Foreigners Buying Property in Malaysia

Before a foreigner wants to buy property in Malaysia, a few rules or regulations are to be followed as below:-

A Foreigner can buy all types of residential units, shop-house, shop-office and office space to foreign interest, disregarding the existing quota for foreign interest with conditions, the properties:-

* must be above RM250,000 each

* financing must be obtained from out of Malaysia (Amended : funding can be from local 25th April 2001)

* the projects must be newly completed or at least 50% constructed (Amended : disregard existing or soon-to be-launched projects.25th April 2001).

* All such acquisitions must still obtain the FIC's approval, which will be granted automatically if the above conditions are met (Property transactions under RM20 milllion would only be required to report to the FIC secretariat for record purposes -25th April 2001 ).

You can buy

Terrace houses which more than 2 stories provided that:-

The total units sold to foreign interest are not more than 10% of the total number of units for a particular type in a residential project constructed (I think this should be amended as well, anybody know, please email me. thank first).

The unit price is more than RM250,000 or as stipulated by the local State Authorities.

Land or bungalow and semi-detached houses provided that:

The unit price is more than RM250,000 or as stipulated by the local State Authorities.

If the land is redeveloped for investment purposes, the purchaser is required to form a Malaysian incorporated company with at least 49% Malaysian equity including 30% Bumiputera (indigenous malays) interest.

You cannot buy:-

Residential

* Single-storey and double-storey terraced houses constructed (Amended : disregard the type of property.25th April 2001).

* Low and medium-cost residential houses and flats

* Residential houses built on Malay Reserve land

* Residential houses reserved for the Bumiputera (indigenous malays)

Commercial

* Low cost shops

* Stalls

* Service workshops

* Commercial buildings built on Malay Reserve