Digital nomads work remotely freelance without being attached to any specific company or location. Traveling from country to country to gain job opportunities, exposure, content, and experience is a large part of their nomadic lifestyle.
However, digital nomads must apply for a digital nomad visa to do so.
Does Malaysia Have a Digital Nomad Visa?
Malaysia issued their digital nomad visa on 1 October 2022, an update to the existing professional visit pass. The visa is launched as part of the De Rantau Program.
The government aims to boost its economy and digital adoption through the digital nomad visa.
Criteria for a Malaysia Digital Nomad Visa
You will be eligible for a Malaysia digital nomad visa if you meet the following requirements:
- You are older than 18.
- You are a digital freelancer.
- You are an independent contractor.
- You are a remote worker, meaning you are an employee of a company with flexible working arrangements.
- You have one of the following professions:
- Digital marketing.
- Digital creative content.
- Digital content development.
- Software development.
- UX.
- UI.
- Cybersecurity.
- Blockchain.
- AI.
- Machine learning.
- Data-related etc.
- You have an annual income of $24,000 if you are a foreigner, whereas local digital nomads must have $7,863.
- You have proof of your work.
How to Apply for a Malaysia Digital Nomad Visa?
To apply for a Malaysia digital nomad visa, you must visit the Rantau Digital Nomad Pass website. You must complete the following steps:
- Prepare the document checklist. Before you start your online application, it is better to have your documents ready; it will make your application process more manageable. The list of documents is under the section “What Are the Requirements for a Malaysia Digital Nomad Visa?” below.
- Register to the De Rantau Digital Nomad Pass Website. You need a personal email to register. Then you’ll get a verification code to enter. After logging in, you’ll need to choose whether you apply as a foreigner or local.
- Choose your occupation. You have to choose from two options, digital freelancer/independent contractor or remote worker. If you work remotely without connection to a company or location, choose the digital freelancer/independent contractor. You will select the other option if you work for a company with flexible working arrangements.
- Fill out the application form. This part contains information about your details. Upload your passport photo, and write your personal information such as name, date of birth, nationality, country of birth, and address details. In this section, you are required to write emergency contact information. Other information you have to provide includes passport details, academic qualifications, information about your sponsor, etc.
- Upload the required documents. All documents must be in English or translated into English. All pages of any document must be uploaded as one file. In addition, they must be PDF and 20MB.
- Pay the application fee. The application fee is RM1,000 or approximately $225. In addition, you will have to pay an additional fee of RM500, or around $112, for each accompanying dependent.
- Wait for confirmation. The processing time is about four weeks. You will get your decision on your visa application via email.
Note: Foreigners from EU member countries, the UK, and the US can stay visa-free for up to 90 days in Malaysia.
What Are the Requirements for a Malaysia Digital Nomad Visa?
When applying for a Malaysia digital nomad visa, you need the following documents to upload on the online application:
- A valid passport. Your passport must have at least 14 months of validity and six blank pages.
- A passport photo according to Malaysia photo requirements. Your photo must have dimensions of 35 mm width x 50 mm height, be in color, not be older than six months, and the head should measure 25 mm x 30 mm and facing the camera.
- Latest three months’ bank statement and yearly income statement. You are required to have an annual income of $24,000 as a foreigner, whereas, for local digital nomads, the requirement is $7,863.
- Three months payslip. You must also provide your payslips from the last three months.
- Latest resume. Make sure to submit your CV with updated information regarding your professional achievements.
- Letter of good conduct or Statutory Declaration form. An authorized body issues the letter of good conduct in the respective country or current residence; usually, it takes 2 to 3 months to get it. Hence, it is suggested you upload a statutory declaration form. You can download the form from the official website; it must be certified by a notary public in your country.
- Personal bond form. A personal bond form is a declaration that you will respect the conditions of your visa and Malaysian laws. You can download the form here.
- Highest educational certificates. Include your higher education certificates, diplomas, and anything similar to your educational experience and qualifications, such as copies of accolades or awards.
