Commercial property · Sabah
Commercial property in Sabah: shop offices, offices and factories
Buying or renting a shop lot, office or factory in Sabah works differently from buying a home: the land use, the financing, the tax on rent and the foreign-buyer rules all change. This guide sets out what to check, and Jason can send current units for sale or rent.
Before you offer
Six checks on a commercial property
- Land use and express condition. The title shows whether the land is for commercial, industrial or residential use. A shop on residential land, or a factory outside an approved industrial zone, limits what you can do and who will lend.
- Certificate of Completion and Compliance (CCC). Confirm the building has its CCC and any change of use has been approved by the local council.
- Business licence fit. Check with the local council that your trade can be licensed at that address before you commit.
- Existing tenancy. A tenanted shop or factory comes with its lease; read the rent, term, renewal option and who pays for repairs.
- Financing. Banks lend on commercial property on different terms from homes; get a pre-assessment before the offer.
- Holding costs. Assessment and quit rent are higher on commercial land; budget for them with the service charge.
Sabah rules
What applies to foreign buyers and sellers in Sabah
State rules as summarised on the Sabah property page; confirm the current position with your lawyer before you sign.
Minimum price for foreigners: RM600,000 for high-rise homes
Since January 2022 the Sabah government has allowed foreigners to buy high-rise homes (apartments, condominiums and high-rise suites in mixed developments) priced at RM600,000 or more, down from RM1 million. Sources: Daily Express, 13 Jan 2022; Azmi & Associates, May 2024; iProperty and PropertyGuru guides, 2026.
RM1 million for landed homes
Portal guides list RM1,000,000 as the Sabah minimum for landed property. Some law-firm guides still give RM1 million for all property types, so records differ; confirm with a Sabah lawyer. Sources: iProperty (Feb 2026); PropertyGuru (May 2026); Low & Partners.
RM500,000 for some foreign residents
Under the 2022 Sabah guidelines, certain foreign interests (such as permanent residents and foreign officers earning RM8,000 a month or more) may buy one residential unit from RM500,000. Source: Azmi & Associates (May 2024).
State approval is needed
A foreign purchase needs approval from the Sabah State Authority before the transfer is registered; guides put it at two months or more. The exact fee is not published by the state; one portal estimates RM15,000–25,000, which we could not verify. Sources: PropertyGuru (May 2026); Low & Partners; propcashflow.my (Mar 2026).
Sabah Land Ordinance, not the National Land Code
Land in Sabah is governed by the Sabah Land Ordinance (Cap. 68), not the National Land Code 1965 used in Peninsular Malaysia. Strata titles are issued under Sabah’s own subsidiary title law, updated by the Land (Subsidiary Title) Enactment 2026. Sources: Azmi & Associates; Sabah Guide; The Star/Yahoo News (30 Apr 2026).
Native Title land is off limits
Section 17 of the Land Ordinance forbids dealings in land between natives and non-natives without the Minister’s written permission. Foreigners (and non-native Malaysians) buy on Country Lease or Town Lease titles, not Native Title. Sources: Azmi & Associates (May 2024); Sabah Guide (Sep 2026).
Tax
Stamp duty, RPGT and service tax
- Stamp duty on the transfer uses the same scale as homes: 1% of the first RM100,000, 2% of the next RM400,000, 3% to RM1 million and 4% above.
- RPGT applies on sale at the same rates as residential property.
- Service tax on rent. Rental and leasing of commercial property became a taxable service from 1 July 2025 (8%), reduced to 6% from 1 January 2026, for landlords whose commercial rental turnover exceeds RM1 million in 12 months. Residential rentals are outside the scope.
Straight answers
Frequently asked questions
Can a foreigner buy commercial property in Sabah?
Generally yes, with state consent, but states set their own minimum prices and conditions for commercial and industrial property, which can differ from the residential minimum shown above. Your lawyer confirms the current figure for the specific title.
Is there service tax on shop or office rent?
From 1 January 2026, 6% service tax applies to commercial rental for landlords whose commercial rental turnover exceeds RM1 million in 12 months; it was 8% from July to December 2025. Residential rent is not taxed this way.
Shop office or factory: which rents better?
It depends on the location and demand; ask Jason for recorded rents and occupancy in the specific area.
Can Jason find a shop, office or factory for me?
Yes. Send the type, size, area and budget, and whether you want to buy or rent.
General information by a registered agent, not legal or tax advice. Rates as published for 2026; your lawyer and LHDN have the final figure. Checked October 2026.
Looking for a shop, office or factory in Sabah?
Send the type, size, area and budget, buy or rent. I reply with current units and the checks that matter.