A Helpful Guide for Foreign Buyers

A HELPFUL GUIDE FOR FOREIGN BUYERS

Source: Based on Solicitor Remuneration Order 2005

Direct foreign legal ownership of real estate is permitted;
Foreigners are free to purchase any kind of property priced from RM300,000 and above according to the rules set by each state.
No inheritance tax. Property will be distributed according to the owners’ will;
RPGT exemption on gains from the disposal of one residential property once in a lifetime to individuals;
End financing from bank institutions available for foreign buyers;
Repatriation income is allowed;
Matured infrastructure and amenities;
Multilanguage advantage. Hence, no language barrier;
Young and growing population;
Free from natural disaster zones; and
Stable climate all year round

Land leased by the government for a specific term, most commonly for a duration of up to 99 years. The transfer of interest in a property to another party may require state authority approval.

There is no limitation to non-Malaysians in obtaining loan financing in Malaysia. The margin of loan financing may vary on a case-to-case basis. Please refer to Loan Application Procedure.

Are the house buyer’s interests protected under Malaysian law?
Yes. The Housing Development (Control and Licensing) Act 1966 not only regulates the business of housing developers but also protects the interests of house buyers.
How can I get a loan in Malaysia?
You may obtain loan financing from Malaysian bank/finance institutions. Your margin of loan financing depend on the bank/finance institution’s internal and credit assessment guidelines and your property will be charged/assigned to the financial institution.
What are the possible costs to buy a property in Malaysia?
You may refer to Other Costs to Consider.
In the event of my death, who will inherit my property?
Your property will be distributed according to your will or Distribution Act 1958 if you do not have a will. A Muslim’s estate will be distributed according to Syariah Law. No inheritance tax is levied in Malaysia.
Are there any restrictions on selling property?
None unless the state imposes such conditions.
Do I have to pay tax on the sale of my property?
Yes. Please refer to Real Property Gain Tax (RPGT).
Can I transfer the earnings from my property out of Malaysia?
The Malaysian Central Bank does not impose any restriction on the repatriation of profits, rental and proceeds from divestment of an investment in Malaysia by a non-resident.