MM2H is sold as a retirement visa. Property investors look at it as an access tool. The question is whether the cost (a locked USD fixed deposit, the participating and processing fees, and a compulsory residence that you cannot sell for 10 years) makes financial sense compared with buying without it. For most single-property investors, the answer is no. For buyers who plan to live in Malaysia for part of the year, the answer changes.
This guide states only what the official programme pages publish. We captured the figures from mm2h.gov.my on 16 October 2026. A dated ledger keeps each figure with its verbatim quote.
Current MM2H requirements
The programme has four categories. The Immigration Department issues the pass; the Ministry of Tourism, Arts and Culture runs the One Stop Centre.
| Requirement | SEZ/SFZ | Silver | Gold | Platinum |
|---|---|---|---|---|
| Fixed deposit (FD) | USD 65,000 (age 21 to 49) or USD 32,000 (age 50 and above) | USD 150,000 | USD 500,000 | USD 1,000,000 |
| Participating fee (one-off) | RM1,000 | RM1,000 | RM3,000 | RM200,000 |
| Processing fee | RM5,000 principal, RM2,500 per dependant | Same | Same | Same |
| Pass term (renewable) | 10 years | 5 years | 15 years | 20 years |
| Compulsory residence purchase | A property in Forest City, Johor, at the floor price under Johor state policy | RM600,000 or above | RM1,000,000 or above | RM2,000,000 or above |
| Business and investment activities | Not allowed | Not allowed | Not allowed | Permissible |
Fixed deposit. Place it in a Malaysian financial institution licensed under the Financial Services Act 2013 or the Islamic Financial Services Act 2013. An institution licensed under either Act qualifies. The deposit is stated in USD on every official page, so this guide does not convert it to ringgit.
What is not required. No official page publishes a monthly offshore income test or a liquid-asset test for these four categories. The MOTAC conditions document certified on 14 June 2024 states that the offshore income condition is dropped for all categories. Earlier versions of this guide stated both tests. They are withdrawn.
Other costs. The official pages do not publish a fee for the licensed MM2H company, a medical check-up fee or an insurance premium. Ask for those in writing before you apply.
What MM2H gives a property buyer, and what it does not
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The residence purchase is a requirement, not a discount
After approval you must buy and own a residence at or above the floor for your category. You may not sell it for 10 years, except to upgrade to a residence of higher value. Failure to comply revokes the pass. A MOTAC announcement of 28 May 2025 gives Silver, Gold and Platinum participants one year after the pass endorsement to complete the purchase. SEZ/SFZ participants must own or buy the Forest City house before endorsement. For the 50% withdrawal towards a house, a house bought within two years before endorsement (Silver, Gold, Platinum) or six months before (SEZ/SFZ) qualifies if it meets the category minimum.
The floor sits on top of the state minimum purchase price for foreigners. The official MM2H pages give MM2H holders no lower state minimum.
| State | Standard foreign minimum | MM2H Silver floor | Effective minimum for a Silver participant |
|---|---|---|---|
| Kuala Lumpur | RM1,000,000 | RM600,000 | RM1,000,000 |
| Selangor (Zones 1 and 2) | RM2,000,000 | RM600,000 | RM2,000,000 |
| Penang Island | RM1,000,000 (strata), RM3,000,000 (subsale landed) | RM600,000 | RM1,000,000 (strata) |
| Johor | RM1,000,000 | RM600,000 | RM1,000,000 |
| Melaka | RM500,000 (strata) | RM600,000 | RM600,000 |
| Sabah | RM600,000 (strata) | RM600,000 | RM600,000 (Sabah runs its own Sabah MM2H with separate rules) |
For Gold and Platinum, the floor (RM1,000,000 and RM2,000,000) exceeds most state minimums, so the floor is the binding number. See the full state table.
What MM2H does not provide
- No lower state threshold. The threshold follows nationality, not visa type.
- No financing advantage on the official pages. The programme pages say nothing about bank financing. This guide makes no claim about loan margins for MM2H holders.
- No stamp duty discount. Foreigners, including MM2H holders, pay the foreigner flat stamp duty rate on residential property (8% from 2026).
- No RPGT concession. MM2H holders are taxed as foreigners for RPGT: 30% in years 1 to 5, 10% from year 6.
- No automatic tax residency. See the tax section below.
- No work rights for Silver, Gold and SEZ/SFZ. Platinum participants may conduct business and investment activities.
Explore ten saved asking-listing configurations with Malaysian-buyer Islamic financing assumptions. Modeled balances exclude assessment, quit rent, insurance and other unlisted costs. Not verified profitability, current availability or a foreigner-eligible shortlist.
Get the Free 10-Property Sample →Does MM2H make financial sense? The framework
The programme has three cash effects for a property buyer. Put your own numbers into them.
- Capital lock. The fixed deposit stays in Malaysia for as long as you hold the pass. You may withdraw up to 50% of the principal for a residence purchase, education, medical or tourism activities (the category pages say after approval; the MOTAC guide says from the second year). The rest stays locked. Your cost is the difference between the return you could earn elsewhere and the return the bank pays on the deposit. The official pages do not publish a deposit rate; use the rate your bank quotes.
- Fees. The one-off participating fee for your category (RM1,000, RM3,000 or RM200,000; RM1,000 for SEZ/SFZ). The processing fee of RM5,000 for the principal and RM2,500 for each dependant. Then RM500 a year plus a RM0 to RM50 visa fee at each renewal before the full term, and the category renewal fee after it.
