Country guide
Buying property in Malaysia as a foreigner
Rules last checked 29 October 2026 · 10 official sources · Education, not financial, tax, legal or immigration advice.
Malaysia lets a foreigner acquire land only with the prior written approval of the State Authority under section 433B of the National Land Code, and a dealing without approval is void under section 433C. Each state sets its own minimum prices, and Penang's guideline (updated 1 August 2024) sets MYR 1,000,000 for strata and MYR 3,000,000 for landed property on Penang Island.
What are you doing with Malaysia?
Returns after tax, what is withheld, and the way out.
From 1 January 2026 Malaysia charges stamp duty of 8 percent (MYR 8 per MYR 100) on residential property sold to a foreign company or a non citizen who is not a permanent resident, on the greater of the price and the market value. Details
Questions people in this position often miss
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- Can I borrow locally?Not confirmed yet
Lending to a buyer living abroad is limited in many countries and the loan to value limit can be lower.
- Can I move the money out of my own country?Depends on your country
Some countries cap or review money sent abroad to buy a home, and banks ask where the money came from.
- What do I report at home?Depends on your country
Foreign property, foreign accounts and foreign rent can each carry a form in the owner's own country.
- What is changing soon?Answered below
From 1 January 2026, Finance Act 2025 (Act 874) sets stamp duty at 8 percent on residential property sold to a foreign company or a non citizen who is not a permanent resident, up from 4 percent.
Whether a purchase gives a right to live there, and what living there costs in tax.
Malaysia's MM2H programme is open in four categories: Platinum (fixed deposit USD 1,000,000 and a residence of at least MYR 2,000,000), Gold (USD 500,000 and MYR 1,000,000), Silver (USD 150,000 and MYR 600,000) and a special zone category (USD 32,000 or USD 65,000), with terms of 20, 15, 5 and 10 years (programme page updated 10 February 2026). Details
Malaysia lets a foreigner acquire land only with the prior written approval of the State Authority under section 433B of the National Land Code, and a dealing without approval is void under section 433C. Details
From 1 January 2026 Malaysia charges stamp duty of 8 percent (MYR 8 per MYR 100) on residential property sold to a foreign company or a non citizen who is not a permanent resident, on the greater of the price and the market value. Details
Questions people in this position often miss
- Does buying give me the right to live there?Answered below
Malaysia's MM2H programme is open in four categories: Platinum (fixed deposit USD 1,000,000 and a residence of at least MYR 2,000,000), Gold (USD 500,000 and MYR 1,000,000), Silver (USD 150,000 and MYR 600,000) and a special zone category (USD 32,000 or USD 65,000), with terms of 20, 15, 5 and 10 years (programme page updated 10 February 2026).
- What happens if I die, or the family inherits?Answered below
Johor charges no approval fee on transmission on death or transfer to a beneficiary (Circular 3 of 2025), and Penang consent is still needed for a non citizen heir.
- Can I move the money out of my own country?Depends on your country
Some countries cap or review money sent abroad to buy a home, and banks ask where the money came from.
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- What is changing soon?Answered below
From 1 January 2026, Finance Act 2025 (Act 874) sets stamp duty at 8 percent on residential property sold to a foreign company or a non citizen who is not a permanent resident, up from 4 percent.
Part year stays, the yearly bill, and what the family inherits.
Malaysia lets a foreigner acquire land only with the prior written approval of the State Authority under section 433B of the National Land Code, and a dealing without approval is void under section 433C. Details
Malaysia's MM2H programme is open in four categories: Platinum (fixed deposit USD 1,000,000 and a residence of at least MYR 2,000,000), Gold (USD 500,000 and MYR 1,000,000), Silver (USD 150,000 and MYR 600,000) and a special zone category (USD 32,000 or USD 65,000), with terms of 20, 15, 5 and 10 years (programme page updated 10 February 2026). Details
From 1 January 2026 Malaysia charges stamp duty of 8 percent (MYR 8 per MYR 100) on residential property sold to a foreign company or a non citizen who is not a permanent resident, on the greater of the price and the market value. Details
Questions people in this position often miss
- Does buying give me the right to live there?Answered below
Malaysia's MM2H programme is open in four categories: Platinum (fixed deposit USD 1,000,000 and a residence of at least MYR 2,000,000), Gold (USD 500,000 and MYR 1,000,000), Silver (USD 150,000 and MYR 600,000) and a special zone category (USD 32,000 or USD 65,000), with terms of 20, 15, 5 and 10 years (programme page updated 10 February 2026).
