Frequently Asked Questions

• Terrace houses, semi-D, bungalows

• Apartments, condominiums, serviced residences

• Leasehold vs. freehold titles

Yes—foreigners are allowed to buy residential property in Malaysia, subject to specific rules and restrictions.

• Foreigners can purchase residential properties (e.g. condominiums, apartments, landed houses) provided they meet minimum price thresholds.

• Minimum price threshold, varies by state (RM600,000 to RM1 million)

• Cannot buy low-cost housing, Malay Reserve land, or certain strata units

• Freehold: Permanent ownership

• Leasehold: Owned for a set period (usually 99 years); needs renewal after expiry

• BSN MyHome, Skim Rumah Pertamaku, i-Biaya, Rumah Selangorku and others

• Stamp duty exemptions for first-time buyers under a certain price (e.g., RM500k)

Buying a property in Malaysia involves a structured legal process. Whether you’re a foreigner or a local, the steps are broadly similar, but foreigners need additional approvals.

Step-by-Step Guide to Property Purchase in Malaysia

• Choose Property and Make an Offer
• Apply for Loan (Optional)
• Hire a Lawyer
• Sign the Sale and Purchase Agreement (SPA)
• Apply for State Consent (Foreigners Only)
• Pay the Balance Purchase Price
• Property Transfer and Title Registration
• Final Handover

Includes; 

• Down payment (usually 10%)

• Legal fees (SPA + loan agreement)

• Stamp duty

• Valuation fee (for bank loan)

• MOT (Memorandum of Transfer) stamp duty

Documents Required to Buy Property in Malaysia

Identification Documents (foreigner)

• ✅ Copy of passport (certified true copy, all relevant pages)

• ✅ Visa or residency permit (if applicable, e.g. MM2H)

• ✅ Proof of current address (utility bill, tenancy agreement, etc.)

• ✅ Tax identification number (from your home country, if relevant for financing or due diligence)

Financial Documents

1. ✅ Bank statements (typically 3–6 months)

2. ✅ Employment letter or proof of income

3. ✅ Income tax returns or payslips

4. ✅ Credit report (some banks may request this)

5. ✅ MM2H financial proof (e.g. fixed deposit statements, if buying under MM2H)

Sale and Purchase Agreement (SPA)

• Drafted and signed by buyer and seller

• Includes full terms: price, payment schedule, completion time, conditions

• Must be stamped and filed with the Inland Revenue Board (LHDN)

State Authority Consent Application (For Foreigners)

• ✅ Form 14A (Memorandum of Transfer)

• ✅ Stamped SPA

• ✅ Passport copy

• ✅ Property details & valuation

• ✅ Application letter and form (state-specific)

• ✅ Payment of application fees (varies by state)

Loan Documentation (If applicable)

• ✅ Loan Agreement (prepared by bank’s lawyer)

• ✅ Facility offer letter (mortgage terms)

• ✅ Letter of instruction for fund release

• ✅ Charge documents (to register the bank’s interest in land office)

Other Supporting Documents

• ✅ Land Title / Strata Title (from seller—freehold or leasehold)

• ✅ Valuation report (for mortgage or tax purposes)

• ✅ Utility clearance letters (e.g. from TNB, water board, management office)

• ✅ Quit rent & assessment receipts (from seller)

Optional but Helpful Documents

• 💡 Letter of Offer / Booking Form (initial document showing purchase intent)

• 💡 Tenancy agreement or income proof (if property is intended for rental or investment)

• 💡 MM2H approval letter (if buying under the Malaysia My Second Home program)

• Local buyers can get up to 90% loan margin (for first two properties)

• Subject to Debt Service Ratio (DSR), income level, credit score (CCRIS/CTOS)

• Under Section 433B of the National Land Code

• Required before the transfer of ownership

• Takes 1–3 months, depending on the state

• Can be rejected if:

