How Foreigners Buy Property in Malaysia 2026: 7 Steps
Property Lab editorial teamPublished 12 min read
Key points
- As at October 2026, foreigners buying a home in Malaysia must pay at least the state minimum price: RM1 million in Kuala Lumpur and Johor, RM2 million in Selangor Zone 1.
- From 1 January 2026, non-citizens who are not permanent residents pay a flat 8% stamp duty on residential transfers in Malaysia, or RM80,000 on a RM1 million condo.
- Every foreign purchase of Malaysian land needs prior State Authority consent under section 433B of the National Land Code; a dealing made without it is void.
Contents
- How to buy property in Malaysia as a foreigner: the 7 steps
- Step 1: Check what foreigners may buy and the state minimum price
- Step 2: Set the budget, including the 8% stamp duty
- Step 3: Arrange a home loan or show the cash
- Step 4: Choose the property and check the title
- Step 5: Pay the deposit and sign the SPA
- Step 6: Get State Authority consent
- Step 7: Complete the transfer, collect the keys and own the home
- Frequently Asked Questions
- References
Foreigners can buy property in Malaysia in 7 steps: check the state rules, budget for all costs, arrange the money, check the title, sign the SPA, get State Authority consent and complete the transfer. As at October 2026, most states set a RM1 million minimum (RM2 million in central Selangor), and non-citizens pay a flat 8% stamp duty on homes.
Yes. A foreigner can own a home in Malaysia above the state minimum price, but not on Malay Reserve Land or in Bumiputera or low-cost units, and only after the State Authority approves under section 433B of the National Land Code.
Key numbers (as at October 2026)
- Kuala Lumpur minimumRM1 million
- Selangor Zone 1 minimumRM2 million
- Stamp duty, non-citizens8% flat
- Legal fee, RM1m SPARM11,250
- RPGT, sale in years 1–530%
- RPGT from year 610%
Also called: harga minimum warga asing (minimum price for foreigners); kebenaran Pihak Berkuasa Negeri (PBN consent, state consent); SPA (perjanjian jual beli); MOT (memorandum of transfer, Form 14A); Tanah Rizab Melayu (Malay Reserve Land).
How to buy property in Malaysia as a foreigner: the 7 steps
- Check eligibility: confirm the state floor, banned types and landed rules.
- Budget for every cost: add 8% transfer duty, legal fees, service tax and consent costs.
- Line up the money: get a bank offer early, or plan to pay cash.
- Verify the unit: run a land search, read tenure and title type, check the developer's licence.
- Sign the agreement: pay the deposit and sign an SPA conditional on approval.
- Obtain state approval: your lawyer applies; you pay any state fee or levy.
- Complete and own it: pay the balance, register the transfer, collect the keys, then keep up the bills and taxes.
Step 1: Check what foreigners may buy and the state minimum price
In Malaysia, a foreigner may buy a home only at or above the minimum price set by each state, and each purchase needs the State Authority's prior approval under section 433B of the National Land Code.
The Malaysian Bar's Circular No 444/2024 says the federal guideline bars foreign interests from four things: property under RM1,000,000 per unit, low and low-medium cost homes, Malay Reserve Land, and units allocated to Bumiputera buyers. States add their own floors.
| State | Strata (RM) | Landed (RM) | Main extra rule |
|---|---|---|---|
| KL, Putrajaya, Labuan | 1,000,000 | Same | None listed |
| Selangor Zone 1 | 2,000,000 | Landed strata only | No individual titles |
| Selangor Zone 3 | 1,000,000 | Landed strata only | No individual titles |
| Penang Island* | 1,000,000 | 3,000,000 | Levy on approval |
| Penang mainland* | 500,000 | 1,000,000 | Levy on approval |
| Johor | 1,000,000 | Same | No 1–1½ storey terraces |
| Melaka | 500,000 | 1,000,000 | 2 units, 5-yr hold |
| Negeri Sembilan | 600,000–650,000 | 1,000,000 | Sources differ |
| Pahang | 1,000,000 | Same | Levy, EXCO approval |
| Sarawak | 500,000–600,000 | Same | Sources differ |
* Penang figures are for subsale homes; all figures are residential.
Bar Council table "as at October 2024", cross-checked against a PropCashflow state guide updated 29 March 2026. Selangor Zone 1: Petaling, Gombak, Hulu Langat, Sepang, Klang; Zone 3: Hulu Selangor, Sabak Bernam. Penang's lower developer-unit prices covered 2024 SPAs only. Perak sets prices by zone and, since September 2023, does not let foreigners own freehold property. Confirm the current figure with your lawyer.