- What happens if I die, or the family inherits?Answered below
Johor charges no approval fee on transmission on death or transfer to a beneficiary (Circular 3 of 2025), and Penang consent is still needed for a non citizen heir.
- What is owed every year, even if the home sits empty?Not confirmed yet
Some countries tax an empty or personal use home on an assumed income.
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- Can I move the money out of my own country?Depends on your country
Some countries cap or review money sent abroad to buy a home, and banks ask where the money came from.
What is owed each year, on rent and on a sale, and what the heirs face.
From 1 January 2026 Malaysia charges stamp duty of 8 percent (MYR 8 per MYR 100) on residential property sold to a foreign company or a non citizen who is not a permanent resident, on the greater of the price and the market value. Details
Questions people in this position often miss
- What do I report at home?Depends on your country
Foreign property, foreign accounts and foreign rent can each carry a form in the owner's own country.
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- What happens if I die, or the family inherits?Answered below
Johor charges no approval fee on transmission on death or transfer to a beneficiary (Circular 3 of 2025), and Penang consent is still needed for a non citizen heir.
- What happens when I sell?Answered below
Malaysia charges Real Property Gains Tax on a non citizen who is not a permanent resident at 30 percent for a disposal in years 1 to 5 and 10 percent from year 6 (since 1 January 2019). From 1 January 2026 the buyer retains up to 7 percent of the consideration, or the deemed tax if lower, and pays it to the Director General within 60 days.
- What is changing soon?Answered below
From 1 January 2026, Finance Act 2025 (Act 874) sets stamp duty at 8 percent on residential property sold to a foreign company or a non citizen who is not a permanent resident, up from 4 percent.
Who may buy
Choose a nationality to see the rules that apply to it.
Every rule, for every buyer
| Buyer | Property | Reading | Conditions |
|---|---|---|---|
| Citizens of Malaysia | Any property | Open | Citizens are outside the consent regime of Part 33A of the National Land Code, which applies to non citizens and foreign companies. Land reserved for Malay holders and other state restrictions can still apply by category of land. |
| Everyone else (not Malaysia) | industrial land | Open | Section 433B(1): no State Authority approval is required for land in the category industry or subject to a condition requiring industrial use, and for dealings under an agreement already approved under section 433E. Penang's guideline nevertheless lists industrial land among categories with application fees and a 3 year resale lock. |
| Everyone else (not Malaysia) | residential | Approval needed |
|
| Everyone else (not Malaysia) | residential | Conditions apply | Penang minimum prices (guideline updated 1 August 2024):
Minimum price control does not apply to estate orders, court orders or gifts. A foreign buyer may resell only after 3 years from the date of the sale and purchase agreement. Low cost, low medium cost and medium cost housing and Bumiputera quota units cannot be bought. |
| Everyone else (not Malaysia) | agricultural land | Restricted | Penang's guideline: non citizens and foreign companies may not own agricultural land except where a relaxation is granted, considered for land of at least 5 acres for commercial high technology farming, export products, approved industry support, agro tourism and similar purposes, with a foreign company at least 30 percent Malaysian owned; they may not take part in auctions of agricultural land under sections 256 and 260. National Land Code section 433B(4) requires State Authority approval even to bid at a sale of land in the category agriculture or building. |
| Everyone else (not Malaysia) | residential | Not allowed | Penang: foreign nationals and permanent residents cannot own low cost, low medium cost or medium cost housing, Bumiputera quota houses, or land sold under bank auction orders. |
| Everyone else (not Malaysia) | Any property | Approval needed | Acquisition by inheritance of a family member's estate or by gift from the closest family also needs State Authority consent in Penang (the guideline lists purchase, lease, inheritance and gift as acquisition methods); the minimum price control does not apply to estate orders, court orders and gifts. |
| Everyone else (not Malaysia) | Any property | Approval needed | The National Land Code treats every non citizen nationality alike; it names no nationality, regional bloc or reciprocity regime. The MM2H programme is open to individuals from sovereign countries with diplomatic relations with Malaysia (programme guidelines). |
What it costs to buy
Stamp duty on transfer of residential property
- Rate
- Flat RM8 for every RM100 or part of the greater of the consideration and the market value, on a sale of residential property to a foreign company or a person who is not a citizen and not a permanent resident (Stamp Act 1949, First Schedule item 32(ab), inserted by Finance Act 2025, Act 874).
