Foreigners Buying Property in Malaysia: 10 Steps from Choosing a State to Title Transfer
Foreigners buying property in Malaysia follow almost the same path as locals, with two extra gates: the price must clear the state’s foreign-buyer minimum, and the state must give written consent before the property can be transferred. This guide walks through all ten steps, who handles each one, how long it tends to take and what it costs, with a full worked example for a RM1.2 million Johor Bahru condo. Figures are as at September 2026.
Short answer
Foreigners buying property in Malaysia follow the same steps as locals with two extra gates: the price must clear the state minimum (Johor RM1m strata, RM2m landed; Kuala Lumpur RM1m), and the State Authority must give written consent under section 433B of the National Land Code. Since 1 January 2026 the transfer carries a flat 8% stamp duty, and Johor adds a levy of 3% or RM30,000.
Key numbers at a glance
| State consent | Required under s.433B NLC, per buyer, in every state |
|---|---|
| Johor minimum price | RM1,000,000 strata; RM2,000,000 landed |
| Kuala Lumpur minimum | RM1,000,000 for both strata and landed |
| MOT stamp duty | Flat 8% on residential (from 1 Jan 2026); 4% non-residential |
| Johor state levy | 3% of price or RM30,000, whichever is higher (from 1 Jul 2025) |
| Loan stamp duty | 0.5% of the facility; no first-home exemption for foreigners |
| Timing | Consent 1–3 months (Johor target 21 days); completion 3+1 months |
| Cannot be bought | Bumiputera-quota, low/medium-cost, Malay Reserve, below threshold |
Key points in 30 seconds
- Every foreign purchase, in every state, needs written State Authority consent under section 433B of the National Land Code; your lawyer applies for it.
- Check the threshold first: Johor is RM1m for strata and RM2m for landed; Kuala Lumpur is RM1m.
- Since 1 January 2026, foreigners pay a flat 8% stamp duty on the transfer (MOT) of residential property, with no tiers and no exemptions.
- Johor’s state approval levy has been 3% of the price or RM30,000, whichever is higher, since 1 July 2025.
- On a RM1.2m Johor Bahru subsale condo with a 60% loan, the deposit plus main taxes and fees come to about RM639,000 in cash.
- When a foreigner later sells, the buyer withholds 7% of the price for RPGT, and gains within five years are taxed at 30%.
Foreigners buying property in Malaysia: the 10 steps at a glance
After 11 years selling in Johor Bahru and Kuala Lumpur, mostly to Singaporean buyers, the two questions I hear first are “how long?” and “how much cash?”. Here is the skeleton of the process; each part is explained further down.
- 1. Check eligibility and the state thresholdConfirm the state, property type and price clear the foreign-buyer minimum, and rule out Bumiputera-quota units, low- and medium-cost housing and Malay Reserve land. See who may buy what and where.
- 2. Set a budget and test the loanBanks usually lend foreigners 50–70%, so plan for a 30–50% down payment plus 8% stamp duty and any state levy. Start with home loans for foreigners in Malaysia.
- 3. Shortlist and verifyFor new launches, check the developer’s licence and advertising permit; for subsale, run a title search. See how to check a developer and subsale due diligence.
- 4. Book or make an offerNew property: booking form. Subsale: letter of offer with a 2–3% earnest deposit. Make the deal subject to state consent and loan approval.
- 5. Appoint your own lawyerYour lawyer applies for state consent, handles stamping and runs completion.
- 6. Sign the SPASubsale: top up to a 10% deposit on signing. New property: 10% on signing under the statutory Schedule H or G contract.
- 7. State consent and levyYour lawyer files the consent application with the land office; in Johor the levy is paid on approval.
- 8. Loan documents and stampingSign the loan agreement (0.5% stamp duty) and stamp the MOT at 8%.
- 9. Completion and transferSubsale: pay the balance within the completion period, usually 3 months plus a 1-month extension. New property: progress payments until vacant possession.
