How to Buy Property in Penang Under the MM2H Programme: A Complete Guide for Foreigners

If you’re a foreigner looking to buy property in Penang through the Malaysia My Second Home (MM2H) programme, the latest version, MM2H 3.0, offers a clear path but comes with specific conditions based on your financial tier.

To start, you need to be an approved MM2H participant. The new MM2H programme now operates on a three-tier system: Silver, Gold, and Platinum. The Silver tier requires you to maintain a fixed deposit of USD150,000 and allows you to purchase property valued at RM600,000 or more. In the Gold tier, your fixed deposit must be USD500,000, and your property purchase needs to be at least RM1 million in value. The Platinum tier, meant for high-net-worth individuals, requires a fixed deposit of USD1 million and permits property purchases valued at RM2 million or higher. Once you purchase a property, you are required to hold onto it for a minimum of ten years unless you're upgrading to a more expensive property.

 

Once you’re approved for MM2H, the first step is to find a property in Penang that fits your budget and meets the programme’s criteria. Penang offers a range of properties, from beachfront condos to luxury bungalows. If you’re in the Silver tier, you’ll likely be looking at mid-range condos or smaller landed homes around the RM600,000 range. Gold tier applicants, with RM1 million or more, can aim for premium condominiums or larger landed homes in sought-after areas like Gurney Drive or Tanjung Bungah. For Platinum tier applicants, you’ll have access to some of Penang’s most exclusive properties, including sprawling bungalows and prime real estate in upscale neighbourhoods.

Once you find a property that fits, the next step is to make an offer. MM2H participants can either buy property outright with cash or seek financing through local banks. Note that Platinum tier participants have the added advantage of being allowed to work and invest in businesses in Malaysia, which could provide greater financial flexibility.

When purchasing property, it’s important to appoint a local lawyer to handle the legal aspects of the transaction. Your lawyer will assist with preparing the Sale and Purchase Agreement (SPA), conducting due diligence, and ensuring that everything is in line with Malaysian legal requirements. One of the unique benefits for MM2H participants is the ability to withdraw up to 50% of your fixed deposit to use toward property purchases, as long as the funds are strictly used for that purpose, or for education, healthcare, or tourism within Malaysia.

Bear in mind, when buying property, there are additional costs to consider. Stamp duty, for instance, can range from 1% to 4% depending on the property’s value. Other costs include legal fees and administrative charges, which your lawyer will help you navigate.

Once you’ve purchased your property and secured your MM2H pass, you must meet the programme’s residency requirements. Either you or your dependants are required to stay in Malaysia for at least 90 days per year to maintain your eligibility.

The MM2H programme also offers several attractive benefits, including tax exemptions on funds brought into the country for property purchases. Additionally, as a participant, you’ll have access to Malaysia’s robust healthcare system and various education benefits. For those in the Platinum tier, there are even more perks, as you’re allowed to work and invest in businesses while enjoying your new life in Penang.

All in all, the MM2H programme makes it possible for foreigners to settle in Penang with ease, provided they meet the financial and residency requirements. Penang, with its vibrant culture, stunning landscapes, and booming property market, offers an ideal second home for those looking to enjoy both a relaxed lifestyle and long-term investment opportunities.

 

 

 

About Author: Ooh Pei Hoon is a leading real estate expert (REN02077) in Penang, known for her deep knowledge of the local property market. With 10+ years of experience, she has helped countless clients buy, sell, and invest in properties, always delivering exceptional results with a client-first approach.