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24 Feb. 2021. Those of you that keep pace with the financial world will know that Malaysia is a hot commodity right now. The real estate market is thriving, offering investors many opportunities to acquire foreign properties and generate lots of profits. Generally, property investments are a wise choice, yet they become even more beneficial when done in overseas markets that offer many unique advantages for the buyer.
With that being said, there are things to understand about Malaysia’s property market, mainly relating to taxes and selling your properties. Market prices are on the rise, meaning many Malaysian investors will buy properties and attempt to flip them for a profit. Ironically, this might not be a wise decision, particularly if you are a foreign investor in this market.
The following infographic by PropertyGuru will explain why you need to be wary when selling a property in Malaysia. All house sales are subjected to Real Property Gains Tax (RPGT), which has different rates for different investors. As a foreign property owner, you will have a 30% tax slapped onto the sale of your property, if you have only owned it for 1-5 years. However, you’re only taxed on the profits you make – if you don’t make a profit, this tax doesn’t come into play. Nevertheless, it’s a huge thing to consider as it can eat into how much you earn from the sale. You can find more data on the infographic itself, which explains the various rates for different people or companies, as well as how the tax changes when you’ve owned the property for over 5 years.
Check it out here.
Infographic designed by: PropertyGuru Group
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