Retiring in Malaysia: The MM2H Visa, Tax on a Pension, Healthcare and Popular Cities

The MM2H is the official long-term residence programme for foreigners, run by the Ministry of Tourism, Arts and Culture (MOTAC). It has four categories: Platinum, Gold, Silver and SEZ/SFZ. The minimum age is 25 for Silver, Gold and Platinum and 21 for SEZ/SFZ. Applications go through an approved operator and the programme’s one-stop counter; final approval rests with the Immigration Department.

• Pass duration: 5 years in Silver, 10 years in SEZ/SFZ, 15 years in Gold and 20 years in Platinum. The pass is renewable and its validity depends on that of the passport.
• Minimum stay: 90 cumulative days a year for participants aged 25 to 49, which the principal or their dependants may fulfil; no minimum from age 50.
• Family members: spouse, children under 21 (21 to 34 if unmarried and unemployed), disabled children with no age limit, parents and parents-in-law.
• Medical examination: compulsory at a clinic or hospital approved by the ministry, for the principal and their dependants, after approval.

The guide to retirement insurance abroad compares the cover suited to retirees.

The programme’s official pages set the financial condition as a fixed deposit with an approved Malaysian financial institution: USD 150,000 in Silver (about €133,630 at the ECB reference rate of 02/10/2026, €1 = USD 1.1225), USD 500,000 in Gold, USD 1,000,000 in Platinum, and USD 32,000 from age 50 or USD 65,000 from 21 to 49 for the SEZ/SFZ category. No minimum monthly income appears in these pages; the deposit is the condition used. After approval, up to 50% of the deposit may be withdrawn for buying a property, education, healthcare or tourism activities in Malaysia.

• Property: buying a property after approval is compulsory, for at least MYR 600,000 in Silver (about €130,864), MYR 1,000,000 in Gold and MYR 2,000,000 in Platinum; resale is prohibited for 10 years, except to buy a property of higher value. In SEZ/SFZ, the price of the property is set for the development of the zone concerned.
• Fees: one-off participation fee of MYR 1,000 in Silver (about €218), MYR 3,000 in Gold and MYR 200,000 in Platinum; application fee of MYR 5,000 for the principal (about €1,091) and MYR 2,500 per dependant (about €545).
• Renewal: before the programme’s maximum duration, the pass is renewed every five years, with visa fees of MYR 0 to 50 depending on nationality and MYR 500 a year of pass fees; after the maximum duration, the five-year renewal (MYR 1,500 in Silver, about €327) requires a valid passport, the latest medical report and health insurance.
• Tax advantage: funds and foreign-source income, including the fixed deposit, benefit from a tax exemption (Ministry of Tourism).

Sarawak: the state has applied its Sarawak-MM2H programme since 1 January 2025, open from age 30, with a deposit of MYR 500,000 (about €109,054) in a Sarawak bank, a minimum stay of 30 days a year and a 5-year pass renewable once for 5 years (Sarawak Ministry of Tourism). The conditions of the Sabah programme fall under that state’s authorities and should be checked with them.

The France-Malaysia treaty, signed on 24 April 1975 and amended by the protocols of 31 January 1991 and 12 November 2009, allocates the right to tax between the two states. Its Article 18 provides that pensions and similar remuneration paid to a resident of a state for past employment are taxable only in that state; Article 19 provides that pensions paid by a state for public service are taxable in that state (impots.gouv.fr).

• Residence: Article 4 refers to each state’s residence; in case of dual residence, it applies the permanent home, then the centre of personal and economic interests, then the habitual abode, then nationality.
• Malaysian side: HASiL indicates that foreign-source income received in Malaysia is exempt and that a non-resident is taxed at 30% with no relief.
• French side: Article 23 provides that France exempts income taxable in Malaysia under the treaty, with a tax credit for certain income (notably dividends, interest and royalties).
• Social levies: the CSG, CRDS and Casa (French social levies) are not deducted from the pension of an insured person whose tax residence is no longer in France; depending on the situation, a health insurance contribution may be (Assurance retraite, the French pension insurance fund).

