FIC Regulations for Foreigners Buying Property in Malaysia
Any foreigner buying property in Malaysia is required to get approval from the FIC (Foreign Investment Committee) and the State Authority. The FIC is part of the EPU (Economic Planning Unit) in the Prime Minister’s Department (JPM).
But before we go any further, who qualifies as a ‘foreigner’? (please insert your own AOR rock band joke here)
- Someone who is a not a Malaysian citizen; or a PR of Malaysia; or,
- A foreign-owned company or institution incorporated outside Malaysia; or,
- A local company or local institution with more than 50% of shares held by (i) or (ii) above.
According to the FIC, foreigners can only purchase properties valued more than RM150,000 and above, but there is no limit to how many units a foreigner may buy.
Foreigner on-selling to another foreigner requires to approval from FIC, if on-selling to a Malaysian individual / corporation, no approval necessary, but FIC need to be notified.
Some state authority approvals are specific, it would be best to check with them for a particular project you are interested in. Usually the developer can obtain the info for you. If you have queries for them, a good place to start would be the website for the Department of the Director of Land Office. (It’s in Bahasa Malaysia, though).
yeah and did u know…there is a programme called The “Malaysia My Second Home Programme” replaced the “Malaysia Silver-Hair Programme” in 2002. The earlier programme targeted senior citizens aged over 50 by promoting Malaysia as a retirement destination. However, the new programme is open to individuals of all ages, and allows for dependants and one domestic helper to be included. Applicants are required to fulfil certain criteria and are generally not permitted to work in Malaysia
more details http://www.mocat.gov.my
keep up the good work with this blog…
Comment by tasya — August 12, 2005 @ 3:21 am
hi..there is also ‘Malaysia My second Home Programme’ esp for foreigners
Comment by tasya — August 12, 2005 @ 3:57 am
tasya,
thanks for the feedback. you may want to check out this post:
http://propertymalaysia.blogsome.com/2005/08/03/malaysia-my-second-home/
Comment by Administrator — August 12, 2005 @ 5:35 am
My mother is Malaysian and I am a foreigner. Can I buy a house with my mother without going through the MMSH-Programme.
Comment by alkeong — March 17, 2006 @ 12:20 am
yes.
Comment by Administrator — March 17, 2006 @ 8:04 am
Does that mean that I can a property (with my mother) without any restriction (on price or what so ever)? Last year I tried to buy a condo but the seller decided to sell it to a local because of the red-tape hassle.
Comment by alkeong — March 17, 2006 @ 6:39 pm
the MMSH only applies to new properties bought from developers, not from individuals. if you wish to buy a new house from a developer, the MMSH gives more incentive than if you don’t apply through MMSH.
Comment by Administrator — March 18, 2006 @ 9:51 am
what incentive do you mean?
Comment by alkeong — March 18, 2006 @ 9:56 pm
alkeong,
as tasya mentioned in comment #1, MMSH is more targeted to retirees from other countries where they can bring their whole family to stay in the country.
In your case, if you buy a house together with your mother, you need to check with the developer if you qualify for the programme or not.
some of the incentives of MMSH are as follows:
- You will receive a five-year Visit Pass and Multiple-Entry Visa, renewable every five years.
- You can import your car or purchase a new car, tax-free and enjoy other tax incentives.
- You can invest and own businesses in Malaysia.
- You maintain your original citizenship and are free to travel as often as you like
Comment by Administrator — March 18, 2006 @ 10:21 pm
I am not sure if the mmsh programme will benefit me that much. First of all, I am not a retiree (not yet), secondly, I don´t intend to set up a business in M´sia. My purpose of buying a house is to set up a place for my mother and a holiday home for my family.
Comment by alkeong — March 23, 2006 @ 5:07 pm