- The Chapter commences 1 January 2026.
- Residential property means a house, condominium, apartment, flat, service apartment or small office home office solely used as a dwelling house.
- Previously a fixed 4 percent under item 32(aa).
- Extra for a foreign buyer
8 percent flat for these buyers, up from 4 percent.
Penang state application fee and approval levy (guideline updated 1 August 2024)
- Rate
Application fee per title or parcel under the Penang Land Rules 2021:
- RM10,000 foreign individual, RM2,000 permanent resident, RM20,000 foreign company for residential
- RM20,000, RM4,000 and RM40,000 for commercial
- agricultural and industrial RM20,000, RM4,000 and RM40,000. Approval levy (in force since 1 March 2014): 3 percent of the acquisition value for landed property
- strata under RM1,000,000 3 percent
- strata from RM1,000,000 to RM1,500,000 1.5 percent on the island and 3 percent at Seberang Perai (1.5 percent for agreements dated from 1 July 2017)
- strata above RM1,500,000 3 percent
Levy payable within 30 days of the approval letter (extension RM500 per title within 1 year, otherwise approval lapses). Appeal fee RM2,000 residential individual.
- Extra for a foreign buyer
Applies only to non citizens and foreign companies.
State consent application fee (Selangor)
- Rate
RM200 per title for a first application, RM1,000 per title for an appeal (page last updated 2 April 2026).
- Extra for a foreign buyer
Applies only to foreign applicants.
State fees (Johor Circular 3 of 2025, decision of 11 June 2025)
- Rate
- Foreign acquisition application fee RM2,000 per title for individuals and foreign companies, extension of approval RM2,000, late levy payment penalty RM2,000, appeal RM3,000.
- Approval fee for a residential purchase from a developer: 3 percent of the sale price or minimum RM30,000, whichever is higher (previously 2 percent or RM20,000); subsales 3 percent of the valuation or price; leases 3 percent; transfer to close family 2 percent of valuation or minimum RM20,000; no fee for transmission on death or transfer to a beneficiary.
- Land transfer registration fee tiers revised (for example RM2,500 for value above RM500,000 up to RM600,000 and RM4,500 at RM900,000 to RM1,000,000).
- Extra for a foreign buyer
Applies only to foreign interests.
Levy under section 433B(2)
- Rate
State Authority may impose conditions and a prescribed levy on approval; remission is only in accordance with National Land Council directions (433B(2A)).
- Extra for a foreign buyer
Foreign buyers only.
Key numbers (1)
| Stamp duty on sale of residential property to a non citizen non permanent resident or foreign company, per RM100 of the greater of price and market valuefrom 1 January 2026 | 8% |
|---|
What if the price is…?
- Stamp duty on sale of residential property to a non citizen non permanent resident or foreign company, per RM100 of the greater of price and market value (8% of the price)MYR 40,000
Duties and fees under the rules shownMYR 40,000
Only duties stated for a foreign buyer of a home are counted: flat rates, flat fees and the standard banded scale shown. Reliefs, exemptions and the buyer's own circumstances can change the result. A planning figure, not a quote: legal fees, agent fees and local taxes are extra.
What an owner pays each year
What if I own it and let it out?
Tax on the rent
Enter a yearly rent to see the tax on it.
A planning figure under the rules shown, not advice. Rates set by councils, reliefs, treaties and the owner's own circumstances can change it, and income tax on rent is usually settled on a return.
Rent from the property
Tax on rent
- Owner living elsewhere
Rent, royalties and premiums are one of the heads of income on which income tax is charged (Inland Revenue Board guidance). A non resident individual (in Malaysia fewer than 182 days) is taxed at a fixed 30 percent of taxable income from year of assessment 2020 and cannot claim personal relief.
- Filing
Non residents file the non resident return (Form M); the Inland Revenue Board guidance lists 30 April for individuals without business income and 30 June for individuals with business income.
Key numbers (1)
| Income tax rate for a non resident individual, flat, on taxable income including rentfrom 1 January 2020 | 30% |
|---|
Selling
Tax on a sale
- Owner living elsewhere
- Real Property Gains Tax applies to disposers wherever resident.
- Part III of Schedule 5 (non citizens who are not permanent residents, executors of their deceased estates, and companies not incorporated in Malaysia): 30 percent in years 1 to 5 and 10 percent from the 6th year, for disposals from 1 January 2019 (page last updated 23 June 2026; 2014 to 2018 rates were 30 percent then 5 percent from year 6).
