While you can invest in properties in the UK and other Western countries, many investors are now looking overseas for new opportunities. That’s because real estate markets in many countries are booming, pushing up the long-run expected returns from investment.
One such country grabbing the headlines at the moment is Malaysia. The country, which borders Singapore, is going through a period of house price appreciation because of the growing wealth and sophistication of its economy. And that’s having a big knock-on effect on house prices.
However, investors looking to plow money into properties in the country need to have their wits about them. The government charges something called the “real property gains tax” which works a little bit like regular capital gains tax in the UK.
Owners of properties have to pay a percentage of their capital gains to the government when they sell their houses.
Please note, though, that the actual scheme is a little more complicated than this, as the following infographic makes clear.
Taxes tend to be highest if you sell within the first five years, and then they drop off after that. You should also know that the rates that you pay will depend on whether you are a Malaysian citizen or permanent resident, a company, or a foreigner investing in property without any specific residential status.
If you’d like to know more about real estate capital gains tax in the country, then please take a look at the following infographic. It sets out in detail how much you can expect to pay when you come to sell.
By PropertyGuru Largest Property Portal in Malaysia