Paying for Johor Bahru property from abroad (2026): transfers, bank accounts and loans

中文 · Bahasa Melayu · Bahasa Indonesia

By Jason Lim, REN 84424 · IQI Realty · Checked on 4 November 2026

This guide is for buyers in Singapore, Indonesia, India, China and elsewhere who want to buy a Johor Bahru home and pay for it from abroad. The short answer: you pay in stages (a booking amount, 10% when you sign the sale and purchase agreement, then the balance by loan or cash), always into the developer’s project account or your lawyer’s client account. Malaysia itself lets non-residents bring money in and take it out in foreign currency; the tighter limits usually sit in your home country.

How the money flows in a Malaysian purchase

The payment steps depend on whether you buy a new launch from a developer or a resale (subsale) home from an owner. Foreign buyers in Johor also need state consent, and you can generally only buy residential property from RM1 million (PropertyGuru reports RM2 million for some landed title categories, as of May 2026). Your lawyer confirms the threshold for your unit.

Stage	New launch (developer)	Resale (subsale)
Reserving the unit	Booking amount to the developer, against an official receipt	Earnest deposit of about 2–3% when you sign the offer letter, held by the agency or a lawyer as stakeholder
Signing the SPA	10% of the price (less any booking amount), paid into the project’s Housing Development Account	Balance deposit to make up 10%, plus legal fees and stamp duty, paid to your lawyer
The balance	Progress billing as the building goes up, paid by you first and then by your bank	The remaining 90%: your cash portion to your lawyer, then the bank releases the loan at completion
Retention	The last 5% is held by the developer’s lawyer as stakeholder after handover	The buyer withholds 3% of the price for LHDN, or 7% if the seller is a foreigner (see below)
Typical timing	Over the construction period	About three months from the SPA, often five to six months in total for a foreign buyer because of state consent

A note on booking fees

Developers commonly ask for a booking amount when you reserve a unit. Pay it only to the developer’s company account against an official receipt, get the refund terms in writing, and ask your lawyer how the amount is treated under your SPA.

Stakeholder and lawyer accounts

A stakeholder holds money for both sides until the agreement’s conditions are met. For new launches, payments and loan releases go into the project’s Housing Development Account, from which the developer can only withdraw for permitted purposes against architect’s certificates. For resale homes, your money sits in your lawyer’s client account until the transfer, state consent and loan are ready. Both protect you only if you pay into the right account. My legal steps for buying in Johor guide covers what the lawyer does at each stage.

Developer progress billing for new launches

For new launches, Malaysian law sets the payment schedule. Schedule G (landed) and Schedule H (strata) of the Housing Development Regulations use the same percentages:

Stage of work	Share of price
On signing the SPA	10%
Foundation	10%
Structural framework	15%
Walls, door and window frames	10%
Roofing, wiring, plumbing, gas piping and telecom cabling	10%
Internal and external finishes	10%
Sewerage	5%
Drains	2.5%
Roads	2.5%
Vacant possession, with water and electricity ready to connect	17.5%
Delivery of title	2.5%
Held by the developer’s lawyer as stakeholder (2.5% released at 8 months, 2.5% at 24 months after handover)	5%

Each bill comes with an architect’s certificate, and the statutory agreement gives you a fixed period to pay after the developer’s written notice (30 days in the current form, per mHub). Late payment carries interest under the SPA. If you take a loan, you pay your own share first: with a 70% loan, the first 30% of billings is yours, and the bank pays later stages directly to the developer. Bills arrive over several years, so keep a ringgit balance ready rather than starting a fresh international transfer each time.

Opening a Malaysian bank account as a non-resident

Bank Negara’s rules allow a non-resident to open a ringgit “External Account” with a Malaysian bank, alone or jointly, and a foreign currency account with a licensed onshore bank. Whether a particular bank opens one for you is up to the bank. Requirements vary, and they change, but you should generally expect:

• Identity and address. Your passport and proof of your overseas address.
• A reason for the account. Your booking form or SPA usually serves, and some banks ask for a letter from your lawyer.
• Source of funds. Payslips, bank statements or business records showing where the money comes from.
• A visit in person. Many banks still want you at a branch, so it is worth combining with a viewing trip.

You can pay a developer or lawyer from abroad without one, but an account helps with progress bills, loan instalments and running costs. My guide to quit rent and assessment tax lists the recurring bills.

