Authored by the expert who managed and guided the team behind the Malaysia Property Pack
Everything you need to know before buying real estate is included in our Malaysia Property Pack
Foreigners can legally purchase property in Malaysia without needing the MM2H visa, though specific regulations and minimum price thresholds apply depending on the state and property type. The process requires state government approval and compliance with various restrictions, but does not require a local partner or confer residency rights.
If you want to go deeper, you can check our pack of documents related to the real estate market in Malaysia, based on reliable facts and data, not opinions or rumors.
Foreigners can buy condominiums, apartments, and some landed properties in Malaysia without MM2H, subject to minimum prices ranging from RM600,000 to RM3,000,000 depending on the state.
State government approval is required for all foreign property purchases, and agricultural land is generally prohibited except in specific circumstances.
| Property Type | Allowed for Foreigners | Typical Minimum Price Range |
|---|---|---|
| Condominiums/Apartments | Yes | RM600,000 - RM1,500,000 |
| Landed Properties (Gated) | Yes (with restrictions) | RM1,000,000 - RM3,000,000 |
| Single-story Terrace | No | N/A |
| Agricultural Land | Generally No | N/A |
| Malay Reserved Land | No | N/A |
| Low-cost Housing | No | N/A |
| Commercial Real Estate | Yes | Varies by state |
Can a foreigner legally own property in Malaysia without the MM2H visa?
Yes, foreigners can legally own property in Malaysia without needing the Malaysia My Second Home (MM2H) visa.
The MM2H program is completely optional and primarily benefits long-term residents with tax advantages and easier financing terms. However, it is not a requirement for property purchases. As of September 2025, foreign property ownership laws operate independently from visa or residency status.
Foreigners can purchase property directly under their own names without needing local partners, nominees, or sponsors. The key requirements focus on property type, minimum price thresholds, and obtaining state government approval rather than visa status.
Property ownership does not grant residency rights or extend visa validity. Foreign property owners must still comply with standard tourist visa regulations for stays in Malaysia.
What types of properties are foreigners allowed to buy in Malaysia?
Foreigners can purchase several types of properties in Malaysia, with specific restrictions on certain categories.
Allowed property types include condominiums, apartments (strata-titled residential properties), some landed properties in gated communities, and commercial real estate. High-rise developments like condominiums and service apartments are generally the most accessible for foreign buyers.
Landed properties such as terraced houses, semi-detached houses, and bungalows are permitted in certain states, but typically only in gated communities or international zones with significantly higher minimum price requirements.
Prohibited property types include Malay Reserved Land, low-cost and medium-cost housing designated for locals and Bumiputera quotas, single-story terrace houses regardless of price, and most agricultural land. These restrictions aim to preserve affordable housing for Malaysian citizens and protect culturally significant land.
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Are there any restrictions on the minimum property price for foreigners?
Yes, each Malaysian state sets its own minimum property price thresholds for foreign buyers, ranging from RM600,000 to RM3,000,000 depending on location and property type.
| State/Territory | Landed Properties | High-rise/Strata Properties |
|---|---|---|
| Kuala Lumpur | RM1,000,000 | RM1,000,000 |
| Selangor | RM2,000,000 | RM1,500,000 |
| Johor (International Zones) | RM2,000,000 | RM1,000,000 |
| Penang Island | RM3,000,000 | RM1,000,000 |
| Sabah | RM1,000,000 | RM600,000 |
| Sarawak | RM600,000 | RM600,000 |
| Melaka | RM1,000,000 | RM500,000 |
These thresholds are strictly enforced and cannot be circumvented through payment arrangements or installment plans. Properties below these minimum prices are automatically restricted regardless of other factors.
Which states in Malaysia have their own rules about foreign property ownership?
All Malaysian states have their own specific regulations regarding foreign property ownership, with some states implementing significantly stricter rules than others.
Selangor, Johor, and Penang are known for having the most complex regulations, with different minimum prices for landed versus high-rise properties and specific restrictions on property locations. Selangor requires RM2,000,000 for landed properties but allows high-rise purchases from RM1,500,000.
