Malaysia Digital Nomad Visa: What You Need to Know

Malaysia has become one of the top destinations for digital nomads looking for a new adventure. This Southeast Asian country has a lot to offer digital freelancers, remote workers, and self-employed people who can bring their work with them. The Malaysia digital nomad visa offers a chance to experience this exciting place for yourself.

The Malaysia Digital Economy Corporation is dedicated to making the country more attractive for remote workers, and in 2022, they launched the DE Rantau visa to make it easier for foreign workers to experience everything this country has to offer.

Malaysia is a country like no other. From the towering skyscrapers of Kuala Lumpur to the beautiful islands of the coast, this country is a true melting pot of cultures and traditions around the globe. Incredible food, beautiful scenery, tropical weather, and sometimes hectic nightlife make a stay in Malaysia an unforgettable experience.

Read on to see why so many digital professionals take advantage of the DE Rantau Digital Nomad pass to live and work in Malaysia as a digital nomad.

What Is the Malaysia Digital Nomad Visa (DE Rantau Pass)?

Malaysia's digital nomad visa is called the DE Rantau pass, and it allows visa holders who meet the minimum requirements to bring their foreign income to the country. Launched in October 2022, Malaysia's DE Rantau nomad pass is designed to attract digital content creators, digital marketing experts, freelancers, startup founders, and remote workers to the country.

Interestingly, Malaysia offers different visa requirements for people in different roles, which we will explore in detail in this article. Essentially, though, the rules break down like this:

• The Malaysia digital nomad visa allows foreign workers to work in Malaysia for up to 12 months, with an option to extend your visa for Malaysia by another 12 months.

• The DE Rantau is open to anyone who makes a living remotely, whether they are contracted to a foreign company or are independent workers in the digital sphere.

• The digital nomad visa – DE Rantau Pass allows multiple entries to the country while it is valid in Malaysia.

• You can bring your spouse and dependent children with you. The main pass holder may also be allowed to bring their parents.

Who Is Eligible for the Malaysia Digital Nomad Visa?

Let's break down this popular visa to see whether it's right for you.

Before applying for Malaysia's digital nomad visa, you'll need to consider what kind of work you do, as it makes a difference to your visa application.

Malaysia makes a distinction between 'tech talent' and 'non-tech talent', with preferential requirements designed to attract digital professionals, remote workers, and digital freelancers who want to work as a digital nomad in the country.

Tech talent includes digital freelancers, independent contractors, and remote workers in the IT and tech fields. Software engineers, backend engineers, developers, cybersecurity, blockchain, and AI experts all qualify. However, the definition also includes those who work in digital marketing, digital content creation, digital content development, and other professions in the digital field. Does making TikTok videos count? Possibly, if you make enough money doing it.

Almost any type of digital freelancer or independent contractor making digital creative content can consider applying.

Non-tech talent includes more executive positions. CEOs, COOs, business development managers, human resource professionals, sales managers, public relations professionals, technical writers, and accountants may qualify under this category.

Why does it matter? Well, it makes a big difference to the minimum income required.

• Non-tech talent requires a minimum income of US$60,000 a year.

• Tech talent requires a minimum income of US$24,000 a year.

  
  
  
  

This Malaysian digital nomad visa clearly favors people working in tech. So if you make your money online, you have a good chance to meet the minimum income requirements and be admitted to Malaysia as your next digital nomad destination.

Also, note that this visa is not open to citizens of Israel. Is that fair? Not really. Unfortunately, in this majority Muslim country, that's the reality.

Other Eligibility Requirements

Along with the right minimum income, you will need:

• a valid passport with at least six months of eligibility before its expiry date

• a clean criminal record, which you may be required to prove

• to be over the age of 18

• and to have valid health insurance.

