Buying in Malaysia as a foreigner

The minimum price is set by the state, not the country

Each state sets its own floor for foreign purchase, and the figures are revised from time to time. The common baseline is RM1,000,000, with several states sitting above or below it and some applying different figures to landed and high-rise homes.

Because the thresholds move, treat any figure you read as a starting point and confirm the current one for the specific state before committing. A project priced just under a threshold cannot be sold to a foreign buyer, whatever the developer's marketing says.

State consent

Every foreign purchase needs consent from the state authority. It is a paperwork exercise rather than a discretionary hurdle in most cases, but it adds months to the timeline and the transaction is conditional until it is granted.

Build that delay into your plans, particularly if you are selling something else to fund the purchase.

What foreigners cannot buy

• Properties on Malay reserved land
• Units in developments designated as low and medium cost by the state
• Properties allocated to Bumiputera buyers under a development's quota
• Agricultural land, in most states and without specific approval

Financing

Malaysian banks do lend to foreign buyers, usually at a lower margin of finance than for citizens, commonly in the region of 60% to 70%. Approval leans on documented income and on whether you hold a long-stay pass.

Holders of the Malaysia My Second Home pass are treated more favourably by some banks, though the programme's own conditions have changed several times and should be checked directly.

Costs beyond the price

The stamp duty tiers are the same for foreign and local buyers, and the loan agreement carries its own duty of 0.5%. Legal fees follow a scale.

The difference to plan for is on exit: real property gains tax is charged at a higher rate for foreign sellers, and the rate steps down the longer you hold. If the plan is a short hold, model that before you buy.