Buying Property in Malaysia as a Foreigner: What You Can Buy & the Process

Foreigners can legally buy property in Malaysia, but only above a state-set minimum price and with written State Authority consent. The minimum is commonly RM1 million, though it varies by state and property type — for example around RM2 million for landed property in Selangor and RM500,000 for stratified property on the Penang mainland. Every foreign purchase needs consent under Section 433B of the National Land Code 1965, and from 1 January 2026 foreign buyers of residential property pay a flat 8% stamp duty on the transfer. This guide explains what foreigners can and cannot buy, the minimum prices, the costs, and the process.

In short: yes, foreigners can own property in Malaysia (mostly strata units such as condos); the price must clear the state minimum; State Authority consent is compulsory; and the 2026 stamp duty for foreign residential buyers is a flat 8%.

Can foreigners buy property in Malaysia?

Yes. Non-citizens can own residential and commercial property, most commonly strata-titled units like condominiums and serviced apartments. Landed property is more restricted and, in several states, limited or not permitted for foreign buyers. Whatever the property type, the purchase must meet the state minimum price and obtain State Authority consent before the title can be transferred.

What can't foreigners buy?

Some categories are off-limits to foreign buyers regardless of price:

• Malay reserved land — cannot be bought by non-Malaysians under any circumstances.

• Properties under the Bumiputera quota — reserved units in a development.

• Low- and medium-cost housing — protected for local buyers.

• Agricultural land — generally requires special state approval.

What is the minimum price for foreigners?

Because land is a state matter under the Federal Constitution, each state sets its own minimum — and these are revised from time to time. The figures below are indicative for 2026; always confirm the current threshold for the specific state and property type with your lawyer before signing.

Thresholds vary by state and property type and change periodically — treat the table as a guide, not a guarantee, and verify the current figure before committing.

Do foreigners need State Authority consent?

Yes. Every foreign purchase requires written State Authority consent under Section 433B of the National Land Code 1965, applied for by your lawyer after the SPA is signed (the SPA is made conditional on consent). Approval commonly takes a few months and carries a processing fee that varies by state — Penang Island, for example, adds a levy on foreign purchases. Importantly, meeting the minimum price does not guarantee approval; the state must still consent before the title transfers.

What does a foreigner pay to buy?

The main costs, on top of the price, are:

• Stamp duty on transfer (MOT) — a flat 8% of the price for foreign buyers of residential property, effective 1 January 2026 under Budget 2026 (up from 4%). Commercial and industrial property keep the standard tiered 1%–4% rates.

• Legal fees — the SRO 2023 scale (1.25% on the first RM500,000, then 1.0%, plus 8% SST), the same scale that applies to all buyers. See our legal fees guide.

• Loan stamp duty — 0.5% of the loan amount, if financing.

• State consent / processing fees — varies by state.

• Down payment — foreign buyers typically get 60%–70% financing, so expect a larger cash component.

On a future sale, non-citizens also pay Real Property Gains Tax (RPGT) at 30% if the property is sold within five years, and 10% from the sixth year onward.

"For a foreign buyer, the first question is never 'can I afford it' — it is 'can I legally buy this title, in this state, at this price'. We confirm eligibility before anyone signs, so a deal never collapses at the consent stage." — Akmal Saufi, principal of ASCOLAW (Tetuan Akmal Saufi & Co).

What is the process for a foreign buyer?

1. Confirm eligibility first — check the price clears the state minimum and the title is not a restricted category, before signing anything.

2. Offer and booking — agree terms and pay the booking sum.

3. SPA (conditional on consent) — sign the SPA with a clause making completion subject to State Authority approval.

4. Apply for State Authority consent — your lawyer submits the Section 433B application.

5. Financing — arrange the loan and loan documentation.

6. Stamping, transfer and registration — pay the 8% stamp duty, then transfer and register the title once consent is granted.

7. Completion — settle the balance purchase price and take possession.

Frequently Asked Questions

Can a foreigner buy a house in Malaysia?

Yes, subject to the state minimum price, property-type restrictions, and mandatory State Authority consent. Foreigners most commonly buy strata units; landed property is more restricted.

What is the minimum price for foreigners?

It is set by each state and commonly RM1 million, but it varies — for example around RM2 million for landed property in Selangor and RM500,000 for stratified property on the Penang mainland. Confirm the current state figure before buying.

Do foreigners need government approval to buy property?

Yes. Written State Authority consent is required for every foreign purchase under Section 433B of the National Land Code 1965, usually applied for after the SPA is signed.

How much stamp duty do foreigners pay in 2026?

From 1 January 2026, foreign buyers of residential property pay a flat 8% stamp duty on the transfer, up from the previous 4%. Commercial and industrial property keeps the tiered 1%–4% rates.

Can foreigners buy landed property?

In some states and above higher thresholds, but landed property is often restricted for foreign buyers. Check the specific state rules and property type before making an offer.

Next steps

Buying in Malaysia as a foreigner is very doable — the key is confirming eligibility and consent before you sign, and budgeting for the 2026 stamp duty. When you are ready to move forward, speak to an ASCOLAW conveyancing lawyer for a short consultation and a clear cost estimate.

This article is for general information only and does not constitute legal advice. Every property transaction is unique. Please obtain specific advice from a licensed lawyer before acting on any part of it.

Related guides

• What is conveyancing in Malaysia? Meaning, process and who handles it

• Balance purchase price explained: what it means and when you pay

• Legal fees for buying and selling a house in Malaysia (2026)