Minimum Property Price for Foreigners in Malaysia 2026: Every State
Property Lab editorial teamPublished 8 min read
Contents
What is the minimum property price for foreigners in Malaysia in 2026? The national guideline is RM1 million per unit, but each state sets its own floor. Most states sit between RM500,000 and RM1 million, Selangor's main districts need RM2 million, and landed homes on Penang Island need RM3 million. Every purchase also needs state approval, and from 2026 foreigners pay a flat 8% stamp duty on homes.
Kuala Lumpur, Johor, Pahang, Terengganu and Kelantan: RM1 million. Selangor (Petaling, Klang, Sepang, Gombak, Hulu Langat): RM2 million, strata titles only.
Penang Island: RM1 million for condos, RM3 million for landed. Lower floors of RM500,000 apply to condos in Penang mainland, Melaka and Sarawak.
Can foreigners buy property in Malaysia?
Yes. Under section 433B of the National Land Code, non-citizens and foreign companies can buy land and buildings, but only with the prior approval of the State Authority. A transfer made without that approval is void.
On top of state approval, the federal guideline from the Ministry of Economy (formerly the EPU) sets four basic limits. Foreign buyers cannot acquire:
- Property valued at less than RM1,000,000 per unit, unless a state sets its own lower floor.
- Low-cost and low-medium-cost homes, as defined by the state.
- Property on Malay Reserved Land.
- Units set aside for Bumiputera buyers in a development.
In practice, the state rules decide what you can buy and at what price. That is why the floor differs so much from one state to the next.
Minimum property price for foreigners by state (2026)
The table compares the Malaysian Bar's state table (as at October 2024) with a state-by-state guide last updated in March 2026. Where the two differ, we show the range.
| State | Condo / strata (RM) | Landed (RM) |
|---|---|---|
| Kuala Lumpur, Putrajaya, Labuan | 1,000,000 | 1,000,000 |
| Selangor Zone 1 | 2,000,000 | Strata-titled only |
| Selangor Zone 2 | 2,000,000 | Strata-titled only |
| Selangor Zone 3 | 1,000,000 | Strata-titled only |
| Penang Island (subsale) | 1,000,000 | 3,000,000 |
| Penang mainland (subsale) | 500,000 | 1,000,000 |
| Johor | 1,000,000 | 1,000,000 |
| Negeri Sembilan | 600,000 – 650,000 | 1,000,000 |
| Melaka | 500,000 | 1,000,000 |
| Perak | By zone | By zone |
| Pahang | 1,000,000 | 1,000,000 |
| Terengganu | 1,000,000 | 1,000,000 |
| Kelantan | 1,000,000 | 1,000,000 |
| Kedah | 600,000 – 1,000,000 | 600,000 – 1,000,000 |
| Perlis | 500,000 – 1,000,000 | 500,000 – 1,000,000 |
| Sabah | 600,000 – 1,000,000 | 1,000,000 |
| Sarawak | 500,000 – 600,000 | 500,000 – 600,000 |
Residential property. Sources differ for Selangor Zone 2, Negeri Sembilan, Perak, Kedah, Perlis, Sabah and Sarawak, so confirm these with the state land office before you commit. Selangor Zone 1: Petaling, Gombak, Hulu Langat, Sepang, Klang. Zone 2: Kuala Selangor, Kuala Langat. Zone 3: Hulu Selangor, Sabak Bernam. Kedah: the March 2026 guide gives RM600,000 on the mainland and RM1,000,000 in Langkawi. Sarawak: RM600,000 in Kuching Division and RM500,000 elsewhere, per the same guide. Sabah's RM600,000 strata floor is described as an interim measure. Perak sets prices by zone and allows only leasehold homes bought new from developers (see below); the Bar's table lists separate floors for each zone, so ask the Perak land office for the current figure.
A few state rules matter as much as the price:
- Selangor: only strata and landed-strata (gated) homes. Landed homes with individual titles are not allowed.
- Penang: lower floors applied to unsold new units bought direct from developers in 2024 (RM700,000 for strata on the island, RM400,000 on the mainland). The Bar's table says this applied to agreements signed in 2024 only. A state levy is charged on approval.
- Perak: since September 2023, foreigners cannot buy freehold property. Homes must be leasehold and bought direct from a developer; subsale homes are not allowed.
- Melaka: up to two homes, and no sale or lease within five years of the transfer. Heritage-zone properties are not allowed.
- Johor: single-storey and 1.5-storey terrace houses are off-limits, as are Bumiputera-allocated units. Special zones such as Medini and Forest City have their own rules.
What property can foreigners not buy?
- Homes below the state's minimum price.
- Low-cost and low-medium-cost homes.
- Bumiputera-quota units in a project.
- Malay Reserved Land, and customary land such as tanah adat in Negeri Sembilan.
- Auction properties in most states, and agricultural land in most states (some allow it only for special projects).
- Specific types listed by some states, such as single-storey terraces in Johor and Melaka, or individually titled landed homes in Selangor.
One more legal point: documents signed by a foreign buyer under a power of attorney for land in Malaysia are void under section 433F of the National Land Code. Plan to sign in person or through your lawyer's proper process.
How much does a foreigner pay in total?
