granted. You must exit Malaysia using the same passport that you used to enter.
How can I get long term visa in Malaysia? ›
Checklist of required documents:
- Form Imm. ...
- Form Imm. 38 (2 copies)
- Form Imm. 55 (2 copies)
- Sponsor statement form.
- Security bond – stamped RM10. ...
- Affidavit of oath with photograph and stamped by the Commissioner of Oaths.
- Identity card and birth certificate of husband / wife.
- Marriage registration certificate.
Permanent residency can be obtained in Malaysia in many ways, such as as an investor, expert, professional, or spouse of a Malaysian citizen. A minimum USD 2 million fixed deposit in any Malaysian bank, which can only be withdrawn after five years, is needed if you are an investor.
Is Malaysia still a good place to retire? ›
With great weather, natural beauty, a low cost of living and a favourable tax regime, Malaysia is a tempting destination for retirees.
How much money do you need to live comfortably in Malaysia? ›
Malaysia is a huge country, so it's a bit tricky to state the definite cost of living there because it varies greatly depending on the part of Malaysia you want to stay in, plus it depends on whether you're single or with a family. You can get by and have a reasonably comfortable life here for 600$ a month.
Is Malaysia friendly to USA? ›
Bilateral ties between Malaysia and the United States were established upon Malayan independence in 1957. The US was, and still is one of the largest trading partners for Malaysia and is traditionally considered to be Malaysia's oldest and closest ally in military, economic and education sectors.
Visa Fee According To The Country
| Countries | Single/Multiple Entry Visa (RM) | Transit Visa (RM) |
|---|
| Sri Lanka | 15.00 | 15.00 |
| Sudan | 12.90 | 4.30 |
| United States of America | 6.00 | 20.00 |
| Uruguay | 13.50 | 13.50 |
36 more rowsU.S. citizens are generally allowed to travel to Malaysia without a visa for business/tourist trips of less than ninety days.
What is the best country in Asia to retire in? ›
Here are the Top 5 Countries in Asia to Retire:
- Malaysia. There's no wonder why Malaysia was named as the top Asian country to retire as an expatriate. ...
- Thailand. A close follow-up to Malaysia was Thailand. ...
- Cambodia. Cambodia has long been on the rise for one of the most desired countries to retire. ...
- Vietnam. ...
- Sri Lanka.
The MM2H programme is a way for foreigners to retire and live in Malaysia for an extended period of time. In August 2021, Putrajaya imposed stricter MM2H conditions, which included needing to show RM1. 5 million (US$338,000) in liquid assets and having a minimum RM40,000 monthly income.
What is the best place to retire in the world? ›
Countries Natixis ranked as secure retirement locations are mostly concentrated in Europe but also include New Zealand and Australia. The top three countries in the rankings are Norway, Switzerland and Iceland, all of which have life expectancies of 83 years, compared to 77 in the U.S. and the world average of 72.
Can I have dual citizenship in the US and Malaysia? ›
Dual citizenship is not recognized in Malaysia. To become a citizen of Malaysia, you must renounce your previous nationality.
How can I get Malaysian visa from USA? ›
There are two ways to apply for a visa:
- Via a Malaysian Representative Office in your country of residence. Visit the Official Portal of the Immigration Department of Malaysia for more information.
- Online via eVisa.
Residence by Investment Overview
- Investment. Minimum investment of MYR 1 million (approximately USD 230,000)
- Processing time. Three–six months.
- Key benefit. A 10-year multiple-entry visa enabling the applicant and their family to live in Malaysia.
The Malaysia visa fee, both for a Single Entry or Multiple Entry Visa and a Transit Visa, is RM 20 (Malaysian Ringgit) for all countries, other than the countries listed below. When converted, RM 20 is about $4.7 or €4.25.
How can a foreigner get permanent residency in Malaysia? ›
You'll need a good-standing Malaysian citizen to sponsor you. You're able to bring in your spouse and children (under 18 years old) as dependents. After 5 years of stay in the country, they'll also be eligible to apply for PR.
It costs USD $104.99 to get your Malaysia visa. The price includes both our service and the government fees.
