How to Open a Bank Account in Malaysia as a Foreigner, Transfer Funds and Repatriate Sale Proceeds
You can open a bank account in Malaysia as a foreigner, and the currency rules around property are relaxed: Bank Negara Malaysia’s Foreign Exchange Policy lets non-residents invest freely in ringgit assets, hold ringgit or foreign currency accounts, and send sale proceeds home in foreign currency. The real hurdles are each bank’s account-opening and anti-money-laundering checks. This guide covers what to bring, where your purchase money should go, and how to get it back out when you sell. Information is as at September 2026.
Short answer
A foreigner can open a bank account in Malaysia: most banks want you at the branch with a passport, proof of address and proof of income, plus an opening deposit of about RM250–2,000. You do not strictly need one to buy, since funds can be wired to the law firm’s client account or the developer’s HDA, but instalments, quit rent, assessment and maintenance fees are all debited in ringgit.
Key numbers at a glance
| Account needed to buy? | No; funds can be wired to the lawyer or developer's HDA |
|---|---|
| Documents | Passport, proof of address, proof of income; usually in person |
| Opening deposit | Commonly about RM250–2,000, by bank and account type |
| BNM policy | Non-residents may invest freely and hold ringgit or FCA accounts |
| External account | Above RM10,000 the bank may ask for the SPA or similar |
| Repatriation | Divestment proceeds and income may be sent out, in foreign currency |
| Seller retention | Non-citizen, non-PR: buyer withholds 7%, paid to LHDN in 60 days |
| Rental income tax | Non-resident individuals: flat 30% of the net amount |
Key points in 30 seconds
- Under BNM’s Foreign Exchange Policy, non-residents may invest freely in ringgit assets and open ringgit or foreign currency accounts with licensed onshore banks.
- Non-residents may repatriate divestment proceeds, profits and investment income, and repatriation must be made in foreign currency.
- For a non-resident’s ringgit (external) account, the bank may ask for supporting documents such as the SPA on any transaction above RM10,000.
- Most banks want you in the branch with your passport and proof of address and income; opening deposits usually run about RM250–2,000.
- Purchase money should go only to the developer’s Housing Development Account (HDA) or a law firm’s client account, never to a personal account.
- When a foreigner sells, the buyer withholds 7% of the price for LHDN: RM105,000 on a RM1.5m sale.
Do foreigners need a Malaysian bank account to buy property?
Strictly speaking, no: deposits and the purchase price can be sent by telegraphic transfer from overseas straight to a law firm’s client account or the developer’s Housing Development Account (HDA). But once you own the property, almost every bill is in ringgit:
- monthly instalments on a Malaysian loan (banks usually want an account with them for the auto-debit);
- assessment tax (cukai taksiran), quit rent (cukai tanah), maintenance fees and the sinking fund;
- utilities and internet, and rent collection if you let the unit out.
So I usually tell foreign clients to open an account around the time they sign, ideally with the bank giving them the loan, and set up the debits, bills and rent in one go.
BNM foreign exchange rules: can non-residents move property money freely?
Malaysia’s rules for non-residents are liberal. The main points of BNM’s Foreign Exchange Policy (FEP):
| Issue | BNM Foreign Exchange Policy |
|---|---|
| Investing | Non-residents may freely make any type of investment in ringgit or foreign currency assets in Malaysia |
| Accounts | They may open a ringgit account or foreign currency account (FCA) with a licensed onshore bank; funds move freely, subject to the bank’s normal due diligence |
| Currency conversion | They may buy or sell foreign currency against ringgit on a spot basis for any purpose through licensed onshore banks |
| Repatriation | Divestment proceeds, profits, dividends and investment income may be repatriated, in foreign currency |
| Borrowing | Ringgit loans from resident banks to buy residential or commercial property need no BNM approval; see home loans for foreigners |
The non-resident's ringgit account (external account)
Ringgit account or foreign currency account?
The FEP allows both; the difference is what you use them for. Instalments, assessment, quit rent and maintenance are all debited in ringgit, so you need a ringgit account. A foreign currency account (FCA) lets you park SGD or another currency in Malaysia and convert only when the rate suits you, and it is handy for sending sale proceeds out in foreign currency later. Many foreign owners keep both: a buffer in the FCA and a few months of bills in the ringgit account. Compare the bank’s board rate and remittance charges, and ask for a quote on large conversions.
A non-resident’s ringgit account is called an external account. As summarised by RHB, banks need not verify supporting documents for transactions up to RM10,000, transfers between the holder’s own external accounts and a few other cases; above that, expect to show what the payment is for, such as the SPA, a lawyer’s letter or an invoice. HSBC notes that exempted categories, including MM2H participants and people working or studying in Malaysia, are treated more flexibly.
Purchase money belongs in the developer’s Housing Development Account or a law firm’s client account, never a personal account. The standard fraud is an email, apparently from the firm, saying its bank account has changed. On a RM1.2m purchase the 10% deposit is RM120,000, effectively gone once it leaves. Phone the firm first. See the foreign buyer’s process.
Ask Louis directly
Before you transfer anything, send me the lawyer's payment request and the account details, and I'll check the payee really is the firm's client account or the developer's HDA.
