Rental Income for a a foreigner

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Member since 05 July 2013

retro33Member05 July 2013 01:26:40

Hello Everyone,

I currently live in the United States. I am considering buying a FREEHOLD home in Tawau, and would like to eventually retire there.

I know that foreigners that own property are taxed...heavily for rental income.

but I was wondering If I I owned a freehold house in Tawau could I rent out the home and claim the income as a business source?

Thanks!

retro33 Member

Member since 05 July 2013

retro33Member05 July 2013 04:06:56

Completely irrelevant to my post....

David ViP

Member since 29 January 2013

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DavidViP05 July 2013 12:15:44

9410

Hi retro33,

Welcome to expat-blog!

Regards,

David.

Gravitas ViP

Member since 02 March 2011

GravitasViP26 August 2013 03:58:31

9040

Rental income derived from the property is taxable, as a non-resident individual buyer, the taxable rental income is subject to a flat rate of 28%.

In the case of a company owning the property, the allowable deduction rate is 25%*. If the company owns more than three properties, it is then entitled to full deduction on property-related expenses against the rental income.

* House Buyers Association

Setting up a company can either be onshore or offshore:

Onshore company formation
http://malaysiabizadvisory.com/incorpor … y-sdn-bhd/

Offshore company formation
http://labuanfsa.gov.my/web/guest/about … -companies

MM2H - Property ownership
http://migratemalaysia.com/

Current minimum price level to purchase is RM500k - RM1m depending on in which Malaysian State the property is purchased.

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