Commercial property · Kedah
Commercial property in Kedah: shop offices, offices and factories
Buying or renting a shop lot, office or factory in Kedah 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.
Kedah rules
What applies to foreign buyers and sellers in Kedah
State rules as summarised on the Kedah property page; confirm the current position with your lawyer before you sign.
Minimum price: RM1 million (Bar circular)
The Malaysian Bar’s December 2024 circular lists Kedah’s minimum for foreign buyers of residential, commercial and industrial property as RM1 million.
Mainland figure: sources differ
PropertyGuru, iProperty, ASCO and Low & Partners guides (2023–2026) list RM600,000 for mainland Kedah and RM1 million for Langkawi. A copy of the state guideline in circulation gives RM1 million per unit. Confirm the figure that applies on the day with your lawyer.
Langkawi: RM1 million
Every current guide checked, and the Bar circular, give RM1 million for Langkawi. Older material quoting RM500,000 is out of date. Langkawi has no separate foreign-buyer authority: the same Kedah state consent applies.
Off-limits homes
Single-storey terrace houses, low-cost homes, Bumiputera-quota units, auction properties and property on Malay Reserved Land are not open to foreign buyers. Agricultural land is not permitted except where the state allows.
Off-limits commercial property
Single or double-storey shops, low-cost shops, stalls and service workshops are also closed to foreign buyers.
State consent and levy
Every purchase needs Kedah State Authority consent, applied for through your lawyer at the Kedah Land and Mines Office (Pejabat Tanah dan Galian), and a levy is charged on approval. The levy rate is not published in the sources checked.
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 Kedah?
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 Kedah?
Send the type, size, area and budget, buy or rent. I reply with current units and the checks that matter.