For all foreigners & expats: Check out our guide which details the property purchasing process and information on MM2H.
Foreign ownership of property is liberal (foreigners can own 100% of the property) in Malaysia as long as minimum requirements are met. In law, foreigners can own any type of properties EXCEPT the following:
2. What is the minimum property purchase price in each state with or without MM2H?
*Zones in Selangor
Zone 1 – Districts of Petaling, Gombak, Hulu Langat, Sepang and Klang
Zone 2 – Districts of Kuala Selangor & Kuala Langat
Zone 3 – Districts of Hulu Selangor and Sabak Bernam
NOTE: In the state of Selangor, foreign purchasers are prohibited from:
3. What are the procedures for foreigners to acquire property?
4. What are the costs involved?
Stamp duties & Memorandum of Transfer (MOT)
Stamp duty rates for properties valued more than RM1 million will be increased from 3% to 4% from January 1, 2019 onwards.
Let’s say you are purchasing a home worth RM1.5 million. The final RM0.5 million amount will cost you RM20,000 (4% X RM500,000), bringing the total stamp duty to be paid to RM44,000.
Real Property Gains Tax (RPGT)
Yes it is accountable to Malaysia tax. If you are a foreigner with a permanent residence status, the tax rate will be from 0-25% depending on the tax bracket. If you are a foreigner without a permanent residence status, the tax rate will be 25%.
Loan stamping fees
0.5% of total loan amount.
Door tax & title deed
RM 1,500-RM3,500 for condominium (charged by land office)
This fee is based on price per square feet (psf) set by property developers. It will vary from project to project. A rough estimation of this cost will be from RM 0.30 – RM 1 psf.
5. How do I transfer the funds if I choose to purchase a property in Malaysia using cash?
You may do a transfer the funds to the property developer’s Malaysian bank account by stages or to the bank account in other countries (if available).
6. Can I purchase a property with 2 or more individuals?
There can be more than 2 individuals who own the property that was purchased. During the signing of the agreement, each individual’s percentage of shareholding must be stated. It will be equal share by default if there is no clause stating how much percentage each individual will own.
7. Will the total square footage of properties sold in Malaysia include the common area?
Usually the total square footage of properties sold in Malaysia will consists of useful area & common area will not be included in the calculation.
8. How do I furnish my units & who can manage my units for me?
Most property developers will provide semi furnish or fully furnish units. However, should you have your own preference on design taste, our in house design & renovation experts will be with you every step of the way. Additionally, we also provide property management services that will look after your property units when you are away.
9. What are the home loan financing options?
MM2H holders can obtain loan as high as 80% margin from banks whereas non-MM2H holders can obtain loan margin close to 50%. Loan tenure can reach until 30 years, provided the applicant is not above 70 years of age when the loan tenure ends. Loan stamp duty is around 0.5% of the loan amount. Legal fees and disbursements will be around 0.8% of loan amount.
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*This article was repurposed from iproperty.com.my , first published on iproperty.com.my