Expatriate Forums in Malaysia

Quick question ---what happens if i buy a home in malaysia and sell it after a few years because i wish to return to my country of origin? What are the tax implications and is it easy to get the money out of the country?

You will only be taxed if you have capital gains.
The tax on the gain will be minimal if you hold the property for at least 5 years.
Under MMSH you have to notify FIC first though you do not need to get FIC's permission now to purchase a property and when you sell it you still have to notify FIC first. Your lawyer will do thaat for you.
If done according to procedures then getting the money out of the country will not pose a problem when FIC is notified.

Again rules may change at any time and usually for the better for MMSH applicants

penny wrote:You will only be taxed if you have capital gains.
The tax on the gain will be minimal if you hold the property for at least 5 years.
Under MMSH you have to notify FIC first though you do not need to get FIC's permission now to purchase a property and when you sell it you still have to notify FIC first. Your lawyer will do thaat for you.
If done according to procedures then getting the money out of the country will not pose a problem when FIC is notified.

Again rules may change at any time and usually for the better for MMSH applicants

So, with new MM2H rule, you have wait for 10 years to sale your house to get the minimal tax gain ???

samnguyen wrote:

penny wrote:You will only be taxed if you have capital gains.
The tax on the gain will be minimal if you hold the property for at least 5 years.
Under MMSH you have to notify FIC first though you do not need to get FIC's permission now to purchase a property and when you sell it you still have to notify FIC first. Your lawyer will do thaat for you.
If done according to procedures then getting the money out of the country will not pose a problem when FIC is notified.

Again rules may change at any time and usually for the better for MMSH applicants

So, with new MM2H rule, you have wait for 10 years to sale your house to get the minimal tax gain ???

No,the five yr time period has nothing to do the MMSH. It's the tax system they have here and happens to be 5 yrs. For locals they are tax -free if they sell after holding a property for 5 yrs. I think it's a clause to prevent people from causing chaos in the property market like in HK where the turn over is tremendous. So this way it keeps the property market more stable in general.

So alwyas read the news etc to follow up any changes.

Thank, Penny