Yap Mun Loong wrote in and asked on the following:
I need to know if 3% levy is applicable for foreigner purchasing Property in Penang. When do the foreigners have to make payment? Upon signing S&P? If possible, could you please advice what are other charges that might be possible to be imposed on foreigners purchasing property in Malaysia. I.e. State consent 10k and 3% levy.
Yes, for foreigner to purchase a property in Penang he is required to pay a standard 3% levy (calculated on the purchase price). Such levy shall be paid within 30 days from the date of consent letter issued by the State Authority.
Further, for application of State Authority’s consent, the foreigner shall pay an application fees of RM10,000.00 (for individual) or RM20,000.00 (for company), as the case may be.
Apart from fees relating to State Authority’s consent, the purchaser is also required to pay such other fees and stamp duties associated with purchasing a property in Peninsular Malaysia, e.g. legal fees and stamp duties for sale and purchase agreement, instrument of transfer, loan documents, etc.