MM2H Property Investment Guide: Is the Visa Worth It for Buyers?

MM2H is sold as a retirement visa. But property investors use it as a financing and access tool. The question is whether the cost — a locked fixed deposit of RM1M or more, application fees, and annual renewals — makes financial sense compared to buying without it. For most single-property investors, the answer is no. For serial investors or those planning to live part-time in Malaysia, the math shifts decisively.

This guide breaks down MM2H through the lens of property investment returns, not lifestyle brochures.

Current MM2H Requirements (2024 Revision)

The MM2H program was overhauled in 2021 and further revised in 2024. The current structure has four tiers, each with different financial thresholds.

Monthly offshore income: USD 10,000. This is approximately RM47,000 or SGD 13,500 per month. The income must come from outside Malaysia — salary, pension, business income, dividends, or rental income from properties in other countries. Malaysian-sourced income does not count toward this requirement.

Fixed deposit. Must be placed in a Malaysian bank. The SEZ/SFZ tier requires the applicant to reside within designated Special Economic Zones (e.g., Johor-Singapore SEZ) or Special Financial Zones (e.g., Forest City SFZ). For most property investors targeting KL, Penang, or mainstream Johor locations, the Silver tier (USD 150,000 FD) is the practical entry point.

Application costs. Application fee approximately RM5,000. Professional agent/consultant fees typically RM5,000-RM15,000. Medical examination, insurance, and miscellaneous costs add another RM2,000-5,000. Total upfront cost: RM12,000-RM25,000 before the fixed deposit.

The pre-2021 MM2H required just RM150,000 in fixed deposit for applicants over 50 (RM300,000 for under 50). The current Silver tier requires USD 150,000 (~RM700,000). The program now filters for high-net-worth individuals only.

MM2H Property Benefits: What You Actually Get

The property-specific advantages of MM2H are real but frequently overstated by agents. Here is what MM2H actually provides — and what it does not.

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State Threshold Differences

Some states have historically offered lower minimum purchase thresholds for MM2H holders compared to standard foreign buyers. This varies by state and changes frequently — state governments can revise thresholds with little notice.

Important disclaimer: State threshold policies for MM2H holders have been inconsistent. Some states offered lower thresholds under the old MM2H program but may not have updated their policies for the revised tiers. Always verify the current threshold with the relevant state authority or a property lawyer before committing to a purchase based on assumed MM2H concessions.

Banking and Financing

MM2H provides genuine advantages in the financing process:

• Higher LTV potential. Some banks offer up to 70-80% LTV for MM2H holders, compared to 50-70% for standard foreign buyers. This is bank-dependent, not guaranteed.
• Easier bank account opening. MM2H holders can open Malaysian bank accounts more readily. Non-MM2H foreigners face increasing friction opening accounts due to anti-money-laundering compliance.
• Longer relationship. Banks view MM2H holders as longer-term clients, which can translate into better rate negotiations.
• Local credit history. Over time, MM2H holders build a local financial footprint — CCRIS records, transaction history — that improves subsequent loan applications.

What MM2H Does NOT Provide

• No override of state minimum thresholds (in most states currently)
• No stamp duty discount. Foreigners — including MM2H holders — still pay the foreigner flat stamp duty rate on residential property (8% from 2026; was 4% prior)
• No RPGT concession. MM2H holders are taxed as foreigners for RPGT purposes: 30% for years 1-5, 10% from year 6. Only Malaysian citizens and PRs get the 0% rate after year 5.
• No automatic tax residency. MM2H alone does not make you a tax resident. See the tax section below.

Does MM2H Make Financial Sense? The Math

The core calculation: does the MM2H investment (fixed deposit lockup + application costs) generate enough property investment benefit to justify itself?

Scenario 1: Single Property Purchase

You want to buy one RM1.5M condo in KL.

MM2H costs (Silver tier):

• Fixed deposit: USD 150,000 (~RM700,000) locked in Malaysian bank
• Application and professional fees: ~RM20,000
• Annual renewal and compliance: ~RM2,000/year

Opportunity cost of fixed deposit: RM700,000 earning Malaysian FD rates of approximately 3.5% = RM24,500/year. If you could earn 6% elsewhere, the net opportunity cost is ~RM17,500/year.

MM2H benefit for this purchase:

• Potential LTV improvement: from 60% to 70% = RM150,000 less cash needed upfront
• No threshold benefit in KL (RM1M threshold applies to all foreigners)
• No tax benefit (still taxed as foreigner for RPGT and income tax unless physically present 182+ days)

Verdict: For a single RM1.5M purchase in KL, MM2H costs approximately RM20,000 upfront plus RM17,500/year in opportunity cost. The financing benefit (RM150,000 less downpayment) is real but modest. The MM2H does not pay for itself through property benefits alone. You would need to value the visa/residency rights independently.

Scenario 2: Multiple Properties Over 5+ Years

You plan to purchase 2-3 properties over time and live part-time in Malaysia.

Additional benefits:

• Easier financing for second and third properties (established banking relationship, local credit history)
• Tax residency achievable if you spend 182+ days/year — progressive tax rates (0-30%) instead of flat 30% on rental income
• Rental income from first property counts toward demonstrating Malaysian financial ties for subsequent loans
• Long-term capital appreciation on properties held beyond 5 years, with personal use of one property

Verdict: For serial investors planning 2+ properties and partial Malaysian residency, MM2H is a worthwhile infrastructure investment. The tax residency benefit alone can save tens of thousands per year in rental income tax.

Fixed Deposit: Rules and Partial Withdrawal

The fixed deposit is not fully dead money. MM2H holders can withdraw a portion after the first year.

