The good news is that foreigners are able to own land in Malaysia. There is better news, however. The country is only one of a few in Asia where freehold ownership terms are available. As you would expect, there are rules and regulations in place that you will need to take note of with most laid out in the National Land Code.
For starters, Malay Reserved Land and land allocated for Bumiputera interest are off-limits to foreigners with this rule covering the entire country. Additionally, all land transactions involving overseas buyers require approval from the state and this must be completed before acquiring the title.
Other foreign land ownership restrictions vary by state in Malaysia with these affecting price requirements and usage. The most notable is the price floor which covers residential properties. In Kuala Lumpur, this is set at MYR600,000 while the price floor in Penang is MYR800,000.
The situation is different in Selangor where only landed properties with a Strata title are available to foreign buyers. A unique pricing floor is also in place here that you’ll need to be aware of.
This won’t be a concern for larger plots used for real estate developments. What’s more, Malaysia is one of Asia’s most supportive countries of foreign business investment meaning purchasing land here and starting a company is much easier than in other locations.
Another thing to note, land for sale in Malaysia may be transferred to a foreign trustee or beneficiary which is important in terms of moving on from the plot in the future.
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Can foreigners own agriculture land in Malaysia?
The answer to this question is a little more complicated. Only certain states allow overseas buyers to own agriculture land via leasehold structures. You’ll be barred from dividing the land into subplots and a number of other rules govern over this. So, while it is possible, you will need to work closely with a legal professional to ensure you’re compliant on all requirements.
Who is defined as a foreigner as it relates to land ownership in Malaysia:
- An individual who is not a citizen of Malaysia
- A foreign company incorporated in Malaysia
- A company incorporated in Malaysia with 50 percent or more of its voting shares held by a non-Malaysia citizen
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