Moving to Malaysia from the UK: the practical guide

Malaysia at a glance

Start with the visa

UK citizens can visit Malaysia without a visa, but you need a pass to live or work there. For most people that means an Employment Pass through a job, or the Malaysia My Second Home (MM2H) programme for those who can support themselves.

Employment Pass, from 1 June 2026

Source: EIG Law, January 2026. The new limits apply to applications and renewals from 1 June 2026. Your employer applies through the Expatriate Services Division.

Malaysia My Second Home (MM2H)

Source: MM2H Insider, July 2026. Applicants must be at least 25 (21 for the special economic zone tier) and must buy a home within a year; under-50s must spend at least 90 days a year in Malaysia. Work is not allowed on most tiers. Applications go through a licensed agent; check the rules with the Ministry of Tourism.

Other routes

• DE Rantau Nomad Pass for remote workers employed or contracted outside Malaysia.
• Residence Pass-Talent for experienced professionals, giving 10 years’ residence and more freedom to change jobs.
• Sarawak’s own MM2H scheme, with lower deposits but tied to living in Sarawak.

Cost of living

Malaysia is good value. A two-bedroom condo in Kuala Lumpur typically rents for RM2,800 to RM4,500 a month (about £515 to £830), usually with a pool, gym and security, though the most popular expat areas cost more.

Source: SPEEDHOME, June 2026. Mont Kiara and Bangsar, the most popular expat areas, typically cost 20% to 40% more than these city-wide ranges. Penang is usually somewhat cheaper. Sterling figures use RM5.42 to the pound, the rate in early October 2026.

What works differently from the UK

• Deposits are larger. Landlords usually ask for two months’ rent as a security deposit plus half to one month for utilities, and you pay stamp duty on the tenancy agreement.
• Condo living is the norm in cities, with security guards, pools and gyms. Families wanting gardens look at landed houses in gated communities.
• Sales and service tax is charged on many goods and services, usually included in the price. Restaurants may add a service charge.
• Local food is very cheap; imports are not. Alcohol is heavily taxed and expensive.
• Many families employ a domestic helper, which needs a permit and makes you an employer.
• Air conditioning drives the electricity bill, in a hot, humid climate all year round.

Buying a home

Foreigners can buy property in Malaysia, but each state sets a minimum price for foreign buyers, often RM1 million or more in Kuala Lumpur and Penang, and some types of property are off-limits. State consent is needed and foreign buyers may pay extra fees. MM2H participants must buy a home as a condition of the visa.

Tax

Malaysia taxes income earned in Malaysia. You are a tax resident if you spend 182 days or more there in a calendar year; residents pay progressive rates from 0% to 30% and can claim allowances, while non-residents pay a flat 30%.

Resident rates, via 3E Accounting, August 2026. Check current figures with the Inland Revenue Board (LHDN).

Points that catch UK arrivals out

• Your first year can be tricky. If you arrive part-way through the year, you may be non-resident and taxed at 30% at first, then get a refund once you qualify as resident.
• Foreign income has been exempt for individuals. Residents have not been taxed on foreign income brought into Malaysia, under an exemption due to run to the end of 2026. Check whether it has been extended before moving large sums.
• Tax is deducted from your pay by your employer each month, but you still file an annual return online.
• Leaving needs tax clearance. Your employer must notify LHDN before you leave and hold back your final pay until your tax is settled.

Leaving the UK tax system

Tell HMRC you are going. Most people do this with form P85, which can also trigger a refund for the year you leave. You will still pay UK tax on UK income such as rent from a property you keep. A UK–Malaysia double taxation agreement stops the same income being taxed twice. Take advice from an accountant who handles both countries before you move, not after.

Healthcare

Malaysia’s private hospitals are modern and good value, and English-speaking doctors are easy to find. Foreigners cannot use the subsidised public system, so private health insurance is essential.

Source: Malaysia4U, July 2026. Since July 2025, non-citizens also pay 6% service tax on private care. Serious treatment, surgery or intensive care can cost tens of thousands of ringgit.

How cover works

• Check your employer’s plan, and whether it covers your partner, children, outpatient care and maternity.
• MM2H requires cover of at least RM80,000 for applicants under 60. That is a legal minimum, not enough for major treatment, so buy more.
• Premiums are rising fast. Medical costs in Malaysia are rising by well over 10% a year, and premiums rise with age.
• International plans cost more but can include treatment in the UK and Singapore.

There is no reciprocal health agreement between the UK and Malaysia. Some UK medicines are controlled in Malaysia, so carry prescriptions and check the rules before you travel.

Schools and the school year

Kuala Lumpur has a wide choice of international schools, many following the English National Curriculum through to IGCSEs and A-levels or the IB, with a school year from August to June. Fees are much lower than in Singapore or Hong Kong.

Source: Tutopiya, January 2026. Secondary fees are higher. Check each school’s current fees.

What else to know

• Budget for one-off costs. Registration or enrolment fees often run from RM5,000 to RM20,000 or more, and some schools charge capital development fees. Exam fees for IGCSEs, A-levels and the IB are extra.
• Apply early for August starts, especially at the best-known British schools.
• Location matters. Traffic in Kuala Lumpur can be heavy, so many families choose a home near the school, in areas such as Mont Kiara, Bangsar, Damansara or Ampang.
• Outside Kuala Lumpur, Penang and Johor have good international schools, with fewer to choose from.
• Local schools teach mainly in Malay, so few expat families use them.
• Think ahead to university. Children who have lived abroad may be charged international rather than home fees at UK universities, depending on how long they have been away.

