Buying Property in Malaysia as a Foreigner

Malaysia has become one of Southeast Asia’s most appealing destinations for foreign property investors, and for good reason. With its relatively relaxed foreign ownership laws, diverse real estate options, and growing expat community, buying property in Malaysia as a foreigner is more accessible than ever.

Whether you’re looking for a high-return investment, a vacation home, or a long-term residence, Malaysia offers excellent opportunities. Here’s everything you need to know before you begin your property journey.

Can Foreigners Buy Property in Malaysia?

Yes, foreigners are allowed to purchase property in Malaysia, including:

High-rise residential properties (condominiums and apartments)
Landed homes (semi-detached houses, bungalows)
Commercial properties

However, there are a few important caveats:

Foreigners must obtain state government approval, which is generally a formality but still required.
Minimum purchase price requirements apply, most states set the minimum at RM1 million, though this varies.
You cannot buy properties built on Malay Reserved Land, low- and medium-cost housing, or units reserved for Bumiputera quotas.

Buying Property Under the MM2H Program

The Malaysia My Second Home (MM2H) program is a long-term visa initiative for foreigners who wish to reside in Malaysia. While it’s not mandatory forforeign property buyers, it’s a popular route for those who plan to live in

Malaysia part-time or full-time.

Under MM2H:

You can apply for a renewable residency visa valid up to 20 years.
You’re eligible to buy property with a lower minimum price threshold, depending on the state.

This makes MM2H a strategic option for foreign buyers seeking more flexibility and legal security.

What’s the Minimum Property Price for Foreigners in Malaysia 2025?

Reference:
https://www.housingwatch.my/property/how-to-buy-a-house-in-malaysia-as-a-foreigner-2025-guide-rules-cost/

Step-by-Step Guide to Buying Property in Malaysia as a Foreigner

Buying real estate in Malaysia as a non-citizen involves several key steps to ensure legal compliance and a smooth transaction:

Step 1: Confirm Eligibility and Minimum Price
Before starting your search, check if you meet the eligibility criteria for buying property in Malaysia. Each state sets its own minimum purchase price for foreign buyers, typically starting from RM1,000,000. However, some states may require higher minimums for certain property types, such as landed homes. Understanding these regional rules upfront can help you refine your property search and avoid delays later in the process.

Step 2: Sign the Sale & Purchase Agreement (SPA)
Once you’ve found the right property, the next step is signing a Sale and Purchase Agreement. It’s highly recommended to engage a qualified lawyer to draft or review the SPA to ensure your rights are protected under Malaysian property laws. A 10% deposit is typically required upon signing to secure the deal.

Step 3: Apply for State Consent
All foreign property purchases in Malaysia require approval from the state authority where the property is located. The approval process can take anywhere from two to six months, depending on the state’s internal procedures and workload.

Step 4: Final Payment and Transfer of Ownership
Once state consent is granted, the final payment must be made. This includes stamp duty, legal fees, and the remaining property price. You’ll also need to register the title at the local Land Office to complete the ownership transfer. Following these steps ensures you stay compliant with Malaysian laws and enjoy a smooth purchase process.

Understanding the Costs Involved for Foreign Buyers

Purchasing property in Malaysia involves more than just the sale price. There are several upfront and ongoing costs that foreign buyers should budget for:

Upfront Costs

Stamp Duty:
This is a tiered tax based on property value, ranging from 1% to 3%. The higher the property price, the higher the duty.
Legal Fees:
Legal services typically cost between 1% and 2% of the property price. Hiring an experienced property lawyer is highly recommended.
State Consent Fee:
This fee varies by location and property type, generally ranging between RM10,000 to RM50,000.
Real Property Gains Tax (RPGT):
If you sell your property within five years, a 30% RPGT will apply to any capital gains.

Ongoing Costs

Quit Rent and Assessment Tax:
These are annual taxes paid to local authorities based on the property’s location and valuation.
Maintenance Fees & Sinking Fund: If you’re buying a condominium or strata-titled property, you’ll be responsible for monthly maintenance charges and contributions to the sinking fund, which can vary significantly.
Currency Exchange Fluctuations:
If you’re purchasing with foreign currency, be mindful that exchange rate movements can impact your total investment cost.

Reference:
https://www.housingwatch.my/property/how-to-buy-a-house-in-malaysia-as-a-foreigner-2025-guide-rules-cost/

Final Thoughts for Buying Property in Malaysia

Buying property in Malaysia as a foreigner can be a rewarding investment, whether for personal use, retirement, or rental income. However, understanding the legal process, cost structure, and financing options is key to avoiding setbacks. By working with trusted legal advisors, experienced property agents, and credible developers, you can navigate the market confidently and secure a home or investment property that meets your long-term goals.

Looking to Buy Property in Malaysia as A Foreigner?

Discover Move-In Ready Homes at Molek Pine 4. If you’re a foreigner exploring real estate opportunities in Malaysia, Molek Pine 4 by Berinda Properties offers an ideal combination of space, convenience, and lifestyle, all in one location.

With its spacious layouts and practical designs, Molek Pine 4 is perfect for families, long-term residents, or anyone looking for a well-balanced urban living experience. These ready-to-move-in units come fully equipped with:

Air-conditioners for year-round comfort
Built-in kitchen cabinets for modern functionality
A centralized water heater for added convenience

Located in a vibrant neighbourhood, Molek Pine 4 is surrounded by financial institutions, F&B outlets, and education hubs, ensuring everything you need is just minutes away.

Molek Pine 4 boasts a comprehensive range of luxurious facilities designed for leisure, fitness, and family fun. Residents can enjoy the swimming and wading pools, tennis, badminton, and basketball courts, BBQ pits, and a fully equipped gym. For relaxation, there’s a soothing onsen (Japanese spa), sauna, and beautifully landscaped gardens. The development also includes a children’s playground, jogging and bicycle tracks, a fitness station, and a convenience center—all secured by a 4-tier security system for peace of mind.

Why It’s Ideal for Foreign Buyers for Buying Property in Malaysia

Malaysia allows foreigners to purchase certain types of properties, and Molek Pine 4 fits within those guidelines for high-rise residential units. If you meet the state’s minimum price threshold, this development could be your perfect entry point into the Malaysian property market, whether you’re buying for investment, retirement, or relocation.