Buying Property in Malaysia as a Foreigner: Minimum Price, Rules and Costs in 2027

Foreign acquisition of property is governed by the National Land Code 1965 (including section 433B, which requires State Authority approval), the federal guidelines on property acquisition, and each state's own land policies.

Under the federal guidelines, foreign interests are generally not permitted to acquire:

• Properties valued below the applicable minimum price (the federal guideline is RM1,000,000 per unit; states may set higher figures).

• Low-cost and low-medium-cost residential units as determined by the State Authority.

• Properties on Malay Reserve Land.

• Units allocated to Bumiputera buyers in a development.

In practice, most foreign buyers in Kuala Lumpur purchase strata-titled condominiums or serviced residences. Landed property is more restricted and often carries higher thresholds.

Every foreign purchase needs State Authority consent before the transfer can be registered. Your lawyer normally submits the application after the SPA is signed, and approval timelines vary — often several months.

Consent is discretionary. A property can meet the minimum price and still be refused, or approved with conditions such as a restriction-in-interest endorsed on the title. Many states also charge a processing fee or levy on foreign acquisitions; ask your lawyer for the current Kuala Lumpur or Selangor figure.

For a new launch, the developer may already hold block or foreign-quota approval, which can simplify the process. Ask the developer and your lawyer to confirm this in writing.

• Transfer stamp duty (MOT): Budget 2026 raised the flat rate from 4% to 8% for transfers of residential property to non-citizens and foreign companies, for instruments executed from 1 January 2026; Malaysian permanent residents are excluded. The Finance Act 2025 (Act 874), in force from 1 January 2026, defines "residential property" as a house, condominium, apartment, flat, serviced apartment or SOHO used solely as a dwelling. Commercial property is not covered by this rule. The rate applies to the higher of the price or market value; confirm the exact position with your lawyer.

• Loan-agreement stamp duty: typically 0.5% of the loan amount, if you finance (indicative).

• Legal fees: charged on the Solicitors' Remuneration Order scale, the same as for Malaysian buyers, plus disbursements.

• State consent fee or levy, valuation and bank processing costs: amounts vary by state and are not published in one official schedule we could verify. Treat any figure as indicative and ask your lawyer or the land office.

• Ongoing costs: maintenance fees and sinking fund, quit rent, assessment rates, insurance, and tax on rental income if you let the property.

• On exit: Real Property Gains Tax (RPGT) is charged on the chargeable gain — broadly, the sale price minus the purchase price and allowable costs — not on the whole sale price. For individuals who are neither citizens nor permanent residents (Part III, Schedule 5 of the RPGT Act), the rate is 30% for disposals in years 1–5 and 10% from year 6 onwards. Separately, under section 21B of the RPGT Act the acquirer (usually through the buyer's lawyer) must retain part of the purchase money and remit it to LHDN within 60 days. For a Part III disposer this is generally 7% of the consideration. For disposals from Year of Assessment 2026, the acquirer may instead remit an amount equal to the deemed tax assessment, whichever is lower, if the seller notifies the acquirer of that deemed amount before remittance. The retained sum is not necessarily the seller's final RPGT: it is credited against the tax assessed on the chargeable gain, so the seller may owe a balance or be due a refund.

Illustration only: on a RM1,000,000 Kuala Lumpur condominium, 8% transfer stamp duty is RM80,000, before legal fees, consent fees and financing costs. Use our calculators and the buying-cost guide for a fuller breakdown.

Some Malaysian banks lend to foreign buyers, but approval and margin depend on the bank, your income source, residency or work-pass status and the property. There is no single standard loan margin for foreigners, so do not assume a percentage before getting a bank's indication.

Many overseas buyers prepare for a larger cash portion than local buyers. If you earn income outside Malaysia, expect additional documentation and possible currency considerations.

Budget 2027 (tabled 9 October 2026) focused housing measures on Malaysian first-time buyers, including proposed first-home stamp duty relief up to RM750,000 and SJKP housing loan guarantees. These do not apply to foreign buyers.

We have not identified any Budget 2027 measure that lowers foreign minimum prices or the 8% foreign stamp duty. Any changes would need the Finance Bill, gazetted orders or state announcements; until then, plan using the current rules above.

1. Set your budget, including the 8% stamp duty and other costs, and get a financing indication if needed.

2. Shortlist properties above the applicable minimum price that are open to foreign ownership.

3. Appoint a conveyancing lawyer and run a title search (check for Malay Reserve, Bumiputera allocation and restrictions).

4. Pay the booking fee and sign the SPA, usually with a 10% deposit (terms vary).

5. Your lawyer applies for State Authority consent.

6. Complete financing, pay stamp duty and register the transfer once consent is granted.

7. Take vacant possession and handover; plan your rental or own-use arrangement.

The Bar Council's 2024 compilation lists RM1,000,000 per unit for residential property in Kuala Lumpur, tested against the SPA price, with no separate condo or landed figure. It is an indicative guide, not a confirmed official threshold — confirm the applicable minimum with the land office or your conveyancing lawyer before relying on it.

No. State Authority consent is discretionary and may be refused or granted with conditions.

No. MM2H is a residency programme with its own property requirements; it is not required simply to buy property.

No. They are proposed for eligible Malaysian first-time buyers. Foreign buyers should budget for the 8% transfer stamp duty.

Generally yes, subject to building rules, local regulations and tax on rental income. Short-term rental rules vary by building and authority.