Moving guides

From United Kingdom to Malaysia

What changes in tax when you move from United Kingdom to Malaysia: what you pay today, what you would pay there and the rules United Kingdom 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 United Kingdom€37,776

In Malaysia€0

Yearly difference+€37,776

Full guide: Malaysia →

Leaving United Kingdom

Automatic overseas test: under 16 days. You are automatically non-resident if you were UK resident in one or more of the previous 3 tax years and spend fewer than 16 days in the UK this tax year.
Automatic overseas test: under 46 days. You are automatically non-resident if you were not UK resident in any of the previous 3 tax years and spend fewer than 46 days in the UK this tax year.
Automatic overseas test: full-time work abroad. You are automatically non-resident if you work full time abroad, spend fewer than 91 days in the UK and work more than 3 hours on fewer than 31 UK days.
Automatic UK test: 183 days. If no automatic overseas test applies, you are UK resident if you spend 183 days or more in the UK in the tax year (6 April to 5 April).
Automatic UK test: only home in the UK. You are UK resident if your only home is in the UK for at least 91 days in a row, at least 30 of them in the tax year, and you are there at least 30 days.
Automatic UK test: full-time work in the UK. You are UK resident if you work full time in the UK (average 35 hours a week or more) for a 365-day period without a significant break.
Sufficient ties test. If no automatic test decides, count UK ties (family, accommodation, work, 90-day, and country tie for leavers). Leavers: 16-45 days needs 4 ties, 46-90 needs 3, 91-120 needs 2, over 120 needs 1.

Rules that can follow you after leaving

Temporary non-residence (5 years). If you were UK resident in at least 4 of the 7 tax years before leaving and return within 5 years, some gains and income received abroad (capital gains, close company dividends, some pension lump sums) are taxed on return.
Inheritance tax tail after leaving (since 6 April 2025). If you were UK resident for at least 10 of the last 20 tax years, worldwide assets stay within UK inheritance tax for 3 to 10 tax years after you leave, depending on how long you lived in the UK.

Exit tax in United Kingdom

No general exit tax for individuals

Leaving the UK does not trigger tax on unrealised gains. Gains realised while non-resident are generally outside UK capital gains tax, except UK land and property, which non-residents are taxed on.

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.