The same Bar table puts auction properties off limits in Selangor, Penang, Negeri Sembilan and Melaka. Meeting the floor does not guarantee approval.
In NAPIC's Q2 2026 price table, the median Kuala Lumpur condominium or apartment sold for RM510,000, and three in four of the 523 recorded sales were at RM940,000 or less, under the RM1 million floor. For every state, see our Minimum Property Price for Foreigners in Malaysia 2026 guide.
Step 2: Set the budget, including the 8% stamp duty
From 1 January 2026, a non-citizen who is not a permanent resident pays stamp duty of RM8 for every RM100 on the transfer of residential property in Malaysia, under Item 32(ab) of the Stamp Act 1949, as set out in LHDN's stamp duty guideline (30 June 2026).
Non-residential property stays at RM4 per RM100 (Item 32(aa)), and duty is charged on the higher of price and market value. Illustrative costs on a RM1,000,000 Kuala Lumpur condo (worked out in Python):
| Item | Cash buyer | With a loan |
|---|---|---|
| Transfer stamp duty, 8% | RM80,000 | Same |
| SPA legal fee (SRO 2023) | RM11,250 | Same |
| Consent application fee | RM500 | Same |
| Loan stamp duty, 0.5% | – | RM3,500 |
| Loan legal fee (SRO 2023) | – | RM8,250 |
| 8% service tax on fees | RM940 | RM1,600 |
| Total before deposit | RM92,690 | RM105,100 |
The loan column assumes a RM700,000 (70%) loan, not a bank offer. Legal fees follow the Solicitors' Remuneration Order 2023 for Peninsular Malaysia (1.25% on the first RM500,000, then 1%); the lawyer's fee for a consent application is RM500 up to RM1,000,000 and RM3,000 above. Service tax on legal services is 8% from 1 March 2024. Excludes the state's consent fee or levy, valuation and disbursements. A Malaysian citizen would pay RM24,000 transfer duty on the same home.
With that loan, the cash needed is the RM300,000 down payment plus RM105,100, or RM405,100. PropCashflow's March 2026 guide estimates the KL state consent fee at RM8,000 to RM12,000, an unofficial figure. See our Cost of Buying a House in Malaysia 2026 guide.
Step 3: Arrange a home loan or show the cash
Malaysian banks can lend to foreign buyers, but each bank sets its own margin of financing for non-citizens, so get an offer before you sign an SPA.
- Margin: CIMB's MM2H home financing offers up to 85% (including insurance, legal and valuation fees) on completed homes to MM2H participants with a CIMB fixed deposit. Other margins vary by bank.
- Third loan: Bank Negara caps a borrower's third housing loan at 70% loan-to-value.
- Bank value: banks lend on the lower of the price and the open market value (Hong Leong Bank's loan FAQ).
- DSR: monthly debt repayments divided by net income; CIMB's guide calls above 70% critical.
CIMB asks foreign applicants for a passport valid for six months or more, the SPA or booking form and income proof such as three months' salary slips. Law firm Donovan & Ho warns that foreigners' loan applications often take longer. If a bank declines, see our Housing Loan Rejected in Malaysia guide.
Step 4: Choose the property and check the title
Before paying a deposit on a Malaysian property, get a land search that shows the registered owner, tenure, charges, caveats and any restriction in interest on the title.
- Search: National Land Code section 384 allows a private search; section 385 gives a sealed official search certificate.
- Tenure: a freehold title reads "selama-lamanya"; a leasehold title shows the expiry date of the lease, usually 99 years (Low & Partners). In Perak, foreigners may buy leasehold only.
- Title type: for a unit without a strata title, Donovan & Ho says developer confirmation is also needed.
- New projects: section 5 of the Housing Development (Control and Licensing) Act 1966 requires a licence for housing development, so ask to see it.
See our How to Check Land Ownership in Malaysia guide for each state's search fees.
Step 5: Pay the deposit and sign the SPA
A subsale purchase in Malaysia usually starts with a 2% to 3% earnest deposit on the offer letter, topped up to 10% of the price when the SPA is signed, according to a Donovan & Ho guide for foreign buyers (July 2020).
- Subsale timing: 14 to 21 days to sign the SPA; legal fees and stamp duty are paid upfront; the 3-month completion period usually starts after state consent is granted.
- Consent clause: make the SPA conditional on state consent; PropCashflow says the deposit is then refundable if consent is refused.