- Citizens and permanent residents (Part I): 30, 30, 20, 15 percent in years 1 to 5 and 0 percent from year 6 from 1 January 2022 (5 percent from year 6 in 2019 to 2021).
- Part II (Malaysian companies and trusts): 30, 30, 20, 15 percent then 10 percent from year 6 from 1 January 2019.
- Withholding on the sale
Section 21B as amended by Finance Act 2025 (section 23, in force 1 January 2026): on a disposal by a Part III disposer the acquirer retains the whole of the money, or a sum not exceeding 7 percent of the total value of the consideration, or the amount of tax on the deemed chargeable gain under section 14(1), whichever is the less, and pays it to the Director General within 60 days of disposal. The general retention cap is 3 percent, and 5 percent for a Part II disposer within 3 years of acquisition.
- Exemptions
An individual disposer's exemption is the greater of RM10,000 or 10 percent of the gain (paragraph 2 of Schedule 4). From 1 January 2024 disposals of real property company shares by companies, LLPs, trust bodies and cooperatives fall outside RPGT.
Key numbers (7)
| RPGT rate, Part III disposer, disposal in years 1 to 5from 1 January 2019 | 30% |
|---|---|
| RPGT rate, Part III disposer, disposal from the 6th yearfrom 1 January 2019 | 10% |
| RPGT rate, citizens and permanent residents, years 1 to 3from 1 January 2022 | 30% |
| RPGT rate, citizens and permanent residents, 4th yearfrom 1 January 2022 | 20% |
| RPGT rate, citizens and permanent residents, 5th yearfrom 1 January 2022 | 15% |
| RPGT rate, citizens and permanent residents, 6th year onwardfrom 1 January 2022 | 0% |
| Acquirer retention cap on disposal by a Part III disposer (or the deemed tax if lower)from 1 January 2026 | 7% |
What if I sell?
Gain (sale price less purchase price)MYR 100,000
Tax on the sale
- Real Property Gains TaxMYR 27,000Charged on the gain: the sale price less the purchase price. For a non citizen who is not a permanent resident: 30 percent in years 1 to 5 and 10 percent from the 6th year, for disposals from 1 January 2019. An individual's exemption is the greater of RM10,000 or 10 percent of the gain. The buyer retains up to 7 percent of the price as a prepayment.
Total under the rules shownMYR 27,000
A planning figure under the rules shown, not advice. Costs of buying and selling, improvements, reliefs for a home lived in, treaties and the owner's own circumstances can change it, and tax on a gain is usually settled on a return.
Inheritance and gifts
Inheritance and gift tax
- Summary
Johor charges no approval fee on transmission on death or transfer to a beneficiary (Circular 3 of 2025), and Penang consent is still needed for a non citizen heir. For tax, the Inland Revenue Board treats the disposal price on devolution to an executor or legatee as equal to the acquisition price, so no RPGT gain arises on transmission.
From your country
The country of the property is only half of it. The country where you live can limit the money you send, tax the same rent and gain again, and ask for forms of its own.
Choose where you live to see what your own country does when you buy in Malaysia.
Residence through property
Malaysia My Second Home (MM2H), Platinum
- Threshold
Fixed deposit USD 1,000,000; minimum age 25; minimum residence purchase RM2,000,000; 20 year term, renewable.
- Status
open
MM2H Gold
- Threshold
Fixed deposit USD 500,000; minimum age 25; minimum residence purchase RM1,000,000; 15 year term, renewable.
- Status
open
MM2H Silver
- Threshold
Fixed deposit USD 150,000; minimum age 25; minimum residence purchase RM600,000; 5 year term, renewable.
- Status
open
MM2H SEZ or SFZ
- Threshold
Fixed deposit USD 32,000 (age 50 and over) or USD 65,000 (age 21 to 49); property price set for the special zone development; 10 year term, renewable.
- Status
open
The usual steps, in order
- Identify state, land category and buyer class: Residential, agricultural, industrial or Malay reserve; foreign individual, permanent resident, MM2H holder or foreign company; check the state's minimum price.
- Sale and purchase agreement: Signed conditional on State Authority consent.
- Application for consent: Filed through a lawyer at the state land office (Penang forms WNA1 for individuals, WNA2 for companies) with the application fee per title.
- Decision: Approved with conditions and levy, or refused; appeal to the land director in Penang for a fee.
