Can a foreigner buy land in Malaysia?

Short answer: Yes, but it depends on the type of land and the state. Every foreign purchase needs the state's written approval. Residential property, including a house plot, is generally open from RM1 million (≈ US$250,000) per unit, with higher minimums in some states. Agricultural and industrial land are open only for commercial use, through a local company. Malay reserved land and Bumiputera lots are closed to foreigners everywhere, and Sabah and Sarawak keep native land for natives.

The title decides, not the listing. A plot advertised as "bungalow land" can carry an agricultural category, a Bumiputera restriction or a condition that blocks a foreign buyer. Have a lawyer search the title before you pay anything.

What a foreigner can buy, by type of land

The Ministry of Economy's guideline sets the national rules. The state where the land is then decides each application, and can add its own rules.

Type of landCan a foreigner buy it?ConditionsWhere the rule is
Residential property (a home, or residential land)Yes, with state approvalFrom RM1 million per unit under the federal guideline; each state can set a higher minimum. Selangor allows strata homes only.Guideline paras 2.3 and 10.1
Agricultural landOnly for commercial use, through a local companyWorth RM1 million or more, or at least 5 acres, for modern commercial farming, agro-tourism, or farming or agro-based industry for export.Guideline paras 2.2(b) and 4
Industrial landYes, through a local companyWorth RM1 million or more; manufacturing companies have their own route.Guideline paras 2.2(c) and 4
Commercial property (shops, offices)Yes, with state approvalFrom RM1 million per unit; some states set more (Selangor RM3 million for shoplots).Guideline para 2.2(a)
Malay reserved landNoClosed to foreigners in every state.Guideline para 10.3
Bumiputera lots and low-cost homesNoUnits the state allocates to Bumiputera buyers, and low-cost and low-medium-cost homes.Guideline paras 10.2 and 10.4

"Foreign interest" in the guideline means a non-citizen, a permanent resident, a foreign company, or a Malaysian company more than half owned by them. Minimum prices are current, not guaranteed, and may change in future.

Agricultural land: commercial use only

Foreigners can buy agricultural land only where it is worth RM1 million or more (≈ US$250,000) or is at least 5 acres, and only for one of three purposes:

  • commercial farming using modern or high technology;
  • an agro-tourism project;
  • farming or an agro-based industry producing goods for export.

The land must be registered in the name of a local company, not an individual. A small plot for a weekend farm, an orchard or a holiday home is not covered.

Watch for "farmland with a house". A house built on agricultural land is still agricultural land on the title, so the agricultural rules apply, not the residential ones.

Residential land and house plots

A foreign buyer can generally buy residential property worth RM1 million or more per unit, with the state's approval. Whether that includes an empty plot to build on depends on the state:

  • Kuala Lumpur: generally yes, from RM1 million, so most bungalow plots qualify. See How much does bungalow land cost in Kuala Lumpur?
  • Selangor: no. Houses on their own individual title are closed to foreigners, so an empty house plot is too. Only strata homes, including landed strata in gated developments, are open.
  • Other states: their published rules are written for homes. Ask the state land office or your lawyer whether an empty plot is treated the same way before you pay a deposit.

Rules by state

StateWhat a foreigner can buyWatch for
Kuala LumpurHomes, landed houses and residential land from RM1 million (≈ US$250,000).See bungalow land prices in KL.
SelangorStrata homes only, from RM2 million in Zones 1 and 2 and RM1 million in Zone 3.Houses on their own title, and so empty house plots, are closed to foreigners.
PenangLanded homes from RM3 million on the Island and RM1 million in Seberang Perai.May sell only 3 years after the sale and purchase agreement.
JohorHomes from RM1 million; landed houses of two storeys or more.No single-storey or 1.5-storey terrace houses.
MelakaLanded homes above RM1 million.Bungalow lots capped at 8,000 sq ft; no transfer or lease for 5 years; no heritage zone.
SarawakGenerally no land; strata units, residential land with a building above a minimum value, and areas the state opens to foreigners.Native Customary Land and Native Area Land are closed to non-natives.
SabahCountry lease titles with state approval.Native title land is reserved for Sabah natives.

Figures current at 4 November 2026, not guaranteed, and may change in future. Each state can change its rules; confirm with the state land office or a lawyer. More detail: Minimum price for foreigners, by state and Can foreigners buy landed property?

