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Search. See. Love.
The Serenity of
Malaysia
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Selamat Datang
( Welcome to Malaysia)
The capital of Malaysia, Kuala Lumpur, is
well-known for its skyscrapers and
luxurious shopping malls and one can
spend their leisure time exploring the
city.
Welcome To Malaysia
Malaysia is South East Asia’s
multicultural hub celebrating ethnic,
cultural and religious diversity among its
people.
Peninsular Malaysia is separated from
East Malaysia (Sabah and Sarawak) by
the South China Sea. From its pristine
beaches to highland getaways and
national parks, Malaysia’s landscape is
equally diverse and fascinating.
Enjoy the idyllic beaches of Redang
Island and Perhentian Island or discover
the Taman Negara Nasional Park with its
unique ora and fauna.
The cities of George Town (Penang), and
Melaka; Gunung Mulu National Park and
Kinabalu National Park are among the
locations in the ‘UNESCO World Heritage
Sites’ list.
There are also many cultural events and
festivals to experience such as the
Borneo Jazz Festival, the Kelantan
International Kite Fest and the Putrajaya
International Hot Air Balloon Fiesta
among others.
The best of Malaysia is represented by
its beautiful and exciting attractions,
both traditional and modern, a delight
to sense and joy to the spirit.
Living in Malaysia is an enriching
experience where students get to
immerse themselves in the natural
beauty of the county while being
welcomed by the warmth and hospitality
of the people.
Malaysia’s many attractions provide a
getaway for foreigners who want a
break from their busy routines.
Foreigners may explore and discover
these interesting sites at their leisure.
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Guide for Foreign Property Investor in Malaysia
You may also get to know a bit about
Malaysians and their lifestyles through
their cuisine, their many religious and
their traditional customs.
1. Kuala Lumpur is ranked eighth out
of the top 10 destination cities in
the world by Forbes (2017).
2. A multiracial country where English
language is widely spoken.
3. Kuala Lumpur was named the
fourth best shopping city in the
world by CNN Travel (2014).
4. The fth highest Gross Domestic
Product per capita in South East
Asia according to the IMF (April
2018).
5. A preferred destination for
students from everywhere around
the globe.
6. It’s summer all year long here.
7. Kuala Lumpur the world’s most
a ordable city in 2016 and 2017
(QS World’s Best Student Cities
Guide).
8. It is ranked among the most diverse
countries in Asia according to
Business Insider US.
Brief Introduction
Key Advantages for Foreigners to
Invest in Malaysia Property
Attractive Socio-Economic
Advantages of Malaysia
Reasons why you should Invest in
Malaysia Property
Property Terminology of Malaysia
Property Buying Method
Cost of Purchasing Property
The Property Buying Restrictions
The Properties that Foreigners
cannot Buy Altogether
Malaysia My Second Home (MM2H)
Financing Facilities for Foreigners
Investing in Malaysia Property
How to get started?
Brief Introduction
Malaysia’s property investment is now
one of the cheapest in South East Asia.
Malaysia is politically stable, the
economy is growing, free of natural
disasters and multi-ethnic with well
diversi ed cultural as Malaysia rated as
the World's Best 5th Places to Retire in
2018 by international living
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Guide for Foreign Property Investor in Malaysia
Malaysia is one of the top spots for
retirees and investors alike. It’s not
strange, buying a property here is
reasonably easy and the process
comparatively transparent. Malaysia has
some of the most generous and
favorable ownership regulations for
foreigners in Southeast Asia. You’ll also
enjoy an excellent quality of life with
surprisingly low costs.
If you’re planning to buy property in
Malaysia as an expat or as a foreign
investor, this eBook will guide you in
purchasing property in Malaysia.
Key Advantages for Foreigners to Invest
in Malaysia Property
Malaysia o ers one of the best places
for foreigners to invest!
1. Direct foreign ownership is allowed
2. Security in legal ownership with title
document
3. You can own landed property
4. You can possess freehold
properties (held in perpetuity)
5. You can own an unlimited number
of properties
6. Low entry point only MYR 1,000,000
to own property.
