KUALA LUMPUR (Oct 16): Putrajaya’s 4% stamp duty on foreign buyers could offset the positive impact of a relaxation of conditions for the Malaysia My Second Home (MM2H) participants.
According to a New Straits Times report, Maybank Investment Bank (IB) research noted that while a less stringent MM2H “should benefit the domestic property industry in both the rental market and property demand, the imposition of a flat 4% stamp duty on foreign buyers, could result in a 63% increase in stamp duty fees for a property priced at RM1.1m/unit”.
During the Budget 2024 announcement on Friday, Prime Minister Anwar Ibrahim said the government had agreed to relax the conditions for MM2H applications, which is expected to increase investment activities in the Malaysian financial market and the country’s real estate industry.
In a reaction to the same issue, REHDA Malaysia on Friday also expressed “concerns over plans to introduce a 4% flat rate for the stamp duty on memorandum of transfers on purchases by foreign individuals and companies. Although the number of foreign ownerships in Malaysia is negligible, this may discourage homeownership and MM2H to those looking into migrating to Malaysia in the future.”
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Source: EdgeProp.my
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