I'll send you a free one-page money map for foreign buyers: which account each payment goes to, what the bank will ask for, and what falls due each January, May and July.
How to open a bank account in Malaysia as a foreigner: documents
Policies differ between banks, and even between branches of the same bank. Based on bank pages and several account-opening guides, expect the following:
- A valid passport. Most banks verify identity in person; remote opening for non-residents is uncommon.
- Proof of address, such as a recent utility bill or bank statement.
- If you live in Malaysia: your work pass or other visa and an employer’s letter.
- If you live abroad: some banks will open an account for a non-resident buyer on a passport, proof of overseas address and proof of income, ideally with the booking form, SPA or loan papers to show the purpose; others decline applicants who hold no Malaysian pass and are only visiting.
- A Malaysian mobile number for transaction codes.
- An opening deposit, commonly around RM250–2,000 depending on the bank and account type.
A few practical points:
- Basic savings accounts are generally only for Malaysian citizens and permanent residents.
- Some banks ask for an introducer, an existing customer of some standing.
- OCBC Malaysia’s process for non-Malaysians is an online form, a call from a relationship manager within three working days, then a branch visit with documents.
- For MM2H pass holders, the account and fixed deposit are part of the visa process; see MM2H.
How to transfer money to Malaysia to buy property, and where it should go
- Booking or earnest depositNew property: usually paid to the developer. Subsale: the 2–3% earnest deposit is normally held by the agency or lawyer as stakeholder. The payee should always be a company or law firm account.
- Balance deposit on signingSubsale: top up to 10%, usually into the law firm’s client account. New property: pay into the developer’s HDA account according to the payment schedule.
- Taxes and feesThe 8% MOT stamp duty, Johor’s state levy and legal fees are billed by your lawyer and paid through the firm’s client account. See foreigner paperwork and costs.
- Balance of the priceThe loan portion is released directly by your bank; your own portion is paid within the completion period.
Banks, lawyers and registered estate agents are reporting institutions under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), so all of them will ask where your money comes from. Payslips, savings statements or papers from an asset you sold make this quick; it is routine.
For the full purchase sequence see foreigners buying property in Malaysia.
Repatriating property sale proceeds from Malaysia
BNM’s Foreign Exchange Policy allows non-residents to repatriate divestment proceeds, provided they are sent out in foreign currency. In practice:
- 7% retention: when the seller is neither a citizen nor a PR, the buyer’s lawyer withholds 7% of the price and pays it to LHDN within 60 days of the disposal as a prepayment of real property gains tax (RPGT).
- Loan redemption: any outstanding loan is paid off first.
- Release: once the buyer pays, your lawyer deducts fees and releases the balance to you.
- Convert and remit: convert the ringgit to foreign currency and send it to your overseas account.
- Settle the tax: if the RPGT assessed is less than the 7% retained, claim the difference back from LHDN; if more, pay the balance.
| Item | RM |
|---|---|
| Sale price | 1,500,000 |
| 7% retained by the buyer for LHDN | (105,000) |
| Loan redemption (assumed) | (600,000) |
| Balance before the lawyer’s release | 795,000 |
For non-citizens, RPGT is 30% on disposals in years 1–5 and 10% from year 6. The calculation is in selling property and RPGT and owning, renting and selling as a foreigner.
Which ringgit bills will you pay each year, and how?
One of the main reasons to have a local account is paying the holding costs. Taking Johor Bahru as the example, all of these can be paid online from a Malaysian account, which beats asking someone to pay on your behalf each time:
| Bill | Paid to | When and how |
|---|---|---|
| Quit rent (cukai tanah) | Johor Land and Mines Office (PTG Johor) | Due by 31 May each year, with a penalty after that; payable online via JohorPay |
| Assessment tax (cukai taksiran) | The local council, e.g. Johor Bahru City Council (MBJB) | Two halves; MBJB’s billing windows are 1 Jan–28 Feb and 1 Jul–31 Aug; JomPAY (biller 4317), PBTPay, JohorPay or online banking |
| Maintenance fee and sinking fund | The JMB or MC | Monthly or quarterly; the sinking fund is 10% of the service charge |
| Loan instalment | Your lending bank | Monthly auto-debit |
| Utilities, fire insurance | Providers and insurer | Monthly or yearly |
Elsewhere in Johor the assessment is collected by the relevant council, such as Iskandar Puteri (MBIP), Pasir Gudang (MBPG) or Kulai (MPKu). The full handover checklist is in after getting the keys.
Can foreigners send rental income home, and how is it taxed?
Yes. Rent is investment income and can be repatriated under the FEP. Non-resident individuals, however, pay Malaysian income tax on rental income at a flat 30% on the net amount, and must file with LHDN each year. Deductible items include assessment tax, quit rent, loan interest, fire insurance, repairs and agent fees. Tenancy stamp duty also changed in 2026; see renting out property in Malaysia.
- Open a ringgit account with your loan bank and set up the auto-debit.
- Keep 6–12 months of instalments and maintenance fees in the account.
- Keep every receipt for the purchase, taxes and fees; you’ll need them for the RPGT calculation when you sell.