7. Freely allow selling any time in the
open market
8. Foreigners can purchase bulk units,
buildings, hotels, lands, and
projects
9. No capital control and repatriation
restriction for property investment
and gains
10. Liberal property nancing
for foreigners for MM2H
participants
11. Minimal Tax on disposal. Real
Property Gain Tax after 5 years is
only 10% on net margin.
12. Legal fees, Stamp duty, and
Reimbursements payable for
purchase and selling for foreigners
is the same as local Malaysians
13. All properties with a value lower
than MYR10 million does not
require Foreign Investment
Committee approval.
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Guide for Foreign Property Investor in Malaysia
Attractive Socio-Economic Advantages of
Malaysia
1. Living cost is relatively low in the
region.
3. Malaysia Top 10th Tourist Destination
in the World.
4. A place of peaceful living free from
major natural disasters such as
Volcanoes, Floods, Tsunami, and
Earthquakes.
5. Harmonious multicultural society.
6. English language is widely used -easy
to communicate with locals.
7. Malaysia is ranked 3rd Best Place to
Retire by International Living Inc. in 2014
for its retirement residency program –
Malaysia My Second Home program
(MM2H).
8. Comfortable and a ordable
connectivity to other countries with the
well-developed infrastructure of
Airports, highways, and seaports.
9. Private Hospitals and Health Care
System attracts foreigners for quality
services with world-class healthcare
facilities.
1. Still super a ordable. Despite the
high growth over the last two
decades, Malaysia remains an
a ordable place to buy. It is the
right place you can get great value
for money. The Malaysia Ringgit is
also relatively weak compared to
many currencies at the time of
writing this.
2. Buying costs are low. Compared to
Singapore, Thailand, Australia or
the UK, the buying costs are still
incredibly low at circa 4-5%.
Financing is available, and the free
3. ow of capital
. Firstly, many banks are eager to
lend to foreigners. And no
restrictions on the transfer of
capital (funds) to and from other
countries.
4. Relatively low capital gains tax. The
capital gains tax that the Malaysian
government imposes on the sale of
property is relatively low compared
to other countries in the region -
especially if you hold the property
for more than 5 years.
Reasons Why You Should Invest In
Malaysia Property
If you’re looking for properties
investment in Malaysia, here are a few
great reasons:
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Guide for Foreign Property Investor in Malaysia
Property Terminology of Malaysia
Properties in Malaysia can be:
1. Freehold Properties - land ownership
held in perpetuity
2. Leasehold Properties – land owned by
State Government for a term of usually
of 99 years. Renewal of leases is usually
accepted with payment of premium to
the State Government.
Property Titles:
Property ‘title’ usually refers to property
ownership rights. Malaysia operates
under the ‘ Torrens Titl e System" of land
registration, which is common amongst
most Commonwealth Nations.
In Malaysia, one typically needs to be
aware of three types of titles: Master
Title, Strata Title, and Individual Title.
A Master Title usually refers to the
‘top-level’ title held by a property
developer, which a ords the
developer full control and rights
over the land they own. Typically
you’ll nd references to the Master
Title when new properties are being
constructed before Individual or
Strata Titles are granted.
A Strata Title is usually granted to a
property owner who buys a
property in a shared building or
non-landed property. So, for
example, owners of Condominiums
usually have Strata Titles.
An Individual Title is similar to a
Strata Title, but it typically refers to
landed properties like houses,
bungalows, semi-detached houses
and so forth - where the property
owner has a discrete piece of land,
usually below the property.
As a rule of thumb,
typically landed properties have an
Individual Title, and nonlanded
properties tend to have Strata
Title. Although, some landed properties
(speci cally in gated and guarded
developments) may have Strata Titles.
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Guide for Foreign Property Investor in Malaysia
There are two main methods for buy
property in Malaysia:
1. Buying New Launch Properties
2. Buying Sub-Sale Properties.
1. Buying New Launch Properties
‘New launch’ properties are under
construction properties that are
sold directly by the property developer,
often “o -plan,”i.e, before they are
completed.
When you buy a new property, you
typically pay for the property in
‘installments’ based on pre-agreed
milestones. This is generally
standardized, and developers usually
use the installment money to fund the
construction.
