Commercial property · Kelantan
Commercial property in Kelantan: shop offices, offices and factories
Buying or renting a shop lot, office or factory in Kelantan 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.
Kelantan rules
What applies to foreign buyers and sellers in Kelantan
State rules as summarised on the Kelantan property page; confirm the current position with your lawyer before you sign.
National Land Code, plus the Kelantan Malay Reservation Enactment 1930
Kelantan is a peninsular state under the National Land Code. Its Malay Reservation Enactment 1930 (Enactment No. 18 of 1930) makes dealings in reserve land in favour of non-Malays void. Bernama reported in 2018 that the state applies it with the Kelantan Land Enactment 1938, under which only Kelantan-born Malays have the right to own reserve land. Source: Chia, Lee & Associates; Malaysiakini/Bernama (29 Oct 2018).
Most of the state is Malay Reserve land
More than 90% of Kelantan is Malay Reserve land (IIUM Law Journal, 2007). Foreigners cannot buy Malay Reserve land under the Ministry of Economy guideline. A 2013 report said non-Malay citizens could seek state EXCO approval to buy reserve land, but that does not open it to foreigners. Source: IIUM Law Journal; Malaysian Bar Circular No 444/2024; The Rocket (7 Jan 2013).
Minimum price: records differ, RM500,000 or RM1,000,000
The Bar Council’s table of state rules (as at October 2024) and PropertySifu (Aug 2026) give RM500,000 for one threshold across property types. Low & Partners (Aug 2026) and PropCashFlow (2026) give RM1,000,000. Confirm with the Kelantan Land and Mines Office before you sign. Source: Malaysian Bar Circular No 444/2024; PropertySifu; Low & Partners; PropCashFlow.
State consent
State Authority consent is needed before a foreigner buys, and Low & Partners says approval normally takes at least two months. No Kelantan levy or consent fee was published in the sources we read. Source: Low & Partners (updated Aug 2026); Bar Circular No 444/2024.
Excluded units
Foreigners cannot buy low-cost or low-medium-cost units, units allocated to Bumiputera buyers, or property on Malay Reserve land. Source: Malaysian Bar Circular No 444/2024; Low & Partners.
8% stamp duty on home transfers from 1 January 2026
The federal stamp duty on a transfer of residential property to a non-citizen (other than a permanent resident) or foreign company rose from 4% to a flat 8%. Stamp duty is federal, so it applies in Kelantan. Source: KPMG Budget 2026 summary.
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 Kelantan?
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 Kelantan?
Send the type, size, area and budget, buy or rent. I reply with current units and the checks that matter.