Can foreigners buy property in Malaysia?

Malaysia is one of the few countries in the region where foreigners can own freehold and leasehold property in their own name. The catch is that each state sets its own rules, and those rules change. Here is how it works, and what I check before you commit to anything.

1. Each state sets its own minimum price

Foreign buyers can only buy above a price floor, and the floor depends on the state — and sometimes the district and property type. Current floors range from around RM500,000 in some areas (such as mainland Penang) to RM1 million in Kuala Lumpur and RM2 million or more for some landed property in Selangor.

In Johor, the commonly applied floor is RM1 million for strata property, with higher floors for some landed property. Some zones have had their own exceptions for new units from developers.

2. You need state consent — and usually pay a levy

Every purchase by a foreigner needs written approval from the state authority under the National Land Code. Your lawyer applies for it after you sign. It typically takes weeks to a few months, and the sale cannot complete until it is granted.

Most states charge a levy for this approval. Johor announced in June 2025 that it would raise its levy from 2% (minimum RM20,000) to 3% of the price (minimum RM30,000).

3. What foreigners cannot buy

• Malay reserve land
• Units allocated to Bumiputera buyers
• Low-cost and affordable housing
• Most agricultural land

Some states add their own restrictions on top of these. If a unit falls into one of these categories, no amount of paperwork will get it approved — so this is the first thing I check.

4. What it costs on top of the price

• Stamp duty on the transfer: a flat 8% of the price for foreign individuals and foreign-owned companies from 1 January 2026 (Malaysian permanent residents are excluded). Malaysians pay a sliding scale of 1–4%.
• State consent levy: set by each state (see above).
• Stamp duty on a loan agreement: 0.5% of the loan amount, if you borrow.
• Legal fees for the sale and, if you borrow, for the loan.
• Tax when you sell (RPGT): for individuals who are not citizens or permanent residents, 30% of the gain if you sell within five years, and 10% from the sixth year onward.

5. What I check for you before you commit

• Whether the unit clears the current state floor and is not restricted
• The total cost including 8% stamp duty, levy and fees — not just the price
• Tenure (freehold or leasehold) and the years left on a lease
• Whether financing is realistic for you as a foreign buyer
• How the property will pass to your family — see my guide on wills for Malaysian property

Sources

• KPMG Malaysia — Budget 2026 tax highlights: stamp duty
• Inland Revenue Board of Malaysia (LHDN) — RPGT rates
• The Star — Johor to raise levy on property bought by foreign interests (18 June 2025)
• Global Law Experts (Viknesh & Yap) — Guide to buying residential property in Malaysia for foreigners

Rules, rates and bank policies change. This guide is general information checked on 24 September 2026, not legal, tax or financial advice — confirm the current position for your own purchase with a lawyer or tax adviser.

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