- The compulsory residence. You must buy at or above the floor and hold for 10 years. If you planned to buy anyway, the floor costs you nothing extra. If you only wanted a smaller investment unit, the floor raises your entry price.
Annual cost of MM2H = FD x (your alternative return - the bank's deposit rate)
+ fees for the year
Against that cost, set the benefits you value: a home in Malaysia for part of the year, a pass for your dependants, education to tertiary level for your children, and tax residence if you reach 182 days (next section). The official pages list no financing or price benefit, so none appears on the benefit side of this guide.
Fixed deposit: the withdrawal rule
- You may withdraw up to 50% of the principal. The official sources differ on the timing: the category pages say after approval, and the MOTAC guide says from the second year onwards. Ask the One Stop Centre before you plan around a withdrawal date.
- Approved purposes: purchase of a residence, education, medical and tourism activities in Malaysia.
- The MM2H portal provides a Verify FD Withdrawal service.
If you use the withdrawal for the residence, half of the deposit becomes part of your purchase money. The locked capital is then the remaining half.
Explore the research method. The free ten-property sample uses saved asking listings and Malaysian-buyer Islamic financing assumptions. Its modeled balances exclude assessment, quit rent, insurance and other unlisted costs. It is not verified profitability, current availability or a foreigner-eligible shortlist. Get the Free 10-Property Sample →
MM2H and tax residency: a critical distinction
MM2H does not make you a Malaysian tax resident. The official pages state that participants receive tax exemption on foreign funds or income, such as the fixed deposit. Tax residence is a separate test.
Tax residence follows the Income Tax Act 1967 as applied by the Inland Revenue Board (LHDN): you are resident if you are present in Malaysia for 182 days or more in a basis year.
Why this matters for property investors:
| Income type | Non-resident rate | Tax resident rate |
|---|---|---|
| Rental income | Flat 30% on net income (after allowable deductions, no personal reliefs) | Progressive 0% to 30% on net income (after deductions and personal reliefs) |
| Employment income | Flat 30% | Progressive 0% to 30% |
Worked example, rental income. Your property generates RM6,000 a month, RM72,000 a year. Deductible expenses: maintenance RM6,000, assessment RM2,400, insurance RM1,200, repairs RM3,600, total RM13,200. Net rental income RM58,800.
- As a non-resident: RM58,800 x 30% = RM17,640 a year.
- As a tax resident, after the RM9,000 individual relief and progressive rates: about RM5,000 to RM8,000 a year, depending on other income.
MM2H makes a stay of 182 days practical because the pass has no 90-day limit per entry. The MM2H minimum stay rule itself is only 90 days a year for principals under 50 and none at 50 and above, so a participant can hold the pass and stay a non-resident for tax.
For the full breakdown see the rental income tax guide.
Comparison: buying with and without MM2H
Our guide on buying property without MM2H covers the direct route in detail.
| Factor | With MM2H | Without MM2H |
|---|---|---|
| Property purchase | Required (residence at or above the category floor) | Allowed |
| State minimum thresholds | Apply in full | Apply in full |
| RPGT rates | Foreigner rates (30% / 10%) | Same |
| Stamp duty | 8% foreigner rate | Same |
| Tax residency | Not automatic; 182 days | Same rule |
| Upfront commitment | USD fixed deposit, participating and processing fees, the residence purchase | None beyond the property costs |
| Long-term stay | 5, 15 or 20 years by category (SEZ/SFZ 10), renewable | Visa-free or visa entries only |
| Hold restriction on the residence | No sale for 10 years, upgrade allowed | None |
Exit: what happens to your property if the pass ends
MM2H passes are renewable but renewal is not guaranteed, and the programme terms have changed before (the current conditions date from the 2024 revision).
- You keep your property. Land title is not conditional on the pass.
- You lose the long-stay right. You revert to ordinary visa entries.
- Existing financing continues. A financing contract is separate from your visa status.
- Tax status follows the 182-day test, with or without the pass.
- Future purchases follow the ordinary foreigner rules and thresholds.
Your property title is independent of your visa. If the pass ends, you still own your residence. You cannot live in it long-term without another pass.
Who should get MM2H for property investment
MM2H makes sense if you:
- Plan to spend part of each year in Malaysia, or 182 days and more for tax residence.
- Want to bring your spouse, children or parents, and want schooling to tertiary level for children.
- Were going to buy a residence at or above the category floor anyway, and can hold it for 10 years.
- Can park USD 150,000 or more without weakening your purchase budget.
MM2H does not make sense if you:
- Are buying a single investment unit and will not live in Malaysia.
- Need the deposit capital for the purchase itself.
- Want a unit below the category floor.
- Have an investment horizon under 10 years, because of the no-sale rule.
Further reading
- MM2H Malaysia 2026: requirements, fees and how to apply
- Can foreigners buy property in Malaysia?
- Buying property without MM2H
- Minimum price by state
- Rental income tax guide
- RPGT guide 2026
Sources
- MM2H category overview, Silver, Gold, Platinum, SEZ/SFZ, and the requirements and regulations page, captured 16 October 2026
- MM2H Programme, Immigration Department of Malaysia
- Ministry of Economy, Garis Panduan Perolehan Hartanah (effective 13 July 2022)
- LHDN residence status (182-day test) and non-resident individuals
- RPGT rates, LHDN Schedule 5
- Stamp Act 1949, First Schedule, Item 32(ab) (LHDN): flat 8% on residential property for non-citizens from 1 January 2026, inserted by Finance Act 2025 (Act 874) s.29(b)
- Malaysian Bar Circular No. 444/2024, state-by-state foreign purchase thresholds