Withdrawal rules:

• After 1 year, you can withdraw up to 50% of the fixed deposit for approved purposes
• Approved purposes: property purchase, education (for dependents), medical expenses
• You must maintain the minimum balance (50% of original deposit) at all times
• The remaining balance must stay locked for the duration of your MM2H visa

Using FD for property purchase:

If your Silver tier FD is RM700,000, you can withdraw up to RM350,000 after year 1 specifically for property purchase. This effectively makes the FD a forced savings mechanism that feeds into your property downpayment.

Formula:

Effective MM2H cost = (FD amount × opportunity cost rate) + application fees - FD interest earned

At 3.5% FD rate and 6% alternative return:

Annual cost = RM700,000 × (6% - 3.5%) + RM2,000 = RM19,500/year

After year 1, if you withdraw RM350,000 for property:

Annual cost on remaining = RM350,000 × 2.5% + RM2,000 = RM10,750/year

The fixed deposit is the part everyone fixates on. But if you plan to buy property anyway, half of it becomes your downpayment after year one. The real locked-up capital is the remaining 50% — and at RM350,000, the annual opportunity cost is under RM9,000. That is less than one month of rental income on a decent KL condo.

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MM2H and Tax Residency: A Critical Distinction

This is the most misunderstood aspect of MM2H for property investors. MM2H does NOT automatically make you a Malaysian tax resident.

Tax residency in Malaysia is determined by the Inland Revenue Board (LHDN) based on physical presence. The primary test: you must be physically present in Malaysia for 182 or more days in a calendar year.

Why this matters for property investors:

Worked example — rental income:

Your property generates RM6,000/month gross rental income. Annual: RM72,000.

Annual expenses: maintenance fee RM6,000, assessment RM2,400, insurance RM1,200, repairs RM3,600. Total deductible expenses: RM13,200.

As non-resident: Tax on gross RM72,000 less allowable expenses (RM13,200) = RM58,800 × 30% = RM17,640/year. Non-residents can deduct property-related expenses but not personal reliefs.

As tax resident: Net rental income = RM72,000 - RM13,200 = RM58,800. After personal relief (RM9,000) and progressive rates, tax is approximately RM5,000-8,000/year (depending on other income).

Annual tax saving from residency status: RM9,640-RM12,640.

That tax benefit is significant relative to the annual opportunity cost of the MM2H fixed deposit. If you can realistically spend 182+ days per year in Malaysia, the tax residency advantage substantially offsets the cost of MM2H for property investors.

For the full breakdown of rental income tax obligations, see our dedicated guide.

Comparison: Buying With vs Without MM2H

For investors who cannot or do not want to commit to MM2H, the alternative is buying as a standard foreign buyer. Our guide on buying property without MM2H covers this pathway in detail.

The decision hinges on whether you plan to spend significant time in Malaysia. If you are a pure investment buyer who will never visit, MM2H is expensive infrastructure you do not need. If you intend to live part-time, MM2H unlocks tax and financing benefits that compound over time.

Exit Strategy: What Happens to Your Property If MM2H Is Not Renewed

MM2H visas are renewable but not guaranteed. The Malaysian government can decline renewal, change program terms, or cancel the program entirely (as they effectively did in 2020-2021 before relaunching with new requirements).

If your MM2H expires or is not renewed:

• You keep your property. Property ownership is not conditional on MM2H status. Your land title remains valid regardless of your visa status.
• You lose residency rights. You can no longer live in Malaysia long-term. You revert to tourist visa entries (typically 30-90 days depending on nationality).
• Financing continues. Your existing mortgage is not affected. The loan contract is separate from your visa status. You continue making payments as normal.
• Bank account may be affected. Some banks may review your account status. Having a property mortgage with the bank typically ensures they maintain your account.
• Tax status reverts to non-resident. If you were achieving tax residency through MM2H-facilitated stays, you lose that benefit and revert to flat 30% on rental income.
• Future property purchases. You can still buy additional property as a standard foreign buyer, subject to normal foreigner rules and thresholds.

The fixed deposit is returned to you (minus any withdrawals) when you exit the MM2H program, subject to processing time.

Your property title is independent of your visa. If MM2H is cancelled tomorrow, you still own your condo. You just cannot live in it long-term without a separate visa arrangement. This is the single most important fact for nervous MM2H property investors.

Who Should Get MM2H for Property Investment

MM2H makes sense if:

• You plan to buy 2+ properties in Malaysia over time
• You will spend 182+ days per year in Malaysia (unlocking tax residency)
• You want a long-term residency backup plan in addition to property investment
• You have the liquidity to park USD 150,000+ without impacting your investment capacity
• You are from a country with limited visa-free access to Malaysia

MM2H does NOT make sense if:

• You are buying a single investment property and will not live in Malaysia
• The fixed deposit significantly reduces your available capital for property downpayment
• You are from Singapore, Japan, or other countries with easy visa-free access and strong banking relationships with Malaysian banks
• Your investment horizon is under 5 years

Further Reading

• Can Foreigners Buy Property in Malaysia? — Complete foreign buyer rules
• Buying Property Without MM2H — The non-MM2H pathway
• Minimum Price by State — Current thresholds for all states
• Rental Income Tax Guide — Tax rates and deductions for landlords
• RPGT Guide 2026 — Capital gains tax on disposal

Sources

• MM2H Programme — Immigration Department of Malaysia
• MM2H National Tiers — MM2H.com
• MM2H SEZ/SFZ Category
• MM2H Property Purchase Thresholds by State
• LHDN — Non-Resident Tax Treatment & 182-Day Rule
• RPGT Rates — LHDN Schedule 5
• Foreigner Stamp Duty 2025-2026
• Penang Foreign Purchaser Requirements (MM2H Thresholds)