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🇲🇾  Retiring in Malaysia from the UK

What British citizens need to know: the visa, how your pensions are taxed, what to do before you leave and every year after.

By the retireacross editorial team · Last reviewed

Visa for British citizens

You can visit Malaysia without a visa for 90 days (usually 90 days on arrival for tourism): enough for a trial stay before you apply. To live there you need a residence route:

  • Malaysia My Second Home (MM2H), Silver: a home or investment from 150,000 USD, from age 25. Official page
  • MM2H Special Economic / Financial Zone (age 50+): a home or investment from 32,000 USD, from age 50. Official page

Check your figures in the visa checker

Sources: MM2H (Ministry of Tourism, Arts and Culture): categories and requirements (checked 2026-10-22) · MM2H: Silver category (checked 2026-10-22) · MM2H: Special Economic / Financial Zone (checked 2026-10-22) · UK travel advice: Malaysia, entry requirements (checked 2026-10-22) · Government of Canada: Malaysia entry requirements (checked 2026-10-25)

How your pensions are taxed

In practice little or no tax on UK pensions while the Malaysian exemption lasts. Your UK State Pension is paid but frozen: it does not rise each year while you live there (it goes back to the current rate if you return to the UK). UK government-service pensions (civil service, armed forces, police, teachers, local government; NHS pensions are usually treated the same) generally stay taxable only in the UK, unless you are also a national of your new country.

  • Under the other income article, Malaysia may tax it but the UK keeps a right to tax income arising in the UK (usually covered by the Personal Allowance); Malaysia exempts foreign income until 2036.
  • Taxable only in Malaysia, annuities included (Article 19), which exempts foreign income until 2036. Most UK government pensions (such as civil service pensions) are taxed only in the UK.

Sources: GOV.UK: Malaysia tax treaties (checked 2026-10-22) · GOV.UK: countries where the State Pension is increased each year (checked 2026-10-22) · GOV.UK: tax on your UK income if you live abroad (State Pension, Personal Allowance, government pensions) (checked 2026-10-22) · HMRC International Manual INTM343190: pensions and annuities (State Pension under tax treaties) (checked 2026-10-22)

United Kingdom: Tell HMRC you are leaving (form P85). Your UK pensions may be taxed by the UK, your new country or both, depending on the tax treaty: you pay only once where there is one. UK government-service pensions (civil service, armed forces, police, teachers and local government; NHS pensions are usually treated the same) generally stay taxable only in the UK under the treaties, unless you are also a national of your new country. Official page

Malaysia's own rules: Foreign-source income received in Malaysia by resident individuals is exempt from 2022 to 31 December 2036, subject to conditions (income through a Malaysian partnership excepted). The MM2H programme states "no tax on foreign funds or income". There is no wealth tax and no inheritance tax.

Before you leave the UK

  1. Check your National Insurance record (UK): Get your State Pension forecast and check for gaps. From 6 April 2026 you cannot pay voluntary Class 2 contributions for time abroad; you can pay Class 3 for time abroad only if you lived in the UK for 10 years in a row or have 10 qualifying years. Filling gaps can still raise a pension you will draw for decades. Official page (before State Pension or Social Security age)
  2. Tell HMRC you are leaving the UK (form P85): If you are leaving to live abroad permanently, tell HM Revenue and Customs: with form P85, or in the residence section (SA109) of your Self Assessment return if you file one. It lets HMRC refund tax, tax your UK pensions correctly and tell you if you may pay tax in two countries. Official page
  3. Set up your State Pension abroad: If you already get the State Pension, give the International Pension Centre your new address and bank (paid every 4 or 13 weeks, into a UK or a local account). If not, claim through them within 4 months of your State Pension age. Check whether your new country keeps it rising each year. Official page (from age band 65-74)
  4. Rent from a UK property: the Non-Resident Landlord Scheme: UK rent stays taxable in the UK when you live abroad. Under the Non-Resident Landlord Scheme your letting agent (or tenant, above £100 a week) deducts basic-rate tax (20%) from the net rent, unless HMRC has confirmed in writing that you can receive it gross: contact HMRC about the scheme before you go, and declare the rent in your UK return. Official page

Every year, from abroad

  • Return the UK State Pension life certificate (when it arrives): The Department for Work and Pensions sends a life certificate from time to time to pensioners living abroad. Have it signed by a professional witness and post it back within 16 weeks, or payments may stop.

More for British citizens

Rules and figures change and we can make mistakes: confirm with the official source or a licensed advisor before acting.