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Required Documents

If you meet the Malaysia digital nomad visa eligibility requirements, you can fill out the application form online. But before you do that, make sure you have all your documents in order. As part of your application, you will need:

• A copy of your passport

• a copy of your resume/CV, detailing your work experience in your field

• proof of income - could be bank statements, transaction records from online platforms, or work contracts

• proof of health insurance to cover you for your stay, which must be valid in Malaysia

• a personal bond, which you will fill out on a provided form. Essentially, this is a promise to the Malaysian government that you will abide by the rules while you are in the country, and you will need to make a deposit that will be returned when you leave the country. The amount of this deposit varies depending on where you are from, so make sure you have enough money to cover it. Those from the US and Canada can expect to contribute a RM2000 (US$470) bond, while EU citizens usually pay RM1500 (US $350). Here's a complete list.

• a letter of good conduct from the authorities in the country you are coming from

• your highest education certificate

• a tax registration slip from the Inland Revenue Board of Malaysia

  
  
  
  

How to Apply for the DE Rantau Pass: Step by Step

If you've decided to make Malaysia your next home, you'll be glad to know that although the paperwork required can be intimidating, the visa application process is actually quite straightforward. Here's how to get through it.

1. Prepare Your Documents

Go through the checklist above and make sure you have all the documents requested before you start your online application. It's a lot easier to get everything together in the first place than to try and find something halfway through your application.

2. Apply Online via MDEC Portal

   
   

You apply for a digital nomad visa online via the MDEC portal. The portal will guide you through the application and request all the necessary documents, so make sure you have them in digital format.

3. Pay Fees and Wait for Approval

   
   

The visa application fee is RM 1000 (US$230), and each dependent will cost you another RM 500. Processing can take 4 to 8 weeks, depending on the complexity of your application and how busy the immigration staff are, so make sure you apply for the Malaysia digital visa with plenty of time.

4. Enter Malaysia and Register

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Once you have your digital nomad visa for Malaysia, you can enter the country and begin your stay. You will need to register your new address with the authorities.

Can You Bring Your Family on a Malaysia Digital Nomad Visa?

Not all visas allow you to bring dependents, but holders of a digital nomad visa in Malaysia can bring dependents with them. That includes a spouse and any children under 18. You will need to provide proof of your relationship, so include marriage and birth certificates with your application. You will need to register your family with your initial application, and pay an additional RM 500 for each family member.

However, the minimum income requirements don't change, whether you are single or have a large family. Family members won't be allowed to work,   so make sure you have enough money to support them.

Maybe it's a testament to Malaysia's family-oriented culture that local digital nomads can also bring their parents. Again, you'll need to pay the application fee and prove your relationship with them. Note also that you can only bring the parents of the main applicant.

Taxes for Digital Nomads in Malaysia

If you stay in Malaysia for more than 183 days in a year, you will be considered a tax resident, and may have to file a tax return. Unfortunately, while the visa application process is quite clear, and the Malaysia digital nomad visa requirements very detailed, paying taxes as a digital nomad in Malaysia is a bit more complicated.

Malaysia operates a territorial tax system. In principle, that means that only money you make from a source in Malaysia is taxable. Effectively, that would mean that any money you make from remote or online work would not be taxed.

With that said, some sources suggest that freelancing earned outside of Malaysia "will be eligible for taxation as per:1. Section 4(a) Income Tax Act 1967 (ITA 1967)2. Subject to the provisions of Section 7 of ITA 1967." 

Many members of Malaysia's large digital nomad community mistakenly believe they don't have to pay tax, but as a new digital nomad to the country, you should make sure that you follow the rules on this tricky subject.

You can contact the Hasil Careline at 03-8911 1000 or +603-8911 1100 for clarification, or reach out to a customer care officer.

US nomads should be especially careful. Malaysia and the United States do not have a tax treaty in place, which may make you subject to double taxation if you pay tax in Malaysia, and then Uncle Sam decides he wants a piece of what you earned there too. 

Consult an experienced tax professional to clarify your position.

Cost of Living in Malaysia

There are lots of reasons why Malaysia is one of the most popular places for digital nomads to travel and work. Not least among them, though, is the country's low cost of living. As popular as Malaysia is, it still offers a real bargain, especially for travelers from more expensive countries.

