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Buying property in Malaysia as a foreigner: rules and costs

Figures checked against official sources on

Yes. A foreigner can buy property in Malaysia with the prior approval of the State Authority, and the federal guideline bars foreign buyers from property worth under RM1 million per unit, low-cost homes, Malay Reserve land and Bumiputera lots — but the state decides, and state minimum prices range from RM500,000 for some strata units to RM3 million for landed homes on Penang Island. Since 1 January 2026 a foreign buyer pays a flat 8% stamp duty on a home, so a RM1,200,000 condo costs RM96,000 in stamp duty against RM32,000 for a Malaysian.[4],[1],[7],[8]

State approval

Under section 433B of the National Land Code, a non-citizen or foreign company may acquire land only with the approval of the State Authority. The application is made through a lawyer to the state land office (Pejabat Tanah dan Galian).[4],[2]

The federal guideline: RM1 million and other limits

The Ministry of Economy’s Guideline on the Acquisition of Properties, in force since 13 July 2022, says foreign interests may not acquire:[1]

  • property valued at less than RM1,000,000 per unit;
  • low-cost and low-medium-cost homes as determined by the State Authority;
  • property on Malay Reserve land; and
  • property allocated to Bumiputera interests in a development.

Source[1]

A home bought by a foreign interest for RM1,000,000 or more per unit does not need the ministry’s approval; it falls under the State Authority. Under this guideline, “foreign interest” covers non-citizens, permanent residents, foreign companies, and local companies more than 50% controlled by them.[1]

The guideline does not apply to the cases listed in its Appendix I. Among them: homes bought under the Malaysia My Second Home (MM2H) programme; and one residential unit of at least RM250,000 (except in Kuala Lumpur, Johor Bahru and Penang) bought to live in by a permanent resident holding a red identity card, or by an expatriate officer working for the government or for a private employer at a monthly income of at least RM8,000. These purchases still need the State Authority’s approval. So the RM1 million floor does not by itself stop a permanent resident from buying a home.[1]

Minimum prices in the states we could verify

States set their own minimum prices and fees. The figures below come from each state land office’s own published guideline or circular. We could not verify current figures for Selangor, Kuala Lumpur, Sabah, Sarawak, Negeri Sembilan, Perak or the other states from an official source, so they are not listed — ask the land office or your lawyer.[2],[4],[5],[6]

StateMinimum price for a foreign buyerState fee on approval
JohorRM1,000,000 and above for homes (terraced, cluster and semi-detached houses and bungalows of 2 storeys or more; apartments, service apartments, holiday homes) and for commercial propertyFrom 1 July 2025: 3% of the price (for a sub-sale, of the JPPH valuation if higher), or RM30,000, whichever is higher; plus RM2,000 application fee per title
PenangIsland: strata RM1 million, landed RM3 million (since 1 April 2017). Seberang Perai: landed RM1 million; strata RM500,000 for foreign individuals (since 28 April 2017) and RM1 million for foreign companiesApproval levy of 3% of the acquisition value; 1.5% for Island strata between RM1 million and RM1.5 million (SPAs from 1 July 2017). Application fee for a home: RM10,000 per title for a foreign individual, RM20,000 for a company
MelakaStrata title above RM500,000 (exactly RM500,000 considered); landed, including landed strata, above RM1,000,0003% of the price, minimum RM30,000, plus RM5,000 processing fee per lot
KedahRM1,000,000 and above per unit, since 1 March 2014Not verified

Source[2],[3],[4],[5],[6]

The Penang and Melaka figures come from archived copies of the land offices’ guidelines (Penang’s updated 1 August 2024); the live files could not be fetched. Several states also set quotas per project and bar certain house types — Melaka, for example, bars single- and one-and-a-half-storey terraced houses.[4],[5],[2]

Stamp duty: 8% on homes

A person who is not a Malaysian citizen or permanent resident, or a foreign company, pays a flat 8% stamp duty on the transfer of residential property under a sale and purchase agreement signed from 1 January 2026, and 4% on other property. The date of the SPA decides: a home bought under an SPA signed before 1 January 2026 is charged 4%, even if the transfer is signed or stamped later. Malaysian permanent residents pay the normal 1%–4% bands.[7],[8],[9]

