Do foreigners need state approval to buy property in Malaysia?
Checked 20 October 2026 by Seann Siow, REN 34312. Sources are listed at the end of this page.
Short answer: Yes. Under section 433B of Malaysia's National Land Code, a non-citizen can acquire land, including a home, only after getting written approval from the state authority where the property is located. Each state charges its own fees: Johor, Penang and Melaka all charge 3% of the property's value, with a minimum or a reduced rate in some cases, plus an application fee.
Who needs state approval
Any non-citizen acquiring land, including a home, needs written approval from the state authority (National Land Code, section 433B). The Ministry of Economy's guideline adds that a foreign purchase of a home valued at RM1 million or more per unit does not need the Ministry's approval: the state decides.
Application fees are charged per title or per unit, so buying two units means paying two sets of fees.
Approval fees by state
| State | Application fee | Approval fee or levy | Notes |
|---|---|---|---|
| Johor | RM2,000 per title (≈ US$500) | 3% of the property value or RM30,000 (≈ US$7,500), whichever is higher | Minimum RM50,000 (≈ US$12,500) for commercial-category serviced apartments and SOHO units the state allows below RM1 million |
| Penang | RM10,000 per title (≈ US$2,500) | 3% of the purchase value | 1.5% for strata property on Penang Island priced from RM1 million to RM1.5 million |
| Melaka | RM5,000 per unit (≈ US$1,250) | 3% of the sale price, minimum RM30,000 (≈ US$7,500) | — |
| Selangor | RM200 per title (≈ US$50); RM1,000 on appeal | No levy, according to the land office's guidelines | Foreign consent processing fees of about RM4,000 to RM5,000 (≈ US$1,000 to US$1,250) in recent transactions; foreigners can buy strata homes only, from RM2 million in Zones 1 and 2 and RM1 million in Zone 3 |
| Kuala Lumpur and other states | Not verified — confirm with the state land office | Not verified — confirm with the state land office | — |
Checked 18 October 2026 against each state's published fees.
What the approval fee comes to on a RM1.2 million apartment
Example only, for a foreign individual buying an apartment for RM1,200,000 (≈ US$300,000). It shows the approval fees and the foreign-buyer stamp duty; legal fees and loan costs are not included.
| Cost | Johor | Penang Island | Melaka |
|---|---|---|---|
| Application fee | RM2,000 | RM10,000 | RM5,000 |
| Approval fee or levy | RM36,000 (3%, above the RM30,000 minimum) | RM18,000 (1.5%, strata between RM1m and RM1.5m) | RM36,000 (3%, above the RM30,000 minimum) |
| Stamp duty on the transfer (8%) | RM96,000 | RM96,000 | RM96,000 |
| Total of these three | RM134,000 (≈ US$33,500) | RM124,000 (≈ US$31,000) | RM137,000 (≈ US$34,250) |
Stamp duty is 8% of the price or the market value, whichever is higher; this example assumes they are the same.
Other state rules to know
- Penang: a foreign owner may sell only three years after the sale and purchase agreement.
- Melaka: no transfer or lease for five years after registration.
- Johor: single-storey and one-and-a-half-storey terrace houses are not open to foreigners.
Questions to ask your conveyancing lawyer
- Who files the approval application, and what documents do you need from me?
- How long is the state currently taking to decide?
- When are the application fee and the approval fee or levy paid, and by whom?
- What happens to my deposit if approval is refused?
- Are there any conditions on selling, renting or transferring the property later?
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Frequently asked questions
Do foreigners need approval to buy property in Malaysia?
Yes. Section 433B of Malaysia's National Land Code says a non-citizen can acquire land, including a home, only with written approval from the state authority where the property is located.
How much is the approval fee in Johor?
Johor's Land and Mines Office charges 3% of the property value or RM30,000, whichever is higher, plus RM2,000 per title to register the application. For commercial-category serviced apartments and SOHO units allowed below RM1 million, the minimum is RM50,000.
How much is the approval levy in Penang?
Penang's Land and Mines Office charges an application fee of RM10,000 per title and a levy of 3% of the purchase value, reduced to 1.5% for strata property on Penang Island priced between RM1 million and RM1.5 million.
How much is the approval fee in Melaka?
Melaka's Land and Mines Office charges a processing fee of RM5,000 per unit and an approval fee of 3% of the sale price, with a minimum of RM30,000.
Do I still pay stamp duty after paying the approval fee?
Yes. They are separate. From 1 January 2026, the stamp duty on transferring a home to a foreign buyer is 8% of the price or the market value, whichever is higher, under Malaysia's Finance Act 2025.
Keep reading
- Minimum price for foreigners, by state
- Can foreigners buy landed property?
- Can foreigners buy property in Malaysia?
- 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.
- National Land Code (Revised 2020), section 433B, as reproduced in Penang Land and Mines Office's guideline, paragraph 1.0(a).
- Ministry of Economy, Garis Panduan Perolehan Hartanah (Guideline on the Acquisition of Properties), in force 13 July 2022, paragraphs 2.3 and 10 — ekonomi.gov.my.
- Pejabat Tanah dan Galian Johor, "Maklumat Bayaran", fees for acquisition by foreign interests — ptj.johor.gov.my.
- 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.
- Pejabat Tanah dan Galian Melaka, Dasar Pemilikan Hartanah oleh Warganegara Asing / Syarikat Asing (provisions dated 1 January 2014, 20 July 2016 and 1 October 2022) — ptg.melaka.gov.my.
- Pejabat Tanah dan Galian Selangor, foreign acquisition page (updated 2 April 2026) — ptg.selangor.gov.my. Its threshold circular (Pekeliling Bil. 1/2014) has not been checked for this page.
- Selangor processing fees (about RM4,000 to RM5,000), the strata minimums by zone and the bar on houses on their own title: from recent transactions handled by Seann Siow (REN 34312).
- Finance Act 2025 (Act 874), sections 25, 26 and 29(b), amending the Stamp Act 1949 from 1 January 2026.
- US dollars: converted at RM4 = US$1 and rounded, a rough guide only.
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.