Discover how to transform the end of your career into an exceptional tropical adventure, combining modern comfort, advantageous taxation, and cultural richness in 2026.
In 2026, Malaysia stands out more than ever as the leading destination for retirees seeking a perfect balance. Unlike many European destinations, Malaysia offers a robust funded retirement system (the KWSP/EPF for locals), but it is primarily its welcome of international retirees that makes it a rare gem.
The country combines world-class infrastructure, inherited from its rapid development, with a gentle tropical lifestyle. Whether you choose the excitement of Kuala Lumpur or the peace of Penang Island, you join a multicultural country where kindness is the norm. For a French, Belgian, or Swiss retiree, purchasing power is tripled, while security remains among the highest in Southeast Asia.
Higher purchasing power compared to France in 2026.
Ranked in the global Top 5 of the best retirement destinations by the "International Living" index for several years.
Malaysia offers reassuring political and economic stability for expatriates. Security in residential neighborhoods and the quality of private medical care often surpass current European standards.
Learn more about security
The flagship program remains the MM2H. In 2026, conditions were adjusted to attract high-value retirees. It offers a renewable 10-year residence visa.
To continue receiving your French retirement pension in Malaysia, you must annually fill out a life certificate. This procedure is now simplified thanks to the "Mon certificat de vie" application, which uses facial recognition. If a physical signature is needed, the French Embassy in Kuala Lumpur or honorary consuls can authenticate your documents.
Consult our section on detailed administrative procedures to prepare your file without stress.
Estimate your monthly savings by comparing your current cost of living with settling in Malaysia in 2026.
Equivalent purchasing power in France
7 500 €Estimated Malaysian tax on your pension
0 €**Thanks to the French-Malaysian tax treaty on non-repatriated foreign-source income (under certain conditions).
In Malaysia, with a pension of 2500€, you live with the same comfort as a senior executive in Paris.
"The absence of tax on foreign income is one of the pillars of Malaysia's attractiveness for retirees."
Malaysia applies a territorial tax system. This means that only income generated on Malaysian soil is, in principle, taxable. For a French retiree, their French-source pensions remain taxable in France according to the bilateral tax treaty. However, capital income, interest received abroad, or dividends are generally not taxed in Malaysia upon their repatriation (under certain conditions of duration and residency status).
Since 2018, Malaysia has abolished GST (VAT) to replace it with SST (Sales and Service Tax). Unlike the European VAT of 20%, Malaysian SST fluctuates between 6% and 10% on a selection of products and services, which considerably lightens the cost of everyday consumption for retirees.
Consult our guide on taxation and financial management for more technical details.
If you decide to buy a property (see our real estate guide), know that property taxes are extremely low compared to France. Quit Rent and Assessment Rate often represent only a few hundred euros per year for a luxury apartment.
Three different atmospheres for three styles of retirement.
Grand Urban Luxury
Ideal for those who love luxury shopping centers, operas, and the best hospitals in the country within easy reach.
Culture & Gastronomy
UNESCO World Heritage site, a thriving expatriate community, and a world-class culinary scene.
Nature & Duty Free
A paradise island with a privileged tax status (Duty Free) for a life at the rhythm of the tides.
Malaysia has become a major medical tourism destination. For a retiree, it's the assurance of access to specialists trained in the USA or UK in ultra-modern private hospitals (Gleneagles, Pantai, Prince Court).
Opening a life insurance contract in Luxembourg is a popular strategy to secure capital outside of France while remaining flexible.
Investing in a condominium in KL or Penang can generate a rental yield between 4% and 6% per year, locally low-taxed.
Using services like Wise or Revolut with a local bank account (Maybank, CIMB) to avoid excessive exchange fees.
Be careful of the applicable law in the event of death. A Malaysian will is often necessary for your local assets.
More advice on banking management and finances.
Join our community of French-speaking retirees and benefit from personalized support for your procedures in Malaysia.