Depending on the stage of the
development, the payment that needs
to be made to the developer depends
on the stage of the construction’s
completion.
1. Signing of SPA usually 1 10% of
the purchase price.
2. Various completion stages of the
development
3. Vacant Possession/upon
completion
4. Submission for subdivision of
building
5. Final payments.
Purchase of Under Construction
Property
For under construction “o -plan”
property, a purchaser will deal directly
with the developer.
The payment made by you or your
banker (if your property is being
nanced) will be in stages according to
the development progress of the
property.
All residential property developments in
Malaysia are subject to The Housing
Development (Control & Licensing) Act
2002, and the Strata Titles Act.
st
The payments are broken down into 5
main phases. They are the:
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Guide for Foreign Property Investor in Malaysia
Always select a reputable developer that
has a valid Developer’s License and a
valid Sales and Advertising permit, with
a good record of past performances on
the delivery of their projects. it’s
essential to do due diligence on the
developer to ensure they will deliver on
time and budget.
Most projects will have a timeline of 36
months to deliver the property from the
date of Sale and Purchase Agreement
(SPA) signed.
Any delay of delivery, the developer will
be liable and the reimbursement of late
delivery compensation as per agreed
terms and conditions in your SPA.
2.Buying Sub-Sale Properties
Sub-Sale Properties are properties
which have been owned previously,
being resold in the ‘secondary market’
by the individual owners via their
appointed real estate agent.
A Standard Purchase Procedure of
Completed Property in Malaysia
Once you selected the property via the
services of registered real estate agent,
the agent will negotiate the right terms
& timeline.
The earnest deposit, usually 3% of the
purchase price paid to the real estate
agency which they will act as a
stakeholder.
The major terms and conditions in the
booking document will be translated
into the Sales and Purchase Agreement
(SPA).
Upon appointing a lawyer to start the
legal proceeding, usually within 14 days,
the appointed lawyer and seller’s lawyer
will discuss and agree with the terms
and conditions to generate the Sales
and Purchase agreement (SPA) for you
and seller to sign.
At this stage, you will need pay the
balance deposit of 7% of the purchase
price (10% down payment minus the 3%
earnest deposit paid earlier).
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Guide for Foreign Property Investor in Malaysia
Your appointed lawyer will then send
the stamped SPA together with the
other required documents of the
property to the Land O ce to apply for
consent of transfer ownership. The land
o ce’s consent average within 1 1/2 to 2
months depending on the property’s
pro le.
After the Land O ce’s approval has
been obtained, you will be given 90 days
to pay up your di erential sum of 90%
together with the stamp duty.
The whole legal proceeding will take an
average of 3-6 months to complete for
foreigners.
If your purchase is with bank facilities,
you are required to pay your di erential
sum before the bank release the loan
amount. Both payments of your cash
and bank loan made of total 90% have
to be completed within 90 days after
land o ce’s consent is obtained.
Other standard clauses in the Purchase
Agreement will also include all payments
paid by the buyer will be refunded if
land o ce consent is not obtained.
Approval is solely at the discretion of the
State Government (Land O ce).
Cost of Purchasing Property
Sale and Purchase Agreement Fees
The Sales and Purchase Agreement
(SPA) is the most important document
that buyers will have. These are proof
that the buyers have purchased a
property, whereby the contract will
contain all the facts and blueprint of the
property. The charges for these follow a
price tier.
The First MYR 500, 000 – 1.0% of the
transacted property price.
Next MYR 500,000 – 0.80%
Next MYR 2,000,000 – 0.70%
Next MYR 2,000,000 – 0.60%
Next MYR 2,500,000 – 0.50%
Stamp Duty on Memorandum of
Transfer (MOT)
The MOT is only paid when the
development is completed. These are
the fees that the purchaser has to pay
for transferring the property from the
developer’s name into the owner’s
name. The charges for these fees also
follow a table:
The First MYR 100,000 – 1% of the
transacted property price.
