Johor's Bold Move on Property Levies

In a significant turn of events, the Johor state government has unveiled plans to raise the property purchase levy for foreign investors from 2% to 3%. This change, announced by Menteri Besar Onn Hafiz Ghazi, aims to enhance land administration and facilitate essential upgrades within the system.

First Increase Since 2014

This proposed adjustment represents the first revision of the levy since its inception in 2014, coinciding with a sweeping reform of the Johor Land and Mines Office (PTG). The goal? To boost efficiency and transparency in all land transactions.

Details of the New Levy Structure

Currently, the minimum tax for foreign property buyers stands at RM20,000 (around S$6,000). Under the new proposal, that minimum will climb to RM30,000 (approximately S$9,000). Onn Hafiz stressed that these adjustments are essential for covering operational costs and improving services for both the public and investors.

Additional Fees on Higher-Value Properties

Moreover, changes are set to target land transfer registration fees, particularly for properties valued over RM500,000. An extra RM500 will now apply for every additional RM100,000 in property value, ensuring that the fee structure evolves alongside market realities.

Unchanged for Nearly a Decade

With the current levy and land transfer fees remaining unchanged since 2014 and 2004 respectively, these proposed revisions signal a much-needed update in the urban landscape's economic framework.

Collaboration for Fairness

According to Onn Hafiz, the revisions were crafted in consultation with stakeholders, including the Johor Real Estate and Housing Developers Association and the Johor Bar Committee, ensuring that the adjustments are fair and justifiable.

A Vision for the Future

Set to be fully implemented by July 31, 2025, the reforms within PTG strive to redefine land administrative practices, potentially reshaping the property market in Johor for years to come. Stay tuned as these developments unfold and impact foreign investment in the region!