Foreigner invest in Iskandar

New Rulings for Foreigners Investing in Iskandar Malaysia

Iskandar development have gained significant traction in term of progress in the last couple of years.

The commitment, effort, and investment show by the government are real and genuine, which will further assure investors that investing in Iskandar property are safe and potentially profitable.

In one of the efforts to make the real estate market in Iskandar to be more sustainable and continue to grow, government introduce a slew of new measures, many will be implemented from 1 May 2014, to stable and sustain the market.

Here are some of the measures applicable for foreigners who intend to invest in Iskandar property:

Foreign Johor Property Ownership Guideline Effective 1/5/2014:

Purchasing Commercial properties min RM 1,000,000

Leasing agriculture land min RM 1,000,000 or min size 15 acre, whichever is higher for the following purposes:
- Commercial agriculture activity using modern & high tech technology
- Agriculture-Tourism Activity
- Agriculture activity or related industry to produce export goods

Maximum leasing tenure is 30 years- Purchasing industrial land min RM 1,000,000

Purchasing residential properties whether new or sub sales min RM 1,000,000

Transfer ownership to other foreign owner due to love & affection to next of kin only (Spouse, blood relationship – grandfather, grandmother, father, mother and children, god-son registered under JPN)
- Consent charges RM 1,000 per ownership.
- If application is being declined, then buyer can appeal by paying RM 2,000 per ownership.
- Once approved, the Buyer has to pay:
  - 2% of stamped SPA price or RM 20,000 whichever is higher.
  - Buyer had to pay the state levy within 30 days from consent approval letter date.
  - Upon expiry of the 30 days, buyer can extend the payment of the state levy charges by paying RM to 1,000 as fine per ownership.
  - To apply for extension to pay the state levy, application had it be made prior to the expiry of the consent approval letter date with payment of RM 1,000 per ownership to be extended for 1 year.

For consent of ownership up to RM 10 million which is residential, building, commercial and leasehold agriculture land, apply to Director or Deputy Director of land & mines.

For consent of ownership more than RM 10 million including future development land, apply to state authority which is Johor Menteri Besar.

For Subsale properties:
- Foreigners can buy from any foreigners.
- Foreigners buying from Malaysian or Malaysia companies, application to be consider case to case basis.
- Subsale property value will be based on JPPH and not based on the SPA price.
- For Bumi Lot: Foreigner can buy bumi quota unit only after developer had receive approval from state authority that those bumi quota units become international units
- Foreigner buying bumi Subsale unit must apply consent to state authority for approval

Foreigners are prohibited to buy these properties:
- Properties (residential/commercial) under low cost or low medium cost category
- Terrace ( 1 & 1.5 sty)
- Shop-office (1 & 2 sty)
- Bumi quota units except those units converted to international lot
- Auction sales
- Malay reserved
- Stall or workshop
- Homestead agriculture land
- Properties zoned under Akta Warisan Kebangsaan 2005

MM2H programme:-
- Direct developer units only whereby the project had obtain approval from state authority
- Construction status must be min 50%
- Conditions:
  - Obtain approval from Immigration Dept
  - Bank savings min RM 150k
  - Monthly income RM 7k/pax or RM 10k/couple
  - For Age 50 above - require medical report from approved hospital
  - Have medical insurance protection in Malaysia

SPA stamped before 1/5/14 are exempted from this new guidelines but must submit application to state authority latest by 29/5/14.

New Rulings for Foreigners Investing in Iskandar Malaysia

Iskandar development have gained significant traction in term of progress in the last couple of years.

The commitment, effort, and investment show by the government are real and genuine, which will further assure investors that investing in Iskandar property are safe and potentially profitable.

In one of the efforts to make the real estate market in Iskandar to be more sustainable and continue to grow, government introduce a slew of new measures, many will be implemented from 1 May 2014, to stable and sustain the market.

Here are some of the measures applicable for foreigners who intend to invest in Iskandar property:

Foreign Johor Property Ownership Guideline Effective 1/5/2014:

Purchasing Commercial properties min RM 1,000,000

​

Leasing agriculture land min RM 1,000,000 or min size 15 acre, whichever is higher for the following purposes:

Commercial agriculture activity using modern & high tech technology

Agriculture-Tourism Activity

Agriculture activity or related industry to produce export goods

Maximum leasing tenure is 30 years- Purchasing industrial land min RM 1,000,000

​

Purchasing residential properties whether new or sub sales min RM 1,000,000

​

Transfer ownership to other foreign owner due to love & affection to next of kin only (Spouse, blood relationship – grandfather, grandmother, father, mother and children, god-son registered under JPN)

Consent charges RM 1,000 per ownership.

If application is being declined, then buyer can appeal by paying RM 2,000 per ownership.

Once approved, the Buyer has to pay:

2% of stamped SPA price or RM 20,000 whichever is higher.

Buyer had to pay the state levy within 30 days from consent approval letter date.

Upon expiry of the 30 days, buyer can extend the payment of the state levy charges by paying RM to 1,000 as fine per ownership.

To apply for extension to pay the state levy, application had it be made prior to the expiry of the consent approval letter date with payment of RM 1,000 per ownership to be extended for 1 year.

For consent of ownership up to RM 10 million which is residential, building, commercial and leasehold agriculture land, apply to Director or Deputy Director of land & mines.

​

For consent of ownership more than RM 10 million including future development land, apply to state authority which is Johor Menteri Besar.

For Subsale properties:

Foreigners can buy from any foreigners.

Foreigners buying from Malaysian or Malaysia companies, application to be consider case to case basis.

Subsale property value will be based on JPPH and not based on the SPA price.

For Bumi Lot: Foreigner can buy bumi quota unit only after developer had receive approval from state authority that those bumi quota units become international units

Foreigner buying bumi Subsale unit must apply consent to state authority for approval

​

Foreigners are prohibited to buy these properties:

Properties (residential/commercial) under low cost or low medium cost category

Terrace ( 1 & 1.5 sty)

Shop-office (1 & 2 sty)

Bumi quota units except those units converted to international lot

Auction sales

Malay reserved

Stall or workshop

Homestead agriculture land

Properties zoned under Akta Warisan Kebangsaan 2005

​

MM2H programme:-

Direct developer units only whereby the project had obtain approval from state authority

Construction status must be min 50%

Conditions:

Obtain approval from Immigration Dept

Bank savings min RM 150k

Monthly income RM 7k/pax or RM 10k/couple

For Age 50 above - require medical report from approved hospital

Have medical insurance protection in Malaysia

​​​

SPA stamped before 1/5/14 are exempted from this new guidelines but must submit application to state authority latest by 29/5/14.