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Guide for Foreign Property Investor in Malaysia
Next MYR 500,000 – 2%
Next MYR 5,000,001 and above – 3%
Malaysia Real Property Gain Tax (RPGT)
for Foreigner
Real Property Gains Tax (RPGT) is a form
of Capital Gains Tax that is imposed on
the disposal of property in Malaysia.
Based on the Real Property Gains Tax
Act 1976, RPGT is a tax on chargeable
gains derived from disposal of property.
For a quick calculation, the formula is:
Disposal
1) Less or Equal To 3
Years
2) Less or Equal To 4
Years
3) Less or Equal To 5
Years
A chargeable gain is a pro t when the
disposal price is more than the
purchase price of the property. RPGT
applies to both residents and nonresidents.
Non-
Citizens
Companies
30% 30%
30% 20%
30% 15%
4) More than 6 Years 10% 10%
You will only be taxed on the positive
net capital gain, which is disposal price,
less than the purchased price, less than
the miscellaneous charges such as:
stamp duty, legal fees, advertisement
charges, and real estate agent fee, etc.
The holding period is from the date on
the S&P agreement until the disposal
date.
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Guide for Foreign Property Investor in Malaysia
The Property Buying Restrictions
Malaysia Government imposes
a minimum purchase price for foreign
property buyers.
This is generally based on three things:
Where the property is located
(which State)
The Title of the property - Strata or
Individual Title
Whether the buyer holds a Malaysia
My Second Home (MM2H) visa or
not
Presently, the guideline is MYR 1,000,000
for non-landed residential properties in
Kuala Lumpur, and currently, Selangor
has set the highest minimum price at
which foreigners can buy a property
(MYR2,000,000 in most areas of the
state).
The Properties that Foreigners cannot
Buy Altogether
In addition to the minimum price
thresholds mentioned above, there are
a few more types of properties that
foreigners cannot buy.
These are as follows:
Malay Reserve Land - Malay Reserve
Land is exclusive land that can’t be sold
to any race other than Malay Muslim.
Bumiputra Lots - Properties distributed
to Bumiputera interest in any property
development project as determined by
state authority
Low to Medium Cost Properties -
Foreigners are not allowed to purchase
low to medium cost housing. This is
determined by State authorities, but
these are usually ats.
Agricultural Land - Most agricultural land
in Malaysia is o limits for foreigners.
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Guide for Foreign Property Investor in Malaysia
Financing Facilities for Foreigners
Investing in Malaysia Property- An
Overview
Most bankers in Malaysia adopt a liberal
nancing system for all foreigners. They
provide a full range of nancing facilities
for foreigners investing in Malaysia’s
property from Conventional to Islamic
banking to choose from. Property
nancing approval is based on your
pro le & property pro le
Margin and Tenor of Financing
The amounts which will be approved
varies based on these factors:-
• Type and Location of the Property
• The valuation of the Property
• Your age and Income
• For some countries, the bank may
perform a World Check on your pro le
and background.
In general, most foreigners can get a
margin of nancing up to 70%, and the
length of loan can range up to 30 years
or to a maximum age of 65, whichever is
earlier, at the discretion by the bankers.
Malaysia My Second Home (MM2H)
Malaysia My Second Home (MM2H)
Programme is introduced by our
government to allow people from all
over the world to live or retire in
Malaysia in a long term basis. The
MM2H is open to all citizens of the world
and has no restrictions on race, religion
or gender.
MM2H visa is a Ten (10)-Year Social Visit
Pass with Multiple Entry Visa which is
renewable every 10 years. It’s a long-stay
programme that allows the participants
to live in Malaysia and not worry about
their short term visa renewals. You are
welcome to stay here for 365 days a
year without having to leave the country
because the MM2H Pass extension or
renewal can be done during your stay in
Malaysia.
Apart from having the opportunities to
enjoy the good quality lifestyle and the
unique values of Malaysia, our
government is o ering you who
obtained the MM2H Pass with
attractive incentives to make your stay
more comfortable and enjoyable in
Malaysia :
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Guide for Foreign Property Investor in Malaysia
Freedom to Travel
There is no minimum stay requirement.
You are free to enter and leave the
country anytime.
