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Starting from March 1, foreigners can only buy properties worth RM1
million and above, said the Economic Planning Unit (EPU) in the Prime
Minister’s Department.
In states other than the Federal Territory of Kuala Lumpur, Labuan and
Putrajaya, the actual enforcement date of the RM1 million minimum
threshold is subject to the respective state authority, it added.
The EPU noted that this measure is undertaken by the government “to
stabilise domestic property prices from excessive speculation activities
as well as to enable local interests to acquire quality properties
valued at less than RM1 million per unit, especially residential units.”
First issued by the EPU on 30 June 2009, The Guideline on the
Acquisition of Properties replaced the Foreign Investment Committee
Guidelines.
Notably, The Guideline aims to control property ownership by foreign
interests in Malaysia.
Among the conditions set forth in the Guideline is the minimum threshold
for acquisition of commercial and residential units, as well as
agricultural and industrial land by foreigners.
The minimum threshold imposed stood at RM250,000 per unit on 30 June
2009, and was eventually raised to RM500,000 per unit on 1 January 2010.
The Guideline was further revised by raising the price limit to RM1
million per unit, in line with Prime Minister Datuk Seri Najib Tun
Razak’s announcement in Budget 2014.
Also, the
real property gains tax (RPGT) rate has been increased to 30% for
citizens who sell their units before three years. For disposals within
the holding period of up to four and five years, the rates are increased
to 20% and 15% respectively. For disposals made in the sixth year and
subsequently, no RPGT will be imposed on citizens, but companies will be
taxed at 5%.
For foreign buyers, the imposed RPGT is at 30% on the gains from
properties disposed within the holding period of up to five years, and
for disposals in the sixth year and subsequently, a 5% RPGT is imposed.
Please note that the new minimum property price for foreigners (RM1
million) is imposed by the federal government and is not a blanket
policy. It is up to respective state governments to adopt the new
restrictions.
Sources:
http://www.propertyguru.com.my
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