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By Jason Lim, REN 84424 · IQI Realty · Checked on 13 November 2026
This guide is for holders of Malaysian permanent residence who want to buy a home in Johor. The short answer: the law treats PRs differently in different places. For land, the National Land Code counts anyone who is not a citizen as a non-citizen, so a PR’s purchase needs state approval, and Johor’s published rules do not set out a separate PR category, so your lawyer should confirm with the land office whether the foreign-buyer minimum price and fee apply to you. For tax, PRs sit with citizens: they are outside the 8% stamp duty rate for foreigners and pay real property gains tax (RPGT) at citizens’ rates.
Quick answer
- Who this covers: Malaysian PRs, who hold an entry permit issued under section 10 of the Immigration Act 1959/63. A Singapore PR who is not Malaysian buys as a foreigner.
- Land law: section 433A of the National Land Code defines a non-citizen as anyone who is not a citizen, so section 433B state approval applies to PRs.
- Johor: the published Johor rules (Malaysian Bar summary, October 2024; PTG Johor fee circular, 2025) do not name PRs separately. Johor’s 2010 guidelines grouped PRs with non-citizens. Confirm with PTG Johor.
- Stamp duty: from 1 January 2026 the 8% rate applies to foreign companies and to individuals who are neither citizens nor PRs (LHDN, June 2026). PRs pay the normal 1% to 4% scale.
- First-home exemption: limited to Malaysian citizens (Malaysian Bar Circular 128/2026).
- RPGT: PRs pay citizens’ rates, nil from the sixth year, and the buyer retains 3% of the price, not 7% (LHDN, 2026).
Who counts as a Malaysian PR
Malaysian permanent residence is granted through an entry permit issued under section 10 of the Immigration Act 1959/63. The Ministry of Home Affairs lists categories including spouses and children of Malaysian citizens and a points-based route for other foreign nationals (MOHA, updated September 2025). A PR remains a citizen of another country.
Do not mix this up with Singapore permanent residence. Malaysia looks at your passport and Malaysian status, so a Singapore PR holding, say, an Indian or Chinese passport buys in Johor as a foreigner. My guide for Singapore PRs and expats buying in JB covers that case. If you are married to a Malaysian and have not yet become a PR, see foreign spouses buying property.
How PRs compare with citizens and foreigners
| Point | Malaysian citizen | Malaysian PR | Foreigner |
|---|---|---|---|
| State approval for a non-citizen (NLC s.433B) | Not needed | Needed: a PR is a non-citizen under s.433A | Needed |
| Johor RM1 million residential minimum | Does not apply | Not addressed separately in the published rules; confirm with PTG Johor | Applies |
| PTG Johor foreign-interest fee (3%, min RM30,000) | Not charged | Not addressed separately; confirm with PTG Johor | Charged |
| Stamp duty on a residential transfer | 1% to 4% scale | 1% to 4% scale (excluded from 8%) | 8% from 1 January 2026 |
| First-time buyer stamp duty exemption | Possible if criteria met | Not eligible (citizens only) | Not eligible |
| RPGT rates | Part I (citizens and PRs) | Part I | Part III |
| RPGT retained by the buyer’s lawyer | 3% | 3% | 7% |
State approval: why a PR still applies
Section 433A of the National Land Code defines a non-citizen as a natural person who is not a citizen of Malaysia. There is no carve-out for permanent residents, so section 433B, which requires the State Authority’s prior approval before a non-citizen acquires land or an interest in land, applies to a PR. In Johor the buyer’s lawyer files with the Johor Land and Mines Office (PTG Johor); see my guide to state consent in Johor.
What differs between states is the conditions attached. The Malaysian Bar’s December 2024 circular, which summarises each state’s rules for non-citizens, shows at least one state mentioning permanent residents as their own group: the Negeri Sembilan entry refers to expatriates and permanent residents separately. The Johor entry does not. Johor’s 2010 PTG guidelines, as reported by the Johore Bar, put PRs alongside non-citizens and foreign companies. Those 2010 guidelines have since been replaced on price thresholds and fees, and I could not find a current Johor document that addresses PRs directly.