Bank Negara’s foreign exchange rules for non-residents

Malaysia’s rules are Bank Negara Malaysia’s Foreign Exchange Policy (FEP) Notices. The current consolidated set came into operation on 1 October 2025 and replaced the November 2024 version. The points that matter for a property buyer:

• Converting money. A non-resident may buy or sell ringgit against foreign currency on a spot basis with a licensed onshore bank or approved operator, and with a licensed money changer (Notice 1). Forward contracts are allowed only in set cases, so ask your bank.
• Accounts. Non-residents may open and keep an External Account in ringgit and a foreign currency account (Notice 4). Banks can ask for documents showing a payment complies with the rules.
• Borrowing. A non-resident may borrow ringgit in any amount from a resident, including a Malaysian bank, to finance a “real sector activity”, which the Notices define to include buying or building residential or commercial property, excluding land only (Notice 2).
• Taking money out. A non-resident may repatriate funds, including income earned, as long as it goes out in foreign currency (Notice 4).

Malaysia does not cap what a foreign buyer brings in, but banks run anti-money-laundering checks, so keep transfer slips, the SPA and source-of-funds documents.

Sending money from your country

From	Main rule to know	What to prepare
Singapore	The main costs are the exchange spread and transfer fees; compare bank and licensed remittance rates	Your SPA or billing, and the payee’s details confirmed by phone
Indonesia	From 1 July 2026, foreign-currency purchases above USD10,000 a month, and outward transfers above USD25,000, need underlying documents	The booking form, SPA or progress bill as your underlying document; ask your bank what it accepts
India	Resident individuals remit under the Liberalised Remittance Scheme; TCS may apply	The documents your bank asks for under the LRS, plus the SPA
Mainland China	USD50,000 a year personal quota, with a declaration that it will not be used for overseas property	Advice from your bank and a lawyer before you book

Singapore

Sending Singapore dollars is the simplest case. Compare your bank’s telegraphic transfer rate with a licensed remittance service before a large payment, and check what reaches the payee after fees. See financing JB property from Singapore for the loan choices, and the JB property cost calculator in SGD to put the total in Singapore dollars.

Indonesia

Bank Indonesia tightened its foreign-exchange rules several times in 2026. Under the change announced in June 2026 and in force from 1 July 2026, buying foreign currency against rupiah without an underlying document is capped at USD10,000 per person per month, and outward foreign-currency transfers above USD25,000 equivalent need supporting documents (Katadata and Kontan, 18 June 2026). Bank Indonesia says purchases are not banned but must reflect a real need. Your booking form, SPA or progress bill is the natural evidence; ask your bank what it accepts before the due date. My guide to buying in Johor from Indonesia covers the rest of the process.

India

The Reserve Bank of India’s FAQ confirms that resident individuals can use the Liberalised Remittance Scheme to buy property outside India. The annual limit, the tax collected at source and the paperwork are explained in my guide to sending money from India under LRS and TCS. Resident Indians generally have to self-fund, because Indian rules restrict borrowing for property abroad.

Mainland China

Individuals in mainland China have an annual foreign-exchange purchase quota of USD50,000. Since 1 January 2017, the State Administration of Foreign Exchange (SAFE) form requires buyers to state the purpose and pledge that the money will not go to overseas property, securities or investment-type insurance, according to Bloomberg and Caixin reports at the time. Breaches can lead to a watch list and a ban on buying foreign currency. Money already held legally outside the mainland is outside the quota, but Malaysian banks will ask where it came from. Take advice in China before you commit.

Exchange-rate risk and timing

Your price is fixed in ringgit, but your money is in another currency, so the cost in your currency moves with the exchange rate. A simple illustration: on RM1,000,000, a 5% move in the rate changes your cost by the equivalent of RM50,000. Ways to manage it:

• Convert in tranches. For new launches, convert as bills approach rather than all at once.
• Hold a ringgit buffer. A balance in your Malaysian account covers bills that arrive while the rate is against you.
• Leave time for checks. Start transfers well before each deadline, as document checks can take days.
• Think about the loan too. A ringgit loan repaid from foreign income carries currency risk for the whole tenure, which is one reason banks cut foreign income when they assess you.

Loans for foreign buyers

Bank Negara allows the borrowing; each bank decides whether and how much to lend. Banks that lend to foreigners usually finance 60–70% of the price or valuation, whichever is lower, apply a 10–20% haircut to foreign income and want the loan repaid by about age 65–70. Plan for at least 30% down plus stamp duty, the Johor consent levy and legal fees. The Stamp Act amendments tabled in November 2025 set 8% stamp duty on transfers of residential property to foreign buyers from 1 January 2026, and Johor revised its consent levy for foreign acquisitions from 1 July 2025; your lawyer will confirm both for your purchase. See my bank-by-bank guide to home loans for foreigners, and try the home loan calculator and the buying costs calculator.

