Digital Nomad Visa Malaysia: Requirements and Application Process

The Digital Nomad Visa in Malaysia, known as the DE Rantau Nomad Pass, enables foreign remote workers and expats to relocate to Malaysia. Individuals can stay in the country for an initial period of three to twelve months, with the option to renew for an additional year. If you’re a foreigner seeking a long-term base in the country, this pass may be a viable option for you. 

Digital Nomad Visa Requirements

To be eligible for the Malaysia Digital Nomad Visa, applicants must meet the following criteria:

1. Valid Passport – Your passport must be valid for at least 14 months (2 years) from the date of application with at least 6 empty pages.
2. Remote Work – You must work remotely as an employee, freelancer, or business owner for clients or companies based outside of Malaysia.
3. Minimum Income – Applicants need to demonstrate an annual income of at least $24,000 USD. For certain non-IT roles, the requirement may increase to $60,000 USD per year.
4. Clean Criminal Record – A Letter of Good Conduct issued by the authorities from your home country or current residence. 
5. Health Insurance – Proof of health or travel insurance that covers your stay in Malaysia.
6. Proof of Employment – Documentation showing your employment status and nature of remote work in the digital sector is necessary.

Types of Digital Nomad Visas in Malaysia

There are two types of digital nomad visas in Malaysia:

1. Digital Nomad Visa for Freelancers / Independent Contractors
2. Digital Nomad Visa for Remote Workers

The distinction between the two primarily revolves around your employment structure, and income variability.

For example, a digital freelancer can have multiple clients and projects while a remote worker has a fixed contract and salary. Either way, both must have a minimum annual income of US$24,000 or US$2,000 per month to meet the requirements. 

Types of Malaysian Digital Nomad Visa	Description	Income Source
Digital Nomad Visa for Freelancers/ Independent Contractors	– Operates independently, offering services to various clients without being tied to a single employer.  – Works mostly on project basis. – Can choose their clients which may include both local and international businesses.	– Can earn from multiple clients, and their income is typically variable based on the projects they undertake.  – Must demonstrate proof of income that meets the minimum requirement of $24,000 USD annually.
Digital Nomad Visa for Remote Workers	– Employed by a company that allows them to work from anywhere.  – Can be full-time or part-time, but it must be with a company based outside of Malaysia.	– Receive a fixed salary from an employer with a minimum income requirement of $24,000 USD annually.

By providing you with expert guidance on various visa types, Emerhub can streamline your Digital Nomad visa application process. We offer comprehensive support for gathering all necessary documentation, including proof of income, employment contracts, and health insurance coverage.

Application Process for Digital Nomad Visa in Malaysia

The application process for the Digital Nomad Visa is streamlined and conducted entirely online through the MDEC portal. Here’s a step-by-step process  to apply for the digital nomad visa in Malaysia:

1. MDEC online portal – official website of the Malaysia Digital Economy Corporation (MDEC). This online portal is used for submission for Digital Nomad pass in the country. Register using a personal email address and verify your account. Fill out the online form with personal information, documents, and employment and income. 
2. Application fees – the application fee for a Digital nomad pass is approximately MYR 1,060 (~$225) for the principal applicant and an additional MYR 500 (~$110) for any additional dependent. If your visa application is denied, you can receive a 75% refund on the processing fee. 
3. Processing time and entry – processing typically takes around four weeks but may vary depending on application volume. Once approved, applicants have a window of six months to enter Malaysia.

Note that: – If you are already in Malaysia on an Employment Pass or dependent visa, you can apply for this visa but must leave the country to collect your new visa upon approval.  – You can also apply for an extension of your current Digital Nomad visa for up to 1-2 years, provided you continue to meet the original eligibility criteria. Re-application must be submitted before your current visa expires.

Tax Compliance for Digital Nomad Pass Holders in Malaysia

Aside from understanding the application process, freelancers and remote workers hoping to get a Digital Nomad pass also need to know about taxation compliance in Malaysia. 

Under the Income Tax Act 1967 (ITA 1967), any individual  is considered a tax resident if:

• Presence of 182 Days – you are physically present in Malaysia for at least 182 days in a calendar year. 
• Combined Periods of Presence – you are in Malaysia for less than 182 days in one calendar year but have been in the country for at least 182 days in the immediately preceding or following year, you may still be deemed a tax resident, provided there is no significant break (e.g., more than 14 days outside Malaysia) in your stay.
• Four-Year Rule – you have been physically present in Malaysia for a total of 90 days in a calendar year and have also been a resident for three out of four preceding years, you can be considered a tax resident.
• Continuous Presence – you are in Malaysia for 90 consecutive days or more in a calendar year, provided you have been a resident for three out of the four preceding years.

Here is a quick guide on your tax obligations as a freelancer and a remote worker with a Digital Nomad visa in Malaysia. 

Category	Duration in Malaysia	Tax Treatment
Freelancer	< 182 days	Subject to withholding tax at a rate of 10%, unless specific exemptions apply based on Double Tax Agreements (DTAs) with other countries.
	≥ 182 days	– Individual is classified as a tax resident and subject to Malaysian Tax Laws whether the income is earned within or outside Malaysia, 0% to 30% progressive tax rate depending on the amount of taxable income. – The rates increase with higher income brackets.
Remote Workers	≤ 60 days	– Tax-exempt under Paragraph 21, Schedule 6 of the ITA 1967.The exemption applies if the total period of employment does not exceed 60 days in the basis year for a year of assessment. – It also applies to continuous periods that overlap two successive years of assessment, provided that the total does not exceed 60 days.
	≥ 61 days	– Non-tax residents are subject to a 30% flat tax rate for Malaysian-sourced income. – Non-tax residents earning income from foreign sources while working remotely is not taxable.

Malaysian Digital Nomad Visa Made Easy

With more and more companies working in a hybrid or fully remote setting, many professionals in Malaysia and outside the country are opting for a Digital Nomad visa. Emerhub can help you navigate the complexities of visa processing by ensuring you have all the necessary documentation.

We can help facilitate the online submission process and streamline communication with relevant authorities.

Fill out the form below and we will connect you with one of our relocation experts in Malaysia.