Bluenose1

Hi,
I am looking for any advice please.
My wife comes from Melaka and we were married there in 2009, after which she applied for a spouse visa to live with me in the UK. I am looking into the possibility of retiring in September 2014, selling up and then moving to Melaka. Her family own a number of houses and various plots of land, one of which (around 1 acre) is going to be transferred to her so that we can then build a house, which will be paid for in cash (no mortgage).

I have seen from other sites that there are many more forms required than is detailed on the Malaysian Immigration website and no doubt there will be more money involved than they indicate there as well! However, I have a few questions (I should say, I am aware of the Malaysia My Second Home programme, but am not intending to move under that):
1. I have 3 private pensions, 1 from British Rail, which I intend to take as is because it is index-linked. I will combine the other 2 to buy an annuity. Will the combined pension from these be taxable at source (in the UK)?; If so, will they always be taxable in the UK, even if I eventually gain PR? If either of the first 2 questions has a 'YES' answer, will I also have to pay Malaysian Tax on them?
2. I will not qualify for the UK State Pension until 2020, and I assume that whatever the amount is then, it will never be increased, because I am not moving to an EU or qualifying Commonwealth country. Is this assumption correct?
3. When the house is built, can it only be registered in my wife's name, or can my name also be on the Deeds at the Land Registry?
4. How easy is it for a foreigner to open a Bank Account?

I would be grateful for any and all advice anyone with a similar experience can provide.

bakedbean

Hi Bluenose,

I can answer a few bits.

1. If you are retired in Malaysia (and certainly under MM2H) you can go to tax office in Malaysia after (I think) half a tax year and be "tax resident in Malaysia" which means theoretically that you can send this to UK tax people and get your UK pensions paid gross (note: not state pension or government pensions). As a MM2Her you can receive "offshore income" (i.e. your UK income) without paying Malaysian tax. I say "in theory" as I haven't done it, but have read of others doing this on another forum.

2. As things stand at the moment, you are correct.

3. Not sure if this answers your question, but Foreigners may buy freehold in Malaysia with some limitations.... generally minimum RM 500K but some states have other thresholds. Not sure about a house being built.

4. Foreigners can open bank accounts but you may need to shop around if you have no valid visa in your passport. I understand it's easy if you have a work visa. Certainly you can also open bank accounts when you have the MM2H conditional approval letter in your mitts - I have done that.

I know 2 people (both British guys) who have married Malaysian ladies. One is an old friend - he married his Malaysian girlfriend a little while ago and said the Spouse visa was a pig's ear. He is still doing visa runs. The other guy I met last year.... he has applied for MM2H. So I'm not sure how straightforward the spouse visa is.

If you are still working and have an offshore income (i.e. earned in UK or somewhere else outside Malaysia) and it comes to more than RM 10,000 per month, might be worth considering getting MM2H now (if you can meet the other requirements). A lot of people do this, while they are still working. You don't have to be retired. Once you have the MM2H visa in your passport, you DO NOT have to prove the RM 10,000 income again. You just renew the visa every 10 years until you drop.

Bluenose1

Thank you for the reply, Bakedbean. Very informative.

Our current thinking is that I won't be applying for MM2H, rather to emigrate under a spouse visa and after 5 years apply for PR, although from what I have seen and heard in the past, that will probably not be straightforward and may take rather a long time!

I currently work in the UK for a Global IT company which has an office just outside KL although I have never actually seen it. Unfortunately it only does support work, an area which I do not really want to get into as I much prefer project based work.

I qualify for my full railway pension in 2014 and so am looking at taking early retirement then. In that case, there will be no offshore income other than my pensions which, provided we can build our house without resorting to a mortgage should be sufficient to see us through, albeit we would both consider part-time jobs to provide that bit more security.

Nemodot

Hi you just get the "social visit visa" (the real name for the spouse visa) and with that you can even work - a favourite one for people in your situation is TEFL - avoids getting bored! You don't need an EP just go to immi with job contract and they will stamp your visa allowed to work. I wouldn't do project management in IT in Malaysia. Your head will explode with frustration (I did it before)

The system changed in 2010 from being an employment pass to social visit via so some had problems then. Often you will find those that have issues and some that get it in a day. Factors include how nice you are (thumping fists = 6 month delay), how well dressed you are, how prepared you are and even on the race of your wife (Malay is easier).

Anti-corruption drives are working and PR is getting easier to get as a result so I hear. It used to be 12-60k RM and 10-15 year wait. But that was to get you to pay, but without corruption no reason to stop you until you sweat.

bakedbean

firefox

Hi Bluenose1,

You need to be careful if your wife becomes British then she by law should give her malaysian citizenship up and will not be able to live in Malaysia also but I might be wrong but you will not get MMsH due to your wife been malaysian.

I am also married to a malaysian lady and would like to move there to retire
if your wife is still malaysian you can buy any property from 50rg to what 5mil rg but it cant be in ur name

Paul2O

Just want to add that Melaka is a nice town. Not too big, not too small. Quite modern with plenty of English-speaking people. I like it!

Nemodot

If a Malaysian becomes British it only has effect if the Malaysian authorities find out.....

Loads of Malaysian have UK or American citizenship and passports. Just don't tell anyone

ex reg

Just out of interest where do stay when you go there and any restaurants or places of interest you might recommend.

Paul2O

Try Olio Italian Restaurant at Renaissance Melaka Hotel. It is very good! I also went to Dataran Pahlawan Melaka Megamall for shopping. The prices are very cheap compared to Singapore. There are some historical places you can go also since Melaka used to be a Portuguese/British colony.

ex reg

Eh, you go to Malacca to visit an Italian Restaurant.
Strange.

What historical places?

And where do you stay?

bakedbean

Probably cheaper than flying to Italy eh?

Paul2O

Not many authentic European foods in Asia. I had an Italian colleague with me, and he endorsed this Olio as authentic.

Bluenose1

Hi Firefox, thanks for the info. My wife has passed the Life in the UK test and will be applying for ILR later this year. She will not be giving up her Malaysian passport for citizenship. I am not looking to move under MM2H, rather on a spouse visa initially and applying for PR after 5 years.

Bluenose1

I don't eat spicey food and would happily go to an Italian restaurant in Melaka or anywhere else for that matter. When I stay at my in-laws, my MIL let's me have free use of her kitchen (when she's not using it herself, that is