If you’re looking for options to avoid paying taxes in Asia, Southeast Asia stands out as a haven of possibilities, a place where the sun shines brightly, culture flourishes on every corner, and the quality of life reaches unimaginable standards.
Beyond these virtues, what truly distinguishes this region are its hidden treasures of security and values: deep respect, unparalleled family unity, and genuine care for others, jewels increasingly scarce in the hustle and bustle of the West.
On the other hand, Manila, the heart of the Philippines, invites you on a similar journey through its cutting-edge commercial districts. However, this city is not without its challenges, bravely facing the battle against traffic congestion and urban planning dilemmas, in its constant pursuit to balance progress and the preservation of its rich heritage.
However, the Philippines faces challenges in terms of infrastructure and urban development due to traffic congestion and urban planning.
Our team of experts in international taxation is here to guide you every step of the way towards your new life. With a deep understanding of global tax regulations, Nomad Tax offers you personalized service to identify the most advantageous jurisdiction for you, ensuring that your transition is as smooth and efficient as possible. Contact us.
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A Look at Economic Progress: Malaysia and the Philippines on the Global Stage
Malaysia emerges as an economic powerhouse, a country where manufacturing, services, and technology sectors thrive vigorously, setting a pace of sustainable economic development that serves as inspiration worldwide.
Meanwhile, the Philippines bursts onto the economic scene with impressive growth, propelled by the dynamism of its services sector and innovations in information and communication technology. Despite its notable advances, the Philippines continues to grapple with the challenges of poverty and inequality, always seeking solutions that harmonize economic growth with social welfare.
Considering Changing Your Tax Residence to Malaysia to Avoid paying taxes in Asia? Advantages and Disadvantages
The Malaysian government has created strategies to attract foreigners to its nation, with results translating into programs such as the My Second Home (MM2H), which allows foreigners to obtain a renewable visa by meeting certain income and asset requirements.
The MM2H program allows expatriates and retirees to live in Malaysia, either part-time or full-time.
And the first requirement is that upon approval of your MM2H application, you will need to open a fixed deposit account in a Malaysian bank. The required amount varies depending on your age: if you are under 50, the amount of the fixed deposit will be $60,000 . For those aged 50 or older, the amount is set at half.
We will also need physical presence in the country depending on our level. The Malaysian government has reviewed the requirements of the MM2H program, introducing a three-tier system: Silver, Gold, and Platinum, with differences mainly in the amounts of required fixed deposits.
Income earned in Malaysia is taxable. However, income from abroad is now taxable in Malaysia, although individuals have been granted a five-year exemption starting in 2022, note, this exemption is not for all types of income, it must be taken with caution.
We also have that foreigners are subject to a 10% tax on capital gains earned abroad from March 1, 2024.
Philippines: Tax Residence and Investment Opportunities
If we go to the Philippines, this country offers a variety of visas that allow foreigners to reside in the country, each with its own benefits and requirements. Two of the main visa programs are the Special Resident Retiree’s Visa (SRRV) and the Special Investor Residence Visa (SIRV).
The SRRV is ideal for those looking to make the Philippines their second home or investment destination. It offers indefinite stay with multiple entry and exit privileges, tax exemptions on certain imports, and health benefits through PHILHEALTH.
There are several options within the SRRV, such as SRRV Smile, Classic, Human Touch, Courtesy, and Expanded Courtesy, each tailored to different ages, investments, and health needs.
On the other hand, the SIRV is aimed at investors who wish to reside in the Philippines on the condition of making a significant investment in the country. This visa grants probationary residence initially, which becomes permanent as long as the investment is maintained.
Requirements include having no criminal record, being free of dangerous or contagious diseases, and being willing to invest at least $75,000 in specific sectors.
In addition to all this, the Philippines offers a favorable tax regime for non-residents and foreigners, especially those with income from foreign sources. This regime allows non-Filipino citizens to enjoy reduced tax burdens, as long as their income does not come from sources within the Philippines.
Both Malaysia and the Philippines represent excellent options for Spaniards looking to change their tax residence to a low-tax environment. With specific programs for expatriates and investors, these countries not only promise a quality life but also opportunities to optimize tax burdens. If you’re considering your Plan B in Asia, Malaysia and the Philippines deserve to be on your radar.
Do you dream of exploring the world without tax constraints limiting your adventure? At Nomad Tax, we understand the importance of freedom and flexibility for digital nomads and global adventurers like you. If you’re considering changing your tax residence to better leverage global opportunities, we have the perfect solution. Contact us.
