Selling property to a foreigner

Types of properties:

All property sales to foreign interests that do not require the approval of the Economic Planning Unit, Prime Minister’s Department but which may fall under the purview of the relevant Ministries and/or Government Departments are as follows:

1. (a) Acquisition of residential unit by foreign interest valued at RM500,000 and above. This acquisition, however, does not require the approval of the Economic Planning Unit, Prime Minister’s Department but falls under the purview of the State Authorities.
2. (b) Acquisition of commercial unit valued at RM500,000 and above;
3. (c) Acquisition of agricultural land valued at RM500,000 and above or at least five (5) acres in area for the following purposes:
   1. (i) To undertake agricultural activities on a commercial scale using modern or high technology; or
   2. (ii) To undertake agro-tourism projects; or
   3. (iii) To undertake agricultural or agro-based industrial activities for the production of goods for export.
4. (d) Acquisition of industrial land valued at RM500,000 and above; and
5. (e) Transfer of property to a foreigner based on family ties is only allowed among immediate family members.

Restrictions:

A vendor can sell all forms of residential and commercial property to a foreigner except those which are restricted being:

1. (a) Properties valued at less than RM500,000 per unit;
2. (b) Residential units under the category of low and low-medium cost as determined by the state authority;
3. (c) Properties built on Malay reserved land; and
4. (d) Properties allocated to Bumiputera interest in any property development project as determined by the state authority.
5. Note: A Bumiputera is defined as follows:
   1. (i) Peninsular Malaysia
   2. Malay individual or aborigine as defined in Article 160(2) of the federal constitution;
   3. (ii) Sarawak
   4. Individual as defined in Article 161A (6)(a) of the federal constitution;
   5. (iii) Sabah
   6. Individual as defined in Article 161A (6)(b) of the federal constitution.

The above is based on the foreign investment property guideline 2010 on acquisition of property in Malaysia by foreigners.

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