Comparison Labuan Company and Malaysia Sdn Bhd for Property Investment

Interested to invest in Malaysia’s property but not sure which is the best vehicle to use? The following is the comparison between the Labuan Company and local Malaysia Sdn Bhd Company for Property Investment for your better understanding. Foreigners only have two options between these two vehicles to use.

DescriptionLabuan CompanyMalaysian Sdn Bhd Company
Clearly, between both, Property Investment registered under local Sdn Bhd company is a better choice!
Investment HoldingZero tax with management accountRequires audit report
Capital Paid-upMin. USD1.00Min. RM1.00
Ownership as Director and ShareholderA single person as Director and ShareholderA single person as Director and Shareholder
Yearly maintenanceAuthority and Secretary fee-USD 2,200 (approx)Secretary, Tax Agent – USD 1,500 to USD 1,800 (approx)
Work Visa2 years’ renewal for the whole family(children under 21 years)Not eligible
RentalRental income received from Malaysia real estate will draw 66% corporate tax (latest Labuan law 2019)Rental income as an investment holding solely for real estate will be 17% for net profit no more than RM500,000 for paid-up capital below RM 2.5 mil
Bank AccountLocal RM and all foreign currencies of your choiceLocal RM and all foreign currencies of your choice
Minimum Price of Property (Kuala Lumpur)RM 1 millionRM 1 million
Director Fee RemunerationNo personal tax for all foreign directors receiving a feeAll directors’ income subject to a personal tax of 0- 28% (depends on resident status)
Work Permit2 years’ visa multiple entries for family membersNo eligible

We are part of TRICOR GROUP (www.TricorGlobal.com), to set up local Malaysia Sdn Bhd company, we provide comprehensive solutions from setting up right up to annual maintenance services such as tax return, audit, and accounting. We can also help to structure the set up with the inclusion of Labuan company for your future easy buy-out. Send us an email at Tricor.klmo@my.tricorglobal.com or call +603 2783 9191 (Labuan Division) for advice on how to structure the right vehicle for your property investment in Malaysia!

    Name

    Email

    Nationality

    Product/Services You Intend to Sell

    Target Market
    Malaysia OnlyWorldwide

    Capital Amount

    Company Structure (present or intended)
    100% Foreign-OwnedJoint-Venture with Malaysian

    Do You Intend to Set Up Physical Office/Shop in Malaysia?
    YesNo

    Do You or Your company Require Expatriate Visas?
    YesNo

    Other Info You Need Us To Know

    My contact number in Malaysia:

    Foreigners are known to be interested in buying up properties in Malaysia. Most investors use either a local Malaysia Sdn Bhd (Private Limited) company or their own individual name for this purpose. However, for foreign investors who are interested in bulk buying properties in Malaysia (ideally USD 10 million and above) for investment purposes, may want to consider setting up a 100% self-owned property fund structure with a Labuan Company, rather than using a local Malaysia Sdn Bhd or individual name. It is advisable for each investor to find what is the best possible way of investing in Malaysia property in detail for themselves.

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