Are there any rules for Non-Malaysians buying a property in Malaysia?
Non-Malaysians can buy property, but must adhere to state-specific minimum price thresholds (usually RM1 million+), obtain state authority approval, and avoid restricted property types like Malay Reserved Land, low-cost units, or Bumiputera-allocated lots. Key rules include minimum price thresholds (e.g., RM2M in Selangor, RM1M in KL) and potential state levies.
1. Minimum Purchase Price & Location
- Price Thresholds: Most states require a minimum purchase price of RM1 million for residential properties, though this varies by state.
- Location Specifics:
- Selangor: Minimum of RM2 million for landed properties; foreigners are generally restricted to strata-titled properties.
- Kuala Lumpur: Minimum of RM1 million.
2. Restricted Property Types
Foreigners cannot purchase:
- Malay Reserved Land: Property built on land designated for indigenous Malays.
- Low/Medium-Cost Units: Defined by state authorities.
- Bumiputera Lots: Properties allocated to Bumiputera interest in development projects.
3. Regulatory Approvals & Costs
- State Authority Approval: Consent from the state authority is required for foreign ownership.
- Foreigner Levy: Some states (e.g., Johor, Penang, Melaka) charge a levy on top of stamp duty, which can range from 2% to 3% of the property price.
- Real Property Gains Tax (RPGT): Foreigners are taxed at 25% on capital gains for properties sold within the first 5 years.
4. Property Types Available to Foreigners
Foreigners can generally buy:
- Residential condominiums and landed houses
- Commercial properties
- Industrial land