SMC Alert November 2013
S U RV I V E A N D T H R I V E I N T H E A G E O F T U R M O I L
Low-cost residency in Malaysia We first covered the Malaysia My Second Home (MM2H) residency option in detail in the May issue of Sovereign Man: Confidential. However, there’s a good reason why we’re mentioning it again. Bottom line, if you’re over 50, Malaysia represents an opportunity to acquire residency without having to invest a penny in the country. This is very cost effective for folks who are looking for residency. In general, no matter what happens, it’s always a sensible idea to have an alternative place to base yourself in the event things get so bad that you feel the only way out is to leave your present country of residence. But even if you don’t end up using it, having a foreign residency option can open many more doors to you. So, everyone that requires you to have a non-US address would be able to do business with you if you provided evidence of a foreign residency. Taking up the residency program in a place such as Malaysia is worth considering. It may end up costing you next to nothing. Remember, Malaysia is a middle-income country with a strong, vibrant economy. The population density is relatively low by Asian standards, and if you lead an active outdoor lifestyle, there are plenty of things to do in this tropical paradise. The country is cheap, yet modern (sometimes ultra-modern, especially in Kuala Lumpur), offering all the possible amenities you can think of. www.sovereignman.com
S U RV I V E A N D T H R I V E I N T H E AG E O F T U R M O I L
It’s extremely well connected, with Kuala Lumpur having direct, non-stop flights to every capital city in Asia, as well as to the east and west coasts of the US, and to the major cities in Australia, New Zealand and Europe.
“Malaysia My Second Home” (MM2H) Residency Program Malaysia has a very easy residency program called My Second Home, even though, frankly, it really has nothing to do with owning a home. To be clear up front, the downside of the MM2H residency program is that it cannot lead to Malaysian citizenship. Indeed, Malaysian citizenship is next-to-impossible to obtain for anyone not born in the country, or with substantial family ties. What makes it very attractive though is that it provides a long-term residency solution in Asia, a region that is generally not very welcoming to foreign immigration. The MM2H program entitles you to residency in Malaysia for at least 10 years, or for the duration of your passport. The residency visa is renewable and there is no minimum number of days you’re required to be in Malaysia to maintain the residency. Importantly, the program is open to citizens of all countries recognized by Malaysia (the only nationality excluded would be those from Israel). Dependents are also eligible for residency visas, which can include a spouse, unmarried children below the age of 21, and even parents. The special appeal of the program is that there are no age requirements; there are only two separate sets of criteria for those under and above the age of 50: • You can qualify if you are under 50 and you can prove liquid net assets worth at least RM500,000 (US$156,250), as well as demonstrate a proof of monthly income from outside of Malaysia equal to RM10,000 (US$3,125). • You can qualify if you are over 50 and you can show proof of liquid net assets worth at least RM350,000 (US$109,375), as well as monthly income of RM10,000 (US$3,125) deriving from offshore; • You can qualify if you’re over 50 and retired, with a monthly offshore pension of RM 10,000 ($3,120)— government pensions are accepted 100%; if it’s from a private source it will be subject to approval by a committee. Once approved, if you are under 50, you must place a fixed deposit of at least RM300,000 in a Malaysian bank. This means that you can also open an account with a local branch of any major international bank such as HSBC, Standard Chartered, UOB, etc. You must maintain that balance for at least 12 months. From the second year onward, over the course of your residency, you can withdraw up to RM150,000 of the money to meet approved expenses, such as housing, medical care, and so forth, in Malaysia. But you must maintain a minimum balance of RM150,000 throughout the program. If you are over 50, you can EITHER place a time deposit of RM150,000 in a Malaysian bank, or show government approved pension income of at least RM10,000 a month and have no other obligations. In other words, if you’re over 50 and have a monthly pension of at least RM10,000 per month (about $3,125), then you don’t have to invest a single penny in the country. So this is a very reasonable, cost effective program.
2
www.sovereignman.com
SMC ALERT 19th November 2013
S U RV I V E A N D T H R I V E I N T H E AG E O F T U R M O I L
If you choose the fixed deposit criterion, after one year, you can withdraw up to RM50,000 for approved expenses relating to house purchase, education for your children in Malaysia or medical purposes. Another alternative to qualify for Malaysian residency under the MM2H program is to buy a property in Malaysia worth at least RM1,000,000. In this case, if you are under 50, you must also keep RM150,000 in a fixed bank deposit for the duration of your stay in the country on this visa. If you are over 50, the number is RM100,000. Again, though, if you can qualify by simply showing a pension worth $3,125 per month, then it doesn’t make any sense to buy property unless you really want to spend a lot of time in Malayisa (which is, in fairness, a really great place to be). MM2H is a very attractive program and over 15,000 people from throughout the world have taken it up already. There are some great tax benefits to it as well. Your overseas income is not taxed in Malaysia—this also includes remittances of offshore pensions, meaning that you can receive your pension income tax-free under this program. If you’d like more details on the program, you can contact Nasser Aboobakar ([email protected]) for more information. Nasser can also help you buy Malaysian property.
