Frequently asked questions for buying property in Malaysia as a local, Singaporean, or foreign investor. MM2H requirements, State Consent rules, taxes, and bank loans.
Yes. Foreigners can buy freehold and leasehold property in Malaysia, with state approval and above a minimum purchase price set by each state. Kuala Lumpur and Johor: RM 1,000,000 for residential property. Selangor: strata property only, RM 2,000,000 in Zones 1 and 2 and RM 1,000,000 in Zone 3. Penang sets its own minimum prices, levy and conditions; confirm them with the Penang land office before committing. Low-cost and Bumiputera-reserved units are not open to foreigners.
Freehold land has no expiry date. Leasehold land is held for a fixed term, typically 99 years; the lease can be extended by applying to the state authority and paying a premium, and the process and cost vary by state.
Buyers pay stamp duty on the transfer (MOT). Malaysian citizens and permanent residents pay a tiered 1% to 4%. Foreign individuals and foreign companies buying residential property pay a flat 8% for transfers executed from 1 January 2026 (it was 4% in 2024 and 2025). The loan agreement carries a further 0.5%. When selling, foreigners pay Real Property Gains Tax (RPGT) of 30% on the gain within the first five years and 10% from the sixth year.
Yes. Several local and international banks in Malaysia lend to foreigners, including HSBC and UOB. Bank Negara Malaysia sets no margin of finance specific to foreigners; each bank sets its own margin and conditions. Published packages for MM2H participants go up to 80% to 85%, for example CIMB up to 85% and RHB 80% plus 5% for legal and insurance costs.
Malaysia My Second Home (MM2H) is a long-term residency programme for foreigners, run by the Ministry of Tourism (MOTAC) and revised in 2024. As at September 2026 there are four categories: Platinum (USD 1,000,000 fixed deposit, 20-year pass), Gold (USD 500,000, 15-year pass), Silver (USD 150,000, 5-year renewable pass) and SEZ/SFZ (USD 65,000 for ages 21 to 49 or USD 32,000 for 50 and above, 10-year pass). Platinum, Gold and Silver participants must buy a home of at least RM 2 million, RM 1 million and RM 600,000 respectively within one year, and cannot sell it for 10 years except to upgrade. Terms may change; check with a licensed MM2H operator.
Every property purchase by a foreigner needs approval from the state authority, known as State Consent, under the National Land Code. Fees and processing times vary by state. Penang, for example, sets its own minimum prices, levy and conditions; confirm them with the Penang land office before committing. Your lawyer handles the application.
RPGT is charged on the net gain when you sell. Foreigners pay 30% if they sell within five years of buying and 10% from the sixth year. Malaysian citizens and permanent residents pay 30% within three years, 20% in the fourth year, 15% in the fifth and 0% from the sixth year. Individuals get an exemption of RM 10,000 or 10% of the gain, whichever is higher.
The Rapid Transit System (RTS) Link connects Bukit Chagar in Johor Bahru to Woodlands North in Singapore. It is designed to carry about 10,000 passengers an hour in each direction on a ride of about five minutes, with immigration for both countries cleared once at the departure station. Passenger service is officially targeted for February 2027; the exact date is to be announced jointly by the two governments.
Under DIBS, the developer paid the buyer's loan interest during construction. It was banned in Budget 2014, announced in October 2013: developers may no longer offer it, and banks may not finance projects that use it. Today buyers pay progress billings as construction proceeds.
Individual Title is issued for landed properties (terraced, semi-D, bungalows) where land and building belong entirely to one owner. Strata Title is issued for multi-story buildings (apartments, condominiums, serviced suites) or gated-landed developments sharing communal amenities. It establishes ownership of the unit and shared common areas.
Maintenance charges and the sinking fund are shared among owners by share units, which reflect the size of each parcel. Charges pay for security, cleaning, lifts, facilities and building insurance. The sinking fund is saved for major repairs; by law it is 10% of the charges during the developer period and at least 10% once the owners' body (JMB or MC) takes over.
Yes, if the house is two storeys or more. Johor's minimum purchase price for foreigners is RM 1,000,000 for every permitted residential type. Single-storey and one-and-a-half-storey houses are not open to foreign buyers, and the state charges an approval fee of RM 20,000 per title. State approval is required for every purchase.
Legal fees are set by the Solicitors' Remuneration Order 2023: 1.25% on the first RM 500,000 (minimum RM 500) and 1% on the next RM 7 million, charged separately for the sale and purchase agreement and the loan agreement, plus 8% service tax and disbursements. Purchases from a developer use a lower scale. On top of this come stamp duty on the transfer (tiered 1% to 4% for citizens and permanent residents, a flat 8% for foreigners buying residential property), 0.5% on the loan agreement and, where there is a loan, a valuation fee.
Since August 2022, new floating-rate home loans in Malaysia are priced on the Standardised Base Rate (SBR), which moves only when Bank Negara Malaysia changes the Overnight Policy Rate (OPR). The SBR is 2.75% as at September 2026. Each bank adds its own spread; the major banks' published standard home loan rates are around 3.9% to 4.5% a year, and higher at some banks.
Buying a completed property lets you inspect the actual unit, move in or rent it out straight away, but the balance is paid in one go at completion. Buying under construction spreads payment over progress billings as the building goes up and gives you a new building and layouts, but you cannot inspect the finished unit before you commit.
Transfers between parents and children, and between grandparents and grandchildren, get a stamp duty exemption on the first RM 1,000,000 of the property value and a 50% remission on the balance, provided the person receiving the property is a Malaysian citizen (Stamp Duty (Exemption) (No. 3) Order 2023, in force from 1 April 2023). Transfers between spouses follow separate rules. Confirm with your lawyer before transferring.
Yes. Rent earned in Malaysia is taxable income. Non-resident individuals pay a flat 30% on net rental income, after deducting allowable expenses such as maintenance charges and sinking fund, assessment and quit rent, and loan interest.
It is the payment schedule for a property bought under construction: the developer bills in stages as the building reaches set milestones (e.g., foundation, structural framework, walls, plumbing and electrical). For licensed housing projects the stages are fixed by the Housing Development Act sale and purchase agreement forms (Schedule G for landed, Schedule H for strata), which links what you pay to the work completed.
It is not required by law. Some banks make mortgage insurance a condition of the loan: MRTA (Mortgage Reducing Term Assurance), where the cover falls with the loan balance, or MLTA (Mortgage Level Term Assurance), where the cover stays fixed. Either pays off the loan if the borrower dies or becomes totally and permanently disabled.
Housing projects are regulated under the Housing Development (Control and Licensing) Act 1966. Buyers' payments go into a Housing Development Account for the project, and the developer can withdraw from it only as the regulations allow, under the supervision of the Ministry of Local Government Development (KPKT). This protects buyers' money, but it does not rule out delays or abandoned projects, so check the developer's track record before buying.