A 4% stamp duty on foreign buyers may counterbalance the benefits of relaxed MM2H rules, affecting the property market.
KUALA LUMPUR, 16th Oct 2023 – The 4% stamp duty imposed on foreign buyers by Putrajaya might negate the positive effects of relaxing the Malaysia My Second Home (MM2H) participant conditions.
Maybank Investment Bank (IB) research points out that while the more lenient MM2H requirements should boost the local property market, the flat 4% stamp duty on foreign buyers could result in a substantial 63% increase in stamp duty fees for properties priced at RM1.1 million per unit.
During the Budget 2024 announcement, Prime Minister Anwar Ibrahim stated that the government would ease MM2H application conditions, expecting increased investments in Malaysia’s financial market and real estate sector.
In response, REHDA Malaysia expressed concerns about introducing a 4% flat stamp duty rate for foreign individuals and companies in memorandum of transfers for property purchases. Although foreign ownership in Malaysia is minimal, this move may discourage homeownership and future MM2H participants considering relocating to Malaysia.