What to check on the title

  1. Land-use category: building (residential), agricultural or industrial. It decides which rules apply.
  2. Malay reserved land or Bumiputera lot: either one closes the land to foreigners.
  3. Restrictions in interest: for example, that the land cannot be transferred without the state's consent.
  4. Express conditions: for example, a requirement to build within a set time.
  5. Tenure: freehold or leasehold, and how many years are left. See Freehold or leasehold.

What it costs on top of the price

  • State approval fee or levy: for example, 3% in Johor, Penang and Melaka, plus an application fee. See State approval for foreign buyers.
  • Stamp duty: foreign buyers pay 8% on residential property transfers from 1 January 2026. Ask your lawyer about the rate for other land types.
  • Legal fees, and company set-up costs if the land must be held by a local company. See Own name, jointly or through a company?

Fees and rates are current, not guaranteed, and may change in future.

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Frequently asked questions

Can a foreigner buy land in Malaysia?

Yes, with the written approval of the state where the land is, under section 433B of the National Land Code. What you can buy depends on the type of land: residential property from RM1 million per unit in most states, agricultural and industrial land only under stricter conditions, and never Malay reserved land or Bumiputera lots.

Can a foreigner buy agricultural land in Malaysia?

Only for a commercial purpose. The Ministry of Economy's guideline allows it where the land is worth at least RM1 million or is at least 5 acres, and is used for modern commercial farming, agro-tourism, or farming or agro-based industry for export. The land must be registered in the name of a local company. A plot for a weekend farm or a holiday home is not covered.

Can a foreigner buy an empty residential plot to build a house?

In Kuala Lumpur, generally yes, with state approval, from RM1 million. In Selangor, houses on their own individual title are closed to foreigners, so an empty bungalow plot there is too. Other states set their own rules, so confirm with the state land office or your lawyer before you pay a deposit.

What land can foreigners not buy in Malaysia?

Under the Ministry of Economy's guideline: property valued under RM1 million per unit, low-cost and low-medium-cost homes, property on Malay reserved land, and units allocated to Bumiputera buyers in a development. In Sabah and Sarawak, native land is closed to non-natives.

Can a foreigner buy land in Sarawak or Sabah?

Only in limited ways. Sarawak's Land Code generally bars foreigners from owning land, with exceptions for strata units, residential land with a building above a minimum value, and areas the state opens to foreigners. In Sabah, native title land is reserved for natives, and a foreigner needs state approval to hold a country lease.

Can I buy land in Malaysia through a company?

For agricultural and industrial land, the guideline requires the land to be held by a local company. A Malaysian company more than half owned by foreigners is still treated as a foreign interest, so the same limits apply. Ask a lawyer to set it up before you sign.

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About the author

Seann Siow portrait

Seann Siow is a registered estate negotiator in Kuala Lumpur (REN 34312) with more than 10 years in property. He helps foreign buyers and relocating families buy new condominiums in Kuala Lumpur.

More about Seann

Sources

Checked 4 November 2026.

  • Ministry of Economy, Garis Panduan Perolehan Hartanah (Guideline on the Acquisition of Properties), in force 13 July 2022, paragraphs 2.2, 2.3, 4, 10 and 21 — ekonomi.gov.my.
  • National Land Code (Revised 2020), section 433B: a non-citizen may acquire land only with the state authority's approval.
  • Selangor Land and Mines Office, foreign acquisition guidelines — ptg.selangor.gov.my.
  • Melaka Land and Mines Office, Dasar Pemilikan Hartanah oleh Warganegara Asing — ptg.melaka.gov.my.
  • Penang and Johor rules: as set out, with sources, in Minimum price for foreigners, by state.
  • Sarawak Land Code, sections 8, 13A and 13E, as summarised by Low & Partners, "Can foreigner own immovable property in Sarawak?" — lowpartners.com.
  • Sabah Land Ordinance: native title and country lease, as summarised by EasyLaw, "What you need to know about Sabah and Sarawak land" — easylaw.com.my.

General information, not legal, tax or financial advice. Land rules are set by each state and can change; confirm them for a specific plot with the state land office or a lawyer before you pay a deposit. All prices, fees, taxes and figures on this page are based on information current at the date checked, are not guaranteed, and may change in future. Seann Siow, REN 34312.