Malaysia
Malaysia allows foreign property purchase via outright ownership, subject to state minimum prices and, for landed property, State Authority consent. It also allows purchase via the revamped Malaysia My Second Home (MM2H) programme. Kuala Lumpur, Penang, and Johor are the most active foreign-buyer markets. Importantly, Budget 2026 doubled foreign-buyer stamp duty to a flat 8% effective 1 January 2026.
(state, type & tier dependent)
MM2H Silver from RM 600K · Penang Mainland from RM 500K.
Malaysia at a Glance
Minimum Purchase Price by State
Foreign buyers are subject to state-specific minimum purchase thresholds. Strata and landed properties often have different floors. Meanwhile, the MM2H Silver tier and SFZ Forest City have separate carve-outs.
| State / Territory | Minimum Purchase | Notes |
|---|---|---|
| Kuala Lumpur (FT) | RM 1,000,000 | Standard floor across all property types |
| Selangor | RM 1.5M (strata) / RM 2M (landed) | Strata-only for most foreigners; zone variations apply |
| Johor | RM 1,000,000 | Medini/Iskandar Puteri zones have lower thresholds via SFZ |
| Penang Island | RM 1M (strata) / RM 3M (landed) | Landed threshold differs from strata; State Authority consent required |
| Penang Mainland | RM 500,000 (strata) | Strata-only at this threshold |
| Sabah | RM 1,000,000 | Some restricted zones; RM 600K via Sabah MM2H |
| MM2H Silver (national) | RM 600,000 | Subject to state minimum if higher; 10-year hold |
| SFZ Forest City | RM 500K – 600K | Direct from developer only · SEZ MM2H carve-out |
Essential Malaysia Guides
MM2H Programme ✓ Updated June 2024
The June 2024 MM2H revamp introduced three national tiers plus an SFZ tier for Forest City. Property purchase is now mandatory across all tiers and must be held for 10 years.
| Tier | Fixed Deposit (USD) | Min. Property | Visa Duration |
|---|---|---|---|
| Silver | $150K | RM 600K | 5 years (renewable) |
| Gold | $500K | RM 1M | 15 years (renewable) |
| Platinum | $1M | RM 2M | 20 years (renewable) |
| SFZ Forest City | $65K ($32K for 50+) | From RM 500–600K (developer-direct) | 5 years (renewable) |
All applications must go through licensed MM2H agents, since direct applications are no longer accepted. Up to 50% of the FD is withdrawable for property purchase, healthcare, tourism, and education after a specified period. Only the Platinum tier permits employment in Malaysia.
Foreign Ownership Rules
The minimum purchase price varies by state and property type (see table above). Both freehold and 99-year leasehold are available.
However, properties on Malay reserved land, low-cost housing, and Bumiputera-allocated quotas are restricted. State Authority Consent is also required for every purchase, typically taking 1–3 months.
Stamp Duty (2026 Update) ⚠ DOUBLED
Effective 1 January 2026, foreign individuals and foreign-owned companies pay a flat 8% stamp duty on the Memorandum of Transfer. This is double the previous 4% flat rate that applied from 2024. Malaysian citizens and PRs continue paying the progressive tiered rates (1–4%).
In addition, a loan agreement stamp duty of 0.5% applies if financed. As a result, the total upfront acquisition cost for foreigners is now approximately 9–10% of property value.
RPGT for Sellers
Real Property Gains Tax (RPGT) applies on disposal. For non-citizens, it's 30% if held within 5 years, and 10% from year 6 onward. That 10% is a permanent floor, so foreigners never reach 0%.
By contrast, citizens reach 0% after a 5-year hold. Therefore, plan your exit strategy before purchase to model net returns accurately.
Financing Options
Foreigners with MM2H or local employment typically secure 60–70% LTV from Malaysian banks. In contrast, non-resident foreigners without a long-stay visa typically see 50–60%.
Mortgage rates currently run 4.2–5.3% per annum, variable and tied to OPR. Islamic (Shariah-compliant) financing is also widely available with similar terms.
