Commercial property · Melaka
Commercial property in Melaka: shop offices, offices and factories
Buying or renting a shop lot, office or factory in Melaka 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.
Melaka rules
What applies to foreign buyers and sellers in Melaka
State rules as summarised on the Melaka property page; confirm the current position with your lawyer before you sign.
Minimum price, strata: above RM500,000
Foreign individuals and companies may buy a strata home (condominium or apartment) priced above RM500,000. The Malaysian Bar’s state table (as at October 2024) words it as RM500,000 and above.
Minimum price, landed: above RM1 million
Landed homes, including landed strata, need a price above RM1 million. Detached and semi-detached homes are capped at 10% of a project, with land of up to 8,000 sq ft (detached) or 5,000 sq ft (semi-detached).
What a foreigner cannot buy
Low-cost and low-medium-cost homes, single and 1½-storey terraces, shops under three storeys, property allocated to Malays, property sold at auction or by court order, and Malacca Customary Land (MCL).
No foreign ownership in the heritage zone
The state policy says foreign interests may not own property in Melaka’s Heritage Area (Kawasan Warisan). Ask your lawyer to check any city-centre title against the zone.
Quota per project
Foreign ownership of condominiums and apartments is limited to 50% of a project in urban areas and 30% outside them; commercial buildings to 30%.
State consent from PTG Melaka
Every purchase, including by permanent residents and MM2H participants, needs State Authority consent through the Melaka Land and Mines Office (Pejabat Tanah dan Galian). Approval is valid for two years.
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 Melaka?
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 Melaka?
Send the type, size, area and budget, buy or rent. I reply with current units and the checks that matter.