Let's discuss the crucial aspects of taxation, retirement, and social rights for long-term immigrants, specifically in Israel and Malaysia. These are important considerations for anyone planning a move abroad.
Absolutely. Starting with Israel, they have a progressive income tax system—higher earners pay a higher percentage. However, new immigrants, often called "Olim Chadashim," receive significant tax breaks initially, providing welcome financial relief.
That's a considerable advantage. For retirement, Israel's system involves contributions from both employers and employees to a pension fund. The National Insurance Institute, or "Bituach Leumi," provides state pensions and various social safety nets, including unemployment benefits and maternity leave. It's a comprehensive system.
Now, let's consider Malaysia. They also have a progressive income tax system and a Sales and Service Tax (SST). However, the social rights and retirement benefits for foreigners, particularly those under the "Malaysia My Second Home" (MM2H) program, differ significantly from those of citizens. There's less of a social safety net; it's a more self-reliant approach. For example, there's no broad unemployment benefit for non-citizens.
So, for long-term immigrants in Malaysia, it's largely a self-service system. Many opt for private health insurance as public healthcare, while subsidized for locals, can be more expensive for foreigners. Regarding retirement, while citizens contribute to the Employees Provident Fund (EPF), foreigners typically aren't automatically included unless they opt in or have separate arrangements.
Essentially, in Malaysia, you contribute to taxes but don't always receive the same social safety net benefits as citizens. It's crucial to understand this difference when planning a long-term move.
Thorough research is vital. Understanding the nuances of each country's system is key to aligning your long-term financial goals with your chosen location.
Precisely. Consider not only the allure of a new country but also the security of your long-term financial well-being.