How can a US citizen move to Malaysia? ›
If you want to move to Malaysia for work, you need to apply for and obtain a work visa (work permit). Malaysia issues different types of work permits that you can apply for depending on what type of work permit you are eligible for, such as: Employment Pass. Temporary Employment Pass.
How can a foreigner retire in Malaysia? ›
Requirements of MM2H:
- Age 35 and above.
- Provide proof of RM1. ...
- RM1 million (S$308,413) fixed deposit to be made after approval.
- Have a monthly offshore income* of at least RM40,000 (S$12,378)
- Participants need to be in the country for at least a cumulative 90 days in a year.
- Visa fee: RM 500 (S$154) a year.
Peninsular Malaysia is also fringed with beaches, both to its east and west. The largest expat populations live in Penang and Kuala Lumpur. Penang has plenty of beaches for walking and swimming, and if you have a boat, there are numerous marinas.
How many American expats live in Malaysia? ›
Malaysia. Like Thailand, Malaysia is a popular destination for US expats due to its favorable climate, fantastic beaches, and warm people. According to the Malaysian government, over 30,000 Americans are living in Malaysia. Kuala Lumpur, Penang, and Langkawi are the most popular destinations for US expats in Malaysia.
Is Thailand or Malaysia cheaper? ›
Which country is cheaper? Overall Thailand is a cheaper country than Malaysia for travel. We already mentioned that accommodation for families in Malaysia tends to be a little bit more expensive accommodation in Thailand for families. Overall, Malaysia is a more expensive country than Thailand.
What is the cost of living in Malaysia compared to the US? ›
In general, the cost of living in Malaysia is 51.56% lower than living in the U.S. Of course the cost of living varies depending on where you decide to live, but even in the most expensive city you will save a lot on living expenses compared to the U.S.
How much money is considered rich in Malaysia? ›
What is B40, M40, and T20?
| Income classification | Definition | Details |
|---|
| B40 | Bottom 40% | Lower-income group Household income is below RM4,850 per month |
| M40 | Middle 40% | Middle-income group Household income between RM4,851 per to RM10,960 per month |
| T20 | Top 20% | Upper class Household income exceeds RM10,960 a month |
National Property Information Centre (NAPIC) data showed that average home prices stood at RM439,084 in Q2 2022 compared to RM444,230 in Q1 2022, reported The Star. On an annual basis, however, the MHPI increased 0.5% in Q2 2022 as it continued “its low pace growth”.
How safe is Malaysia for American citizens? ›
There is a threat of kidnappings-for-ransom from both terrorist and criminal groups. These groups may attack with little to no warning, targeting coastal resorts, island resorts, and boats ferrying tourists to resort islands.
Tourist arrivals
| Country | Visitors (2022) | Visitors (2020) |
|---|
| United States | 108,141 | 48,810 |
| Japan | 83,309 | 74,383 |
| Pakistan | 60,535 | 17,777 |
| Bangladesh | 59,033 | 17,634 |
27 more rowsAside from low cost of living, Kuala Lumpur has a high quality of life owing to its business freedom and many indulgent leisure activities. In 2022, Malaysia ranks 38th in digital quality of life, ahead of her neighbouring countries like Indonesia and Thailand that rank 72nd and 49th respectively.
How long does it take to get a visa in Malaysia for USA? ›
How long will it take? You should be able to get your visa within three working days from the date of your interview. However, you're advised to allow more time in case of complications.
How can I get 3 months visa in Malaysia? ›
Getting a Malaysia eNTRI visa is a simple process. The eNTRI can be easily completed online, applicants need to provide a few essential personal details and passport information. Most eNTRI applications are processed and approved within 1 business day. The visa is valid for 3 months from the moment it is issued.
How long does it take to get US visa in Malaysia? ›
Visa interview days are Monday-Friday mornings from 7:45 am to 10 am. The majority of successful applicants normally receive their visas from us the next business day between 2-3pm. Applications from some males can take longer to process - 2 to 3 weeks on average.
Who can go to Malaysia without visa? ›
Visa-exempt travel is usually permitted for purposes of tourism, business, or transit. Additionally, holders of diplomatic, official or service passports of Bangladesh, China, or India do not require a visa for stays between 30 days and 3 months.