- 10. After the keysAssessment and quit rent, renting out and tax, and eventually selling. See owning, renting and selling as a foreigner.
| Stage | Typical time | Notes |
|---|---|---|
| Viewing and negotiating to a signed offer | 1–4 weeks | Depends how often you can travel in |
| Lawyers prepare and sign the SPA | About 2 weeks | Market practice; ideally after loan approval |
| State consent | 1–3 months | Johor’s published target is 21 days; paperwork decides the rest |
| Completion period | 3 months + 1-month extension | Often counted from the consent date; late interest is usually 8% a year |
| Registration and keys | A few weeks after completion | New launches wait for vacant possession |
New launches run on a different clock: you pay in stages as construction progresses, and the statutory delivery period is 24 months for landed and 36 months for strata property from the SPA date (though the Federal Court in PJD Regency held that late-delivery damages run from the date the booking fee was paid). A completed subsale can be earning rent within six months; an off-plan unit may take two or three years.
What can foreigners buy? Check the state minimum price first
Land is a state matter in Malaysia, so each state sets its own minimum price for foreign buyers. These are the thresholds this site uses (they match the 8-state table in our foreign-buyer FAQ). States adjust them from time to time and some vary by zone, so confirm with the land office before signing.
| State | Strata / high-rise | Landed |
|---|---|---|
| Johor | RM1,000,000 | RM2,000,000 |
| Kuala Lumpur | RM1,000,000 | RM1,000,000 |
| Selangor | RM1,000,000–RM2,000,000 by zone (other sources record a flat RM2,000,000) | RM1,000,000–RM2,000,000 by zone (other sources: flat RM2,000,000; individual-title landed closed to foreigners) |
| Penang Island | RM1,000,000 | RM3,000,000 |
| Penang mainland (Seberang Perai) | RM500,000 | RM1,000,000 |
In every state, foreigners cannot buy low- and medium-cost housing, Bumiputera-quota units, property on Malay Reserve land, or anything below the state threshold. The Malaysian Bar’s Circular 444/2024 lists the same restrictions.
Johor is where most foreign buyers go; the finer points (serviced apartment minimum levy, family transfers) are in foreigners buying in Johor. Singaporeans should also read property for Singaporean buyers.
Both are unavoidable: on a RM1.2m purchase the 8% stamp duty is RM96,000 and Johor’s levy adds RM36,000. Find that out after signing and you have the completion period, three months plus one, to raise RM132,000, with late interest usually 8% a year and your 10% deposit at risk.
Ask Louis directly
Tell me the state, the property type and the price you are looking at, and I'll check whether it clears the foreign-buyer threshold, whether consent is needed and what the duty and levy come to.
Send me the price and I'll put together, free, a one-page cash sheet: down payment, 8% stamp duty, state levy, SPA and loan legal fees and loan stamp duty.
New launch or subsale: how the process differs for foreign buyers
| New property (from a developer) | Subsale | |
|---|---|---|
| Contract | Statutory Schedule G/H SPA under the Housing Development Act | Negotiated SPA drafted by the lawyers |
| Payments | Progress payments into the developer’s Housing Development Account (HDA) | 10% deposit, then 90% balance at completion |
| State consent | Still needed for each buyer; the developer’s lawyer often coordinates | Applied for by your lawyer; completion often runs from the consent date |
| Title | Strata title may not be issued yet, so transfer takes longer | Title exists and can be searched immediately |
| Legal fees | SRO 2023 allows discounts on HDA purchases | SRO 2023 scale |
A new property gives you statutory protection: delivery period, late-delivery damages (LAD) and a 24-month defect liability period (DLP) are fixed in the contract. A subsale lets you inspect the actual unit and rent it out straight away. See the progressive payment schedule and the subsale SPA and completion period.
State consent for foreigners: how it works and how long it takes
Section 433B of the National Land Code 1965 (Kanun Tanah Negara) allows non-citizens and foreign companies to acquire land only with the prior written approval of the State Authority. The Malaysian Bar’s Circular 444/2024 (December 2024) puts it plainly: consent must be applied for and obtained by each foreign purchaser, in every state.
Who applies, and when?
In practice your lawyer files the application with the state land office after the SPA is signed; in Johor that is the Land and Mines Office (PTG Johor). That is why the SPA makes consent a condition precedent, and why the three-month subsale completion period often starts from the date consent is granted.
How long does it take?
When Johor announced the levy increase in June 2025, the Menteri Besar said applications involving foreign interests would be processed in 21 days instead of 70. That is a published target, not a guarantee: incomplete papers, restricted titles and public holidays all add time. I tell clients to allow one to three months.
