Foreign Buyers: Moving Money In and Out of Malaysia

The short answer

Bank Negara Malaysia (BNM) sets the rules on money moving in and out of the country. Under its foreign exchange policy, a non-resident may invest in ringgit assets, and BNM's FAQ lists properties in Malaysia among them.

When you sell, you are free to remit the proceeds out, as long as the money leaves Malaysia in foreign currency. To receive ringgit payments in Malaysia, a non-resident needs an external account. You may also borrow in ringgit to buy property, except land only.

Before the money leaves, real property gains tax (RPGT) may apply. For non-citizens it is 30% within five years and 10% from the sixth year. Keep every remittance record from day one. Rules can change, so check the current notice with your bank.

This is part 6, the last part, of our six-part series on buying in Kuala Lumpur as a foreigner. Want me to work it out for your own case? WhatsApp +60 17-279 8932.

The rules in one table

The points below are as set out in BNM's foreign exchange policy notices and its FAQ for non-residents. Your bank applies them, so always check the current version with them.

There is no BNM figure in that FAQ limiting how much a non-resident can bring in for property. Do not rely on old forum posts for limits; ask your bank.

Bringing money in

Step 1: Decide which account you will use

Most foreign buyers pay into Malaysia from an account abroad, through their bank's international transfer. The money usually arrives in your lawyer's client account or the developer's account, depending on what the payment is for.

If you will receive ringgit in Malaysia, such as a loan refund, rent, or later sale proceeds, you need an external account. That is the account type BNM's policy uses for non-residents receiving ringgit. Your bank will explain the options and documents.

Opening an account usually involves identity checks. How these work for someone living abroad varies by bank. Part 5 of this series, on buying from overseas, covers this.

Step 2: Know what you are paying, and when

The money for a purchase does not move in one go. Typical payments include:

• Booking fee at the start.
• Balance of the down payment when you sign the SPA.
• Stamp duty on the transfer. For a foreign buyer of residential property, this is 8% of the price or the market value, whichever is greater, from 1 January 2026. The stamp duty guide explains it.
• Stamp duty on the loan agreement, which is 0.5% of your loan.
• Legal fees under the Solicitors' Remuneration Order 2023. See the legal fees guide.
• Progress payments for a new launch, mostly paid by the bank from your loan. See the progressive payment guide.
• Any shortfall if the bank values the home below the price. Part 4, on bank valuation below price, shows how this can add a large sum.

Part 1, the timeline from booking to keys, shows when each payment usually falls.

Step 3: Send it in a clean, traceable way

• Send from an account in your own name. Payments from third parties raise questions and slow things down.
• Use the same account each time if you can.
• Add a clear reference. Include the unit number and your name.
• Ask for the receiving bank's details in writing from your lawyer or the developer. Confirm them by phone before a large transfer. Payment scams that swap bank details are a real risk.
• Allow time. International transfers and the receiving bank's checks can take days.

Borrowing in ringgit instead

You do not have to bring the whole price in from abroad. BNM's policy allows a non-resident to borrow in ringgit to buy immovable property, except where the purchase is land only.

That is permission at the policy level. Whether a bank lends to you, and how much, is up to each bank. Banks set their own margin of finance for foreign buyers. Our guides on the margin of finance and the foreign buyer home loan explain the bank side.

Borrowing locally means part of the price is funded in ringgit. Your repayments will also be in ringgit, so plan how you will pay them each month, from rent received into an external account or from regular transfers from abroad.

Keep records from day one

This is the step most people skip, and later regret.

Keep a folder, paper and digital, with:

• Every remittance advice or bank confirmation for money sent into Malaysia.
• Receipts from the developer, seller and lawyer for every payment.
• The SPA, loan agreement and transfer documents.
• Stamp duty receipts.
• Invoices for costs linked to the purchase and sale, such as legal fees.
• Any letters from your bank about your external account.

Why it matters:

• When you sell, banks may ask how the money first came in before they process an outward transfer.
• For RPGT, your purchase price and allowable costs need proof.
• Your own country's tax office may ask where the sale proceeds came from.

A clear paper trail turns weeks of questions into a short email.

Selling and taking money out

The order of steps

1. You sign the sale agreement with your buyer.
2. The sale is reported for RPGT. Your lawyer usually handles the filing with LHDN.
3. The buyer's money comes in, usually through the lawyers.
4. Your loan, if any, is settled from the proceeds.
5. RPGT is settled.
6. The balance is paid to you. If it is paid in ringgit, it goes into an account you can receive ringgit in, such as an external account.
7. You remit it out in foreign currency. BNM's policy lets non-residents remit divestment proceeds out, provided repatriation is in foreign currency.

