- Who can buy — state minimums and Bumiputera rules
- Freehold vs leasehold
- MM2H — Malaysia My Second Home
- DE Rantau — digital nomad pass
- The buying process, step by step
- What it really costs
- Taxes after purchase
- Where to find listings
- Where to buy — city and state breakdown
- Airbnb & short-term rental rules
- Traps buyers should know
Who can buy — state minimums and Bumiputera rules
Foreigners can buy most types of property in Malaysia, including freehold land and strata-titled condos and apartments. The key restriction: minimum price thresholds set by each state government.
Common minimums (2026): Kuala Lumpur RM1M; Selangor RM2M (landed) / RM1M (strata); Penang RM3M (landed on island) / RM1M (strata); Johor RM1M; Sabah RM500K; Sarawak RM500K (strata only — land restrictions apply).
Bumiputera lots: a percentage of units in new developments are reserved for Bumiputera (Malay and indigenous) buyers, often at a discount. These units cannot be sold to foreigners, even if they exceed the minimum price. The Bumiputera quota varies by state, typically 30–50% of units.
Malay Reserved Land: certain land is legally reserved for Malay ownership and cannot be sold to non-Malays, including foreigners. This is separate from the Bumiputera unit quota.
State consent: every foreign property purchase requires approval from the state authority (Pihak Berkuasa Negeri). Processing times vary: 1–6 months depending on the state.
Freehold vs leasehold
Malaysia has both freehold and leasehold land titles. Freehold is perpetual. Leasehold is typically 99 years from the date of the original government grant.
Leasehold properties approaching 60 years remaining face difficulties: banks restrict lending, valuations drop, and lease extension costs are uncertain.
Lease extension: possible in most states but involves application to the state authority and payment of a premium. Not guaranteed.
For foreigners, freehold is strongly preferred. Leasehold properties are harder to exit (sell) and face increasing bank reluctance as the lease shortens.
MM2H — Malaysia My Second Home
Long-term renewable visa (5+5 years) for foreign property buyers and retirees. Significantly restructured in 2021.
- Silver tier: RM150,000 fixed deposit + RM40,000/month income proof. 15-year renewable pass. Age 35+.
- Gold tier: RM500,000 fixed deposit + RM40,000/month income. 20-year pass.
- Platinum tier: RM1,000,000 fixed deposit + RM40,000/month income. 20-year pass. Additional benefits.
The 2021 restructure raised requirements dramatically from the previous RM300K liquid assets / RM10K monthly income. Many existing MM2H holders were grandfathered in but the new rules apply to fresh applicants.
MM2H does not grant work rights. A separate employment pass is required.
Property purchase is not required for MM2H, but many applicants buy property as part of their relocation.
DE Rantau — digital nomad pass
1-year professional visit pass for digital nomads and remote workers. Renewable.
Requirements: RM48,000+ annual income ($10,800+), employment with a foreign company, or freelance with proof of income.
Does not grant property-related benefits but establishes legal residence, which simplifies banking and property transactions.
Managed by Malaysia Digital Economy Corporation (MDEC).
The buying process, step by step
1. Identify property above the state minimum price threshold
Confirm the property meets the minimum price for the specific state and property type (landed vs strata). Thresholds change — verify the current figure before committing.
2. Confirm eligibility
Verify the property is not Bumiputera-reserved and not on Malay Reserved Land. Your lawyer or agent should confirm this, but check independently.
3. Sign Letter of Offer and pay booking fee
Typically 2–3% of purchase price or RM10,000. This secures the property while the Sale and Purchase Agreement (SPA) is prepared.
4. Appoint a lawyer
Legally required for property transactions in Malaysia. The lawyer prepares the Sale and Purchase Agreement (SPA) within 14 days of the booking.
5. Pay 10% deposit and sign SPA
The 10% deposit includes the booking fee already paid. The SPA is stamped at the Inland Revenue Board (LHDN).
6. Apply for state consent
Application to the Pihak Berkuasa Negeri (state authority). Processing: 1–6 months depending on the state.