Driving

Malaysia drives on the left, as in the UK, and most families find a car essential outside central Kuala Lumpur. Cars cost less to run than in the UK, but the rules on using a UK licence changed in 2025.

Your licence

• For your first 12 months, you can drive on your UK licence with a 1949 International Driving Permit. Buy the permit at a UK Post Office before you leave.
• Most foreigners can no longer convert a UK licence. Since May 2025, the Road Transport Department (JPJ) has stopped converting foreign licences for most foreign residents. To keep driving beyond your first year, you will need to take the Malaysian theory and driving tests.
• MM2H participants are an exception and can still convert a foreign licence.

Sources: Free Malaysia Today, May 2025 and SAYS, May 2026. Check the latest position with JPJ before you move.

Road rules worth knowing before your first drive

• Motorbikes weave through traffic and pass on both sides, so check your mirrors constantly.
• Motorways are tolled, paid electronically with a card or tag.
• Speed cameras are common, and fines can be paid online.
• Flash floods during heavy rain can close roads quickly, especially in the monsoon seasons.
• Insurance is compulsory. A letter confirming your UK no-claims record may help with the premium.

Should you ship your car?

Usually not. Importing a private car needs an Approved Permit and attracts steep duty and excise, and eligibility is mainly limited to returning Malaysians and some residence programmes. Locally built cars are good value.

Pensions

Malaysia has no social security agreement with the UK. Retirement income for most UK movers will come from UK pensions and their own savings, and pension income can also support an MM2H application.

Your UK State Pension

• It is paid in Malaysia, but frozen. You cannot get annual increases there; the rate you first receive is the rate you keep. See State Pension if you retire abroad.
• You need 35 qualifying years for the full amount and at least 10 to get anything. Check your forecast before you leave.
• Topping up from abroad became harder and dearer on 6 April 2026. Cheap Class 2 voluntary contributions are no longer available for time abroad. You can pay Class 3 only if you lived in the UK for 10 years in a row or paid 10 years of contributions. See voluntary National Insurance if you live abroad.

Saving in Malaysia

Malaysia’s Employees Provident Fund (EPF) is the national workplace savings scheme. Rules for foreign workers have changed recently, so ask your employer whether you and they must contribute, and how you can withdraw your savings when you leave Malaysia. See the EPF for details.

Your UK workplace and private pensions

These can stay invested in the UK and be paid to you in Malaysia. Moving a UK pension abroad usually triggers a 25% overseas transfer charge unless you live in the same country as the scheme, and expats in Malaysia are a common target for unregulated advisers. Use a regulated adviser, and read GOV.UK on transferring to an overseas pension scheme first.

Shipping your home

Used household goods can enter Malaysia free of duty and sales tax, but only for people on an employment pass or a long-stay residence programme, and only when the relief is claimed correctly at clearance.

Customs

• Your pass comes first. Relief applies to expatriates with an employment pass, long-stay residence participants such as MM2H, and returning Malaysians. We check your pass status about eight weeks before the move.
• Relief is claimed at clearance. You need your pass, passport and a numbered inventory in the format Malaysian Customs expects, which we prepare with you.
• Goods must have been owned and used. New items, unopened packaging and stock-like quantities may be charged duty and tax.
• Alcohol and tobacco are always taxed.

What not to pack

• Plants, seeds and soil need permits, so leave plants behind and clean garden tools and outdoor furniture.
• Meat, dairy and many foods are controlled; pack no food.
• Some books and media, including material considered obscene or offensive on religious grounds, are prohibited.
• Drones and anything with a radio transmitter need approval, so declare them.
• Replica weapons, including decorative swords, need a permit or should stay in the UK.

Delivery and sea freight

Kuala Lumpur condominiums usually need a moving permit, a booked service lift and a refundable deposit, and many only allow moves on weekdays. Gated communities need vehicle and crew details in advance, and Penang’s heritage shophouses have narrow frontages and steep stairs. Sea freight takes 7 to 11 weeks door to door to the peninsula and longer to Sabah and Sarawak; air freight takes 4 to 7 days. We pack to protect against the humidity. Our Malaysia shipping guide has the detail.

Pets

• Get an import permit from Malaysia’s Department of Veterinary Services (DVS) before you travel.
• Microchip, then vaccinate against rabies at least 30 days before entry. Pets must be at least three months old.
• Expect a short quarantine. Pets entering Peninsular Malaysia through Kuala Lumpur airport usually spend at least seven days in quarantine. Sabah and Sarawak have stricter rules.
• Some breeds are banned, including Akitas, American Bulldogs, pit bull types, Japanese Tosas and Neapolitan Mastiffs. Others, such as Rottweilers and German Shepherds, need special approval.

Source: PetRelocation, which describes the rules for pets from the US. Check the requirements for UK pets with DVS before you book.

Useful links

These are the official sources we point clients to. Rules change, so check them close to your move date.

This guide is general information for people planning a move, correct to the best of our knowledge in October 2026. It is not tax, pension, legal or immigration advice. Rules and figures change, so check the official sources linked above and take professional advice on your own circumstances.