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Property educational articles

Guidelines for foreigners buying a house in Malaysia

8/4/2023

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For all foreigners & expats: Check out our guide which details the property purchasing process and information on MM2H.


Foreign ownership of property is liberal (foreigners can own 100% of the property) in Malaysia as long as minimum requirements are met. In law, foreigners can own any type of properties EXCEPT the following: 
  1. Properties valued less than RM1 million in most of the major states.
  2. Properties built on Malay Reserved land
  3. Low and medium cost residential units as defined by the state authority
  4. Properties distributed to Bumiputera interest in any development project as determined by the state authority.
  5. Do take note that there are two types of property tenure: 
    • Freehold
    • Leasehold (99 years but renewable)

2. What is the minimum property purchase price in each state with or without MM2H?
 Source: https://www.iproperty.com.my/guides/guidelines-for-foreigners-buying-a-house-in-malaysia 

*Zones in Selangor
Zone 1 – Districts of Petaling, Gombak, Hulu Langat, Sepang and Klang
Zone 2 – Districts of Kuala Selangor & Kuala Langat
Zone 3 – Districts of Hulu Selangor and Sabak Bernam

NOTE: In the state of Selangor, foreign purchasers are prohibited from:
  1. Purchasing landed residential properties unless said property is issued with a landed strata title (e.g. gated community). 
  2. Buying auction properties
  3. Purchasing agricultural land

3. What are the procedures for foreigners to acquire property?
Source: http://www.pwta.com.my/wp-content/uploads/2017/08/Guide-to-Acquisition-of-Real-Estate-In-Malaysia-by-Foreigners-Updated-as-of-2-August-2017.pdf 

  1. Sign the developer’s sales form or the offer to purchase form with the vendor, for sub-sale transactions.
  2. Apply for financing to purchase the property (if necessary)
  3. Provide the following documents to the solicitor: 
    • photocopy of passport
    • correspondence address and contact number(s)
    • income tax number & the place of submission of the income tax (applicable for sub-sale purchase only).
  4. Within 14 days from the date of signing of the sales form (or offer to purchase), sign the SPA, deed of the mutual covenant (if applicable) and other transactional documents. Pay the 10% deposit to the developer/vendor.
  5. Solicitor to apply for state authority consent. Purchaser to provide the following documents to the solicitor: 
    • 1 certified true copy of the SPA
    • 1 certified true copy of the Foreign Purchaser’s passport
    • 1 certified true copy of constitution (if the purchaser is a foreign company)
    • Latest quit rent and assessment receipt of the property
    • Application form under Section 433B of the NLC
  6. Pay the balance purchase price in accordance with the Third Schedule of Schedule H Housing Development (Control And Licensing) (Amendment) Regulations 2015 (“Schedule H”) or the SPA.
  7. Pursuant to Schedule H, the developer shall deliver vacant possession of the property within 36 months from the date of the SPA (or such later date as may be approved by the relevant authority). Upon delivery of vacant possession, the developer shall deliver the strata title and certificate of completion and compliance to the foreign purchaser. In the case of a sub-sale transaction, the vendor shall deliver vacant possession to the purchaser in accordance to the terms of the SPA.

4. What are the costs involved?
Stamp duties & Memorandum of Transfer (MOT)
 Stamp duty rates for properties valued more than RM1 million will be increased from 3% to 4% from January 1, 2019 onwards. 

  Let’s say you are purchasing a home worth RM1.5 million. The final RM0.5 million amount will cost you RM20,000 (4% X RM500,000), bringing the total stamp duty to be paid to RM44,000. 

Legal Fees

Real Property Gains Tax (RPGT)

Rental Income
Yes it is accountable to Malaysia tax. If you are a foreigner with a permanent residence status, the tax rate will be from 0-25% depending on the tax bracket. If you are a foreigner without a permanent residence status, the tax rate will be 25%. 

Loan stamping fees
0.5% of total loan amount. 


Door tax & title deed 
RM 1,500-RM3,500 for condominium (charged by land office) 

Maintenance fee
This fee is based on price per square feet (psf) set by property developers. It will vary from project to project. A rough estimation of this cost will be from RM 0.30 – RM 1 psf. 

5. How do I transfer the funds if I choose to purchase a property in Malaysia using cash?
You may do a transfer the funds to the property developer’s Malaysian bank account by stages or to the bank account in other countries (if available). 

6. Can I purchase a property with 2 or more individuals?
There can be more than 2 individuals who own the property that was purchased. During the signing of the agreement, each individual’s percentage of shareholding must be stated. It will be equal share by default if there is no clause stating how much percentage each individual will own. 