As is almost always the case, you'll pay more in big cities, particularly Kuala Lumpur. Even here though, renting a one-bedroom apartment in the city center will cost around US$500-US$600 per month. In smaller cities like Penang, on the other hand, you might be paying less than US$400 per month.

Groceries, utilities, and transportation are all very affordable, and a single person could live off perhaps US$1000 per month if they were frugal. $1500 a month would make things much more comfortable and allow you to experience some of the best of what Malaysia has to offer.

Pros and Cons of the Malaysia Digital Nomad Visa

There are lots of reasons why Malaysia is so popular with remote workers. But it's not perfect for everyone. Consider these pros and cons before you start your application for the Malaysia digital nomad visa.

Pros

• Affordable living. Malaysia offers a real bargain, even by the standards of Southeast Asia. Even meeting the lower minimum income requirements for a tech worker will give you plenty of money to live a good lifestyle here.

• Easy travel across Asia. Kuala Lumpur is a major city with an airport to match, and it has great links across Asia and beyond. The conditions of your visa allow you to leave and enter the country at will, so you can easily explore.

• Good infrastructure. Malaysia offers high-speed Internet in the cities, and your DE Rantau Pass even gives you access to dedicated co-working and nomad-friendly living spaces.

• Low crime. Malaysia is a famously safe place where crime of any kind, but especially violent crime, is very rare.

• English is widely spoken. In this multicultural place, you will be able to get by in English, especially in the cities. Even your long-term visa application online can be done in English.

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Cons:

• Limited duration. You can only stay up to 24 months on your visa.

• No path to permanent residency. If you want to stay longer, you'll need to apply for a different visa, which may have financial and other requirements that are harder to meet.

• Bureaucratic hurdles. Malaysia is doing its best to be friendly to foreign workers, but the bureaucracy doesn't always keep up. It can be hard to get a straight answer to questions, especially relating to tax problems, so you'll need to practice patience.

• Conservative culture. Malaysia is a tolerant and multicultural place that welcomes people from around the world. However, as with any place, it's worth being aware of cultural traditions and nuances. For example, homosexuality is illegal here, and while it is more tolerant of LGBTQ+ people than lots of other Muslim countries, you may find some of the attitudes expressed here shocking compared to where you come from.

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Is Malaysia Right for You?

Malaysia's nomad visa is open to a huge chunk of the world population, and the country has been offering digital nomad visas for several years to entice foreign workers to make a home here. Being able to apply for your Malaysia digital nomad visa online makes things easier, and digital nomads can connect with a large community of other remote workers and expats once they are based in Malaysia.

This openness to remote work, combined with the scenic and cultural riches of the country, may make Malaysia seem perfect for digital nomads looking to live their next adventure in Southeast Asia. For many digital nomads, Malaysia is considered one of the top destinations to live and work in.

Whether it's right for you will depend on your preferences, background, and income level. But there's no denying that the Malaysia nomad digital visa might open up a whole new world of experience for you.

FAQs

How long is the DE Rantau visa valid?

Malaysia's digital nomad visa, the DE Rantau pass, is valid for up to 12 months, with the possibility of extending for another 12 months.

Can I renew the visa after one year?

Usually. You'll need to apply and prove that you have been able to support yourself in Malaysia and that you have abided by the laws of the country before they allow your visa to be extended.

Can I work for a Malaysian company on this visa?

No. The visa is intended for people who earn money from foreign sources, not those who work locally. If you intend to work for a Malaysian company, you will need to explore other options.

Can I apply while inside Malaysia?

Your application for the visa must be started outside the country. However, you can apply to renew your visa from inside Malaysia.

What is the minimum income for Malaysian digital nomad visa?

Tech workers (engineers, developers, IT professionals, and content creators) need to make US$24,000 per year to be eligible for the Malaysian digital nomad visa. Non-tech professionals (including executives, accountants, technical writers, HR professionals, and other white-collar remote workers) need to make US$60,000 per year.

What happens if I don’t meet the income threshold?

These applications are reviewed on a case-by-case basis. However, if you don't meet the minimum income threshold, it is unlikely that your visa application will be approved.