The Johor levy
| Transaction | From 1 July 2025 |
|---|---|
| Residential and commercial | 3% of the price or RM30,000, whichever is higher |
| Transfers between family members | Unchanged at 2% or RM20,000 |
| Industrial | 4% |
Deals signed and stamped before 1 July 2025 kept the old 2%/RM20,000 rate if the papers were filed by 29 August 2025. Johor also raised land-transfer registration fees for property above RM500,000; your lawyer will list these under disbursements. Other states charge their own consent fees or levies; see foreigner paperwork and costs.
How much cash does a foreigner need? A RM1.2 million Johor Bahru example
Say a Singaporean buys a RM1,200,000 subsale condo in Johor Bahru (strata title, so it clears Johor’s RM1m threshold) with a 60% bank loan.
| Item | Calculation | RM |
|---|---|---|
| Down payment (40%) | 1,200,000 × 40% | 480,000 |
| MOT stamp duty (foreigner, 8%) | 1,200,000 × 8% | 96,000 |
| Johor state levy | 3% = 36,000, above the 30,000 minimum | 36,000 |
| Loan agreement stamp duty | 720,000 × 0.5% | 3,600 |
| SPA legal fee + 8% SST | (1.25% × 500,000 + 1% × 700,000) × 1.08 | 14,310 |
| Loan legal fee + 8% SST | (1.25% × 500,000 + 1% × 220,000) × 1.08 | 9,126 |
| Total cash | 639,036 |
So a RM1.2m condo needs roughly RM640,000 of your own money. A Malaysian buying the same unit would pay RM32,000 in MOT stamp duty on the tiered scale and no state levy. The full method is in stamp duty and legal fees 2026, and you can run your own numbers in the buying-costs calculator.
From completion to your name on the title
- Stamping: the MOT (Form 14A) and loan documents are stamped and the duty paid.
- Loan release: on a subsale your bank pays the balance in one sum to the seller’s lawyer or the seller’s bank for redemption; on a new property it pays in stages.
- RPGT retention: your lawyer holds back 3% of the price (7% if the seller is a non-citizen, non-PR) and pays it to LHDN within 60 days.
- Registration: the transfer and your bank’s charge are presented at the land office and registered in your name.
- Handover: keys, utilities and management registration.
If you can’t fly in to sign, a power of attorney can cover it; see power of attorney for property. The subsale steps are detailed in the subsale transfer process, and moving the money in and out is covered in bank accounts and money transfer for foreigners.
When you eventually sell
Real property gains tax (RPGT) for non-citizens is 30% on disposals in years 1–5 and 10% from year 6. Your buyer withholds 7% of the price: sell for RM1,500,000 and RM105,000 goes to LHDN first, with any excess refunded after assessment. See selling property and RPGT.
Six mistakes foreign buyers make (pre-signing checklist)
- Checking only the price against the threshold, not whether the unit is Bumiputera-quota or low/medium-cost.
- Paying a large deposit before the loan is approved, with no refund clause if the bank says no.
- Signing an SPA that says nothing about refunds if consent is refused, or when completion starts.
- Leaving the 8% stamp duty and Johor’s 3%/RM30,000 levy out of the budget.
- Relying on verbal promises (rebates, free legal fees) instead of getting them in writing.
- Transferring money to a personal account. Payments should go only to the developer’s HDA account or a law firm’s client account.
Related questions
How much more does a foreigner pay than a Malaysian on the same unit?
On a RM1.2 million Johor Bahru condo, a foreigner pays 8% MOT stamp duty, RM96,000, against RM32,000 for a local buyer on the tiered scale, plus Johor’s 3% state levy of RM36,000 that a local never pays. That is roughly RM100,000 more before you count the bigger down payment a 50–70% foreign margin forces. The full method is in stamp duty and legal fees.
What happens to my deposit if state consent is refused?
It depends on what the SPA says, which is why consent is normally made a condition precedent with a clause returning the deposit in full if approval is refused, neither party claiming against the other. That clause is not automatic, so ask your lawyer to put it in before you sign. Settle the other timing question at the same time: does the three-month completion period run from the SPA date or the consent date? See the subsale SPA and completion period.
Is a Malaysian permanent resident treated as a foreigner when buying property?