Price Trends 2026
The KL property market remains resilient. KLCC premium condos average RM 1,800–2,500 per sq ft, with gross yields of 3.5–5%.
Meanwhile, Penang and Johor mid-tier properties can yield 5–6% in prime locations. Watch for short-term softness in foreign buyer demand following the 8% stamp duty change.
Legal Process
Malaysia uses a Sale and Purchase Agreement (SPA) system, with regulated solicitor fees of roughly 1–1.5% of price. State Consent (Foreign Acquisition Consent) processing takes 1–3 months.
Overall, completion typically takes 3–6 months for resale properties, versus 2–3 years for new builds.
The Case for
Investing in Malaysia
Even with the 2026 stamp duty increase to 8%, Malaysia still offers competitive freehold access at far lower acquisition cost than Singapore's 60% ABSD or Hong Kong's 15% BSD. As a result, it remains a compelling choice for Southeast Asian real estate, particularly for MM2H visa applicants seeking long-term residency.
Strong Rental Demand
Transparent Legal Framework
JS-SEZ Growth Catalyst
Common Questions about Malaysia Property
What is the minimum price foreigners can buy in Malaysia?
The minimum purchase price varies by state and property type. Kuala Lumpur & Johor: RM 1 million. Selangor: RM 1.5M (strata) / RM 2M (landed). Penang Island: RM 1M (strata) / RM 3M (landed). Penang Mainland: RM 500,000 (strata).
Meanwhile, MM2H Silver tier participants can purchase from RM 600K, subject to the state minimum if higher, and SFZ Forest City has lower thresholds via direct developer purchase. See the threshold table above for full details.
What is the MM2H programme? ✓ June 2024 revamp
Malaysia My Second Home (MM2H) is a long-term renewable residency visa. The June 2024 revamp introduced three national tiers plus a separate SFZ tier.
Silver: USD 150K FD · RM 600K property · 5-year visa
Gold: USD 500K FD · RM 1M property · 15-year visa
Platinum: USD 1M FD · RM 2M property · 20-year visa
SFZ Forest City: USD 65K FD (USD 32K if 50+) · Developer-direct property · 5-year visa
Property purchase is mandatory across all tiers and must be held for 10 years. Only Platinum permits employment in Malaysia. Up to 50% of the FD can be withdrawn after the qualifying period for property purchase, healthcare, tourism, and education. In addition, all applications must be submitted via a licensed MM2H agent, since direct applications are no longer accepted.
What is the stamp duty for foreign buyers? ⚠ 2026 increase
Effective 1 January 2026, following Budget 2026 announced on 10 October 2025, foreign individuals and foreign-owned companies pay a flat 8% stamp duty on the Memorandum of Transfer (MOT). This is double the previous 4% flat rate that applied from 2024.
Malaysian citizens and PRs, however, continue to pay tiered rates of 1%, 2%, 3%, or 4% by price band. If financed via mortgage, an additional 0.5% loan agreement stamp duty also applies on the loan amount. As a result, the total upfront acquisition cost for foreigners is now approximately 9–10% of property value, compared with roughly 4.5–5% before the change.
What about RPGT when I sell?
Real Property Gains Tax (RPGT) is levied on capital gains from disposal. For non-citizens and foreign companies, it's 30% if held within 5 years, and 10% from year 6 onward. This 10% floor is permanent, so foreigners never reach 0% regardless of holding period.
Malaysian citizens and PRs, in contrast, benefit from a tiered scale that drops to 0% after 5 years. Therefore, factor RPGT into your exit-yield model — combined with the new 8% entry stamp duty, the total transaction-tax drag for foreigners is material.
Are there taxes on rental income?
Yes. Rental income is subject to Malaysian income tax. Non-residents are taxed at a flat 30% on net rental income, meaning after allowable deductions such as assessment tax, quit rent, property management, repairs, and mortgage interest, but with no personal reliefs or rebates.
Tax residents, meaning those staying 182+ days per year in Malaysia, are instead taxed at progressive rates of 0–30% on net rental income, with eligibility for personal reliefs. This is filed via Form M for non-residents, or BE/B for residents.
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