Malaysia is proud of its popularity for its habitability and political stability, including being elected as the “No.1 country to migrate” for 14 consecutive years.
Furthermore, from the relatively affordable real estate prices and the high future, it is not only seen as an immigration destination but also as an investment destination.
One of the reasons for this is the established real estate law.
Even as a foreign owner, the rights of the Malaysians are protected, so it is possible to safely hold and operate the property.
In this article we will explain the important “minimum purchase price” and “immobility transfer interest tax (RPGT)” in Malaysian real estate purchases.
The lowest price for foreigners to buy real estate in Malaysia
In Malaysia, the minimum price for the real estate that foreigners can buy is set per state.
Kuala Lumpur: more than RM1,000,000 (approximately 3.5 million)
Serangol State: more than RM2,000,000 (approximately 70 million)
Currency: RM1 = about 35 yen (reference value)
Serangol has many popular areas with international schools, such as Sunway and Puchong.
| The state | The minimum price (RM) | Preparation |
| by Johor (Johor) | 1 million/ 2 million |
1 Million: Strata title and Landed title property outside the International Zone 2 million: Landed title property within the International Zone |
| Penang ( Penang ) | 1 million/ 2 million |
1 million: all properties in the mainland 2 million: All properties on the Penang Island |
| Kuala Lumpur, Putrajaya, Labuan (Quaralpur, Ptrajaja and Rabuan |
1 million | All properties. |
| The Selangor (Selangor) | 2 million | Property in Zone 1 and 2. Zone 1 1. Petaling 2. Gombak 3. Hulu Langat 4. SepangZone 2 1. Kuala Selangor 2. Kuala Langat Zone 3: 1 million RM More than three million lings of the above three zones are commercial and industrial real estate can be purchased by foreigners and foreign companies. |
Foreigners Buying Rules
Foreigners are treated as “strangers” regardless of their long-term stay or no visa.
More than 51% of Malaysians invest in legal entities.
The high percentage of foreigners is subject to foreign regulations.
👉 It is important that only items above the lowest price can be purchased.
Property Transfer Tax (Capital Ginseng Tax)
RPGT (Real Property Gains Tax) is a tax on the profits arising from the sale of property in Malaysia.
The source:Propertyguru
RPGT tax rate for foreigners
1 to 5 years: 30%
After the sixth year: 10%
The law amendment to 2022 is mainly aimed at Malaysians and permanent residents, and there is no change to foreigners.
Important points of RPGT
The start date of the property period is “the date of completion of the property” and not “the date of the conclusion of the sales contract (SPA).”
Therefore, if you purchase a pre-built (pre-building) property, the construction period will also be included in the retention period.
Examples
Buy before construction (4 years before completion)
Two years later, it will be the sixth year of holding and the tax rate will rise to 10%.
👉 Early purchase is not only in the price, but also in the tax system.
Malaysia Real Estate Investment
Malaysian real estate is attended in the following points:
Clear rules that foreigners can buy.
Relatively affordable price range (compared with major cities in Asia)
Transparency in English and the legal system.
Future population growth and economic growth.
👉 It is a balanced market for foreign real estate investments.
and gather.
Malaysian real estate is easy to buy for foreigners, and the system is clearly an attractive investment place.
However,
The minimum purchase price.
RPGT (transfer income tax)
Thinking for all times.
The right understanding of it will be the point of a successful real estate investment.
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