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Market guide · Malaysia

Buying property in Malaysia as a foreignerMalaysia welcomes foreign buyers, above a minimum price.

A foreigner can own a home in Malaysia outright, but only with state approval and usually only above RM1,000,000. The rules and the price floor change from state to state, and new homes are selling slowly.

3-minute read · checked 9 October 2026

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Usual minimum price for a foreign buyer, about USD 245,700
RM1 million
Ministry of Economy guideline, in force 13 July 2022
Stamp duty on a home for a foreign buyer
8%
PwC tax guide, August 2026
Tax on your gain if you sell within five years
30%
PwC tax guide
Completed homes standing unsold
33,094
Valuation and Property Services Department, mid-2026

Can foreigners buy property in Malaysia?The state decides, not the country.

What this means for youPick the state before the property, and have the state's approval in hand before you sign or pay. A sale made without it is void.

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A foreign buyer needs the approval of the State Authority before buying land or a home. A sale made without it is void and carries a fine of at least RM100,000.

The national guideline bars foreigners from homes under RM1,000,000, low-cost homes, Malay Reserve land and units set aside for Bumiputera buyers. Each state then sets its own floor: RM2,000,000 in much of Selangor, RM1,000,000 in Johor, and between RM500,000 and RM3,000,000 in Penang depending on the place and the type of home.

In Penang a foreign buyer may sell only three years after signing. Sabah and Sarawak have their own land laws.

From: National Land Code; Ministry of Economy; land offices of Selangor, Penang and Johor

Stamp duty and taxes for foreign buyers in MalaysiaThree charges fall harder on a foreign buyer.

What this means for youIn Johor or Penang, add about 11% to the price for stamp duty and the state's approval fee, and plan to hold for more than five years.

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Stamp duty on a home is 8% for a buyer who is neither a citizen nor a permanent resident, on the higher of the price and the market value.

States charge for their approval. Johor and Penang take 3% of the property's value, and the fee must be paid within 30 days of approval or the approval lapses.

When a foreign owner sells, the gain is taxed at 30% within five years and 10% from the sixth year. The buyer holds back 7% of the price and pays it to the tax office.

From: PwC tax guide; National Land Code; land offices of Johor and Penang; Inland Revenue Board (LHDN)

Malaysia property market in 2026A buyer's market for new homes.

What this means for youThere is no rush. With prices nearly flat and unsold homes rising, take the time to compare and to negotiate.

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House prices rose 0.9% in the year to the second quarter of 2026. The national average price was RM536,317, about USD 131,800.

Developers launched 27,832 homes in the first half of 2026 and sold 16.6% of them. Completed unsold homes rose 8.6% to 33,094.

Property sales of all kinds fell 4.5% from a year earlier.

From: Valuation and Property Services Department

Malaysia My Second Home (MM2H) visa and living in MalaysiaThe long-stay visa requires you to buy, and to keep.

What this means for youIf you buy to qualify for the visa, treat the home as a ten-year holding. It cannot be sold in that time except to buy a dearer one.

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Malaysia My Second Home (MM2H) gives a renewable long-stay pass. Its three levels need a bank deposit of USD 150,000, USD 500,000 or USD 1,000,000, and a home costing at least RM600,000, RM1,000,000 or RM2,000,000.

The pass runs for 5, 15 or 20 years and asks for 90 days in Malaysia each year. Only the top level allows work or business.

Money can leave freely. A foreign owner may send sale proceeds and income abroad, and may borrow in ringgit from a local bank to buy.

From: Ministry of Tourism, Arts and Culture; Bank Negara Malaysia

Questions buyers ask

Buying property in Malaysia: short answers.

Can foreigners buy property in Malaysia?

Yes, with the prior approval of the State Authority and above the state's minimum price, which is RM1,000,000 in most cases. A purchase made without approval is void under the National Land Code.

What is the minimum price for foreigners buying property in Malaysia?

The national guideline sets RM1,000,000 a unit. States set their own: Johor RM1,000,000; Selangor RM2,000,000 in Zones 1 and 2 and RM1,000,000 in Zone 3; Penang RM1,000,000 for strata and RM3,000,000 for landed homes on the island, and less in Seberang Perai.

How much stamp duty does a foreigner pay in Malaysia?