Worked example: a foreign buyer’s sub-sale condo in Johor at RM1,200,000[7],[3],[10],[11]
Stamp duty on the transfer, 8%
RM96,000
Johor approval fee, 3% (min RM30,000)
RM36,000
Johor application fee
RM2,000
Lawyer’s scale fee on the SPA
RM13,250
Service tax on the legal fee, 8%
RM1,060
Total, before loan costs and disbursements
RM148,310

When you sell: RPGT and the 7% retention

A seller who is not a citizen or permanent resident pays Real Property Gains Tax at 30% on a disposal within five years of buying and 10% from the 6th year. The buyer must retain 7% of the price and pay it to LHDN within 60 days. See RPGT in Malaysia.[12],[13]

Frequently asked questions

Can foreigners buy property in Malaysia?

Yes, with the prior approval of the State Authority. Federal policy bars foreign buyers from property under RM1 million per unit, low-cost and low-medium-cost homes, Malay Reserve land and Bumiputera lots; each state sets its own minimum prices and decides each application.[4],[1]

What is the minimum property price for foreigners in Johor?

RM1,000,000 and above for residential and commercial property, according to the Johor land office. Since 1 July 2025 Johor also charges an approval fee of 3% of the price or RM30,000, whichever is higher.[2],[3]

What is the minimum price for foreigners in Penang?

On Penang Island, RM1 million for strata and RM3 million for landed property. In Seberang Perai, RM1 million for landed property and RM500,000 for strata bought by a foreign individual (RM1 million for a foreign company).[4]

How much stamp duty does a foreigner pay on a house in Malaysia?

A flat 8% of the price or market value, whichever is higher, for residential property under an SPA signed from 1 January 2026. Under an SPA signed before then the rate is 4%, even if the transfer is stamped later.[7],[8],[9]

Do foreigners pay RPGT after 5 years?

Yes, at 10% from the 6th year onwards; 30% before that.[12]

Sources

  1. Garis Panduan Perolehan Hartanah (Guideline on the Acquisition of Properties), in force 13 July 2022 — archived copy of the ministry PDF — Ministry of Economy Malaysia, checked
  2. Perolehan Hartanah Oleh Kepentingan Asing (acquisition of property by foreign interests) — Pejabat Tanah dan Galian Negeri Johor, checked
  3. Pekeliling PTG Johor Bil. 3 Tahun 2025: fees for acquisition by foreign interests, from 1 July 2025 — Pejabat Tanah dan Galian Negeri Johor, checked
  4. Garis Panduan Permohonan Perolehan dan Pajakan Hartanah oleh Bukan Warganegara atau Syarikat Asing (updated 1 August 2024) — archived copy — Pejabat Tanah dan Galian Negeri Pulau Pinang, checked
  5. Dasar Pemilikan Hartanah oleh Warganegara Asing / Syarikat Asing di Negeri Melaka — archived copy — Pejabat Tanah dan Galian Negeri Melaka, checked
  6. Pekeliling PTG Kedah (compilation): minimum price for acquisition by foreign interests raised to RM1,000,000 from 1 March 2014 — Pejabat Tanah dan Galian Negeri Kedah, checked
  7. Garis Panduan Pengenaan Duti Setem bagi Surat Cara yang Tertakluk kepada Jadual Pertama Akta Setem 1949 (30 June 2026) — LHDN, checked
  8. Finance Act 2025 (Act 874): 8% duty on residential property sold to foreigners, from 1 January 2026 — Laws of Malaysia, hosted by LHDN, checked
  9. LHDN response to the joint memorandum on Budget 2026 and the 2025 tax bills (11 December 2025) — LHDN, checked
  10. Bar Council Circular No 185/2023, with the gazetted Solicitors’ Remuneration Order 2023 [P.U. (A) 207/2023] — Malaysian Bar, checked
  11. Service Tax (Rate of Tax) (Amendment) Order 2024 [P.U. (A) 64/2024]: 8% from 1 March 2024, except food and beverage, telecommunication, parking and logistics services — Attorney General’s Chambers, Laws of Malaysia, checked
  12. Real Property Gains Tax rates (Kadar Cukai Keuntungan Harta Tanah) — Inland Revenue Board of Malaysia (LHDN), checked
  13. Retention and remittance of money by the acquirer — LHDN, checked