3
www.sovereignman.com
SMC ALERT 19th November 2013
Low-cost residency in Malaysia We first covered the Malaysia My Second Home (MM2H) residency option in detail in the May issue of Sovereign Man: Confidential. However, there’s a good reason why we’re mentioning it again. Bottom line, if you’re over 50, Malaysia represents an opportunity to acquire residency without having to invest a penny in the country. This is very cost effective for folks who are looking for residency. In general, no matter what happens, it’s always a sensible idea to have an alternative place to base yourself in the event things get so bad that you feel the only way out is to leave your present country of residence. But even if you don’t end up using it, having a foreign residency option can open many more doors to you. So, everyone that requires you to have a non-US address would be able to do business with you if you provided evidence of a foreign residency. Taking up the residency program in a place such as Malaysia is worth considering. It may end up costing you next to nothing. Remember, Malaysia is a middle-income country with a strong, vibrant economy. The population density is relatively low by Asian standards, and if you lead an active outdoor lifestyle, there are plenty of things to do in this tropical paradise. The country is cheap, yet modern (sometimes ultra-modern, especially in Kuala Lumpur), offering all the possible amenities you can think of. www.sovereignman.com
S U RV I V E A N D T H R I V E I N T H E AG E O F T U R M O I L
It’s extremely well connected, with Kuala Lumpur having direct, non-stop flights to every capital city in Asia, as well as to the east and west coasts of the US, and to the major cities in Australia, New Zealand and Europe.
“Malaysia My Second Home” (MM2H) Residency Program Malaysia has a very easy residency program called My Second Home, even though, frankly, it really has nothing to do with owning a home. To be clear up front, the downside of the MM2H residency program is that it cannot lead to Malaysian citizenship. Indeed, Malaysian citizenship is next-to-impossible to obtain for anyone not born in the country, or with substantial family ties. What makes it very attractive though is that it provides a long-term residency solution in Asia, a region that is generally not very welcoming to foreign immigration. The MM2H program entitles you to residency in Malaysia for at least 10 years, or for the duration of your passport. The residency visa is renewable and there is no minimum number of days you’re required to be in Malaysia to maintain the residency. Importantly, the program is open to citizens of all countries recognized by Malaysia (the only nationality excluded would be those from Israel). Dependents are also eligible for residency visas, which can include a spouse, unmarried children below the age of 21, and even parents. The special appeal of the program is that there are no age requirements; there are only two separate sets of criteria for those under and above the age of 50: • You can qualify if you are under 50 and you can prove liquid net assets worth at least RM500,000 (US$156,250), as well as demonstrate a proof of monthly income from outside of Malaysia equal to RM10,000 (US$3,125). • You can qualify if you are over 50 and you can show proof of liquid net assets worth at least RM350,000 (US$109,375), as well as monthly income of RM10,000 (US$3,125) deriving from offshore; • You can qualify if you’re over 50 and retired, with a monthly offshore pension of RM 10,000 ($3,120)— government pensions are accepted 100%; if it’s from a private source it will be subject to approval by a committee. Once approved, if you are under 50, you must place a fixed deposit of at least RM300,000 in a Malaysian bank. This means that you can also open an account with a local branch of any major international bank such as HSBC, Standard Chartered, UOB, etc. You must maintain that balance for at least 12 months. From the second year onward, over the course of your residency, you can withdraw up to RM150,000 of the money to meet approved expenses, such as housing, medical care, and so forth, in Malaysia. But you must maintain a minimum balance of RM150,000 throughout the program. If you are over 50, you can EITHER place a time deposit of RM150,000 in a Malaysian bank, or show government approved pension income of at least RM10,000 a month and have no other obligations. In other words, if you’re over 50 and have a monthly pension of at least RM10,000 per month (about $3,125), then you don’t have to invest a single penny in the country. So this is a very reasonable, cost effective program.
2
www.sovereignman.com
SMC ALERT 19th November 2013
S U RV I V E A N D T H R I V E I N T H E AG E O F T U R M O I L
If you choose the fixed deposit criterion, after one year, you can withdraw up to RM50,000 for approved expenses relating to house purchase, education for your children in Malaysia or medical purposes. Another alternative to qualify for Malaysian residency under the MM2H program is to buy a property in Malaysia worth at least RM1,000,000. In this case, if you are under 50, you must also keep RM150,000 in a fixed bank deposit for the duration of your stay in the country on this visa. If you are over 50, the number is RM100,000. Again, though, if you can qualify by simply showing a pension worth $3,125 per month, then it doesn’t make any sense to buy property unless you really want to spend a lot of time in Malayisa (which is, in fairness, a really great place to be). MM2H is a very attractive program and over 15,000 people from throughout the world have taken it up already. There are some great tax benefits to it as well. Your overseas income is not taxed in Malaysia—this also includes remittances of offshore pensions, meaning that you can receive your pension income tax-free under this program. If you’d like more details on the program, you can contact Nasser Aboobakar ([email protected]) for more information. Nasser can also help you buy Malaysian property.
3
www.sovereignman.com
SMC ALERT 19th November 2013