7. Arrange financing
If applicable — Malaysian banks offer up to 70% loan-to-value for foreigners at 4–5% interest. Some banks cap foreign borrowers at 60% LTV.
8. Balance payment and settlement
Within 3 months of SPA execution, or as extended per SPA terms. Full balance transferred through the banking system.
9. Title transfer
Memorandum of Transfer registered at the Land Office. Title issued in your name.
What it really costs
| Cost item | Amount | Notes |
|---|---|---|
| Stamp duty | Progressive: 1–4% | First RM100K at 1%, RM100K–RM500K at 2%, RM500K–RM1M at 3%, above RM1M at 4%. Foreign buyers pay an additional 2% surcharge in some states. |
| Legal fees | 0.5–1% | Progressive scale regulated by the Solicitors' Remuneration Order |
| Agent commission | 2–3% | Typically paid by the seller |
| Valuation fee | 0.15–0.25% | Of property value; required for bank financing |
| State consent fee | RM10K–RM30K | Varies by state |
| All-in estimate | 4–6% | Total buy-side costs as a percentage of purchase price |
Taxes after purchase
Annual assessment tax (cukai taksiran)
Set by the local council. Typically RM500–RM3,000/year depending on area and property size.
Quit rent (cukai tanah)
Annual land tax. Minimal — usually under RM100/year.
RPGT (Real Property Gains Tax)
| Holding period | Foreigner rate | Malaysian citizen rate |
|---|---|---|
| Within 3 years | 30% | 30% |
| 4th year | 20% | 20% |
| 5th year | 15% | 15% |
| After 5 years | 10% | 0% |
Foreigners pay a minimum 10% RPGT regardless of holding period. Malaysian citizens pay 0% after five years.
Rental income tax
Progressive rates of 0–30% for residents. Flat 30% for non-residents. Deductions available for expenses including maintenance, assessment tax, quit rent, and loan interest.
Where to find listings
- iproperty.com.my — Malaysia's largest property portal. New and subsale properties. Good filtering by state, price, and property type. English, Malay, and Chinese interfaces.
- propertyguru.com.my — Strong urban coverage. Detailed developer pages. Market analytics. English and Malay.
- edgeprop.my — Property arm of The Edge Media. Market data, analytics, and listings. Good for research and valuation context.
- mudah.my — Classifieds. Direct owner listings alongside agent listings. Often lower asking prices. Malay-language dominant.
You’ve found the sites. Now organize the hunt.
That’s a lot of portals to check. Some overlap, some don’t, and the same property shows up at different prices on different sites. You’ll screenshot, bookmark, save links in Notes, message yourself — and lose half of them within a week.
House Hunt Diary replaces all of that. Share any listing link to the app and it saves the property instantly — address, price, photos, your notes. Every candidate from every site goes into one shortlist.
When viewing day comes, the app plans your route: properties ordered by distance so you’re not zigzagging across town. On the day, it’s your schedule — tap to navigate, snap photos from the visit, write down what the listing didn’t mention.
Get House Hunt DiaryAirbnb & short-term rental rules
No national prohibition on foreigners operating STR in Malaysia. However, the primary constraint is strata management — the Federal Court upheld condo management corporations' power to ban STR entirely through by-laws.
- No unified national licensing yet (awaiting Cabinet approval).
- State variations: Penang requires council registration; KL needs DBKL + MC consent; Sarawak has separate tourism licensing.
- Tourism tax: RM10/night collected from foreign guests.
Enforcement is complaint-driven and generally low. The biggest risk is not government enforcement but your building's management corporation banning STR operations.
Where to buy — city and state breakdown
Kuala Lumpur
Capital city, tallest skyline in Southeast Asia. KLCC, Mont Kiara, and Bangsar are the main expat areas. Condos from RM1M for foreign-eligible units. Strong rental market driven by corporate demand.
Penang
George Town UNESCO heritage area. Island premium — landed property minimum RM3M for foreigners. Strata from RM1M. Strong food culture, English widely spoken, established expat community.
