Can Foreigner Own Immovable Property In Sarawak?
Q: Who is classified as a “foreigner”?
A: As defined under the Sarawak Land Code, a foreigner is: –
a) any person who is not a Malaysian citizen and not permanently resident in Sarawak;
b) any foreign company, corporation, society, association or other body which is not registered in Malaysia under any written law applicable thereto; or
c) any person or body corporate which is a trustee under a trust any beneficiary of which is:
• a person who is not a Malaysian citizen and not permanently resident in Sarawak;
• a foreign company, corporation, society, association or other body which is not registered in Malaysia under any written law applicable thereto
In simpler terms, if someone doesn’t meet these conditions, they would be considered a foreigner under Sarawak’s land laws
Q: Can a foreigner own property in Sarawak?
A: Generally, according to Section 13A of the Sarawak Land Code, foreigners are not allowed/prohibited to own land in Sarawak.
Q: Can a foreigner buy low-cost and low-cost plus land, vacant land, landed commercial properties, or properties reserved for natives in Sarawak?
A: No, foreigners are generally not allowed to own land in Sarawak under Section 13A of the Sarawak Land Code. This means they cannot buy low-cost and low-cost plus residential properties, vacant land, landed commercial properties, or any land reserved for the natives.
In addition, non-Sarawakians and non-natives of Sarawak are also prohibited from buying native land, which includes Native Customary Land (NCL), Native Area Land (NAL), and Interior Area Land (IAL), as stated under Section 8(a) of the Sarawak Land Code. These rules help protect the cultural heritage and ancestral lands of the indigenous communities.
Q: Can a foreigner buy high-rise property in Sarawak?
A: Yes, foreigners can buy high-rise properties like apartments and condominiums in Sarawak, according to Section 13(E)(2)(b) of the Sarawak Land Code.
Additionally, under Section 13E (2) of the Sarawak Land Code, foreigners (including foreign companies or corporations) can own:
a. Land within special areas where foreign ownership is allowed.
b. Individual units in buildings that are divided under the Strata Titles Ordinance 1995 (such as apartments or condominiums).
c. Land with a building meant for residential use, as long as the property’s value meets the minimum amount set by the government.
Q: Can a foreigner buy landed property in Sarawak?
A: Yes, a foreigner can buy landed property in Sarawak under Section 13(E)(2)(c) of the Sarawak Land Code.
However, the land’s market value must meet the minimum requirements set by the government. According to the Land (Market Value of Property for Foreign Acquisition) (Amendment) Direction 2019, the property must be worth at least RM500,000 (outside Kuching) or RM600,000 (within the Kuching division).
This rule also applies to foreigners buying residential properties through the “Sarawak-Malaysia My 2nd Home” (S-MM2H) program. Foreigners are only allowed to purchase properties in their own names and cannot buy jointly with a Malaysian citizen, including their spouse, child, relative, or friend.
Q: What is the process for non-Sarawakians to acquire property in Sarawak?
A: Non-Sarawakians need to get approval from the Minister or State Planning Authority before they can buy property in Sarawak. To do this, they must submit a detailed proposal explaining why they want to buy the land. For the details of proposal, consult us.
Q: How much stamp duty will foreigners pay when buying property?
A: All property purchases in Malaysia, including Sarawak, are subject to stamp duty when the Sale and Purchase Agreement (SPA) is stamped. For the rate of stamp duty, consult us.
If you have any questions or require any additional information, please contact our lawyer that you usually deal with.