  • Property is on Malay Reserve Land

  • Below state minimum price

  • Falls under Bumiputera quota

  • Located in restricted zones (some areas are off-limits to foreigners)

Foreigners cannot buy:

• ✅ Malay Reserve Land

• ✅ Bumiputera-only lots

• ✅ Low- and low-medium-cost housing

• ✅ Government-subsidized housing (e.g. RUMAH PR1MA)

• ✅ Agricultural land (unless specifically approved and converted to residential)

• Condominiums and serviced apartments

• Landed property in gated communities (in some states)

• Commercial-titled properties with residential usage (e.g., SoHo)

•  

• Yes. Foreigners must get State Authority Consent, which is normally granted unless restricted.

Typical thresholds:

• Kuala Lumpur: RM1 million

• Selangor: RM2 million (landed); RM1.5 million (strata)

• Penang: RM800,000 (mainland); RM1 million (island)
  (Each state has its own rules)

If you’re financing the purchase from abroad or plan to repatriate sale proceeds later, you must:

• Declare the source of funds

• Use an authorized dealer bank to comply with Bank Negara Malaysia (BNM) foreign exchange rules

• Ensure SPA and transaction are properly registered and stamped (to avoid issues during repatriation)

Foreigners can own both, but leasehold titles require careful review:

• Check remaining lease tenure (banks typically avoid <60 years)

• For lease extensions, you must apply to the Land Office, which may charge a premium

• Some leasehold titles don’t allow transfer to foreigners without special consent

If buying a condo or apartment:

• Ensure the Strata Title is issued

• Review the Management Corporation (MC) rules (some buildings restrict Airbnb, short-term rentals, etc.)

• Check for outstanding maintenance or sinking fund fees

• Understand foreign owner limits (some developments cap foreign ownership at 30%–50%)

• Can get 60–80% loan margin, but approval is stricter than for locals

• Must provide more extensive documentation (bank statements, tax returns, etc.)

• Some banks limit loans to properties above RM 1 million

Tax on the gain when selling property:

• 30% (within 3 years), then decreases

• No RPGT for Malaysian citizens after 5 years

• Foreigners always pay 10% RPGT after 5 years

If buying under the Malaysia My Second Home (MM2H) program:

• Must purchase a property within specific price bands (e.g. RM 600K–1M+)

• Some tiers require holding the property for 10+ years

• Failing to comply may revoke your visa

• Yes,

  • Most require:

    • 20%–30% down payment (max 70% loan margin)

    • Proof of income (employment letter, payslips, bank statements)

    • Valid visa/passport

    • Some banks require local guarantor or co-borrower

  💡 CIMB, Maybank, HSBC, and Standard Chartered have expat mortgage packages.

  some local banks offer loans to foreigners (margin usually 60–80%)Not all banks offer to foreigners

• Requires proof of income, valid visa/passport, and higher down payment

• Yes, possible. But both names must be on loan and SPA

• For foreigners, joint purchase with Malaysian spouse is allowed but may require special approval

• Yes, locals and foreigners can rent out property

• For strata properties, condo management rules may apply

No additional taxes, but the usual charges apply:

• Stamp duty on SPA: 1–4% (same as locals)

• Legal fees: ~1% of purchase price

• Valuation + bank fees: if applying for a local mortgage

✅ Malaysia is more foreign-friendly than many Asian countries

Yes, if you’re a foreigner buying:

• Landed property (especially in Selangor, Penang, Johor)

• Commercial property

• Property via a foreign company

Approval is issued by the State Authority and may take 1–3 months. Strata condos often do not need approval unless specified by state.

✅ Yes, for medium to long-term investors:

• Strong rental markets in KL, Selangor, Penang, Johor

• Lower prices compared to Singapore/HK

Buying a property does not automatically give you a visa, but:

• You can apply for Malaysia My Second Home (MM2H) or Sarawak-MM2H

• Owning property strengthens your MM2H visa application

📌 MM2H visa requires minimum income + liquid assets