Common scams and how to avoid them

Overseas buyers rarely meet the people they pay, which makes them targets. Common patterns: a message saying the developer or lawyer “has changed bank account”, a fake invoice on a copied letterhead, or a request to pay a deposit into a personal account. Protect yourself:

• Pay only verified accounts. The account name should be the developer’s company or project account, or your lawyer’s client account, matching your SPA or billing.
• Call before every transfer. Phone your lawyer on a number from the firm’s letterhead or website, not from the email or WhatsApp that sent the details, and confirm the account number.
• Treat any change of account as suspicious. Stop and check with your lawyer before paying.
• Check the account. The police’s SemakMule portal lets you check whether a bank account or phone number has been linked to scam reports.
• Act fast if it happens. Call the National Scam Response Centre on 997 and your bank immediately.

No agent should ask you to pay purchase money into a personal account. If anyone does, stop and check with your lawyer.

Selling later: repatriating proceeds and RPGT

When you sell, Bank Negara’s rules let you take the money out of Malaysia in foreign currency. Before it reaches you:

• 7% retention. If the seller is not a Malaysian citizen or permanent resident, the buyer must withhold 7% of the price (3% for citizens and PRs) and send it to LHDN within 60 days, under section 21B of the Real Property Gains Tax Act 1976.
• RPGT rates. For individuals who are not citizens or PRs, LHDN’s table for disposals from 1 January 2019 is 30% within the first five years and 10% from the sixth year. If the retention is more than the tax, you can claim the difference back.
• Keep records. Your SPA, inward transfer slips and tax filings make the outward transfer easier, because the bank may ask for evidence.

My RPGT guide covers how the gain is worked out and the forms, and the rental income tax guide covers the years in between.

Where to buy if this matters to you

If you want one payment and no years of billing, a completed home is simpler; to spread payments, a new launch fits better.

• One payment, ready to use: completed homes near the Causeway and JB Sentral and Bukit Chagar.
• Spread payments over construction: new launches in Johor Bahru and homes near the RTS Link station.
• Larger townships with both options: Iskandar Puteri, Mount Austin and Permas Jaya and Senibong.
• Buying with an MM2H plan: Forest City sits in the Johor SFZ. For the visa, I coordinate with a MOTAC-licensed MM2H agent; see MM2H property support.

The JB property map shows these areas side by side.

More Johor living guides: legal steps for buying in Johor, cost of living in Johor Bahru, renting a JB unit to Singapore commuters and all my foreign buyer guides.

Frequently asked questions

Can a foreigner pay for Johor property from an overseas bank account?

Yes. You can transfer from abroad to the developer’s project account or your lawyer’s client account. A Malaysian account is optional but useful for progress bills and later running costs.

Does Malaysia limit how much money a foreign buyer can bring in?

Bank Negara’s Foreign Exchange Policy Notices, in force from 1 October 2025, set no cap on non-residents converting foreign currency to buy a home, and allow them to repatriate funds in foreign currency. Banks still run anti-money-laundering checks.

Who should I pay the deposit to?

For a new launch, the developer’s account named in the SPA or billing, usually the project’s Housing Development Account. For a resale home, the stakeholder named in the offer letter or your lawyer’s client account. Never a personal account, and always confirm by phone with your lawyer first.

What documents do Indonesian buyers need to send money?

From 1 July 2026, Bank Indonesia requires underlying documents for foreign-currency purchases above USD10,000 a month and outward transfers above USD25,000. A booking form, SPA or progress bill is the usual evidence, but confirm with your bank.

Can I take my sale money out of Malaysia?

Yes, in foreign currency. The buyer withholds 7% of the price for LHDN if you are not a citizen or PR, and RPGT for foreigners is 30% within five years and 10% from the sixth year.

Questions about paying from abroad?

Tell me which country you are paying from, the property you have in mind and whether you plan to take a loan. I will go through the payment stages with you and connect you with bankers who handle foreign applications. You can also book an appointment or a Zoom consultation.

Sources: Bank Negara Malaysia, Consolidated Foreign Exchange Policy Notices, in force 1 October 2025; Bank Negara Malaysia, FEP rules for non-residents: borrowing in Malaysia, accessed November 2026; mHub, progress billing handbook (Schedules G and H), last reviewed August 2026; EdgeProp, on legalising booking fees, 14 May 2026; PropertyGuru, Malaysia foreign property rules by state, May 2026; Katadata, on Bank Indonesia’s USD10,000 monthly limit from July 2026, 18 June 2026; Kontan, “Per 1 Juli 2026, pembelian valas tanpa underlying jadi US$10.000 per bulan”, 18 June 2026; Reserve Bank of India, FAQ on acquisition of immovable property, updated 6 April 2023; Bloomberg via Business Standard, “China gets strict on forex transactions”, 4 January 2017; Caixin, “Five things to know about personal forex purchases in China”, 3 January 2017; Sinar Daily, on the SemakMule portal and the 997 hotline, 25 August 2025; LHDN, RPGT rates, updated 23 June 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 4 November 2026, not legal, tax or financial advice. Foreign exchange rules in Malaysia and abroad can change; confirm with your bank and lawyer before each payment.