Can foreigners buy property in Malaysia?

Checked 18 October 2026 by Seann Siow, REN 34312. Sources are listed at the end of this page.

Short answer: Yes, with conditions. Under section 433B of Malaysia's National Land Code, a non-citizen can own property in Malaysia only after getting written approval from the state authority where the property is located. A federal guideline lists what foreign buyers may not acquire, and states add their own rules, such as a minimum price.

Who needs state approval

Section 433B of the National Land Code requires the prior written approval of the state authority before land, or an interest in land, can be transferred to a non-citizen or a foreign company. State land offices apply this to strata homes such as condominiums as well as to landed property.

"Foreign company" includes a company incorporated outside Malaysia, and a Malaysian company in which non-citizens or foreign companies hold 50% or more of the voting shares (section 433A).

Section 433C says a dealing that breaches section 433B is null and void. Approval comes before the transfer, not after.

What foreigners cannot buy

The Ministry of Economy's guideline lists four things foreign buyers may not acquire:

property valued under RM1 million per unit
homes in the low-cost and low-medium-cost categories set by the state
property on Malay Reserved Land
units allocated to Bumiputera buyers in a development

Individual states add their own rules, and some set a different minimum price. For example, Penang's land office says foreign buyers may not buy low-cost or medium-cost houses or flats there, and may sell only after three years from the date of the sale and purchase agreement. Melaka's land office bars a foreign owner from transferring or leasing the property for five years after registration.

The minimum price depends on the state

According to Malaysia's Ministry of Economy, a foreign purchase of a home valued at RM1 million or more per unit does not need the Ministry's approval; the decision sits with the state authority. The states publish their own minimum prices. Two examples, from the states' own land offices:

Penang (guideline updated 1 August 2024): RM1 million for strata property and RM3 million for landed property on Penang Island; RM500,000 for strata and RM1 million for landed property in Seberang Perai on the mainland.
Melaka: above RM500,000 for strata property and above RM1 million for landed property.

Check the current minimum for the exact location before you pay a booking fee.

What it costs: 8% stamp duty and state fees

Under Malaysia's Finance Act 2025, from 1 January 2026 the stamp duty on transferring a home to a foreign company, or to a person who is neither a Malaysian citizen nor a permanent resident, is 8% of the price or the market value, whichever is higher. The Act defines a home as a house, condominium, apartment, flat, service apartment or SOHO used solely as a dwelling.

States also charge their own application and approval fees. In Penang, the application fee for a foreign individual buying a home is RM10,000 per title, and the approval levy is 3% of the purchase value, reduced to 1.5% for strata property on the Island priced between RM1 million and RM1.5 million. In Melaka, the processing fee is RM5,000 per unit and the approval fee is 3% of the sale price, with a minimum of RM30,000.

Can a foreigner get a home loan?

Bank Negara Malaysia's foreign exchange rules, in force from 1 October 2025, allow a non-resident to borrow ringgit, in any amount, from a Malaysian resident lender to buy or build residential or commercial property in Malaysia. The rules permit the borrowing; they do not require any bank to lend. Each bank decides its own terms, so ask the bank directly before you sign.

Is a new off-plan home protected?

Malaysia's Housing Development (Control and Licensing) Act 1966 applies only in Peninsular Malaysia (section 1(3)). Under section 7A, a licensed developer must open a Housing Development Account for each project, or each phase, pay buyers' purchase money into it, and withdraw money only as the regulations allow. The requirement does not apply where a developer offers units for sale only after they are completed and certified.

KPKT's TEDUH portal (teduh.kpkt.gov.my) lets anyone look up a housing developer's licence and its advertising and sales permits, including how long each permit is valid.

What happens to the property when the owner dies?

Malaysia repealed its estate duty laws with effect from 1 November 1991 (Finance Act 1992, sections 45 and 46). The old estate duty law continues to apply only to the estates of people who died before that date.

Under section 52 of Malaysia's Probate and Administration Act 1959, the High Court can reseal a grant of probate or letters of administration issued by a court in a Commonwealth country, giving it the same effect in Malaysia as a Malaysian grant, subject to conditions about where the deceased was domiciled. If the grant was issued outside the Commonwealth, ask a Malaysian lawyer what is needed for the property here.

Planning to live in Malaysia too?

If you also plan to stay long term, read MM2H explained: Malaysia's long-stay programmes compared.

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Frequently asked questions

Can a foreigner own property in Malaysia in their own name?

Yes, after written approval from the state authority where the property is located, under section 433B of the National Land Code.

What is the minimum price for foreigners?

It depends on the state. The Ministry of Economy's guideline lists property valued under RM1 million per unit among what foreign buyers may not acquire, and the states publish their own minimum prices. Penang, for example, sets RM500,000 for strata property in Seberang Perai and RM3 million for landed property on Penang Island.

How much stamp duty does a foreigner pay?

From 1 January 2026, 8% of the price or the market value, whichever is higher, on the transfer of a home to a person who is neither a Malaysian citizen nor a permanent resident, or to a foreign company (Finance Act 2025).

Can foreigners get a home loan in Malaysia?

Bank Negara Malaysia's rules allow a non-resident to borrow ringgit from a Malaysian resident lender to buy property in Malaysia. Each bank decides whether to lend and on what terms.

Does Malaysia have inheritance tax?

Malaysia repealed its estate duty laws with effect from 1 November 1991. The old law applies only to the estates of people who died before that date.

About the author

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 18 October 2026.

This page is general information, not legal, tax or financial advice. Rules and fees change. Confirm the position for your own purchase with a Malaysian lawyer and the relevant state land office before you commit.