Foreign buyers pay more upfront than Malaysians in three ways: a flat 8% stamp duty on homes (from 1 January 2026), a state consent fee, and a smaller loan. Banks commonly lend foreigners about 50–70% of the price, compared with up to 90% for Malaysians.
| RM1.2 million KL condo | Foreign buyer | Malaysian buyer |
|---|---|---|
| Loan | 720,000 (60%) | 1,080,000 (90%) |
| Down payment | 480,000 | 120,000 |
| Stamp duty, transfer | 96,000 (8%) | 32,000 (tiered) |
| Stamp duty, loan (0.5%) | 3,600 | 5,400 |
| Legal fee, SPA (incl. 8% SST) | 14,310 | 14,310 |
| Legal fee, loan (incl. 8% SST) | 9,126 | 13,014 |
| State consent fee (estimate) | 10,000 | – |
| Disbursements (estimate) | 1,500 | 1,500 |
| Total cash needed | 614,536 | 186,224 |
Illustrative, in RM. Consent fees vary by state; the March 2026 guide estimates RM8,000–12,000 for Kuala Lumpur and up to RM35,000 in some states. Legal fees follow the Solicitors' Remuneration Order 2023 with 8% service tax. Excludes valuation and any state levy.
Closing costs (everything except the down payment) come to about 11.2% of the price for the foreign buyer, against about 5.5% for a Malaysian. The 8% stamp duty is the biggest gap: on a RM1 million home it is RM80,000, against RM24,000 for a citizen.
What tax do foreigners pay when selling?
Real Property Gains Tax (RPGT) is charged on the profit when you sell. Foreigners pay a higher rate than citizens, and the buyer must hold back part of the price for LHDN.
| When you sell | Foreigners | Malaysian citizens |
|---|---|---|
| Years 1 – 3 | 30% | 30% |
| Year 4 | 30% | 20% |
| Year 5 | 30% | 15% |
| Year 6 onward | 10% | 0% |
RPGT is charged on the gain after allowable costs. The buyer of a foreigner's property generally retains 7% of the price and pays it to LHDN within 60 days, as a deposit against the tax. From 2026, the buyer may pay a lower amount if the seller provides the deemed tax figure first.
Example: a foreigner buys at RM1.2 million and sells at RM1.4 million, a RM200,000 gain before costs. Selling in year five, RPGT is RM60,000. Waiting until year six cuts it to RM20,000. Either way, the buyer would normally hold back RM98,000 (7% of RM1.4 million) for LHDN.
Step-by-step: how a foreigner buys property
- Pick the state, then check its current minimum price and banned property types with a Malaysian conveyancing lawyer.
- Confirm the unit is not low-cost, Bumiputera-quota, Malay Reserve or an auction property.
- Get a loan offer early. Expect a margin of about 50–70% of the price.
- Pay the booking fee and sign the SPA. Ask your lawyer to make the sale conditional on state consent.
- Your lawyer applies for state consent and pays the consent fee. Ask how long approval usually takes in that state.
- Once approved, pay the balance, 8% stamp duty and any state levy. The title is transferred into your name.
- Keep every receipt: they count as costs when RPGT is worked out on a future sale.
FAQ
What is the minimum property price for foreigners in Malaysia in 2026?
The national guideline is RM1 million per unit, but states set their own floors. Most states sit between RM500,000 and RM1 million, Selangor's main districts need RM2 million, and landed homes on Penang Island need RM3 million.
What is the minimum price for foreigners in Johor?
RM1 million for homes, whether bought new or subsale. Single-storey and 1.5-storey terraces and Bumiputera-allocated units are off-limits. Special zones such as Medini and Forest City have their own rules.
What is the minimum price for foreigners in Selangor?
RM2 million in Zone 1 (Petaling, Gombak, Hulu Langat, Sepang, Klang) and RM1 million in Zone 3 (Hulu Selangor, Sabak Bernam). Only strata and landed-strata homes are allowed.
How much stamp duty do foreigners pay in Malaysia?
From 1 January 2026, non-citizens and foreign-owned companies pay a flat 8% stamp duty on the transfer of residential property. Permanent residents pay the same tiered 1–4% rates as citizens.
References
- Malaysian Bar: Circular No 444/2024, Restrictions in respect of non-citizens and foreign companiesUsed for section 433B, the EPU limits, the state-by-state table (as at October 2024), RPGT rates for foreigners and the 7% retention.
- PropCashflow: Minimum property price for foreigners in Malaysia 2026 (all states)Used as the second source for state thresholds (updated March 2026) and consent fee estimates.
- PropCashflow: Foreigner stamp duty 8% in MalaysiaUsed for the 8% flat stamp duty on residential property from 1 January 2026 and the PR exclusion.
- PropCashflow: Loan margin of financing for property in MalaysiaUsed for typical loan margins offered to foreign buyers.
- EdgeProp: Minimum property purchase prices for foreign buyersUsed for the RM1 million national floor from March 2014 and background on Johor's special zones.
- StashAway: Real Property Gains Tax (RPGT) Malaysia, 2026 ratesUsed for the citizen RPGT rates, tax on the net gain, and the retention timing and 2026 change.
- Conventus Law: The Solicitors' Remuneration Order 2023Used for the legal fee scale in the cost example.
State rules change and no single official table covers every state. Confirm the current threshold with the state land office (PTG), the Ministry of Economy for the federal territories, and LHDN for stamp duty and RPGT.
This article is general information only, not legal, tax or financial advice. All worked examples are illustrative and based on the assumptions stated. Speak to a Malaysian conveyancing lawyer before you buy.
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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