Purchase a Property in Malaysia
Updated on Wednesday 25th May 2016
Rate this article 1 reviewsbased on
Malaysia is a country which can offer an attractive lifestyle to those who want to relocate here, but it also provides many economic advantages to those who want to open a company. Foreigners should know that an important aspect of the Malaysian legislation is that the rules are rather liberal in terms of purchasing properties and that there aren’t many restrictions applicable to foreign nationals. It is important to know that purchases with a value higher than MYR 10 million should receive approval on the transaction from the Foreign Investment Committee. Our team of Malaysian lawyers can assist both natural persons and legal entities with information related to the purchase of a real estate property.
Requirements for foreigners purchasing a Malaysian property
Malaysian legislation has recently been modified to accustom the needs of foreign persons interested in acquiring a property here. Since 2014, the legislation stipulates that a foreigner is allowed to purchase a property (regardless of its type), if the property has a minimum value of MYR 1 million.
A provision of this law specifies that foreigners can purchase even two properties, if they are listed as condominiums.
It is necessary to request for the assistance of a Malaysian lawyer when purchasing a real estate property; after the property has been chosen, the buyer should deposit a minimum of 3% of the value of the property; our team of Malaysian attorneys can provide more details on the matter.
Purchasing process and taxes involved in Malaysia
After the person deposited the sum of money, in a period of two weeks, the purchasing process will be completed by signing the Sale and Purchase Agreement and the transfer of ownership (granted by the document) will be registered at the Land Office Registry.
In a period of three months after the document was signed, the buyer should pay the sum of money stipulated in the contract.
As a general rule, any purchase implies the following taxes:
• stamp duty;
• legal fee;
• real estate agent’s fee;
• registration fee.
Persons interested in receiving further information on the purchase of property in Malaysia can address to our law firm for legal representation.