Property ownership rules, immigration and tax residency are separate questions and are kept in separate sections. Information is general, not legal or tax advice; home-country tax obligations may still apply.
Foreign-Buyer Ownership Rules
Unreviewed draftForeigners can buy property in Malaysia with the state authority's consent.
• Each state sets a minimum price for foreign buyers (the federal guideline is RM1 million; some states and areas set higher or lower figures).
• Foreigners generally cannot buy Malay Reserve land, Bumiputera-quota units, low- and medium-cost homes, or agricultural land.
• Land matters are run by each state's land office under the National Land Code; Sabah and Sarawak have their own land laws.
• Strata titles for condominiums can take time to be issued.
Researched 14 Oct 2026 from official sources. Not professionally reviewed.
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Purchase Taxes and Real Costs
Unreviewed draftMain costs when buying:
• Stamp duty on the transfer: 1% on the first RM100,000, 2% on the next RM400,000, 3% on the next RM500,000 and 4% above RM1 million. Since 2024, foreign individuals and foreign companies pay a flat 4%. Check LHDN (Inland Revenue Board).
• Stamp duty on a loan agreement: 0.5%.
• State consent fees for foreign buyers.
• Yearly: quit rent (to the state) and assessment rates (to the local council).
• When selling, Real Property Gains Tax (RPGT) for foreigners is 30% within five years, then 10%.
Researched 14 Oct 2026 from official sources. Not professionally reviewed.
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Rental Income and Ownership Expenses
Unreviewed draftRenting out property:
• Rental income is taxable in Malaysia. Non-residents are taxed at a flat 30% on rental income.
• Tenancy agreements are stamped through LHDN's e-Stamp system.
• Short-term rentals (Airbnb-style) face rules set by local councils and building management; some buildings ban them.
• Owners pay maintenance and sinking fund charges for strata properties.
Researched 14 Oct 2026 from official sources. Not professionally reviewed.
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Residency and Immigration Information
Unreviewed draftBuying property does not by itself give residence, but there is a long-stay programme:
• Malaysia My Second Home (MM2H) offers long-term visas with tiers that require fixed deposits and, in some tiers, buying property above a minimum price. Terms changed in 2024; check the official MM2H site.
• Some states (for example Sarawak) run their own versions.
• Work and business residence are separate permits.
Researched 14 Oct 2026 from official sources. Not professionally reviewed.
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Commercial and Hospitality Investment
Unreviewed draftCommercial investment:
• Foreigners can buy commercial property with state consent, usually above a minimum price.
• Purchases of property worth RM20 million or more involving a dilution of Bumiputera or government interest may need Economic Planning Unit approval.
• Stamp duty, RPGT and corporate tax apply; commercial leases may attract Sales and Service Tax.
• MIDA is the government agency for investment incentives.
Researched 14 Oct 2026 from official sources. Not professionally reviewed.
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Property Due Diligence
Unreviewed draftChecks before you buy:
• Do a land title search at the state land office (owner, encumbrances, restrictions such as Malay Reserve or "not for foreigners").
• For new projects, check the developer's licence and advertising permit with the Ministry of Housing (KPKT).
• Confirm state consent rules and timing before paying a deposit.
• Use a registered lawyer and a registered estate agent (BOVAEA).
Researched 14 Oct 2026 from official sources. Not professionally reviewed.
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Inheritance and Legacy Planning
Unreviewed draftInheritance:
• Malaysia has no estate duty (abolished in 1991).
• Muslims' estates follow Islamic inheritance (faraid) under state Syariah law; a will can only cover up to one third.
• Non-Muslims can make a will under the Wills Act 1959; without one, the Distribution Act 1958 decides shares.
• Estates are administered through the High Court, Amanah Raya Berhad or the Land Office for small estates.
Researched 14 Oct 2026 from official sources. Not professionally reviewed.
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Local Professional Network
Unreviewed draftPeople you will usually need:
• Malaysian lawyer (Malaysian Bar) for conveyancing and state consent.
• Registered estate agent (check the BOVAEA register).
• Tax adviser for RPGT and rental income.
• Bank or mortgage adviser; foreigners usually get lower loan limits.
No professionals on this site are verified for Malaysia yet. Researched 14 Oct 2026 from official sources. Not professionally reviewed.
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