Compare taxes and see how much you save moving from Vietnam to Malaysia
Vietnam has progressive income tax rates from 5% to 35% on worldwide income, while Malaysia charges 0-30% (but lost territorial tax advantage in 2022—foreign income now taxable if remitted). Malaysia offers English as primary language (vs Vietnamese harder), lower taxes (30% max vs VN 35%), and established infrastructure. Vietnam offers 20% cheaper cost (Hanoi $700 vs KL $900/month), more authentic culture (less touristy), amazing coffee scene, and emerging nomad hubs (Danang, Hanoi, HCMC). Neither has official digital nomad visa. Popular SE Asia budget nomad debate.
Progressive
Worldwide income for residents
Territorial (Lost)
Foreign income now taxable (2022+)
At $50,000 income:
That is $104/month back in your pocket!
| Income | VN Tax | MY Tax | Savings | 10-Year |
|---|---|---|---|---|
| $25,000 | $2,875 | $625 | -$2,250 | -$22,500 |
| $50,000 | $10,875 | $3,125 | -$7,750 | -$77,500 |
| $100,000 | $28,375 | $13,125 | -$15,250 | -$152,500 |
| $200,000 | $63,375 | $43,125 | -$20,250 | -$202,500 |
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Hold VND & MYR →Malaysia wins for English speakers: English is primary language (73% speak English vs Vietnam 5-10%). Navigate daily life, work with locals, order food all in English. No language barrier. However, Vietnam wins for: 20% cheaper (Hanoi $700 vs KL $900), authentic culture (colonial architecture, local markets), coffee scene ($1 Vietnamese coffee world-class). Tax: Malaysia 0-30% vs Vietnam 5-35%, MY saves $7,750 on $50K. Choose Malaysia if: English essential, prefer modern infrastructure, Muslim-friendly needed. Choose Vietnam if: Budget priority, authentic SE Asia experience, coffee culture.
YES. Critical 2022 change: Foreign-sourced income received in Malaysia from January 1, 2022 onwards is NOW TAXABLE. Previously, foreign income was 100% tax-free. New rule: If you're Malaysian tax resident (>182 days) AND remit foreign income to Malaysia = taxable at 0-30%. Example: Earn $50K remote work, transfer to Malaysian bank = $3,125 tax (6.25%). Vietnam: $50K = $10,875 tax (21.75%). Malaysia still cheaper ($7,750 savings) BUT lost zero-tax advantage. Workaround: Keep money offshore, use foreign cards (impractical long-term). Most nomads now stay <182 days to avoid tax residency in both countries.
Vietnam is 20% cheaper. Monthly budget comparison: Vietnam: Hanoi $700 (rent + food), Ho Chi Minh $800, Danang $500 (beach, best value). Malaysia: Kuala Lumpur $900, Penang $750, Johor Bahru $650. Key differences: VN rent 20-30% cheaper, VN food $1-2/meal (vs MY $2-3), VN coffee $1 (vs MY $2-3), VN beer $1 (vs MY $3-5 alcohol tax). However, Malaysia offers: Better value-for-money (modern infrastructure, English, reliable), fewer hidden costs. Absolute cheapest: Danang, Vietnam ($500/month). Best value: Penang, Malaysia ($750/month + English + infrastructure).
Kuala Lumpur wins overall: English-speaking, modern infrastructure (metro, malls), lower tax (0-30%), Muslim-friendly, established. Hanoi wins for: Authentic culture, coffee scene, old quarter charm, ultra-cheap ($700), emerging nomad scene. Ho Chi Minh wins for: Bigger city, more energy, startup scene, warmer weather than Hanoi. Penang wins for: Beach island, English + Chinese + Malay culture, Georgetown UNESCO, great food. Danang wins for: Beach city, cheapest ($500), emerging scene, less chaos than Hanoi/HCMC. Best for: English speakers (KL/Penang), Authentic culture (Hanoi), Energy (HCMC), Beach (Danang/Penang), Budget (Danang). Choose KL for ease + English. Choose Hanoi for authentic Vietnam.