Buying Property in Malaysia with the MM2H Visa: A Complete Guide
Buying Property in Malaysia with the MM2H Visa:
A Complete Guide
Malaysia is a popular destination for expatriates and retirees thanks to its affordable cost of living, vibrant culture, and the Malaysia My Second Home (MM2H) program. One of the key attractions for MM2H participants is the ability to purchase property in Malaysia. However, there are specific rules, regulations, and price thresholds to consider before making an investment.
What is the MM2H Visa?
The Malaysia My Second Home (MM2H) program is a long-term visa scheme introduced by the Malaysian government to attract foreign nationals to stay in the country for extended periods. The visa is initially valid for 5 years (as per the latest 2021 revision) and is renewable, subject to updated financial and residency requirements.
Can MM2H Visa Holders Buy Property in Malaysia?
Yes, MM2H visa holders are allowed to purchase residential properties in Malaysia, but with certain restrictions and guidelines that vary depending on the state in which the property is located.
Key Rules & Regulations for MM2H Property Purchase
Property Type
Permitted: Residential properties (e.g., condominiums, apartments, landed homes).
Not Permitted: Low-cost housing, agricultural land, and properties under Malay Reserve Land.
Minimum Purchase Price
The minimum property price for foreigners (including MM2H holders) varies by state and is often higher than for locals. Here’s a general guideline:
Number of Properties
- MM2H holders are allowed to purchase multiple properties, as long as each meets the minimum price threshold.
- Joint purchases (with a spouse, for instance) are permitted.
Financial Requirements for MM2H Applicants (Post-2021 Revision)
Before being eligible to buy property, applicants must first qualify for the MM2H visa. The financial criteria are as follows:
Basic Eligibility
- Age 35 and above
- Offshore income of at least RM 40,000 per month
- Liquid assets of at least RM 1.5 million
- Fixed deposit in Malaysia: RM 1 million (must be placed upon approval)
Residency Requirement
- Must stay in Malaysia for at least 90 cumulative days per year.
Additional Considerations
Financing
- Foreigners may apply for mortgages from Malaysian banks, typically up to 70-80% of the property value, depending on age and financial profile.
Legal Process
- It is advisable to engage a lawyer to perform due diligence, handle Sale & Purchase Agreements (SPA), and ensure compliance with local property laws.
Real Property Gains Tax (RPGT)
- If you sell the property within 5 years, you may be subject to RPGT, which ranges from 5% to 30% depending on the holding period.
Final Thoughts
Buying property in Malaysia under the MM2H visa is relatively straightforward, provided you understand the state-level restrictions, meet the financial thresholds, and comply with property regulations. With the right planning and legal support, MM2H visa holders can enjoy a comfortable and stable home base in one of Southeast Asia’s most livable countries.
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