ACQUISITION OF PROPERTIES



1. What types of properties are allowed to be purchased by the MM2H participants?

They are allowed to purchase all types of residential properties except low-cost and medium low-cost units as determined by the state authorities, properties that are built on Malay reserved land, units that are reserved for Bumiputera quota and agricultural land developed on the basis of homestead concept.

2. Is there any limitation of price on the property purchase by the MM2H participants?

Yes. They are allowed to purchase residential properties at the minimum purchase price for foreigners established by the respective state governments. The current minimum price (January 2010) is RM500,000.00 for majority of the states.


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

No. But for those MM2H participants who had purchased a house worth at least RM1million in Malaysia prior to MM2H application and fully paid for the house are allowed to deposit RM150,000 for those aged below 50 and RM100,000 for those aged 50 and above.


4. Are all MM2H participants required to purchase a property in Malaysia after getting the approval from MM2H Centre?

No.

5. Do MM2H participants have to pay the yearly assessment and quit rent for their own properties like the locals?

Yes

6. Are the MM2H participants allowed to transfer their property in Malaysia to other names?

Yes. However they can only transfer the name of the property to their immediate family.


7. Are MM2H participants with properties subject to Real Property Gain Tax (RPGT) rate set by the Government of Malaysia?

Yes. They will be taxed 15% if they sell off their property in two (2) years or less and make a net capital gain; 10% if disposal is made in two (2) to five (5) years following purchase. No tax will be incurred after the 5th year.


8. Can MM2H participants apply for local financing from a local bank to purchase a house in Malaysia?

Yes. They can apply for the loan in Malaysia subject to the terms and conditions of the respective banks or financial institutions.