- Health insurance for Digital Nomads. You do not need to provide proof that you have health insurance in Malaysia for you and your dependents until your visa application is approved. When you are approved and enter Malaysia, that’s when you need to have health insurance coverage.
- Proof of your work.
- If you are applying as a digital freelancer or independent contractor, provide your active project contract, and ensure your contract is at least three months old (can be multiple contracts) with local or foreign clientele.
- If you are applying as a remote worker, provide your active employment contract, your contract should have a duration of at least three months, and the employer must be from non-Malaysian based companies.
Note: All documents must be in English or translated into English. Each document must be uploaded as one file and be a PDF file with 20MB only.
How Long Can I Work as a Digital Nomad in Malaysia?
The validity of the digital nomad visa in Malaysia is from 3 up to 12 months. The pass is renewable for another 12 months.
How Long Does It Take for a Malaysia Digital Nomad Visa to Process?
The processing time for a Malaysia digital nomad visa is four weeks. You have to wait patiently while your visa is processed, which can be delayed for various reasons in some cases.
How Much Does a Malaysia Digital Nomad Visa Cost?
The fees for a Malaysia digital nomad visa include the following:
- RM1,000 or around $225 for the application fee.
- RM500 or around $112 for each additional dependent.
You can get a 75% refund if your visa application gets rejected.
Can I Bring Family Members to Malaysia With a Digital Nomad Visa?
You can bring family members to Malaysia with a digital nomad visa. Only the immediate family members are eligible to accompany you. You must include the names of the dependents in the application.
In addition, you are required to pay an additional fee of RM500, or around $112, for each dependent.
Paying Taxes as a Digital Nomad in Malaysia
As a digital nomad in Malaysia, you are not required to pay taxes on your income. However, you are liable to pay income tax if you work for a company or clients based in Malaysia.
In general, citizens and residents of Malaysia are taxed on income from within Malaysia. The usual tax rate includes the following:
| Taxable income band RM | Tax rate |
| 0 to 5,000 | 0% |
| 5,0001 to 20,000 | 1% |
| 20,001 to 35,000 | 3% |
| 35,000 to 50,000 | 8% |
| 50,001 to 70,000 | 14% |
| 70,001 to 100,000 | 21% |
| 100,001 to 250,000 | 24% |
| 250,001 to 400,000 | 24,5% |
| 400,001 to 600,000 | 25% |
| 600,001 to 1,000,000 | 26% |
| 1,000,001 to 2,000,000 | 28% |
| 2,000,001+ | 30% |
Other income is taxed at a rate of 30%.
Benefits of Working as a Digital Nomad in Malaysia
If you decide to work as a digital nomad in Malaysia, you will have access to exclusive benefits:
- Facilitated visa application process. The visa application process is done online and takes only 15 minutes. Moreover, the processing time is only four weeks.
- Tax matters. As a digital nomad, you are not required to pay income taxes derived from outside Malaysia.
- A multiple entry visa. The Malaysia digital nomad visa is a multiple entry visa, meaning you can enter and exit the country as often as you want.
- Digital nomad community. With the digital nomad visa in Malaysia, you will have access to nomad-ready living and working hubs, handpicked local services, discount vouchers, the latest information, and promotions. Malaysia is constantly working on creating a great digital nomad community.
- Low cost of living. Malaysia has a low cost of living. Compared to the US, the average cost of living in Malaysia is 50% less. Some general prices include:
| Expense | Cost (RM/USD) |
|---|---|
| Meal in an inexpensive restaurant | RM11.50 ($2.59) |
| Meal for two people (mid-range restaurant, three-course meal) | RM80 ($18.02) |
| One-way ticket (local transport) | RM3 ($0.68) |
| Monthly pass | RM100 ($22.53) |
| Basic utilities | RM195.61 ($44.06) |
| Internet | RM119.02 ($26.81) |
| Apartment 1 bedroom in City Center | RM1,594.85 ($359.24) |
| Apartment 1 bedroom outside of center | RM1,075.59 ($242.28) |
| Apartment 3 bedrooms in City Center | RM2,907.88 ($655) |
| Apartment 3 bedrooms outside of center | RM1,834.87 ($413.30) |