- New project: the standard Schedule G (landed) or H (strata) SPA takes 10% on signing, with vacant possession due within 24 or 36 months.
- No power of attorney: section 433F makes a deed signed by a non-citizen under a power of attorney void.
Get your own lawyer to read the offer letter first. Donovan & Ho suggests making SPA signing "subject to you obtaining a loan approval in principle" to protect the earnest deposit.
Step 6: Get State Authority consent
This consent is the approval every non-citizen needs before a Malaysian property can be registered in their name, and a dealing made without it is void under section 433C of the National Land Code.
The Bar circular says the non-citizen applies in writing; in practice the conveyancing lawyer files it, for the SRO 2023 fee. The state may add its own fee, and the Bar table notes a levy on approval in states including Penang and Pahang. Donovan & Ho (2020) gave Johor's levy as 2% of the property value; ask for the current rate.
Donovan & Ho estimates consent adds 1 to 2 months or longer, depending on the state; PropCashflow suggests 3 to 4 months for Kuala Lumpur. Treat both as rough guides.
MM2H is a separate visa and does not lower the state floor: Silver, Gold and Platinum participants must buy homes of at least RM600,000, RM1,000,000 or RM2,000,000, says the MOTAC MM2H overview. See our MM2H and Buying Property in Malaysia 2026 guide.
Step 7: Complete the transfer, collect the keys and own the home
A foreigner's purchase in Malaysia completes when the balance is paid, the memorandum of transfer (Form 14A) is stamped at 8% and registered, and the title passes to the buyer on registration under section 215 of the National Land Code.
- Differential sum: you pay your lawyer the part the loan does not cover, usually within 2 weeks of the request.
- Loan release: the bank then settles the seller's loan, if any, and pays the rest to the seller's lawyers.
- Keys: on a subsale, the seller hands over keys and access cards once the balance and apportioned bills are paid; with a sitting tenant, you take legal possession as landlord (Donovan & Ho).
See our Memorandum of Transfer (MOT) in Malaysia 2026 guide.
After you buy: bills, rent and selling
- Quit rent and assessment: quit rent (cukai tanah) falls due on 1 January and is in arrears from 1 June under section 94(2) of the National Land Code; the council's assessment (cukai pintu) is payable half-yearly in advance.
- Renting it out: a non-resident individual is taxed at a flat 30% on Malaysian taxable income, including rent (PwC tax summaries, reviewed 16 June 2026).
- Selling later: under LHDN's RPGT table, a non-citizen pays 30% on a gain made within five years and 10% from the sixth year; the buyer retains 7% of the price and remits it to LHDN within 60 days.
Example (computed): a RM200,000 gain (RM1,000,000 to RM1,200,000, before costs and exemptions) costs RM60,000 in year five but RM20,000 in year six; the buyer holds back RM84,000. See our RPGT in Malaysia 2026 guide.
Frequently Asked Questions
Can foreigners buy property in Malaysia in 2026?
Yes, if the price meets the state floor, the unit is not a restricted type, and the State Authority consents before the transfer is registered.
Can foreigners buy landed property in Malaysia?
In most states, yes, often at a higher price: RM3 million for subsale landed homes on Penang Island. Selangor allows only strata-titled landed homes, Johor bars single and one-and-a-half storey terraces, and Perak allows leasehold only.
Can a foreigner get a home loan in Malaysia?
Yes, from some Malaysian banks, on their own terms. CIMB lends MM2H participants who hold a CIMB fixed deposit up to 85% on completed homes; other buyers should compare banks and apply early.
How much stamp duty does a foreigner pay on a house in Malaysia?
Eight per cent of the price or market value, whichever is higher, on homes transferred from 1 January 2026: RM80,000 on a RM1 million condo. Permanent residents pay the citizen scale.
What is the minimum price for a foreigner in Kuala Lumpur?
RM1 million, the same as Putrajaya and Labuan in the Bar Council table. Ask your lawyer to confirm it, as floors can change.
How long does it take a foreigner to buy a house in Malaysia?
About five to six months for a typical subsale, in one law firm's estimate, because state consent comes before the usual three-month completion period.
Do I need MM2H to buy property in Malaysia?
No. MM2H is a long-stay pass that the land law does not require; buyers without it face the same floor, consent and 8% duty.
What tax does a foreigner pay when selling property in Malaysia?
Real property gains tax of 30% on the gain within five years of buying and 10% after that. The buyer must keep back 7% of the sale price for LHDN.
