Can Foreigner Buy Property In Malaysia Without MM2H?

Malaysia is a popular destination for foreign investors and individuals looking to purchase property.

The country's diverse culture, tropical climate, and vibrant economy make it an attractive place to own real estate. However, the process of buying property in Malaysia can be complex, especially for foreigners who are not familiar with the local laws and regulations.

One of the most common questions asked by foreigners interested in buying property in Malaysia is whether they can do so without obtaining the Malaysia My Second Home (MM2H) visa.

In this blog post, we will explore the options available to foreigners who want to purchase property in Malaysia without the MM2H program.

Can Foreigners Buy Property in Malaysia Without MM2H?

The short answer is yes, foreigners can buy property in Malaysia without the MM2H visa.

However, there are certain restrictions and requirements that they must be aware of.

1. Freehold vs. Leasehold Properties

In Malaysia, there are two main types of property ownership: freehold and leasehold.

Freehold properties are those where the owner has full and permanent ownership of the land and the property built on it. Leasehold properties, on the other hand, are those where the owner has a lease for a specific period of time, typically ranging from 30 to 99 years.

Foreigners are generally allowed to purchase both freehold and leasehold properties in Malaysia, but there are some restrictions:

Freehold Properties: Foreigners can purchase freehold properties in Malaysia, but they are subject to certain minimum purchase price requirements. These requirements vary by state and can range from RM500,000 to RM1 million or more.
Leasehold Properties: Foreigners can also purchase leasehold properties in Malaysia, but they are subject to the same minimum purchase price requirements as freehold properties.

It's important to note that the specific requirements for foreign property ownership can vary depending on the state and the type of property being purchased.

It's always a good idea to consult with a local real estate agent or lawyer to ensure that you are aware of the latest regulations and requirements.

2. Approval from the State Authority

In addition to meeting the minimum purchase price requirements, foreigners who want to buy property in Malaysia must also obtain approval from the state authority where the property is located.

This approval process can be time-consuming and may involve additional fees and paperwork.

The approval process typically involves submitting an application to the state authority, along with supporting documents such as a copy of the passport, proof of income, and a detailed description of the property being purchased.

The state authority will then review the application and decide whether to grant approval for the purchase.

It's worth noting that the approval process can vary depending on the state and the type of property being purchased.

Some states may have more stringent requirements than others, so it's important to research the specific requirements for the state where you plan to purchase property.

3. Other Considerations

In addition to the approval process and minimum purchase price requirements, there are a few other factors that foreigners should consider when buying property in Malaysia without the MM2H visa:

Financing: Foreigners may have a more difficult time obtaining financing for property purchases in Malaysia, as banks may have stricter lending requirements for non-residents.
Taxes: Foreigners may be subject to additional taxes and fees when purchasing property in Malaysia, such as stamp duty and real property gains tax.
Property Management: Foreigners who do not plan to reside in Malaysia full-time may need to hire a property management company to oversee the maintenance and upkeep of their property.
Residency Restrictions: Foreigners who do not have a valid visa or permit to reside in Malaysia may be subject to certain restrictions on the types of properties they can purchase or the areas where they can purchase property.

The Benefits of Buying Property in Malaysia

Despite the additional requirements and considerations for foreigners, there are several benefits to buying property in Malaysia:

Stable Economy: Malaysia has a stable and growing economy, which can provide a good investment opportunity for foreign property buyers.
Attractive Prices: Property prices in Malaysia are generally lower than in many other developed countries, making it an affordable option for foreign buyers.
Rental Income: Foreigners who purchase property in Malaysia can potentially earn rental income by leasing their properties to tenants.
Lifestyle and Culture: Malaysia is a diverse and vibrant country with a rich culture and a tropical climate, which can be an attractive draw for foreign property buyers.
Potential for Capital Appreciation: Property values in Malaysia have generally been on the rise in recent years, which can provide an opportunity for capital appreciation for foreign property buyers.

Topic that you may find interesting to explore:

Conclusion

Buying property in Malaysia without the MM2H visa is possible, but it comes with additional requirements and considerations.

Foreigners must be aware of the minimum purchase price requirements, the approval process from the state authority, and the potential challenges with financing and property management.

Despite these challenges, buying property in Malaysia can be a rewarding investment opportunity for foreign buyers.

By doing their research, consulting with local experts, and understanding the local laws and regulations, foreigners can navigate the process of buying property in Malaysia and potentially reap the benefits of owning real estate in this vibrant and diverse country.

Share 0

About the Author

Danny H

Seasoned sales executive and real estate agent specializing in both condominiums and landed properties.