Retire in Malaysia
To retire in Malaysia most people use MM2H Silver: a $150,000 fixed deposit and a home worth at least RM600,000, from age 25. Foreign income is tax exempt until 2036, and prices run at about 33% of the US.
What it takes, what it costs, and where retirees settle, from Malaysia's law and official data. Checked on Oct 8, 2026.
- Retiree visa
- $150,000 a fixed deposit in a Malaysian bank licensed under the Financial Services Act 2013 or the Islamic Financial Services Act 2013; the One Stop Centre encourages placing it in ringgit at the equivalent of the dollar amount. MM2H (MOTAC); MM2H guide. Checked Oct 8, 2026.
- Price level
- ~33% of the US Household consumption, 2025. World Bank. Checked Oct 7, 2026.
- Tax on a foreign pension
- 0% Foreign income is exempt until 2036. PwC Tax Summaries; MM2H (MOTAC). Checked Oct 8, 2026.
- Travel advisory
- Level 1 of 4 Exercise Normal Precautions. US State Department. Updated Feb 21, 2026.
- Health spending
- $450/person Per year; US $13,473. World Bank. Checked Oct 7, 2026.
- US tax treaty
- None No income tax treaty with the US. IRS. Checked Oct 7, 2026.
Do you qualify?
MM2H Silver is the entry tier of Malaysia My Second Home, run by the Ministry of Tourism, Arts and Culture with final approval by the Immigration Department. You place a fixed deposit of $150,000 in a Malaysian bank, buy a home worth at least RM600,000, and get a five-year renewable social visit pass with multiple entry. Work and business are not allowed.
MM2H Silver visa: documents and feesRetiring in Malaysia, topic by topic
Visa
MM2H Silver visa requirements
Documents, government fees and the other routes to residency.
Healthcare
Healthcare for retirees
The hospitals retirees use, what insurance covers, and Medicare abroad.
Money
Banking, pensions and tax
How US, UK and Canadian pensions reach a local bank, and what you report at home.
Budget
Cost of living
Official prices and a budget built from your own rent.
What it costs
Household prices in Malaysia run at about 33% of US levels. Rent is the line nobody publishes officially, so the cost of living page builds your budget from your own rent; food starts from the official basket.
Build your budgetOfficial food poverty line, per household, per month, 2024
DOSM. Checked Oct 8, 2026.
Where retirees settle
Kuala Lumpur
- Capital, about 2 million people (2020)
- 66 m above sea level
- Prince Court and Gleneagles Kuala Lumpur
George Town, Penang
- Capital of Penang, about 794,000 people (2020)
- 4 m above sea level
- Gleneagles Penang and Island Hospital
Melaka
- Capital of Melaka state, about 455,000 people (2009)
- 14 m above sea level
- Mahkota Medical Centre, on the MM2H medical panel
Ipoh
- Capital of Perak, about 867,000 people (2016)
- 22 m above sea level
- Hospital Seri Botani, on the MM2H medical panel
Wikidata; Prince Court; Gleneagles Kuala Lumpur; Gleneagles Penang; Island Hospital; MM2H medical panel. Checked Oct 8, 2026.
Malaysia compared
- Thailand vs Philippines vs Malaysia
- Malaysia vs Thailand for Retirement in 2026
- Kuala Lumpur vs Penang vs Kota Kinabalu
- Kuala Lumpur vs Bangkok for Retirement in 2026
- Penang vs Chiang Mai for Retirement in 2026
- Kuala Lumpur vs Mexico City for Retirement in 2026
- Penang vs Panama City for Retirement in 2026
- Chiang Mai vs Penang Retirement 2026
Visiting Malaysia first
Most people spend a few weeks in Malaysia before they apply for anything. Two things to sort out for that trip:
Kiwi.com
Flights to Malaysia
Compare routes and dates before a scouting trip.
Airalo
eSIM for Malaysia
Mobile data from the day you land, without a local SIM.
Partner links: we may earn a commission if you book, at no cost to you. How this works.
Retiring in Malaysia: questions
Is Malaysia safe for retirees?
The US State Department rates Malaysia Level 1, exercise normal precautions.
Do I pay tax in Malaysia on my pension?
No, under the current rule. Foreign-sourced income that resident individuals receive in Malaysia from 1 January 2022 to 31 December 2036 may be exempt, subject to conditions, and the tourism ministry lists no tax on foreign income as an MM2H benefit. US citizens still file a US return.
What are the rules for retiring in Malaysia?
Most people use MM2H Silver: age 25 or over, a $150,000 fixed deposit in a Malaysian bank and a home worth at least RM600,000, for a five-year renewable pass with no minimum stay from age 50. Sarawak runs its own programme from age 30 with a pension option.
Is Malaysia a good country to retire in?
MM2H gives a long renewable pass, foreign income brought in is exempt from tax until 2036 under the current rule, and prices run at about 33% of US levels. The deposit and home purchase are large up-front costs.
Where do retirees live in Malaysia?
Kuala Lumpur, for its private hospitals such as Prince Court and Gleneagles; George Town on Penang, with Gleneagles Penang and Island Hospital; and the smaller state capitals of Melaka and Ipoh.