A PR is two things at once. For stamp duty, a PR pays the local tiered rates, not the 8% non-citizen rate. For price thresholds and state consent, a PR is still a foreign interest: section 433B bites on non-citizens and a PR is a non-citizen, so the state minimum applies and your lawyer still files the consent application. A Singapore citizen or Singapore PR is a foreigner in Malaysia for every purpose.
How soon can a foreigner resell, and what tax applies?
Some states restrict resale: the Bar Council circular notes that Melaka bars transfer or leasing within 5 years of the Form 14A registration, and Penang only allows foreigners to sell commercial and industrial property 3 years after the SPA. On tax, RPGT for non-citizens is 30% on disposals in years 1–5 and 10% from year 6, and your buyer withholds 7% of the price for LHDN, refunded after assessment if too much. See selling property and RPGT.
Frequently asked questions
Do foreigners need state consent to buy property in Malaysia?
Yes. Section 433B of the National Land Code requires non-citizens and foreign companies to get the State Authority’s prior written approval before acquiring land. Each foreign buyer must apply in each state, and in practice the buyer’s lawyer files the application after the SPA is signed.
What is the minimum price for foreigners buying in Johor?
RM1,000,000 for strata property such as condos and RM2,000,000 for landed property, and you cannot buy Bumiputera-quota or low- and medium-cost units at any price. Since 1 July 2025 Johor has also charged a state approval levy of 3% of the price or RM30,000, whichever is higher, on residential and commercial purchases.
How much stamp duty do foreigners pay in Malaysia in 2026?
A flat 8% of the price or market value, whichever is higher, on the memorandum of transfer for residential property, for instruments executed from 1 January 2026. It was 4% before. Non-residential property stays at 4%. The loan agreement carries a further 0.5%, and there is no first-time buyer exemption for foreigners.
How long does it take a foreigner to buy a property in Malaysia?
For a subsale, typically three to six months from signing: one to three months for state consent (Johor’s stated processing target is 21 days), then a completion period of three months plus a one-month extension. A new launch takes until the project is completed.
Can foreigners buy Bumiputera or low-cost units in Malaysia?
No. Foreigners cannot buy Bumiputera-quota units, low- and medium-cost housing, property on Malay Reserve land, or anything priced below the state’s foreign-buyer minimum. These limits apply in every state. Have your lawyer check the title and the unit’s category before you pay any deposit.
Do I have to be in Malaysia to sign the SPA?
Not necessarily. Documents can often be signed abroad before a notary or at a Malaysian mission, or a trusted person can sign under a power of attorney. Opening a Malaysian bank account, however, usually requires a visit to the branch.
Sources & verification
- Malaysian Bar — Circular 444/2024: Restrictions on non-citizens and foreign companies (s.433B NLC)
- The Star (18 Jun 2025) — Johor to raise levy on property bought by foreign interests
- Landco — Foreigner property tax and Johor levy (3% / RM30,000 from 1 Jul 2025)
- RDS Partners — Key stamp duty changes from 1 January 2026 (8% for foreigners)
- KPMG Malaysia — Stamp Act 1949: recent developments
- Viknesh and Yap via Global Law Experts — Buying residential property in Malaysia for foreigners (updated Apr 2026)
- Conventus Law — Solicitors' Remuneration Order 2023
- PwC Malaysia — Real Property Gains Tax
- Bank Negara Malaysia — Foreign Exchange Policy (non-residents)
Verified: 2026-09-20. This guide is general information, not legal, tax or financial advice. Rules and rates change — confirm in writing with your lawyer, bank or the relevant authority before you sign.
More in this stage
Louis Koh
11 years in Malaysian property · Johor Bahru & Kuala Lumpur · English & 中文
I help local buyers and cross-border buyers from Singapore with new and subsale property. Every figure in these guides is sourced; when a rule changes, I update the page and date it.
Stuck on this step? Ask me directly
Send me your situation — new or subsale, budget, state, and where you are in the process — and I will tell you what to do next and what to watch for.
Send me the price and I'll put together, free, a one-page cash sheet: down payment, 8% stamp duty, state levy, SPA and loan legal fees and loan stamp duty.
Louis Koh · 11 years in Malaysian property · +60 10-906 6685 · replies 9am–10pm MYT