Moving guides

From Germany to Malaysia

What changes in tax when you move from Germany to Malaysia: what you pay today, what you would pay there and the rules Germany applies when you leave.

What you would save

With €150,000 a year in dividends or foreign income, compared as a genuine resident of each country.

Today in Germany€39,299

In Malaysia€0

Yearly difference+€39,299

Full guide: Malaysia →

Leaving Germany

Residence (Wohnsitz, s. 8 AO). You are resident if you have a home in Germany that you keep and can use, owned or rented. Even a room kept available for you can count. Days spent are not decisive.
Habitual abode (gewoehnlicher Aufenthalt, s. 9 AO). You are resident if you stay in Germany for more than six months in a row. The six months can span two calendar years, and short trips away do not break the period.

Rules that can follow you after leaving

Extended limited tax liability for 10 years (s. 2 AStG). German nationals resident at least 5 of the last 10 years who move to a low-tax country and keep substantial German economic interests stay taxable on a wider range of German income for 10 years after the year they leave.
Inheritance and gift tax follows German nationals for 5 years. German nationals remain fully liable to German inheritance and gift tax for 5 years after leaving; s. 4 AStG can extend this to 10 years for moves to low-tax countries.

Exit tax in Germany

Wegzugsbesteuerung (s. 6 AStG) and fund units (s. 19(3) InvStG)

Shareholding in a company of at least 1% at any time in the last 5 years (s. 17 EStG), held privately, wherever the company is.
Unlimited German tax liability for at least 7 of the last 12 years before leaving (rule since 2022).
Since 1 January 2025, also investment fund units held privately if you hold at least 1% of a fund or the fund units cost at least EUR 500,000 (tested per fund).

Deemed sale at market value. The gain on company shares is taxed under the partial income method: 60% of the gain is taxed at personal income tax rates (up to 45% plus solidarity surcharge).

Exit tax → · Am I still resident? →

Arriving in Malaysia

Personal income: 0% abroad · Company tax: 24%

MM2H visa (Malaysia My Second Home) or an employment or business permit.

182 days a year to be tax resident.

Foreign income received by resident individuals is exempt until 31 December 2036. Local income up to 30%. Good cost of living and connections across Asia.