References
- Malaysian Bar: Circular No 444/2024, Restrictions in respect of non-citizens and foreign companies (23 December 2024)Used for sections 433B, 433C and 433F, the federal guideline, the state table (as at October 2024), levies and auction limits.
- PropCashflow: Minimum Property Price for Foreigners in Malaysia 2026 (updated 29 March 2026)Used to cross-check state floors, the consent fee estimate, the KL timing estimate and the conditional SPA.
- LHDN: Garis Panduan Pengenaan Duti Setem, First Schedule, Stamp Act 1949 (30 June 2026)Used for Items 32(a), 32(aa) and 32(ab).
- Donovan & Ho: Incidental costs of purchasing sub-sale property in MalaysiaUsed for the 0.5% loan agreement duty.
- Conventus Law: The Solicitors' Remuneration Order 2023 (15 September 2023)Used for the SPA and loan fee scales and the consent application fee.
- NST: SST 2 pct hike, here's what you need to know (February 2024)Used for 8% service tax on legal services from 1 March 2024.
- NAPIC: Residential Prices Quarterly Update, Q2 2026 (Excel)Used for the Kuala Lumpur condominium/apartment median and 75th percentile.
- CIMB: Malaysia My Second Home (MM2H) property financingUsed for the 85% margin, tenure, eligible homes and documents for foreign applicants.
- Bank Negara Malaysia: Measures in promoting a stable and sustainable property market (3 November 2010)Used for the 70% cap on a third housing loan.
- Hong Leong Bank: Loans FAQUsed for lending on the lower of price or market value.
- CIMB: Understanding DSR in MalaysiaUsed for the DSR formula and bands.
- Donovan & Ho: Cash flow and timing of sub-sale property purchase in Malaysia by foreigners (14 July 2020)Used for the deposit, SPA timing, consent delay, Johor levy example, loan release and the 5-6 month estimate.
- Donovan & Ho: Differences between buying an auction property vs secondary market propertyUsed for vacant possession and legal possession on a subsale.
- National Land Code, section 385 (official searches), LawPlayerUsed with section 384 (private searches) for the land search.
- National Land Code, section 215 (transfers), LawPlayerUsed for Form 14A and title passing on registration.
- Low & Partners: Land title searchUsed for what a title shows: owner, tenure, charges and caveats.
- Housing Development (Control and Licensing) Act 1966, section 5, LawPlayerUsed for the developer licence rule.
- mhub: Progress billing mechanics (last reviewed August 2026)Used for the 10% payable on signing a Schedule G or H SPA.
- PKNS legal note: time for delivery of vacant possession (PDF)Used for the 24-month (Schedule G) and 36-month (Schedule H) delivery periods.
- MOTAC: MM2H overview (last update 10 February 2026)Used for the MM2H home minimums.
- Conventus Law (Azmi & Associates): Non-payment of quit rent and assessment (April 2025)Used for the quit rent due date under section 94(2).
- Skrine (via Mondaq): Know your rights as a ratepayer (November 2018)Used for half-yearly assessment under section 133 of the Local Government Act 1976.
- PwC Worldwide Tax Summaries: Malaysia, taxes on personal income (reviewed 16 June 2026)Used for the 30% flat rate for non-resident individuals.
- LHDN: Real Property Gains Tax rates (updated 23 June 2026)Used for the Part III rates for non-citizens.
- LHDN: Retention and remittance by the acquirer (updated 25 May 2026)Used for the 7% retention and the 60-day deadline.
State floors, levies and tax rates change, so check the latest wording with LHDN, Bank Negara, the state land office (PTG) and your lawyer before you rely on a figure.
General information only, not legal, tax or financial advice. Every state decides foreign purchases at its discretion; confirm the current minimum price, consent fees and levies with a Malaysian conveyancing lawyer, and the loan terms with your bank, before you pay a deposit or sign.
Sources
- Circular No 444/2024: Restrictions in respect of non-citizens and foreign companies — Malaysian Bar
- Garis Panduan Pengenaan Duti Setem, First Schedule, Stamp Act 1949 (30 June 2026) — Lembaga Hasil Dalam Negeri Malaysia (LHDN)
- Real Property Gains Tax (RPGT) Rates — Lembaga Hasil Dalam Negeri Malaysia (LHDN)
- Measures in promoting a stable and sustainable property market — Bank Negara Malaysia
- The Solicitors' Remuneration Order 2023 — Conventus Law
- Cash flow and timing of sub-sale property purchase in Malaysia by foreigners — Donovan & Ho
General information only, not legal, tax or investment advice. Rules and rates change; check the official source linked below before you act.
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