The treatment of a given pension depends on its nature (private, social security or public) and on the tax residence retained: the pension fund specifies the nature of the pension, and the French tax office for non-resident individuals and HASiL confirm the personal situation before settling. See the page on working in Malaysia for the Malaysian scale.

Assurance retraite pays pensions in more than 180 countries. A life certificate is requested every year, whatever the nationality: it is completed by a competent authority and returned online or by post within the deadline, failing which payment is suspended.

• Minimum old-age benefit: the Aspa (the French solidarity allowance for older people) and the ASI (supplementary disability allowance) stop being paid if you leave to live abroad; a new application is possible on returning to France.
• Before departure: notify the regional fund by post of the new address and bank details.
• Exchange rate: the pension is paid in euros and spent in ringgit; the ECB reference rate was MYR 4.5849 per €1 on 02/10/2026 and changes every trading day.

See the guides to receiving your pension abroad and pension quarters worked abroad.

Once settled outside France, a retiree is no longer covered by French national health insurance (Assurance Maladie). The S1 form is valid in the European Union and the European Economic Area, and coverage by the country of residence presupposes a social security agreement providing for the right to care: CLEISS (the French liaison centre for international social security) lists none with Malaysia. See the guide to the S1 form, how it works and the glossary entry on the S1 form.

• CFE retirees’ plan: from €147 a month, reserved for holders of a French basic-scheme pension with no professional activity, with no medical questionnaire. No waiting period if enrolment takes place before departure or within three months of moving; otherwise three months before age 45 and six months from age 45. See the glossary entry on the retirees’ plan.
• International insurance: it gives access to private facilities with direct billing and organises evacuation; age and prior medical history weigh on acceptance and on price. See CFE or private insurance.
• Stays in France: a social security retiree who has contributed for at least 15 years to one or more compulsory French schemes registers with the CNAREFE for coverage of their care during temporary stays.
• MM2H programme requirement: health insurance is among the documents for the five-year renewal after the programme’s maximum duration, and the medical examination is compulsory after approval.

See the guide to retiree health insurance abroad, the page on healthcare reimbursement in Malaysia and the guide to the Malaysian healthcare system.

The 2024 DOSM household expenditure survey gives average monthly spending of MYR 5,566 (about €1,214), MYR 8,178 in Kuala Lumpur (about €1,784), MYR 5,927 in Johor (about €1,293) and MYR 5,850 in Pulau Pinang (about €1,276). Housing, water, electricity and gas form the largest item, at 23.5% of the budget, and health 2.6%, or MYR 147 (about €32) a month for an average household. These averages cover all Malaysian households and give an order of magnitude rather than a retiree budget.

• Housing: the purchase required by the MM2H in the Silver category starts at MYR 600,000; the official sources consulted publish no average rent by city.
• Health: the CFE starts at €147 a month for a retiree; international insurance costs more with age and prior medical history. The guide to budgeting for health abroad helps you put a figure on it.
• Visa: renewal and pass fees should be planned for each year; the page on living in Malaysia presents the settling-in formalities.

The choice of location is made first on proximity to care, then on quality of life.

• Kuala Lumpur: the capital shows the highest average household spending of the states after Putrajaya (MYR 8,178 a month, about €1,784); it is the most prudent choice for a retiree undergoing treatment.
• Penang: the state of Pulau Pinang offers a more compact setting, for average household spending of MYR 5,850 a month (about €1,276).
• Johor Bahru: Johor state shows average spending of MYR 5,927 a month (about €1,293) and the strongest rise in household spending between 2022 and 2024.
• Langkawi: an archipelago in Kedah state, where medical evacuation should be in the contract before settling.
• Kota Kinabalu: capital of Sabah, whose own residence programme should be checked with the state authorities; Sarawak offers its S-MM2H programme.

A trial stay of a few weeks lets you test the climate, the distance to the hospital and the journeys before buying. The MM2H pass passes to the family member registered as a dependant on the principal’s death (Ministry of Tourism). A return to France calls for planning the resumption of health insurance: see the page on returning to France. To compare the cover suited to retiring in Malaysia, Expavy offers a free diagnostic.