Guidelines for Foreigners Purchasing a Property in Malaysia (updated 1 August 2019)
Malaysia is one of the easiest countries in Asia to acquire properties for expats.
There is no limit as to how many properties a foreigner can purchase as long as it is within a certain guideline:
Malaysians use Ringgit Malaysia abbreviated as MYR or RM as locals tend to use daily.
The current exchange rate (as per August 2, 2019) is: 1HKD = 0.53MYR
Property purchasing procedure (https://www.imoney.my/articles/property-guide-expat-malaysia)
Here are seven main procedures you’ll need to be familiarised with as it sums up the process of acquiring a property in Malaysia:
- Sign the developer’s sales form or the offer to purchase form with the vendor, for sub-sale transactions.
- Apply for financing if necessary.
- Provide these following documents to the solicitor:
- Photocopy of passport
- Correspondence address and contact numbers
- Income tax number and the place of submission of the income tax
- Within 14 days from the date of signing of the sales form, or offer to purchase, sign the Sale and Purchase Agreement (SPA), deed of mutual covenant and other transactional documents. Pay the 10% deposit to the developer.
- Solicitor to apply for state authority consent. Purchaser to provide the following documents to the solicitor:
- One certified true copy of the SPA
- One certified true copy of the Foreign Purchaser’s passport
- One certified true copy of the constitution in the case that the purchaser is a foreign company
- Latest quit rent and assessment receipt of the property
- Application form under the Section 433B of the NLC
- Pay the balance purchase price in accordance with the Third Schedule of Schedule H Housing Development (Control and Licensing) Regulations 2015 or the SPA.
- Pursuant to Schedule H, the developer shall deliver vacant possession of the property within 36 months from the date of the SPA, or a later date as may be approved by the relevant authority. Upon delivery of vacant possession, the developer shall deliver the strata title and certificate of completion and compliance to the foreign purchaser. In the case of a sub-sale transaction, the vendor shall deliver vacant possession to the purchaser in accordance with the terms of the SPA.
Residential property financing for expats in Malaysia
Malaysian banks and foreign banks in the country provide loans to foreigners up to 70% to 80% of the property price, an offer that you won’t be able to find in many other countries. These loans will be given to foreigners who are working in Malaysia and have a valid working permit.
However, there are also foreign and local banks who would be willing to lend loans to non-resident foreigners or those who have retired in Malaysia under the Malaysia My Second Home (MM2H) programme.
The Malaysia My Second Home (MM2H) Programme is endorsed by the Government of Malaysia to allow foreigners who fulfil certain criteria, to stay in Malaysia for as long as possible on a multiple-entry social visit pass. This Social Visit Pass is initially for a period of ten years. However, it’s renewable.
Below are the terms and conditions of application:
Applicants are expected to be financially capable of supporting themselves before applying for this programme in Malaysia. Upon application:
- Applicants aged below 50 years are required to show proof of liquid assets worth a minimum of RM500,000 and offshore income of RM10,000 per month. For certified copy(s) of Current Account submitted as financial proof, applicants must provide the latest 3 months’ statement with each month’s credit balance of RM 500,000.
- Applicants aged 50 and above may comply with the financial proof of RM350,000 in liquid assets and offshore income of RM10,000 per month. For certified copy(s) of Current Account submitted as financial proof, applicants must provide the latest 3 months’ statement with each month’s credit balance of RM350,000. For government pensioners, they can show proof of receiving a pensionof at least RM10,000 per month.
Aged Below 50 years old
- Open a fixed depositaccount of RM300,000.
- After a period of one year, the participant can withdraw up to RM150,000 for approved expenses relating to house purchase, education for children in Malaysia and medical purposes.
- Must maintain a minimum balance of RM150,000.00 from second year onwards and throughout stay in Malaysia under this programme.
Aged 50 years and above
- Open a fixed deposit account of RM 150,000.00
- After a period of one year, a participant who fulfills the fixed deposit criterion can withdraw up to RM50,000.00 for approved expenses relating to house purchase, education for children in Malaysia and medical purposes.
- Participant must maintain a minimum balance of RM100,000.00 from the second year onwards and throughout his/her stay in Malaysia under this programme.
All applicants and their dependents are required to submit a medical report from any private hospital or clinic in Malaysia.
Approved participants and their dependents must possess valid medical insurance coverage that is applicable in Malaysia from any insurance company. However, exemptions may be given for participants who face difficulty in obtaining a medical insurance due to their age or medical condition.
Security bond (Direct application only):
Applicants applying directly are required to fulfil the security bond condition. Please refer to Security Bondfor the rate per person by nationality, ranging from RM200 to RM2000.00.
Personal bond (Application through an agent):
Licensed companies are required to provide the personal bond for their clients who have been approved under the MM2H Program.
The programme is open to citizens of all countries recognised by Malaysia regardless of race, religion, gender or age. Applicants are allowed to bring their spouses and unmarried children below the age of 21 as dependants. Log on to the official portal http://www.mm2h.gov.my/index.php/en/ for more info.
I am Kevin Teh, I’m a senior real estate negotiator, a Team Manager for a team of negotiators, from Propstar Realty, I focus in the Mont Kiara and Bangsar area, serving owners, buyers and tenants in this area since 2012.
I have currently a team of 12 negotiators working round the clock to find properties for Purchasers to acquire.
We work exclusively with our clients with a monthly report of available condominium units for consideration, mainly in Mont Kiara, Bangsar, KLCC.
We also market a list of primary market properties ie ‘off plan’ projects in the Kuala Lumpur area.