Parents’ Special Visa
Your parents who are over 60-year old
will be eligible to live in Malaysia under a
special 6-month social visit visa
renewable as long as your MM2H Pass is
valid.
Tax
Your foreign-sourced income or pension
are not subject to tax if such income is
remitted to Malaysia.
Only Income earned within Malaysia is
subject to taxation.
House Purchase
Any foreigner may purchase any
number of residential properties in
Malaysia, subject to the minimum rates
established for foreigners by the
di erent states. However please be
informed that property purchase is not a
pre-requisite for participating in MM2H
programme.
Education
Your children can receive education (up
to age of 18) under MM2H study permit
in public or private schools in Malaysia.
Healthcare
Advanced medical facilities are widely
available to you in Malaysia. Part of your
medical needs will be covered under the
compulsory medical insurance.
Investment
MM2H participants are allowed to invest
and actively participate in business,
subject to existing Government policies,
regulations and guidelines which are in
force for the relevant sectors.
Live-in Maid
You are allowed to apply for one foreign
maid subject to the prevailing guidelines
of the Immigration Department of
Malaysia.
20-hr per week Special Work Permit for
Main Applicant (Age 50 & above)
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Guide for Foreign Property Investor in Malaysia
You are allowed to apply for special
work permit to work under the critical
sectors subject to the prevailing
guidelines of the Immigration
Department of Malaysia.
How to Start Investing in Malaysia
Property?
Buying property overseas needs
thorough consideration and planning.
Future outlook, capital appreciations,
the rental yield, living standards, and
personal preferences are essential
aspects to many investors.
Malaysia as one of the most favorite
foreign friendly countries in Asia, in
terms of foreign ownership regulations.
Medical Care, Living Standards, better
Infrastructure, and other personal
preferences like English pro ciency,
Multi-Racial, Multi-Religious and Multi-
Cultural aspects.
Malaysia o ers some of the most
favorable foreign ownership regulations
in the region.
We at Richland Properties, registered
real estate agency, fully regulated and
governed by Board of Valuers,
Appraisers, Estate Agent and property
Managers Malaysia ( BOVAEP) provide
service, acting as your independent
property investment consultant to assist
and to make your property buying
and/or selling experience one you’ll
remember for all the right reasons!
We will guide you on these areas of
concern:
1. De ne your property investment
objectives in Malaysia
2. De ne your special needs
3. Con rm your budget, type
(residential or commercial or land)
and location
4. Recommendation of nancing
facilities available according to your
pro le
5. Propose a timeline and make a
recommendation of various
properties with a schedule of
property viewing
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Guide for Foreign Property Investor in Malaysia
Our professional services to foreign
property buyers include
1. Sourcing investment properties at a
premium location, developed by a
developer with an excellent record
2. Financing arrangement for the
purchase
3. Assisting the buyer in a legal matter
4. Updating development progress
regularly
5. Assisting buyer in collecting
keys/vacant possession upon
completion
6. Inspecting defects and monitoring
defect recti cation works
7. Getting tenant & vet thru the tenant
pro le
8. Assist the buyer to ip the property
on the best possible price to
maximize pro ts margin.
We assist foreign property investors in
all aspects of real estate investment in
Malaysia in terms of saving time and
money.
Malaysia Property Tour :
Richland Properties provides an
exclusive, non-obligatory, free of charge
property tour services to clients who
want to explore Kuala Lumpur real
estate market on the ground.
The 3 hours tour is dedicated to any
individual/group who are seeking to
invest and wants to understand the
investment properties being o ered in
Kuala Lumpur. Just reach us at
dselvem@richland.com.my or
+60166261745 via call/WhatsApp.
“We simplify your property investment
experiences in Malaysia.”
We remain at your disposal should you
require any further information or
assistance investing in Malaysia
properties. Our contact details are as
below for your reference.
Richland Properties
Registered Real Estate Agency (E30877)
No 33, 2nd Floor, Jalan Puteri 4/1,
Bandar Puteri,47100 Puchong,
Kuala Lumpur, Malaysia
Tel: +603-80683141 fax: +603-80684658
Email: dselvem@richland.com.my
Web: www.richland.com.my
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