MALAYSIA MY SECOND HOME (MM2H)
Malaysia My Second Home (MM2H) Programme is promoted by the
Government of Malaysia to allow foreigners who fulfill certain criteria, to
stay in Malaysia for as long as possible on a multiple-entry social visit
pass.
The Social Visit Pass is initially for a period of ten (10) years, and is renewable.
It is open to citizens of all countries recognised by Malaysia regardless of
race, religion, gender or age. Applicants are allowed to bring their spouses
and unmarried children below the age of 21 as dependants.
Applicants are expected to be financially capable of supporting themselves
on this programme in Malaysia:-
i. Applicants aged below 50 years are required to show proof of liquid assets
worth a minimum of RM500,000 and offshore income of RM10,000 per
month.
ii. Applicants aged 50 and above may comply with the financial proof of
RM350,000 in liquid assets and off shore income of RM10,000 per month.
One of the advantage of the MM2H programme is that it provides cheaper
property price tags to foreigners as the threshold to purchase property is
lower in certain states. For example, the threshold to buy property in
Penang is RM500,000 (limit to 2 units) for foreigner with MM2H visa.
Disclaimer:-
No warranty or representation, express or implied is made as to the accuracy of the information contained/attached herein, and it is subject to changes, errors, omissions. Neither the firm nor any of its staff is responsible or liable for any claims, losses, damages, cost or expenses arising in any way out of or in connection with any person relying upon the above information. Prospects are advised to verify all facts with the relevant parties and authority concerned.
TYPES OF PROPERTY (RESIDENTIAL)
i. Landed properties
- Generally refers to Bungalows (Detached houses), Semi-D (Semi detached
houses), Terrace/link houses.
- Minimum thresholds for foreign purchasers to buy landed properties are RM1 mil
for Kuala Lumpur and RM3mil for Selangor (varies according to Zones).
ii. Stratified properties
- Commonly refers to condominiums, service apartments, SOHO.
- Minimum thresholds for foreign purchasers to buy landed properties are RM1 mil
for Kuala Lumpur and RM2mil for Selangor (varies according to Zones).
Note: Generally a minimum value of RM1 million is applied to all kinds of property
in almost every state, except for Kedah, Perlis, Sarawak & Melacca. The respective
state authorities remain in power to amend the minimum value.
TENURE OF TITLE
i. Freehold
- Proprietors own the property in perpetuilty. However, under the Land Acquisition Act 1960, the state has the power to take back a freehold land, provided that
the property will be used for public purposes (such as MRT project) or for economic development.
ii. Leasehold
- Proprietors own the property for a period of 30 years / 60 years / 99 years. Most
common 99 years. The lease has to be renewed before it is expired.
- Generally consent of State Authority is required to transfer ownership of leasehold properties.
COSTS OF SELLING PROPERTY
i. Real Property Gain Tax (RPGT)
RPGT is a form of Capital Gains Tax chargeable upon profit made from the sale of
your land or real property, where the resale price is higher than the purchase price.
RPGT rates classification:-
DISPOSAL Citizens / PR Non-Citizens Companies
1) LESS OR EQUAL TO 3 YEARS 30% 30% 30%
2) LESS OR EQUAL TO 4 YEARS 20% 30% 20%
3) LESS OR EQUAL TO 5 YEARS 15% 30% 15%
4) MORE THAN 5 YEARS 5% 10% 10%
ii. Property agency fees
The maximum fee chargeable on services provided by agents on the sale of any
land and building is 3% of the sale price of the property.
iii. Loan penalty
Penalty for earlier settlement of loan facilities. Depending on type of loan obtained.
FINANCING & LEGAL ASSISTANCE
In general the Margin of Finance (MOF) for property purchase can go up
to 80% for MM2H holders, while non-MM2H holders would generally get
up to 70% MOF. Important to note that the MOF is also depends on applicant’s financial background and varies on case to case basis.
We work closely with mortgage banker who provides professional services
including:-
i. True & unbiased martgage advice & strategies.
ii. Negotiatiate with different banks for the best rate & facilities based on
customer’s financial standing. In other words our mortgage partner is a
1-stop centre for to serve your properties financing needs.
iii. Save customer’s time sourcing banks that will be able to fulfill customer’s
needs & wants.
iv. Save customer’s time sourcing for lawyer for both loan and properties
purchase.
MANAGEMENT OF UNIT
For owners who need assistance to manage your unit, we provide complete
solutions for you including:-
i. To secure tenant
ii. Reminding tenant on rental payment
iii. Hand over back of unit from tenant
iv. General maintenance of the unit
v. Making payments such as Assessment Tax, Quit Rent, etc.
vi. Generally cleaning
For enquiries on MM2H, please contact:-
Ms T.C. Chow
CIG MM2H (KPK/LN: MM2H0537)
Mobile: +6017 934 7289 / +6017 633 7289
Email: tcchow@ciggroup.com.my