The practical steps:
- Ask before you book. Have a lawyer confirm with PTG Johor how a PR’s application is treated for the specific title and price.
- Check the title. A restriction in interest, or a status such as Malay reserve land, can rule a property out whatever your status; see land title searches and Malay reserve land in Johor.
- Make the SPA conditional on approval, with a refund of your deposit if approval is refused.
- Budget for the foreign-buyer costs until you have the answer in writing.
Johor’s minimum price and fee: what is published
For non-citizens, Johor’s table in the Malaysian Bar summary (as at October 2024) sets a minimum of RM1,000,000 for residential purchases from developers and in subsales, and does not permit single-storey or 1½-storey terraces. There are only limited exceptions (for example, some serviced apartments sold by developers with state approval); no area is exempt as a whole. PTG Johor’s Pekeliling Bil. 3 of 2025 sets the approval fee for foreign-interest purchases from 1 July 2025 at 3% of the price (for subsales, based on the JPPH valuation or the stamped price; confirm which with PTG Johor), with a minimum of RM30,000, plus RM2,000 per title to apply. Neither document mentions permanent residents.
That matters most below RM1 million. Say you want an RM800,000 terrace in Johor Bahru. If PTG Johor treats your application under the foreign-buyer rules, the purchase would not meet the minimum; if not, it could proceed as an ordinary restricted-title consent. Only the land office can answer that for your case. More detail is in my guide to Johor’s foreigner minimum price and quota.
Malaysian PR looking to buy in JB?
Tell me your budget, the area and whether you want landed or a condo. I’ll shortlist homes and flag which ones depend on PTG Johor’s answer, so your lawyer can check before you book.
WhatsApp JasonStamp duty: PRs are outside the 8% rate
From 1 January 2026, a sale of residential property to a foreign company or to an individual who is not a citizen and not a permanent resident is stamped at RM8 per RM100, which is 8% (LHDN guideline, 30 June 2026). The Star’s Budget 2026 report in October 2025 also noted that Malaysian PRs are excluded. A PR therefore pays the normal scale: 1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1,000,000 and 4% above.
| Price (illustration only) | Normal scale (citizen or PR) | At 8% (other foreigners) |
|---|---|---|
| RM600,000 | RM12,000 | RM48,000 |
| RM1,000,000 | RM24,000 | RM80,000 |
| RM1,200,000 | RM32,000 | RM96,000 |
One exemption is not open to PRs. The first-time buyer stamp duty exemption, both the current full exemption for homes up to RM500,000 for SPAs signed up to 31 December 2027 and the wider version proposed in Budget 2027 (full up to RM500,000 and partial up to RM750,000 for SPAs signed from 1 January 2027 to 31 December 2030, subject to the Finance Act), requires the buyer to be a Malaysian citizen (Malaysian Bar Circular 128/2026, April 2026). See stamp duty in Malaysia for 2026 and the buying costs calculator.
Selling later: RPGT at citizens’ rates
LHDN’s RPGT rates put citizens and permanent residents in Part I of Schedule 5, and non-citizens who are not PRs in Part III:
| When you sell (from 1 January 2022) | Citizens and PRs | Other individuals |
|---|---|---|
| Within three years | 30% | 30% |
| Fourth year | 20% | 30% |
| Fifth year | 15% | 30% |
| Sixth year onwards | Nil | 10% |
When you sell, the buyer’s lawyer retains part of the price and pays it to LHDN within 60 days: 3% for Part I sellers such as citizens and PRs, 7% for Part III sellers (LHDN, May 2026). See my RPGT guide. Your buyer pool depends on the property and price; see selling to a foreign buyer in Johor.
Home loans and EPF
Banks set their own policies for PRs, including how much they lend and what income documents they accept. Ask each bank for its PR policy and get the margin in writing; my guides to home loans in Johor Bahru and home loans for foreigners show what banks typically look at. If you contribute to EPF, check KWSP’s current housing withdrawal rules for your membership; see using EPF to buy a house. Not financial advice.
