Head-to-head · tax residents 2026
Japan or Malaysia: which should you move to?
Two of Europe's top relocation targets, both with newcomer regimes. Here is how they compare on the taxes that move the needle.
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| Factor |  Japan ↗ |  Malaysia ↗ |
|---|---|---|
| Top personal income tax | 45% | 30% |
| Corporate tax | 23.2%* | 24%* |
| Capital gains tax | Taxed | None |
| Dividend tax | 20.3% | 0% |
| VAT / sales tax | 10% | 8% |
| Wealth tax | No | No |
| Inheritance tax | Yes | No |
| Foreign income | Remittance basis | Territorial |
| Headline expat regime | Non-permanent resident (remittance basis) | Foreign-sourced income (FSI) exemption |
| Cost of living (vs your country) | 65 | 32 |
| Population | 123,366,734 | 35,977,838 |
| Area | 377,835 km² | 329,750 km² |
| Population density | 327/km² | 109/km² |
| Airports (large + medium) | 108 | 29 |
| Annual tourists | 36,870,000 | 10,071,000 |
| Flight time from your country | · | · |
| Direct flight likely? | · | · |
| Life expectancy | 84.8 yrs | 76.8 yrs |
| Safety (homicides/100k) | 0.2 | 0.7 |
| Happiness (0-10) | 5.87 | 5.38 |
| Corruption index (higher = cleaner) | 74/100 | 51/100 |
| Double-tax treaties (approx) | ~78 | ~75 |
| Internet speed (median fixed) | 255 Mbps | 168 Mbps |
| Healthcare spend / person | $3,638 | $450 |
| Air quality (PM2.5, lower=better) | 11.45 | 15.87 |
| Time zone (approx) | UTC+9 | UTC+7 |
| Digital nomad visa | Yes | Yes |
| Official languages | 1 (Japanese) | 1 (Malay) |
Green = more favourable. Cost of living shown as a percentage of your home country (under 100% = cheaper than home). Tax data: compiled by us, being re-verified; cost of living: World Bank PPP; area & population: GeoNames; life expectancy & homicide rate: World Bank.
* Japan: 23.2% national; combined effective corporate rate ~30-31% incl. local enterprise and inhabitant taxes. · Malaysia: 24% standard. Resident SMEs (paid-up capital <= MYR 2.5m, gross income < MYR 50m): 15% on first MYR 150k, 17% on next MYR 450k, 24% above.
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