🇲🇾 Malaysia vs 🇮🇩 Indonesia
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇲🇾 Malaysia | 🇮🇩 Indonesia |
|---|---|---|
| Tax System | Territorial | New Tax Holiday |
| Income Tax (Foreign) | 0% (foreign income) | 0% (5 years, new residents) |
| Capital Gains Tax | 0% | 0% (foreign) |
| Corporate Tax | 24% | 22% |
| Residency Requirement | MM2H (complex) | Second Home Visa |
| Minimum Stay | None for tax benefits | None required |
| Cost of Living | Low ($1,500-2,500/mo) | Very Low ($1,000-2,000/mo) |
🇲🇾 Malaysia
Highlights
- ✅Zero tax on foreign income
- ✅English widely spoken
- ✅Modern infrastructure
- ✅Multicultural society
- ✅Great food
Considerations
- ⚠️MM2H requirements tightened
- ⚠️Hot and humid climate
- ⚠️Some restrictions on activities
Best For
- 👤Families
- 👤Retirees
- 👤Asia-based professionals
🇮🇩 Indonesia
Highlights
- ✅New tax holiday for new residents
- ✅Beautiful islands (Bali)
- ✅Very low cost of living
- ✅Large expat community
- ✅Digital nomad visa
Considerations
- ⚠️Rules still evolving
- ⚠️Infrastructure varies
- ⚠️Visa complexity
Best For
- 👤Digital nomads
- 👤Bali lovers
- 👤Budget-conscious
Which Should You Choose?
Choose Malaysia if: You prioritize zero tax on foreign income and english widely spoken. Ideal for families, retirees, asia-based professionals.
Choose Indonesia if: You prioritize new tax holiday for new residents and beautiful islands (bali). Ideal for digital nomads, bali lovers, budget-conscious.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.