Generally foreigners purchasing properties in Malaysia have to obtain:-

Under the new FIC ruling which came into effect on 1st November 2006, a foreigner no longer requires any approval from the FIC for his purchase of any residential properties of more than RM250,000/-. Ancillary to the same ruling, there is no limit as to the number of residential properties he may purchase nor is there a limit on the use of such residential properties (ie for investment or self occupation). Notwithstanding the new FIC ruling, a foreigner purchasing a residential property is still required by law to apply and obtain the consent from the State Authority.

Acquisition under Malaysia My Second Home program shall be exempted from the need to apply for the approval of the FIC, though such participants will also be required to apply and obtain the consent from the State Authority.

Under the FIC Guidelines, foreigners are further allowed to acquire commercial properties of not less than RM150,000/- subject to the formality of applying and obtaining the approval of the FIC. FIC will generally grant its approval for acquisitions of commercial properties not exceeding RM10 million without any restrictive or adverse conditions.

Aside from the approval of the FIC, a foreigner will still have to apply and obtain the consent of the relevant State Authority, who has jurisdiction over land matters. The State Authority has the discretion to consider acquisitions by foreigners, taking into account the area or location of the property, types of property and the percentage of the foreign ownership of the total units comprised in a particular project. Generally the State Authority will grant its consent if the FIC has given its approval to the acquisition.

**For further information visit the website http://www.epu.jpm.my or contact us.**