RPGT for non-citizens

Real property gains tax is charged on the gain when you dispose of property. For non-citizens, LHDN's rates under Schedule 5 Part III are:

A generic example: if your chargeable gain is RM 100,000 and you sell in year 3, RPGT at 30% is RM 30,000. If you sell in year 7, at 10% it is RM 10,000. These are illustrations of the rate only. How the chargeable gain is worked out is explained in our RPGT guide.

The holding period makes a large difference for a foreign seller. Factor it in before you decide when to sell.

Converting and sending

Proceeds must leave Malaysia in foreign currency. In practice, your bank converts the ringgit and sends it to your account abroad. Ask the bank:

• Which documents they need for the transfer, such as the sale agreement and RPGT papers.
• How long the transfer usually takes.
• Whether there are charges on their side.

We do not quote exchange rates here. They move daily, and your bank will show its own rate on the day.

Rental income

If you let the home out, rent paid in ringgit needs somewhere to land. An external account is the usual answer. BNM's policy also allows non-residents to remit out income from these investments, in foreign currency.

Rental income in Malaysia may be taxable. The property taxes guide gives an overview; speak to a tax adviser about your own position.

A full example, from first transfer to final remittance

Here is how the money side might look for a generic RM 1,000,000 home in Kuala Lumpur, bought by a non-citizen. All figures are round illustrations, not any real project. The loan amount is an example only, since each bank decides what it lends.

At purchase

So, before legal fees and other costs, this buyer brings in about RM 483,000 worth of foreign currency. Each transfer leaves a remittance record, and each payment in Malaysia leaves a receipt. Both go into the folder.

During ownership

The buyer lets the unit out. Rent is paid in ringgit into an external account. Monthly loan repayments are paid from that account, topped up from abroad when needed. Every top-up is another remittance record to keep.

At sale

Years later, the buyer sells. The lawyers receive the buyer's money, settle the outstanding loan, and handle RPGT. If the chargeable gain were RM 100,000 and the sale happened in year 7, RPGT at 10% would be RM 10,000. The balance is paid to the seller's external account, converted, and remitted abroad in foreign currency.

At that point, the folder from day one shows the whole story: what came in, what was paid, and what went out.

When the buyer is a couple or a family

Many foreign buyers purchase jointly. A few points help keep money matters simple:

• Agree who pays what. If both owners send money, keep each person's remittance records separately and label them.
• Use accounts in the owners' names. Payments from a relative who is not an owner can confuse the record.
• Think ahead to the sale. Proceeds will be split between owners. Each owner may need an account that can receive ringgit, or the bank may handle the split. Ask early.
• Keep the same names everywhere. Names on the SPA, the bank account and the remittance slips should match the passports exactly.

Timing your transfers well

Money that arrives late can put you in breach of the SPA. Money that arrives too early sits idle. Some practical habits:

• Ask your lawyer for a payment calendar. Part 1 of this series shows the usual order.
• Send larger sums a little early. International transfers can be held for checks.
• Avoid public holidays. Both in Malaysia and in your own country, banks may not process transfers.
• Confirm receipt. Ask the lawyer or developer to confirm in writing each time money arrives.
• Note the reference on your side too. Write down the date, amount and purpose of each transfer in a simple list. When the bank asks questions years later, that list saves hours.

Common mistakes

• Paying from a friend's or company's account. It confuses the record of who paid.
• Not keeping remittance slips. You may need them years later at sale.
• Assuming you can send ringgit straight out. Proceeds go out in foreign currency.
• Forgetting the RPGT holding period. For non-citizens, the rate drops from 30% to 10% only from the sixth year.
• Relying on old rules. BNM notices are updated; ask your bank for the current version.
• Trusting bank details sent by email alone. Confirm by phone before large transfers.

Questions to ask your bank

• Which account do I need as a non-resident to receive ringgit?
• What do you need to open it if I live overseas?
• What documents will you need when I send sale proceeds out?
• Are there any current foreign exchange notices that affect me?
• Will you lend in ringgit to me for this property, and on what terms?

The series at a glance

This was the last of six parts:

1. Timeline from booking to keys
2. Consent from the land authority
3. Choosing a lawyer when you are overseas
4. Bank valuation below price
5. Buying from overseas with a power of attorney
6. Money in and out (this article)

Not sure which one here suits you? WhatsApp +60 17-279 8932.

Next in this series

That completes the series. To start again from the top, read part 1: the timeline from booking to keys.