- Pay levy: Penang: within 30 days of the approval letter; Johor approval fee 3 percent of price or minimum RM30,000 for developer purchases.
- Stamp transfer instrument and register: Residential transfer to a non citizen who is not a permanent resident or to a foreign company: RM8 per RM100 from 1 January 2026; then registration at the land office.
- On later sale: RPGT with retention by the buyer of the lower of 7 percent of price or the deemed tax, paid within 60 days.
What is changing
- From 1 January 2026, Finance Act 2025 (Act 874) sets stamp duty at 8 percent on residential property sold to a foreign company or a non citizen who is not a permanent resident, up from 4 percent.
- From 1 January 2026, Finance Act 2025 (Act 874) changes the Real Property Gains Tax retention on a disposal by a non citizen who is not a permanent resident to the least of the money paid, 7 percent of the consideration or the deemed tax.
Questions people ask
What if a foreigner wants to buy a home in Malaysia?
Section 433B of the National Land Code requires prior State Authority approval, and a dealing without it is void under section 433C. Each state sets its own minimum prices and conditions.
How does the 8 percent stamp duty on foreign buyers work?
Item 32(ab) of the First Schedule to the Stamp Act 1949 sets MYR 8 per MYR 100 on a sale of residential property to a foreign company or a non citizen who is not a permanent resident, on the greater of consideration and market value, from 1 January 2026.
What if a non citizen sells within five years?
Real Property Gains Tax is 30 percent in years 1 to 5 and 10 percent from year 6 for a non citizen who is not a permanent resident. From 1 January 2026 the buyer retains the least of the money paid, 7 percent of the consideration or the deemed tax, and pays it within 60 days.
How does Malaysia tax rent for a non resident owner?
Rent is a head of income, and a non resident individual is taxed at a flat 30 percent of taxable income from year of assessment 2020, with no personal relief.
How does MM2H relate to property?
MM2H requires purchase of a residence after approval, with minimum prices of MYR 600,000, MYR 1,000,000 and MYR 2,000,000 for Silver, Gold and Platinum, and no sale for 10 years except trading up.
What if a Malaysian company has foreign shareholders?
A Malaysian company with 50 percent or more of voting shares held by non citizens or foreign companies is a foreign company under section 433A, so the consent regime applies.
What if a foreigner wants to buy industrial land?
Section 433B(1) says no State Authority approval is required for land in the category industry or held for industrial use.
Are minimum prices the same across states?
No. Land is a state matter. Penang's guideline, updated 1 August 2024, shows MYR 1,000,000 for strata on Penang Island, MYR 3,000,000 for landed property on the island and MYR 1,000,000 for landed property at Seberang Perai.
What if the buyer is a permanent resident?
A permanent resident is not a citizen, so State Authority consent still applies, but the 8 percent stamp duty and the higher Real Property Gains Tax rates are for non citizens who are not permanent residents.
What if a foreigner wants agricultural land?
Penang's guideline bars foreign ownership of agricultural land except for relaxations on land of at least 5 acres for listed commercial purposes.
What is still open
These points could not be confirmed from an official source yet, so they are not stated as rules.
- The current minimum purchase prices for foreign buyers in Selangor, Johor, Kuala Lumpur and the other states could not be confirmed from an official source yet.
- The Penang minimum price for a foreign individual buying strata at Seberang Perai could not be confirmed from an official source yet.
- The treatment of sale agreements signed before 1 January 2026 under the 8 percent stamp duty could not be confirmed from an official source yet.
- The rules for Malay reservation land and for land in Sabah and Sarawak could not be confirmed from an official source yet.
- The annual assessment and quit rent rates, and the withholding tax on rent paid to non resident owners, could not be confirmed from an official source yet.
- The reported abolition of estate duty is not stated as a rule because only secondary sources describe it.
- The private residence exemption from Real Property Gains Tax could not be confirmed from an official source yet.
- The Bank Negara Malaysia exchange rules, bank lending to foreign buyers and anti money laundering reporting could not be confirmed from an official source yet.
Sources
Official pages these figures come from (10)
See what this does to your own numbers
Add a property in Malaysia next to everything else you own, and see the income and net worth that follow after tax, year by year.
Free to start. No card. Rules checked 29 October 2026.
This is education, not financial, tax, legal or immigration advice. Rules change and depend on the buyer's own facts. Advice from a licensed professional in the country concerned is what settles a particular purchase.