Emigrating from Denmark to Malaysia: tax and cost of living

Compared by dimension

On an average Denmark income of €58,800 gross per year, you keep €46,720 net in Malaysia: a difference of €8,710 per year compared with Denmark.

• Tax: on this income Malaysia lands at an effective rate of about 21%, against 35% in Denmark.
• Passport and mobility: from Malaysia you travel visa-free to 180 countries.
• Residency: on our accessibility scale Malaysia scores 80 out of 100 for obtaining residency.
• Living environment: banking, internet, safety and healthcare together give Malaysia a living-environment score of 65 out of 100.

The tax regime in Malaysia

Malaysia only taxes Malaysian-source income. Foreign income you bring into Malaysia is exempt for tax residents until the end of 2036, provided it was subject to a similar income tax in the source country. Local income is taxed progressively from 0% to 30% (above RM 2 million). Dividends from Malaysian companies: 2% on the portion above RM 100,000 per year. No wealth tax, no inheritance tax, no capital gains tax for individuals (real estate falls under the separate RPGT).

Residency and visas in Malaysia

MM2H (Malaysia My Second Home) is the best-known route, since the overhaul in three tiers: Silver (USD 150,000 deposit, 5-year visa), Gold (USD 500,000, 15 years) and Platinum (USD 1 million, 20 years, with work rights). Each tier requires a property purchase (from RM 600,000 / 1 million / 2 million) within a year. Under-50s must stay 90 days per year; those 50+ have no minimum stay. Alternatives: the DE Rantau nomad visa (income from USD 24,000 per year, up to 24 months) and the Employment Pass.

• MM2H Silver (5 jaar, deposito USD 150.000 + woningaankoop >= RM 600.000 binnen 1 jaar; <50 jr: 90 dagen/jaar verblijf) · €138,000
• MM2H Gold (15 jaar, deposito USD 500.000 + woningaankoop >= RM 1 mln binnen 1 jaar) · €460,000
• MM2H Platinum (20 jaar, deposito USD 1 mln + woningaankoop >= RM 2 mln; met werkrecht) · €920,000
• DE Rantau Nomad Pass (tot 24 maanden; inkomen vanaf USD 24.000/jaar tech, USD 60.000 niet-tech) · €22,000/year
• Employment Pass (werkgever-sponsoring)

Frequently asked questions

What is the financial difference between Denmark and Malaysia?

On an average Denmark income it differs by roughly €8,710 net per year. Your own figure depends on your income and situation; calculate it with the free freedom check.

Is this tax advice?

No. Libaros compares on the basis of primary government sources and provides information. For personal decisions, consult a qualified adviser.

What sources is this based on?

The Freedom Score uses the OECD Tax Database, IATA Timatic, the Henley Visa Index and Eurostat, with direct links to primary government sources.