Where to buy if this matters to you
If PTG Johor confirms the foreign-buyer rules apply, look where homes of RM1 million and above are common; if not, more of the market is open:
- Iskandar Puteri: larger condos and landed homes near EduCity and the Second Link.
- Mount Austin: family township with condos and landed homes.
- Tebrau, Setia Indah and Molek: established neighbourhoods near the malls.
- JB Sentral and Bukit Chagar: city-centre homes near the RTS Link station.
- Bukit Indah and Gelang Patah: west-side landed and high-rise homes.
Compare them on my JB property map, and see the legal steps of buying in Johor before you sign.
More Johor living guides: State consent in Johor · Johor foreigner minimum price · Stamp duty in 2026 · Foreign spouses buying property
Frequently asked questions
Are Malaysian permanent residents treated as foreigners when buying property?
Partly. Under the National Land Code a PR is a non-citizen, so state approval is needed. For stamp duty and RPGT, PRs are treated like citizens: they are outside the 8% foreign rate and pay citizens’ RPGT rates.
Do PRs need state consent to buy property in Johor?
Yes. Section 433A of the National Land Code defines a non-citizen as anyone who is not a Malaysian citizen, and section 433B requires the State Authority’s prior approval for a non-citizen to acquire land. In Johor the buyer’s lawyer applies to PTG Johor.
Does Johor’s RM1 million minimum apply to permanent residents?
The published Johor rules do not name PRs separately, and Johor’s 2010 guidelines grouped PRs with non-citizens. Have your lawyer confirm PTG Johor’s position for your title and price before you book, and make the SPA conditional on approval.
Do PRs pay the 8% stamp duty for foreigners?
No. From 1 January 2026 the 8% rate applies to residential transfers to individuals who are neither citizens nor permanent residents. PRs pay the normal scale of 1% to 4%.
Can a PR get the first-time homebuyer stamp duty exemption?
No. The first-home stamp duty exemption is for Malaysian citizens only. That covers the current exemption for homes up to RM500,000 (SPAs signed up to 31 December 2027) and the wider version proposed in Budget 2027 (full up to RM500,000 and partial up to RM750,000 for SPAs signed from 2027 to 2030, subject to the Finance Act).
What RPGT does a PR pay when selling?
The same as a citizen: 30% within three years, 20% in the fourth year, 15% in the fifth and nil from the sixth year. The buyer’s lawyer retains 3% of the price, not the 7% retained from other foreign sellers.
A PR planning to buy in Johor?
Tell me your budget, preferred area and timing. I will shortlist homes, note which depend on PTG Johor’s answer, and work with your lawyer so the SPA has the right conditions. You can also book an appointment for viewings, or a Zoom consultation.
Sources: National Land Code (Act 828, Revised 2020), sections 433A and 433B, Attorney General’s Chambers, checked November 2026; Malaysian Bar, Circular No 444/2024, restrictions on non-citizens under the National Land Code (state tables as at October 2024), 23 December 2024; Pejabat Pengarah Tanah dan Galian Johor, Pekeliling Bil. 3 Tahun 2025 (foreign-interest fees), 13 June 2025, in force 1 July 2025; Johore Bar Committee, 2010 Johor PTG guidelines for acquisition of real property by foreign interests, 2010; LHDN, Garis Panduan Pengenaan Duti Setem, First Schedule, Stamp Act 1949 (Item 32 scale and 8% rate), 30 June 2026; The Star, “Budget 2026: Stamp duty exemption extended for first-time homebuyers”, 10 October 2025; Malaysian Bar, Circular No 128/2026, first-time buyer stamp duty exemption orders, 16 April 2026; LHDN, RPGT rates, updated 23 June 2026; LHDN, RPGT retention and remittance by the acquirer, updated 25 May 2026; Ministry of Home Affairs, appeal for entry permit application (section 10, Immigration Act 1959/63), updated 19 September 2025
Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 13 November 2026, not legal, tax or financial advice. How a permanent resident’s purchase is treated can depend on the title and on state policy; confirm with your lawyer, PTG Johor and LHDN before you commit.