Hong Kong buyers ask me this all the time: will buying through a company save me tax? Before we go further, it is worth checking that assumption, because the answer is often no.
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Under the National Land Code, a company incorporated in Malaysia is treated as a foreign company if 50% or more of its voting shares are held by non-citizens or foreign companies. So a Sdn Bhd owned by foreigners is still a foreign buyer. It needs state consent, must meet the state’s minimum price for foreigners, and pays the flat 8% stamp duty on residential property from 1 January 2026.
You may hear that setting up a Sdn Bhd lets a foreigner buy below the minimum price. That only works if Malaysians hold the majority of the voting shares, which means Malaysians control the company, and with it your property. For most foreign buyers, that is a far bigger risk than the price floor.
Tax: often not the saving people expect
When the property is sold, real property gains tax (RPGT) applies. A company never gets to 0%: it keeps paying 10% no matter how long it holds.
| Year of sale | Company | Foreign individual | Malaysian citizen / PR |
|---|---|---|---|
| Years 1–3 | 30% | 30% | 30% |
| Year 4 | 20% | 30% | 20% |
| Year 5 | 15% | 30% | 15% |
| Year 6 onwards | 10% | 10% | 0% |
Compared with holding in your own name as a foreigner, a company only pays less if you sell in year 4 or 5. For a long-term hold, the rate ends up the same 10%. Meanwhile the company has running costs every year, whether or not the property earns anything: a company secretary, audited accounts and annual tax filings.
You need a local resident director
The Companies Act 2016 requires every Malaysian company to have at least one director whose principal place of residence is in Malaysia. That means someone else holds a formal legal role in your structure. It is manageable, but it is not nothing. Choose that person carefully and put clear agreements in place.
When a company can make sense
- Commercial property used by a business you already run in Malaysia
- A portfolio of properties run as a real business, with an accountant involved from the start
- Situations where you plan to sell in year 4 or 5 and the RPGT difference outweighs the running costs
Company structuring can be the right tool for the right goal. It is just not the automatic tax hack many people assume. The three ownership options are compared side by side in Personal, joint or company name?
Thinking about diversifying into Malaysia? Let’s map out whether personal name or a company actually fits your plan before you commit either way.
Sources: HHQ: acquisition of property by non-citizens and foreign companies; RPGT rates 2026; 8% foreigner stamp duty. General information, not legal or tax advice. Speak to a Malaysian lawyer and tax adviser before setting up a company to hold property. By Jason Lim (REN 84424, IQI Realty Sdn. Bhd.).