When purchasing, owning and selling real estate properties in Malaysia, various expenses and taxes are incurred, but they are cheaper than in Japan. But there are benefits. In addition, in order for foreigners to purchase real estate such as condominiums in Malaysia, it is generally possible to purchase properties of 1 million ringgit or more (some states can also purchase properties of less than 1 million ringgit), and with the consent of the state government at the time of purchase. It is a condition to obtain. The table below shows the approximate costs for purchasing a new property with a loan for RM500,000, RM1,000,000 and RM2,000,000.
*Miscellaneous expenses may differ from the table below depending on the property and conditions.
Main costs for purchasing real estate (approximate)
| RM500,000 (15 million yen) | RM1 million (30 million yen) | RM2 million (60 million yen) | |
|---|---|---|---|
| Stamp duty (*1) | 270,000 yen | 720,000 yen | 1,920,000 yen |
| Lawyer's fees for drafting sales contract (*2) | 119,000 yen | 224,000 yen | 404,000 yen |
| Mortgage application fee (*3) | 122,000 yen | 230,000 yen | 440,000 yen |
| State Government Consent Acquisition Cost | Around 30,000 yen | ||
| Total (*4) | ¥541,000 (3.6%) | 1,204,000 yen (4.0%) | 2,764,000 yen (4.6%) |
*1: Comparing the real estate purchase price and the appraisal value at the time of registration, "1 to 4%" for the higher price.
*2: "0.4% to 1.0%" of real estate purchase price. As for newly built properties, there are many cases where lawyer fees are not required as a service provided by the development company.
*3: Lawyer's fees for local bank loan applications: 0.4% to 1.0% of the total loan amount, stamp duty: 0.5% of the total mortgage loan amount, etc. The total application cost is based on the assumption that 60% of the property price is a loan and 40% is self-funded.
*4: Costs for acquisition of state government agreement included in the total amount are for Kuala Lumpur. % is the ratio of the purchase cost to the property price (rounded down to the second decimal place). When purchasing real estate properties in Malaysia using our partner companies, a separate service charge of 3% (excluding tax) will be applied to the total purchase price of the property.
*2: "0.4% to 1.0%" of real estate purchase price. As for newly built properties, there are many cases where lawyer fees are not required as a service provided by the development company.
*3: Lawyer's fees for local bank loan applications: 0.4% to 1.0% of the total loan amount, stamp duty: 0.5% of the total mortgage loan amount, etc. The total application cost is based on the assumption that 60% of the property price is a loan and 40% is self-funded.
*4: Costs for acquisition of state government agreement included in the total amount are for Kuala Lumpur. % is the ratio of the purchase cost to the property price (rounded down to the second decimal place). When purchasing real estate properties in Malaysia using our partner companies, a separate service charge of 3% (excluding tax) will be applied to the total purchase price of the property.
Annual cost of owning real estate (approximate)
| RM500,000 (15 million yen) | RM1 million (30 million yen) | RM2 million (60 million yen) | |
|---|---|---|---|
| Property tax (*1) | About "30,000 to 70,000 yen" | About "30,000 to 70,000 yen" | About "30,000 to 70,000 yen" |
| Maintenance and management expenses/Reserve expenses (*2) | About "116,000 to 194,000 yen" | About "30,000 to 70,000 yen" | About "30,000 to 70,000 yen" |
| Insurance cost (*3) | 24,000 yen | 47,000 yen | 94,000 yen |
| Total (*4) | ¥288,000 (1.9%) | 311,000 yen (1.0%) | 358,000 yen (0.5%) |
*1: For a property of 100 m2. Calculated by adding property tax for land and building.
*2: For a property of 100 m2. Generally, it is about "97 to 161 yen per month" per square meter.
*3: Insurance costs vary depending on the insurance company and property conditions.
*4: The upper limit of property tax, maintenance and repair reserve costs is used to calculate the total amount. % is the ratio of ownership cost to the property price (rounded down to the second decimal place).
*2: For a property of 100 m2. Generally, it is about "97 to 161 yen per month" per square meter.
*3: Insurance costs vary depending on the insurance company and property conditions.
*4: The upper limit of property tax, maintenance and repair reserve costs is used to calculate the total amount. % is the ratio of ownership cost to the property price (rounded down to the second decimal place).
Cost of selling real estate (approximate)
| RM500,000 (15 million yen) | RM1 million (30 million yen) | RM2 million (60 million yen) | |
|---|---|---|---|
| Capital gains tax (*1) | 450,000 yen | 900,000 yen | 1.8 million yen |
| Real estate brokerage fee (*2) | 585,000 yen | 1.17 million yen | 2.34 million yen |
| Total (*3) | 1,035,000 yen (23%) | 2.07 million yen (23%) | 4.14 million yen (23%) |
*1: When the holding period is over 5 years and the capital gains tax is 10%. If the transfer gain is purchased after the pre-sale starts and the property price rises by 30% at the time of sale (transfer gain: RM500,000 ⇒ 4.5 million yen, RM1 million ⇒ 9 million yen, RM200 ⇒ 18 million yen).
*2: Expenses for services used in selling real estate (buyer solicitation, price negotiations, etc.). "About 3%" of the selling price.
*3: % is the ratio of sales expenses to gains on sale (rounded down to the second decimal place).
*2: Expenses for services used in selling real estate (buyer solicitation, price negotiations, etc.). "About 3%" of the selling price.
*3: % is the ratio of sales expenses to gains on sale (rounded down to the second decimal place).
Malaysian tax system
| Tax items | Detailed explanation |
|---|---|
| income tax | When the purchased property is rented and income gain is generated ・Non-residents (staying for less than 182 days per year): “28% flat taxation” ・Residents (staying for 182 days or more per year): “0 to 26 % Progressive Taxation” |
| Resident tax | none |
| Real estate transfer tax | When a capital gain (gain on transfer) is generated by selling the purchased property (for foreigners) ・Within 5 years of ownership, ``30%'' against the gain on transfer ・From the 6th year of ownership, ``10%'' * separate taxation |
| inheritance tax | none |
| gift tax | none |
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