Settling in Malaysia through investment
With its tropical climate, booming economy, and attractive living environment, Malaysia is attracting more and more foreign investors who wish not only to diversify their portfolio but also to benefit from a strategic foothold in Southeast Asia. However, settling permanently in Malaysia cannot be improvised, and choosing the right visa or residence permit is a key step in the project.
In 2025, several options are available to investors, whether they are active in real estate, entrepreneurship, or simply looking for a long-term residence to enjoy the country’s advantages.
Visas and residence permits available in Malaysia for investors
The Malaysia My Second Home (MM2H) program
The Malaysia My Second Home (MM2H) visa remains one of the most popular options for foreigners wishing to settle in Malaysia for the long term. This program allows you to obtain a renewable five-year residence visa in exchange for a financial commitment.
To be eligible, an investor must demonstrate a stable income and deposit a fixed amount in a Malaysian bank account. In 2025, these requirements vary according to the applicant’s age. For example, a person under 50 years old will need to justify a monthly income of at least 40,000 MYR (approximately €8,000) and place between 500,000 MYR and 1,000,000 MYR in a local account. A real estate investment with a minimum value of 1 million MYR (≈ €200,000) is also encouraged, as it can strengthen the application.
One of the major advantages of this visa is that it does not require permanent residence in Malaysia: it is possible to stay there as you wish, without strict time constraints. Furthermore, this visa allows you to freely invest in real estate, including short-term rentals such as Airbnb, subject to compliance with local regulations.
The Premium Residency Visa (PRV): an option for wealthy investors
While the MM2H is designed for expatriates and retirees with comfortable resources, the Premium Residency Visa (PRV) targets a wealthier clientele. This recently introduced visa is aimed at investors ready to inject at least 5 million MYR (about €1 million) into a Malaysian project, whether it’s real estate, local businesses, or financial instruments.
Unlike the MM2H, this visa imposes a minimum presence requirement of 90 days per year in Malaysia, to justify real involvement in the local economy. In exchange, it offers significant advantages: a validity period of 20 years, the possibility to work freely and invest without restrictions, as well as an advantageous tax framework.
The Talent Pass (RP-T): for entrepreneurs and experts in the Malaysian market
Investors wishing to actively establish themselves in the Malaysian economic landscape can consider the Talent Pass (RP-T), which is aimed at entrepreneurs and experts with strategic skills. This visa, valid for 10 years and renewable, opens the door to active participation in key sectors such as technology, finance, or real estate.
The eligibility conditions are more flexible than those of the PRV, but nevertheless require solid professional justification. For example, a candidate will need to prove their expertise, have a concrete investment project, and demonstrate their ability to contribute to the country’s development.
Tax implications and opportunities for foreign investors
One of Malaysia’s major assets for foreign investors is its advantageous tax system. Unlike many Western countries, Malaysia does not impose any tax on foreign income, which means that an investor receiving rent or dividends from outside the country will not be taxed locally.
Real estate owners, on the other hand, must pay certain taxes, including property tax (0.5% to 1% of the property value) and tax on rental income, which varies between 10% and 24% depending on the amount received.
Regarding Airbnb and other short-term rental platforms, the regulations depend on the location of the property. In Kuala Lumpur and Penang, certain restrictions may apply, including quotas for temporary rentals or registration obligations with local authorities. It is therefore crucial to research thoroughly before putting a property up for rent.
Conclusion: which visa to choose in 2025?
Depending on your profile and objectives, Malaysia offers several solutions tailored to foreign investors.
If you are looking for flexible long-term residence, the MM2H remains a safe bet. For wealthy investors seeking a sustainable establishment, the PRV offers a very advantageous option. Finally, entrepreneurs and highly qualified professionals can take advantage of the Talent Pass to fully integrate into the Malaysian economy.
Before diving in, take the time to analyze each program and don’t hesitate to seek local experts to secure your project. Smart Invest Malaysia is at your disposal to assist you with all your investment and residence procedures in Malaysia.