- Have the SPA and your lawyer’s payment request ready before large transfers.
- File rental income tax each year, and on sale confirm the 7% retention and refund process.
Related questions
Ringgit account or foreign currency account: which should I open?
The Foreign Exchange Policy allows both, and they do different jobs. Instalments, assessment, quit rent and maintenance are debited in ringgit, so a ringgit account is the one you must have. A foreign currency account lets you park SGD or another currency in Malaysia and convert when the rate suits, and it helps when sale proceeds have to leave in foreign currency. Many owners keep both, with a buffer in the FCA and a few months of bills in ringgit.
Can I open the account without flying to Malaysia?
Usually not. Most banks verify identity in the branch and remote opening for non-residents is uncommon. Some will open an account for a non-resident buyer on a passport, overseas address proof and income proof, and bringing the booking form, SPA or loan papers to show the purpose helps; others decline applicants with no Malaysian pass. OCBC Malaysia’s route is an online form, a call from a relationship manager within three working days, then a branch visit. Easiest is to open it with your loan bank on the signing trip.
How do I pay quit rent and assessment from overseas?
With a Malaysian account, online. In Johor, quit rent (cukai tanah) goes to the state Land and Mines Office, is due by 31 May each year with a penalty after that, and can be paid through JohorPay. Assessment (cukai taksiran) goes to your local council; Johor Bahru City Council bills in two windows, 1 January to 28 February and 1 July to 31 August, payable by JomPAY (biller 4317), PBTPay or online banking. See the after-keys checklist.
What will the bank ask when I send a large payment?
Banks, law firms and registered agents are all reporting institutions under AMLA, so expect questions about your source of funds. Have PDFs ready of the SPA, your lawyer’s payment request and payslips or savings statements; for a non-resident’s external account, transactions above RM10,000 may need supporting documents. Always phone the law firm on its published number to confirm account details before transferring, especially if an email says the account has changed.
Frequently asked questions
Can a foreigner open a bank account in Malaysia?
Yes, though requirements vary by bank. Most want you in the branch with your passport, proof of address and proof of work or income, plus an opening deposit of roughly RM250–2,000. Some banks open accounts for non-resident buyers on a passport, overseas address proof and income proof, and bringing your property documents helps.
Are there limits on bringing money into Malaysia to buy property?
There is no specific cap on bringing money in to buy property. BNM’s Foreign Exchange Policy lets non-residents invest freely in ringgit assets and convert currency through licensed onshore banks. For external account transactions above RM10,000, however, the bank may ask for supporting documents such as the SPA or your lawyer’s payment request, so keep them to hand.
Can foreigners take property sale proceeds out of Malaysia?
Yes. Non-residents may repatriate divestment proceeds under BNM’s Foreign Exchange Policy, in foreign currency. Before you receive the money, though, the buyer withholds 7% of the price and pays it to LHDN as a prepayment of RPGT, which is settled after assessment.
Why is 7% withheld when a foreigner sells property in Malaysia?
Under the RPGT rules the buyer must retain 7% of the price when the seller is neither a Malaysian citizen nor a permanent resident (3% for local sellers) and pay it to LHDN within 60 days. If the RPGT due turns out lower, the seller claims the difference back.
Where should I send my deposit when buying property in Malaysia?
For a new property, into the developer’s Housing Development Account; for a subsale, into the law firm’s client account, or to a registered agency holding it as stakeholder. Never pay into a personal account, and phone the firm to verify any change of bank details.
How much tax do foreigners pay on rental income in Malaysia?
Non-resident individuals pay a flat 30% on net rental income, after deductible expenses such as assessment tax, quit rent, loan interest, fire insurance and repairs, and must file a return with LHDN each year. The after-tax rent can then be sent overseas under BNM’s Foreign Exchange Policy.
Sources & verification
- Bank Negara Malaysia — Foreign Exchange Policy (non-residents: investing, accounts, repatriation)
- HSBC Malaysia — BNM Foreign Exchange Policy FAQs (external accounts, exempted MM2H holders)
- RHB — Foreign Exchange Administration rules (external accounts, RM10,000 verification threshold)
- Bank Negara Malaysia AML/CFT — Are you a reporting institution? (banks, lawyers, estate agents)
- OCBC Malaysia — Banking in Malaysia for non-Malaysians
- Wise Malaysia — Can a foreigner open a bank account in Malaysia? (Jan 2026)
- Statrys — How to open a bank account in Malaysia as a foreigner (Feb 2026)
- PwC Malaysia — Real Property Gains Tax (7% retention for non-citizen sellers)
- LHDN — Non-resident individuals: income declaration
- PropCashflow — Buying property in Johor Bahru: guide for Singaporeans (bank account opening, Apr 2026)
- MBJB — Assessment tax payment (billing periods, JomPAY biller 4317)
- JohorPay — Johor state online payments (quit rent)
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.
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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.
I'll send you a free one-page money map for foreign buyers: which account each payment goes to, what the bank will ask for, and what falls due each January, May and July.
Louis Koh · 11 years in Malaysian property · +60 10-906 6685 · replies 9am–10pm MYT