8% on a residential purchase for a buyer who is neither a citizen nor a permanent resident, under PwC's August 2026 tax guide. It is charged on the higher of the price and the market value.

What tax does a foreigner pay when selling property in Malaysia?

Real property gains tax of 30% on a sale within five years, and 10% from the sixth year onward, for an individual who is neither a citizen nor a permanent resident.

Does MM2H require buying a property?

Yes. Participants must buy a home of at least RM600,000 (Silver), RM1,000,000 (Gold) or RM2,000,000 (Platinum), and may not sell it for ten years except to upgrade.

Can a foreigner get a home loan and take money out of Malaysia?

Yes. Bank Negara Malaysia allows a non-resident to borrow ringgit from a licensed onshore bank to buy property, and to send sale proceeds and income abroad in foreign currency.

The evidence

What this guide rests on.

The full rules, step by step: ownership guide for Malaysia and the tax guide.

Every sourced fact we hold on Malaysia (32)
  • The federation comprises 13 states and three federal territories.
  • Life expectancy at birth was approximately 77 years in 2024.
  • The official population estimate for 2026 is 34.4 million.
  • The emergency ambulance number is 999.
  • Foreign companies and non-citizen, non-permanent-resident buyers face 4% transfer duty on property other than residential property.
  • Economic growth reached 6.0% in the second quarter of 2026 compared with a year earlier.
  • A buyer from a seller who is neither a citizen nor a permanent resident must retain 7% of the price and remit it to LHDN within 60 days of the disposal.
  • Kuala Lumpur International Airport’s Terminal 1 provides an international air gateway.
  • Safely managed sanitation covered 86% of the population in 2024.
  • The population grew by 0.5% from the revised 2025 estimate.
  • Citizens account for 31.0 million people in the 2026 estimate.
  • Both government and private hospitals charge overseas visitors for services.
  • Children aged 0–14 account for 21.2% of the population in 2026.
  • Dengue and malaria are identified health risks; risk varies by location.
  • People aged 15–64 account for 70.4% of the population in 2026.
  • MM2H Silver permits dependent children to study in Malaysia, subject to the programme’s education conditions.
  • People aged 65 or older account for 8.4% of the population in 2026.
  • Same-sex sexual acts are illegal under federal law.
  • The median age is 31.7 years in 2026; half the population is younger and half older.
  • The Gold pass is renewable and valid for 15 years, subject to passport validity.
  • The 2026 population estimate has 110 males for every 100 females.
  • Economic output, measured by gross domestic product (GDP), was USD 472.19 billion in 2025.
  • The Platinum pass is renewable and valid for 20 years, subject to passport validity.
  • The economy grew by 5.2% in 2025 after adjusting for price changes.
  • The Silver pass is renewable and valid for five years, subject to passport validity.
  • The economy grew by 5.7% in the first half of 2026 compared with the first half of 2025.
  • Consumer-price inflation averaged 1.9% in the second quarter of 2026.
  • The unemployment rate was 3.0% in the second quarter of 2026.
  • Port Klang and Port of Tanjung Pelepas are major container ports.
  • FCDO reports poorer road conditions in East Malaysia than in Peninsular Malaysia.
  • Electricity access reached 100% of the population in 2024.
  • Internet users represented 98% of the population in 2024.

Ministry of Tourism, Arts and Culture · World Bank · Department of Statistics Malaysia · UK Foreign, Commonwealth & Development Office · PwC · Ministry of Finance · LHDN, Retention and Remittance by Acquirer · Malaysia Airports, checked 7 October 2026

How a review works

The same six steps, in every market.

  1. DefineClarify intended use, decision participants, timing and constraints.
  2. MapIdentify the property, proposed right and jurisdiction-specific route.
  3. OrganiseAssemble the available title, project, contract, payment and cost evidence.
  4. SeparateLabel what is known, missing, concerning or requires professional confirmation.
  5. CoordinateKeep legal, tax, valuation, immigration and engineering conclusions attributed.
  6. DecidePresent a plain-language record so you can proceed, compare, pause or walk away.

This guide is general. What applies to you depends on your nationality, where you pay tax and the property itself, and that is what a review of your own purchase in Malaysia establishes.

Already have a property in mind? Get it reviewed.

Last checked 9 October 2026.

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