Can a foreigner rent out property in Malaysia, including on Airbnb?

Updated 29 October 2026. Prices, fees and taxes on this page are current at that date, are not guaranteed and may change in future. Sources are listed at the end.

Short answer: Yes. Malaysian rules don't stop a foreign owner renting out a home, as long as the state's approval letter for your purchase doesn't say otherwise. If you're not tax-resident in Malaysia, the rent is taxed at a flat 30% after allowable expenses, and you can send it home in foreign currency. Short-term rentals such as Airbnb depend on your building's by-laws, and national rules are still being finalised, so check the building before you buy for that purpose.

Check the building's by-laws before buying for short stays. A condo's management body can restrict short-term rentals under its by-laws, whatever the national rules say. Ask the management office for the current by-laws and any decision on short stays.

Long-term letting

The tenancy agreement: usually one or two years. It should be stamped; your agent or lawyer can arrange it.
Deposits: commonly a security deposit of two months' rent plus a utilities deposit of half to one month. Agree it in the tenancy.
Who pays what: agree whether the tenant pays utilities and internet; the maintenance fee stays the owner's responsibility to the management.
Managing it from overseas: a property manager can find tenants, collect rent, handle repairs and pay the fees.

Short-term rentals (Airbnb and similar)

Malaysia does not yet have one national rule for short stays. On 26 October 2026, the housing ministry told Parliament it is finalising nationwide guidelines through PLANMalaysia, with the tourism ministry, states and local councils. Under the proposals, only registered premises that meet local council licensing would operate legally, and buildings' existing by-laws under the Strata Management Act would still apply. A cap of 180 nights a year is still being studied.

Until the rules are adopted, what decides whether you can do short stays is mainly your building's by-laws and your local council. Many residential condos restrict them.

Tax on rental income

Your status	How rent is taxed in Malaysia
Not tax-resident in Malaysia	Flat 30% on rental income after allowable expenses, with no personal reliefs
Tax-resident (generally 182 days or more in a year)	At the progressive resident rates, together with your other income

Allowable expenses usually include maintenance fees, assessment tax, quit rent, insurance, repairs and loan interest. Ask a tax adviser for your own case, and how your home country taxes the same rent.

Sending the rent home

Bank Negara Malaysia's rules allow a non-resident to repatriate income from a ringgit asset, such as rent, provided it is sent in foreign currency. Keep your tenancy agreement and tax records, as the bank may ask for supporting documents.

Before you buy to rent out

Check actual signed rents for similar units nearby, not asking rents.
Work out the net yield after costs and tax. See Gross vs net yield.
For short stays, read the by-laws and ask the management for its current position in writing.
Read the conditions in your state approval letter once you have it.

Buying to rent out? I'll share real signed rents for similar units and introduce you to property managers I work with. Ask on WhatsApp →

Before you pay a booking fee

Foreign Investor's Due Diligence Checklist (free)

The checks to make before you commit to any property in Malaysia.

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Prefer to talk it through? Ask Seann on WhatsApp

Frequently asked questions

Can foreigners rent out property in Malaysia?

Yes. No Malaysian rule stops a foreign owner from renting out a home, unless the state's approval letter for the purchase sets a condition. Check the letter's conditions once you receive it.

How much tax does a foreigner pay on rental income in Malaysia?

If you are not tax-resident in Malaysia, HASiL taxes your income, including rent, at a flat 30% after allowable expenses, with no personal reliefs.

Is Airbnb legal in Kuala Lumpur?

There is no single national rule yet. The housing ministry is finalising nationwide guidelines (reported 26 October 2026). Meanwhile, a building's by-laws and the local council decide, and many residential condos restrict short stays.

Can I send rental income out of Malaysia?

Yes. Bank Negara Malaysia's foreign exchange rules allow a non-resident to repatriate income from a ringgit asset, such as rent, in foreign currency.

Do I need a property manager?

Not legally, but if you live overseas a property manager can find tenants, collect rent, arrange repairs and pay the maintenance fee for you.

Keep reading

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 29 October 2026.

HASiL, Who is taxable: non-resident individuals are taxed at a flat 30% and get no reliefs — hasil.gov.my.
The Star, "Guidelines to regulate short-term rental accommodation being finalised", 26 October 2026 — thestar.com.my.
EdgeProp, "Short-stay rental framework to retain strata rules, seek platform licence checks", 26 October 2026 — edgeprop.my.
Bank Negara Malaysia, Foreign Exchange Policy Notices (consolidated, October 2025): Notice 4, paragraphs 8, 9 and 18; Notice 1, paragraph 6(1)(a); Notice 2, paragraph 15(a) — bnm.gov.my.
Strata Management Act 2013 (Act 757): by-laws of joint management bodies and management corporations.
Typical deposits and tenancy terms: From transactions handled by Seann Siow (REN 34312).

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. 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.