Malaysia vs India
Wills and inheritance for Indians who own property in Malaysia
Indian residents and NRIs buying in Kuala Lumpur, Penang or Johor often already have a will at home, or rely on personal law. Malaysian property, though, is inherited under Malaysian law and needs a Malaysian grant. This page explains how the Indian and Malaysian systems differ, what an Indian grant can and cannot do here, and the FEMA points heirs in India should know.
In short
Key points
- Malaysian land and strata units are inherited under Malaysian law, whatever personal law applies to you in India.
- India is a Commonwealth country, so an Indian grant of probate can generally be resealed by the Malaysian High Court.
- An Indian will signed with two witnesses normally meets Malaysia’s formal rules for a will made abroad.
- Without a will, the Hindu Succession Act does not decide who gets Malaysian property — Malaysia’s Distribution Act 1958 does (or faraid for Muslims).
- FEMA allows a resident of India to inherit property abroad; the asset must then be disclosed in Schedule FA.
- Neither India nor Malaysia charges estate duty today.
The Indian system
How wills and succession work in India
India combines a general statute for wills with religion-based personal laws for intestacy.
Indian Succession Act 1925
Governs wills of Hindus, Sikhs, Jains, Buddhists, Christians and Parsis. An adult of sound mind signs in front of two witnesses, who also sign. Registration of a will is optional.
Probate
Probate used to be compulsory for certain wills linked to Mumbai, Kolkata and Chennai under section 213. The Repealing and Amending Act 2025 (assent 20 December 2025) omitted section 213, so probate is now optional across India, though banks and housing societies may still ask for it.
Intestacy
Hindus, Sikhs, Jains and Buddhists follow the Hindu Succession Act 1956 (for example, Class I heirs such as widow, children and mother share equally). Christians and Parsis follow the Indian Succession Act.
Muslims
Muslim personal law applies: bequests are generally limited to one-third of the estate, and gifts to heirs need the other heirs’ consent. A Muslim will need not be in a particular written form.
Comparison
Malaysia vs India side by side
| Point | Malaysia | India |
|---|---|---|
| Will law | Wills Act 1959 (Peninsular non-Muslims); Sabah and Sarawak ordinances | Indian Succession Act 1925 (non-Muslims) |
| Minimum age | 18 | 18 (age of majority) |
| Formalities | Writing, signed at end, two witnesses present together | Writing, signed, two attesting witnesses |
| Registration | Not required | Optional |
| Probate | Needed for property: grant of probate, letters of administration or a small estates order | Optional since section 213 was omitted in December 2025 |
| Intestacy | Distribution Act 1958 — e.g. spouse 1/3, children 2/3 | Hindu Succession Act 1956 or Indian Succession Act, depending on religion |
| Muslim estates | Faraid; wasiat up to 1/3 | Muslim personal law; bequest up to 1/3 |
| Estate duty | None (abolished 1991) | None (abolished 1985) |
| Cross-border grants | Commonwealth grants, including Indian ones, can be resealed (PAA 1959 s.52) | Indian courts can also act on foreign grants under the Indian Succession Act |
Wills Act 1959; Distribution Act 1958; Probate and Administration Act 1959; Indian Succession Act 1925; Hindu Succession Act 1956; checked October 2026.
Cross-border
What carries over to Malaysia — and what does not
Both countries apply the rule that immovable property follows the law of the place where it is situated.
- Your Indian will can be used. Section 27 of Malaysia’s Wills Act 1959 accepts a will made abroad if it follows the law of the place where it was made or of your domicile. A witnessed will under the Indian Succession Act generally satisfies this.
- An Indian grant can usually be resealed — if one exists. Section 52 of Malaysia’s Probate and Administration Act 1959 allows the High Court to reseal grants from Commonwealth courts, normally where the deceased was domiciled in that country. Since probate is no longer compulsory in India, many families will not obtain one; without an Indian grant there is nothing to reseal, and heirs need a fresh Malaysian application.
- Personal law does not decide Malaysian land without a will. For a non-Muslim, Malaysian immovable property follows the Distribution Act 1958; the Hindu Succession Act’s Class I heirs and equal shares do not apply to it.
- Muslim owners: Malaysian property is distributed by faraid in Malaysia, typically with a Malaysian Syariah court certificate.
- Joint ownership differs. Malaysian co-owners usually hold shares that pass under each owner’s will — see ownership structures.
For heirs in India
FEMA, reporting and tax for heirs in India
- Inheriting is permitted. Section 6(4) of FEMA and Rule 21 of the Foreign Exchange Management (Overseas Investment) Rules 2022 allow a resident individual to hold immovable property outside India inherited from a person resident outside India, or from a resident who acquired it lawfully (for example under the LRS).
- Disclose it. Residents must report foreign immovable property, including inherited property, in Schedule FA of the income tax return; rent from it is taxable in India with credit for Malaysian tax under the treaty — see India–Malaysia tax treaty and property.
- Buying more is different. Purchases still fall under the LRS limit of USD 250,000 per financial year, with TCS above ₹10 lakh (claimable as credit). Borrowing abroad is restricted under FEMA.
- Selling later. Malaysian real property gains tax may apply when an heir sells; see property tax: Malaysia vs India. Confirm Indian capital gains treatment with a chartered accountant.
Practical steps
Practical steps for Indian owners and NRIs
- Decide whether your Indian will (with resealing) or a separate Malaysian will for Malaysian assets suits your family better; ask both lawyers to make sure neither will revokes the other.
- Name an executor who can deal with Malaysian banks, the developer and the land office.
- Keep the SPA, title or strata title, loan documents and remittance records (Form A2, LRS bank advice) together.
- If heirs are Indian citizens, they will be foreign owners in Malaysia; see can a foreigner buy it?.
- For purchase steps from India, see buying Malaysian property from India.
Straight answers
Frequently asked questions
Is my Indian will valid for property in Malaysia?
Generally yes, if it was validly made under Indian law; s.27 of Malaysia’s Wills Act 1959 accepts wills made abroad. It still needs a Malaysian grant or a resealed Indian grant before the property can be transferred.
Can Indian probate be resealed in Malaysia?
Usually, yes. India is a Commonwealth country, and s.52 of Malaysia’s Probate and Administration Act 1959 allows resealing of Commonwealth grants, normally where the deceased was domiciled in that country. If no Indian probate is taken out — it has been optional since December 2025 — heirs apply for a Malaysian grant instead.
Does the Hindu Succession Act apply to my Malaysian property?
Not if there is no will. Malaysian immovable property follows Malaysian law, so the Distribution Act 1958 decides the shares for a non-Muslim.
Can a resident Indian inherit property in Malaysia under FEMA?
Yes. FEMA s.6(4) and the Overseas Investment Rules 2022 allow residents to hold inherited foreign immovable property, which must be disclosed in Schedule FA.
Is there inheritance tax on Malaysian property for Indians?
No. Malaysia abolished estate duty in 1991 and India in 1985. Rent and any later gain may be taxed.
Should an NRI make a separate Malaysian will?
Often it is simpler: a Malaysian executor can apply for probate in Malaysia without waiting for Indian probate. The wills must be drafted to work together.
Compare
Wills and estates: Malaysia and other countries
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