Property Purchase Guideline

MM2H vs Non-MM2H • Foreign Buyer Requirements • RPGT • ROI Calculator

Important Property thresholds and State Authority requirements may vary by state, property type and transaction. The figures below are a general client guide and should be reconfirmed with the relevant State Authority and conveyancing lawyer before purchase.
01

Property Purchase Threshold

Quick comparison for MM2H and non-MM2H foreign buyers.

With MM2H

Penang

Condo: RM600,000

Landed: RM1,000,000

Kuala Lumpur

Condo: RM1,000,000

Landed: RM1,000,000

Selangor

Condo: RM2,000,000

Landed: RM2,000,000

Johor

Condo: RM600,000

Landed: RM600,000

Without MM2H

Penang

Condo: RM1,000,000

Landed: RM3,000,000

Kuala Lumpur

Condo: RM1,000,000

Landed: RM1,000,000

Selangor

Condo: RM2,000,000

Landed: RM2,000,000

Johor

Condo: RM1,000,000

Landed: RM1,000,000

02

General Conditions for Foreign Buyers

Key points to understand before signing a Sale & Purchase Agreement.

State Authority Consent

Foreign purchasers generally require approval from the relevant State Authority.

Minimum Purchase Price

Minimum purchase prices differ by state and may also differ by property type.

Restricted Properties

Foreign interests are generally restricted from low/medium-low-cost housing, Malay Reserve Land and properties allocated to Bumiputera interests.

Legal Due Diligence

Before purchase, appoint a conveyancing lawyer to check title, restrictions, State consent requirements and the Sale & Purchase Agreement.

03

Real Property Gains Tax (RPGT)

Tax may apply when a property is sold at a chargeable gain.

Foreign individual / non-citizen

Current RPGT treatment depends on the disposal period and the disposer category. RPGT is calculated on the chargeable gain, not simply on the property's selling price.

Buyer retention for a foreign disposer

For a Part III disposer, the acquirer generally retains and remits 7% of the consideration to LHDN, subject to the applicable RPGT rules. This retention is not necessarily the final tax payable.

04

Rental ROI Calculator

Estimate annual return based on rental income after maintenance fees.

ROI: --

Formula: (Annual Rental Income − Annual Maintenance Fee) ÷ Property Price × 100%. This is a simple rental-yield estimate and does not include financing costs, taxes, vacancy, legal fees, stamp duty or other expenses.

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