Buying property in Malaysia as a foreigner
Malaysia lets foreigners own freehold property outright — rare in Southeast Asia and its real structural advantage over Thailand. The catches: state minimum prices, 8% stamp duty since January 2026, and a compulsory ten-year hold on all mainland MM2H tiers.
What you may buy
Foreigners may own freehold land and buildings, including landed housing in several states, subject to a state-set minimum price. Prohibited: Malay Reserved Land, Bumiputera-quota units, and low and medium-cost housing.
Minimum purchase price by state
| State | Minimum |
|---|---|
| Kuala Lumpur | RM 1,000,000 |
| Selangor | RM 2,000,000 landed / RM 1,500,000 high-rise |
| Penang (island) | RM 1,000,000 strata / RM 3,000,000 landed |
| Penang (mainland) | RM 500,000–750,000 |
| Johor | RM 1,000,000 (Medini / Forest City from RM 500,000) |
| Melaka / Negeri Sembilan | RM 1,000,000 |
| Sabah / Sarawak | RM 600,000–1,000,000 |
Each state page covers this in more detail: Penang, Kuala Lumpur, Johor and Selangor, plus all thirteen states compared.
The costs on top
- Stamp duty 8% for foreign buyers on residential transfers from 1 January 2026, doubled from 4%. No grandfathering by sale agreement date — what counts is when the transfer is executed.
- State consent is required on every foreign purchase, typically one to three months, with the whole process running four to eight.
- Legal fees around 1–1.2% on a tiered scale, plus consent fees.
Getting out
Real Property Gains Tax for foreigners is 30% within five years and 10% from year six. Foreigners never reach the 0% band. The buyer must retain 7% of the disposal price and remit it within 60 days. Full detail on the tax page.
The MM2H ten-year lock
All four mainland tiers require a purchase held for ten years. That converts a residence decision into an money you cannot get at property investment in a market where parts of Kuala Lumpur and Johor run well below full occupancy. If you would not buy the property on its own merits, price the whole purchase as capital at risk — see the full cost breakdown.
Common questions
Can foreigners buy property in Malaysia?
Yes. Foreigners may own freehold land and buildings outright, including landed property in several states, subject to a state-set minimum purchase price. This is unusual in Southeast Asia and is Malaysia's clearest structural advantage over Thailand. Malay Reserved Land, Bumiputera-quota units and low to medium-cost housing are off limits.
How much stamp duty do foreigners pay in Malaysia?
A flat 8% on residential property transfers from 1 January 2026, doubled from the previous 4%. Malaysian citizens and permanent residents remain on the tiered 1% to 4% scale. The applicable rate is set by when the transfer is executed, not when the sale agreement was signed, so there is no grandfathering.
What is the minimum property price for foreigners in Malaysia?
It varies by state. Kuala Lumpur is RM 1,000,000; Selangor is RM 2,000,000 for landed and RM 1,500,000 for high-rise; Penang island is RM 1,000,000 for strata and RM 3,000,000 for landed, with the mainland lower at RM 500,000 to RM 750,000. Johor is generally RM 1,000,000, with Medini and Forest City exceptions from RM 500,000.
Verified July 2026. State minimums are revised independently and are reported inconsistently across sources — confirm with a Malaysian solicitor for your specific property.