What documents needed to enter Malaysia? ›
- Passport. Introduction. Malaysian International Passport. ...
- Visa. eVisa. Visa Requirement by Country. ...
- Passes. MASC. Visitor's Pass (Temporary Employment) ...
- Border Pass / Cross-Border Pass. Border Pass (Malaysia – Indonesia) ...
- Foreign Worker.
- Endorsem*nt of Exemption Section 66.
- Foreign Domestic Helper (FDH)
- Entry Permit.
Yes, Malaysia offers Visa on Arrival (VOA) for citizens of certain countries, including India. This means that eligible travelers can obtain a visa upon arrival in Malaysia.
Where can I retire on 3000 a month? ›
5 Awesome Places to Retire on $3,000 a Month or Less
- If You Want to Be Near the Beach: Gulfport, Fla.
- If You Desire Access to Arts and Culture: Duluth, Ga.
- If You Want to Be Close to a Transportation Hub: Alton, Ill.
- If You Crave the Outdoors: Coeur d'Alene, Ind.
- If You Want to Live Someplace Totally Foreign: Malta.
The 2022 Natixis Global Retirement Index ranks the best countries to retire in, based on several different factors. These include health, quality of life, material well-being and finances during retirement. With an overall score of 81%, Norway is the most retirement-friendly country on the list.
The Top Ten Places to Retire
- Costa Rica.
- Mexico. ...
- Colombia. ...
- Ecuador. ...
- Malaysia. ...
- Spain. ...
- France. In addition to amazing food, France also has a temperate climate, great wine, and fantastic shopping. ...
- Vietnam. Vietnam has a low cost of living, lovely beaches, and a rich cultural history. ...
Getting Permanent Residency in Malaysia is possible through the Malaysian Entry Permit. The Malaysian government issues an Entry Permit (Malaysia PR) to certain categories of foreign nationals. If you receive Malaysia permanent residency, you will get an Entry Permit and Identification Card (MyPR).
What is the best age to retire in Malaysia? ›
In Malaysia, the majority of Malaysians tend to retire around the age of 60, which is the official retirement age in Malaysia for the public sector.
What countries do not tax US Social Security? ›
A handful of countries on our list, including Australia, Costa Rica, Malaysia, Panama, the Philippines and Uruguay, don't tax any foreign income of expat retirees, while several others, including Colombia, Dominican Republic, France and Thailand, don't tax pension and Social Security payments.
Can a US citizen retire in another country? ›
Almost any country you would want to live in welcomes American retirees, as long as they can prove that they have a certain minimum income from some combination of Social Security, a pension, and investment income.
Where do most US expats retire? ›
Let's dive in!
- Panama. This Central American country, Panama, frequently ranks as a top retirement option for expats worldwide. ...
- Costa Rica. Costa Rica is another Central American country that's popular among American retirees. ...
- Portugal. ...
- Malta. ...
- Mexico. ...
- Ecuador. ...
- Uruguay.
Malaysia is the third best country to retire in, according to a survey by International Living. The monthly newsletter, which covers topics on retiring overseas and living abroad, says that Malaysia is the top three country to retire in for this year.
What is the long term retirement visa in Malaysia? ›
The MM2H programme is a way for foreigners to retire and live in Malaysia for an extended period of time. In August 2021, Putrajaya imposed stricter MM2H conditions, which included needing to show RM1. 5 million (US$338,000) in liquid assets and having a minimum RM40,000 monthly income.
Is Malaysia good for expats? ›
Life in Malaysia
Living in Malaysia is certainly a big adventure for most expats. This country on the tip of Southeast Asia has much to offer in terms of cultural variety. Spending a few years in Malaysia can easily turn into a life-changing experience.
Can I get a retirement visa? ›
The most important requirement for immigrating to the USA is a valid residence permit. There is no retiree visa for the United States and owning real estate is not a path to permanent residency either.
General Entry Information
U.S. citizens are generally allowed to travel to Malaysia without a visa for business/tourist trips of less than ninety days.
