Foreigners looking to buy either a commercial or residential property in the Malaysian state of Johor will have to pay an extra tax on their properties by early next year it was revealed yesterday.
Speaking at the launch of a new green housing initiative, Johor’s State Housing and Local Government Committee chairman Datuk Abdul Latiff Bandi told reporters that in the coming months foreigners will be imposed a 4 to 5 per cent tax based on the value of a property.
Currently overseas buyers in Johor are subject to a one-off MYR10,000 (approximately £1,950) levy regardless of the price of the property, but Latiff Bandi believes further measures are necesarry to keep property prices in the state under control.
“For instance, foreigners buying a property worth MYR5 million, only have to pay only MYR10,000 as processing fee. From next year, they have to pay based on the property value,” he said.
The chairman also revealed that proceeds from the new taxes will be used for further housing projects and programmes towards Johor’s development.