Can foreigners inherit property in Malaysia?
Checked 20 October 2026 by Seann Siow, REN 34312. Sources are listed at the end of this page.
Short answer: Malaysia has no inheritance tax: it repealed estate duty for deaths on or after 1 November 1991. Whether a foreign heir can register inherited property depends on the state. Johor's land office permits it for every property type except Malay Reserved Land and waives its approval fee, and Penang's minimum-price rule doesn't apply to transfers under an estate order.
No estate duty since 1991
Malaysia repealed its estate duty laws with effect from 1 November 1991 (Finance Act 1992, sections 45 and 46). The old law continues to apply only to the estates of people who died before that date.
No estate duty doesn't answer every tax question. Ask a tax adviser about stamp duty on the transfer to the heir, and about Real Property Gains Tax if the heir later sells.
Malaysia compared with Japan
| Country | Inheritance or estate tax | Source |
|---|---|---|
| Malaysia | None for deaths on or after 1 November 1991 | Finance Act 1992, sections 45 and 46 |
| Japan | Top rate 55%, on the part of each heir's statutory share above 600 million yen | Japan Ministry of Finance |
Using a foreign grant of probate in Malaysia
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. Section 51 extends this to any other country named for the purpose in the Gazette.
If the grant was issued outside the Commonwealth, ask a Malaysian lawyer what is needed for the property here.
State rules for foreign heirs
| State | Rule for property passed on at death |
|---|---|
| Johor | A foreigner may acquire any property type through a distribution or court order, except Malay Reserved Land; the approval fee is waived |
| Penang | The minimum price for foreign buyers does not apply to estate orders, court orders or transfers for love and affection |
| Other states | Not verified — confirm with the state land office |
Checked 18 October 2026 against Johor's and Penang's published guidelines.
What to ask your lawyer if you own property in Malaysia
- Does my existing will cover my Malaysian property, or do I need a separate Malaysian will?
- Will my home country's grant of probate be recognised in Malaysia, or will my heirs need a Malaysian grant?
- What does the state require for a foreign heir to register the property?
- What taxes or duties will my heirs pay on the transfer, and if they sell later?
Watch: inheritance tax explained
Why Malaysia has no inheritance tax, and how that compares with other countries.
Inheritance tax explained: why Malaysia is 0% while others take up to 55% · Subscribe on YouTube
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Frequently asked questions
Does Malaysia have inheritance tax?
No. Malaysia repealed estate duty with effect from 1 November 1991 (Finance Act 1992, sections 45 and 46). The old law applies only to the estates of people who died before that date.
Can a foreigner inherit property in Johor?
Yes. Johor's Land and Mines Office permits a foreigner to acquire property through a distribution or court order for every property type except Malay Reserved Land, and waives its approval fee.
Does the minimum price for foreigners apply to inherited property?
Not in Penang: its land office guideline says the minimum price doesn't apply to estate orders, court orders or transfers for love and affection. Check the rule with the land office in other states.
Can my home country's probate be used in Malaysia?
If it was issued by a court in a Commonwealth country, Malaysia's High Court can reseal it under section 52 of the Probate and Administration Act 1959, giving it effect here, subject to conditions. For other countries, ask a Malaysian lawyer.
Do heirs pay tax when they sell inherited property?
A later sale can raise Real Property Gains Tax questions, including which date counts as the acquisition date. Ask a tax adviser before the sale.
Keep reading
- Can foreigners buy property in Malaysia?
- Minimum price for foreigners, by state
- State approval for foreign buyers
- All projects I'm selling
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.
Sources
Checked 20 October 2026.
- Finance Act 1992 (Act 476), sections 45 and 46 (repeal of estate duty, with effect from 1 November 1991).
- Probate and Administration Act 1959 (Act 97), sections 51 to 53 — CommonLII.
- Pejabat Tanah dan Galian Johor, "Perolehan Hartanah Oleh Kepentingan Asing" — ptj.johor.gov.my.
- Pejabat Tanah dan Galian Pulau Pinang, guideline on acquisition of property by non-citizens and foreign companies, updated 1 August 2024, paragraphs 2.2, 2.3, 3.2, 4 and 5 — ptg.penang.gov.my.
- Japan Ministry of Finance, "Structure of Inheritance Tax" — mof.go.jp.
General information, checked on the date shown, not legal, tax or financial advice. Rules and fees change; confirm them for your purchase with the state land office, a lawyer or a tax adviser. Seann Siow, REN 34312.