Buy Property in Malaysia as a Foreigner: A Full Guide 

Malaysia has long been a favorite among international property buyers, thanks to its welcoming attitude toward foreigners, high quality of life, and relatively affordable real estate market. 

Whether you're planning to retire, invest, or relocate, this guide will walk you through everything you need to know about buying property in Malaysia as a foreigner.

✅ Can Foreigners Buy Property in Malaysia?

Yes, foreigners can buy property in Malaysia, but there are some rules and limitations. 

Compared to many countries in Southeast Asia, Malaysia offers a more accessible property market for non-citizens, with outright ownership allowed in many cases.

However, the Malaysian government regulates what types of properties foreigners can purchase and sets minimum price thresholds.

Legal Requirements & Restrictions for Foreign Buyers

1. Minimum Purchase Price

Each state in Malaysia sets a minimum threshold for foreign property buyers. For example:

• Selangor: RM2 million for landed property.

• Kuala Lumpur: RM1 million

• Penang: RM1 million (mainland), RM3 million (island) for landed property

• Johor: RM1 million

Foreigners cannot buy properties below these thresholds.

💡 Tip of the day: Always check the latest state-specific regulations before purchasing.

2. Types of Property Foreigners Can and Cannot Buy

Allowed:

• Condominiums and serviced apartments

• Commercial properties (e.g., shop lots, offices)

Restricted/Not Allowed:

• Low-cost housing and properties.

• Agricultural land (unless special approval is granted by Land and Mines Office (Pejabat Tanah dan Galian)

• Landed residential property (varies by state and often restricted)

3. Ownership Structure

Foreigners may own freehold or leasehold property under their name. Options include:

• Individual ownership

• Company ownership (if incorporated in Malaysia)

💡Note: You do not need to form a joint venture with a local citizen to own property.

4. State Authority Approval

All foreign property purchases must be approved by the relevant State Authority.

This is typically a formality but can take several months.

Step-by-Step Process of Buying Property in Malaysia as a Foreigner

1. Find a Property
   Work with a licensed real estate agent to identify suitable properties within the legal framework.

2. Hire a Lawyer
   A local solicitor will help with due diligence and paperwork.

3. Sign Letter of Offer & Pay Deposit
   Deposit is typically 2–3% of the purchase price.

4. Sign Sale and Purchase Agreement (SPA)
   Within 14–21 days of the offer letter, followed by payment of another 7–8%.

5. Apply for State Consent
   This is mandatory and handled by your lawyer.

6. Final Payment & Transfer of Title
   Usually within 3 months of signing the SPA. Stamp duty and legal fees are paid at this point.

Financing, Taxes, and Costs

1. Can Foreigners Get a Mortgage?

Yes, many Malaysian banks offer mortgages to foreigners, although loan-to-value (LTV) ratios are often lower than for locals (typically 60–70%).

2. Taxes and Legal Fees

• Stamp Duty: 1% to 3% based on property price

• Legal Fees: Around 1% of the property value

• Real Property Gains Tax (RPGT): 10% (if sold within 5 years), 5% (after 5 years)

• Annual Costs:

• Maintenance Fees

• Quit Rent & Assessment Tax

Aspects to Consider When Buying Property in Malaysia as a Foreigner 

1. Popular Areas for Foreigners

• Kuala Lumpur: Urban lifestyle, international schools, major expat communities

• Penang: Island charm with modern landscape

• Johor Bahru: Popular among foreigners for holiday homes

• Langkawi: Duty-free island with fantastic beachfront properties

2. Living in Malaysia

• Cost of Living: Relatively low compared to the West

• Healthcare: Affordable and high-quality private healthcare system

• Safety: Generally safe with low crime rates

• Language: English is widely spoken in urban areas

• Food & Culture: Diverse, multicultural, and delicious

Know more about to expect when living in Malaysia as a foreigner in this article

Why Invest in Property in Malaysia as a Foreigner? 

1. Why Invest in Malaysian Property?

• Strong rental yields in urban centers

• Affordable entry prices compared to Singapore or Hong Kong

• Growing infrastructure and development projects (e.g., MRT, High-Speed Rail)

2. Rental Income

Foreigners can rent out their property for both long-term and short-term stays, though some states may regulate Airbnb-type stays.

⚠️ Tips for Buying Property in Malaysia as a Foreigner

• Always deal with licensed real estate agents and lawyers

• Avoid paying cash deposits without proper legal documentation

• Be aware of hidden costs: legal fees, agent commissions, renovation, etc.

• Research property management options if you won’t be living in Malaysia

Frequently Asked Questions (FAQs)

Q: Can I buy landed property in Malaysia as a foreigner?
A: In some states, yes, but restrictions and high minimum prices apply.

Q: Can I rent out my property?
A: Yes. Most condos allow long-term rental; short-term rentals may be restricted.

Q: How long does the property buying process take?
A: Typically 3–6 months, depending on approval and paperwork.