Johor Bahru
Across the causeway from Singapore. Iskandar Malaysia development zone. RM1M minimum. Popular with Singaporean buyers. Forest City mega-development has mixed reviews.
Langkawi
Duty-free island. Resort and retirement market. Smaller scale. Landed property available for foreigners above RM1M.
Kota Kinabalu
Sabah capital, Borneo. Lower minimums (RM500K). Growing expat community. Nature-based lifestyle. Infrastructure improving.
Malacca
UNESCO heritage city. Affordable. RM500K minimum for foreigners. Historical properties, smaller market.
Traps buyers should know
Bumiputera quota
Not disclosed upfront on some listings. Verify before signing anything. A unit that appears available may be Bumiputera-reserved, and the restriction may only surface during the state consent process.
State consent delays
Can take 6+ months in some states. Your money is locked up during this period. If consent is refused, you get the deposit back, but the opportunity cost and time lost are real.
Leasehold depreciation
Properties with less than 60 years remaining on the lease face bank lending restrictions and significant value decline. Check the original grant date, not just "leasehold" on the listing. A 99-year lease granted in 1970 has roughly 43 years left.
Minimum price trap
State minimums change. Verify the current threshold for the specific state and property type before committing. A property that qualified last year may fall below a newly raised threshold.
Strata management issues
Older condos may have sinking fund shortfalls, management disputes, or maintenance backlogs. Check the management corporation's financial statements before buying. Poor management directly affects property value and livability.
RPGT for foreigners
10% even after 5 years — this is a permanent tax for non-citizens, unlike Malaysian citizens who pay 0%. Factor this into your exit calculation from the start.
MM2H policy instability
The program has been restructured multiple times. Requirements may change again. Do not buy property solely based on current MM2H eligibility.
Frequently asked questions
Yes. Foreigners can buy most types of property including freehold land, subject to minimum price thresholds set by each state. In KL the minimum is RM1 million. Bumiputera-reserved units and Malay Reserved Land are excluded. State consent is required for every purchase.
It varies by state and property type. Kuala Lumpur: RM1M. Selangor: RM1M (strata) to RM2M (landed). Penang: RM1M (strata) to RM3M (landed on the island). Johor: RM1M. Sabah and Sarawak: RM500K. These thresholds are updated periodically.
Malaysia My Second Home is a long-term renewable visa program. The restructured program (2021) has three tiers: Silver (RM150K deposit), Gold (RM500K), and Platinum (RM1M). All require RM40,000 monthly income proof. It grants residency but not work rights.
Yes. Malaysian banks offer mortgages to foreigners at up to 70% loan-to-value, though some banks cap at 60%. Interest rates typically run 4–5%. You'll need income documentation and the bank may require a Malaysian bank account.
Bumiputera refers to Malay and indigenous peoples of Malaysia. A percentage of units in new developments (typically 30–50%) are reserved for Bumiputera buyers at a discounted price. These units cannot be sold to foreigners regardless of price.
From signing the Letter of Offer to getting your title, expect 3–9 months. State consent alone can take 1–6 months. If the property is a new launch, completion of construction adds further time. Subsale (resale) properties are generally faster.
Real Property Gains Tax is levied on profits from property sales. For foreigners, the rate is 30% if sold within 3 years, scaling down to 10% after 5 years. Unlike Malaysian citizens (who pay 0% after 5 years), foreigners always pay at least 10%.
Are you an agent or developer in Malaysia?
If you work with international buyers in the Malaysian market, we'd like to hear from you. Partner inquiries only.
Sources
- National Land Code 1965 (Act 56) — Foreign acquisition regulations
- Economic Planning Unit — Guideline on Acquisition of Properties
- Malaysia My Second Home Centre — mm2h.gov.my
- LHDN (Inland Revenue Board) — RPGT guidelines — hasil.gov.my
- NAPIC (National Property Information Centre) — napic.jpph.gov.my