Frequently Asked Questions


PROPERTY PURCHASE

Q1 : Do the participants have any special entitlements?

A : All participants are allowed to purchase residential properties at the minimum purchase price for foreigners established by the respective state governments. The current minimum price (January 2016) is RM1,000,000.00 for most states.

Q2: Can I purchase a house for residential purpose?

A : Yes.

Q3 : Do I have to pay the yearly assessment and quit rent for my houses like the locals?

A : Yes.

Q4 : In the event of unforeseen death is the participant able to hand over his Malaysian assets to any of his beneficiaries smoothly. Does the Government have any restriction on this matter?

A : No. Participants may transfer their property to their next-of-kin provided they have made a will to this effect. In the event of lack of documentation, the next-of-kin may claim the inheritance upon proof of identity and kinship. He/she should provide a Will which indicates clearly to whom the properties are to be given. If not the next of kin of the participant will have to apply to the Government to have his properties released to them as the rightful heirs.

Q5 : Must foreigners buy new Malaysia property only, such as from developers, or can they purchase any property, such as from individual owners (second hand or third hand property)?

A : Participants can purchase any type of housing properties provided that they have been issued with CF (Certificate of Fitness).

Q6 : Do I need to obtain prior approval from Foreign Investment Committee (FIC) for the purchase and sale of my house?

A : Participants under this programme are not required to obtain prior approval for the purchase and sale of houses from FIC. However, they must write to the Ministry of Tourism giving details of the house (location as well as price) so that a letter can be issued to them certifying that they are eligible to purchase the said property under this programme. In addition, they are required to send a copy of the approval letter obtained from the respective State Authority which has authorized the purchase or sale of the property concerned to FIC for information.

Q7 : Can I keep pets in my condominium?

A : The By-laws of the Strata Title Act state that a parcel proprietor is not allowed to keep any animal in his parcel or on the common property which may cause annoyance to any other proprietor.

Q8 : Can the purchase of a house in Malaysia be considered as having fulfilled the financial criteria for this program?

No, participants are initially required to fulfill the fixed deposit requirement if applicable as the purchase of a house is not compulsory under this program. Only with prior written approval from the Ministry of Tourism, a portion of the fixed deposit may be withdrawn to purchase the house after one year of participation in this program.

Q9 : Can I purchase a shop lot to be rented out?

A : You need to set up a Registered Company here in order to purchase any commercial properties.

Q10 : Can I apply for local financing from a local bank to purchase a house in Malaysia?

A : Yes, you may apply for the loan in Malaysia subject to the terms and conditions of respective banks or financial institutions.

Q11 : Can I buy land?

A : Yes, you can as long as they are eligible for foreigners and have been approved by Land Office as well as the relevant authorities.

Q12 : When I dispose my property, am I also subject to tax?

A : On 1st Jan 2016, Property Gain Tax will be 30% on disposal within 5 years,5% after 5 years.




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