7. Will the total square footage of properties sold in Malaysia include the common area?
Usually the total square footage of properties sold in Malaysia will consists of useful area & common area will not be included in the calculation. 

8. How do I furnish my units & who can manage my units for me?
Most property developers will provide semi furnish or fully furnish units. However, should you have your own preference on design taste, our in house design & renovation experts will be with you every step of the way. Additionally, we also provide property management services that will look after your property units when you are away. 

9. What are the home loan financing options?
MM2H holders can obtain loan as high as 80% margin from banks whereas non-MM2H holders can obtain loan margin close to 50%. Loan tenure can reach until 30 years, provided the applicant is not above 70 years of age when the loan tenure ends. Loan stamp duty is around 0.5% of the loan amount. Legal fees and disbursements will be around 0.8% of loan amount.

 Click here to fill up the enquiry form for our in house experts to give you the best advice and latest interest rates!

*This article was repurposed from iproperty.com.my , first published on iproperty.com.my 

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  • Home
  • New Property Launch
    • Sepang Freehold Individual Title AI Cluster & Semi D Warehouse Factory
    • Lakeside Freehold Fully Residential Private Lifestyle Condominium in Cyberjaya
    • Spacious 2024 Completion KL Condo Fully Residential KLCC View
    • RUMAWIP Bukit Jalil (Bumi Only)
    • Lake City @ KL North NEW PHASE FROM RM380k
    • Alora Residences – Inspired living within greenery in Subang Jaya
    • PJ Spacious and Affordable 5 Star Condo
    • Bangsar South 2 Rooms from RM390k BELOW Market Price
    • 10% ROI PJ Project near Ikea and One Utama Mall
    • Project Announcement Registration. Malaysia New Property Launch
  • Existing & Past Project
    • Best Investment 2022 PJ Damansara Low Risk Low Entry Price High ROI
    • 2022 PJ Rumah Mampu Milik RM270k Damansara
    • Mid Valley Seputeh New Launch
    • Pavilion Damansara Heights 柏威年 白沙罗岭 马来西亚 吉隆坡 精选楼盘
    • 马来西亚RM300千的PJ屋子-首购族,年轻人月入3千能买房
    • 2021 Penang Most Awaited Project
    • 2021 New Launch - KL Metropolis
    • Freehold LRT Linked 3 Room Suites in Glenmarie
    • New SPACIOUS Kepong Landed 6 Room 6 Bath
    • Bangsar Last Piece Land New Launch
    • Avara Seputeh (Mid Valley)
    • 2020 Lowest Risk & Price in Klang Valley with Great ROI
    • Kiara East Suite Dex
    • 2019 SAFEST PROFITABLE HIGH CASHBACK INVESTMENT
    • Best Property Investment Projects in 2018
    • KL City Freehold Spacious Affordable 3 room Project
    • Jalan Kuching Freehold New Office & Shoplot
    • Jalan Ipoh New Freehold Shoplot & Offices
    • RM300k KL Sentral New Prelaunch
    • The Olive Condo, Sunsuria City
    • Prelaunch Landed House Bukit Rahman Putra
    • RM260k No Downpayment Puchong South Suites
    • PJ North RM400k High Cash Back Project
    • Denai Sutera @ Alam Sutera, Bukit Jalil
    • First Phase of Banting New Township
    • Neu Suites 3rdNVenue @ Embassy Row by Titijaya & CREC
    • COURT 28, Jalan Ipoh KL City New Property Launch Service Apartment. Malaysia New Property Launch
    • Semanja Kajang New FREEHOLD Kajang Double Storey Houses. Malaysia New Property Launch
    • M Suite @ Desa Park North
    • BIJI LIVING @ Sek 17 PJ City by Conlay. Malaysia New Property Launch
    • Amani Residence Bandar Puteri Puchong New Freehold Service Apartment. Malaysia New Property Launch
    • SFERA RESIDENCY @ Puchong South. Malaysia New Property Launch
    • KL North Last Release
    • PreLaunch Freehold Double Storey
  • LAND
  • News & Articles
    • Educational Articles
    • Ho Chin Soon Greater KL Map Sharing
  • Other Reference Link & Services
    • Land Sale Malaysia
    • Other Professional Services
  • Referral
  • Career
  • MPIG
    • About Us
    • Contact Us
  • Get Professional Advice
  • PJ八打灵全新地产项目分析手册
  • Privacy Policy