Sabah and Sarawak have generally lower minimum thresholds starting from RM600,000, making them more accessible for foreign investors. These East Malaysian states also have different approval processes compared to Peninsular Malaysia.
States like Melaka and Kedah offer lower thresholds for MM2H participants but maintain standard rates for other foreigners. Some states also enforce ownership quotas on certain developments, limiting the percentage of units that can be sold to foreigners.
Each state's approval authority operates independently, meaning processing times and requirements can vary significantly between locations.
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Can foreigners buy landed properties like houses, or only condominiums and apartments?
Foreigners can buy landed properties like houses, but with significant restrictions and much higher minimum price requirements compared to condominiums and apartments.
Landed properties available to foreigners include terraced houses, semi-detached houses, and bungalows, but typically only in gated communities, integrated developments, or designated international zones. These properties often require minimum investments of RM2,000,000 to RM3,000,000 depending on the state.
Single-story terrace houses are specifically prohibited for foreign ownership regardless of price or location. This restriction aims to preserve affordable housing options for Malaysian citizens in established neighborhoods.
Many states also implement quota systems for landed properties, limiting the percentage of units in a development that can be sold to foreigners. Developers must typically reserve a certain percentage for Malaysian buyers before offering units to foreign purchasers.
Condominiums and apartments remain the most accessible option for foreign buyers, with lower minimum price thresholds and fewer restrictions on ownership quotas.
Are foreigners allowed to buy agricultural land in Malaysia?
Foreigners are generally prohibited from buying agricultural land in Malaysia, with very limited exceptions requiring specific state government consent.
Agricultural land purchases by foreigners are restricted to protect food security and preserve farming opportunities for Malaysian citizens. This includes rice fields, palm oil plantations, rubber estates, and other agricultural properties regardless of size or value.
Rare exceptions may be granted for large-scale commercial agriculture projects that bring significant technology transfer, employment opportunities, or export potential. These require extensive documentation, state government approval, and often involve minimum investment thresholds of several million ringgit.
Leasing agricultural land for farming purposes may be possible in some states for periods of 30-99 years, particularly for high-technology agriculture or aquaculture projects that benefit local communities.
Foreigners considering agricultural investments should consult with legal experts specializing in agricultural law, as regulations vary significantly between states and project types.
Do foreigners need government approval before purchasing property?
Yes, all foreign property purchases in Malaysia require mandatory approval from the relevant state government before transactions can be completed.
The approval process typically takes 2-6 months and involves submitting detailed documentation including purchase agreements, financial statements, passport copies, and property valuation reports. State authorities review each application individually, and approval is not guaranteed even when all requirements are met.
Applications must be submitted through licensed real estate agents or lawyers who understand the specific requirements for each state. Different states have different forms, processing fees, and documentation requirements.
The approval process cannot be bypassed or expedited through nominee arrangements or other structures. Attempting to circumvent the approval requirement can result in transaction cancellation and legal penalties.
Buyers should factor the approval timeline into their purchase planning, as deposits and agreements are typically conditional upon receiving state consent.
Are there extra taxes or fees for foreigners compared to locals?
Yes, foreigners face higher taxes and fees compared to Malaysian citizens, particularly for stamp duty and capital gains tax.
Stamp duty for foreigners is typically 4% of the property value, compared to a progressive rate structure for locals that starts at 1% for properties under RM100,000. This represents a significant additional cost for foreign buyers purchasing expensive properties.
Real Property Gains Tax (RPGT) is more burdensome for foreigners, who pay up to 30% if selling within 5 years and 10% permanently thereafter. Malaysian citizens pay 0% RPGT after holding properties for 5 years, making long-term ownership more expensive for foreigners.
Legal fees, valuation fees, and real estate agent commissions apply equally to all buyers regardless of nationality. Annual quit rent and assessment taxes are also the same for foreigners and locals, typically representing minor ongoing costs.
There are no additional annual property taxes or ownership fees specifically targeting foreigners beyond the transaction-based taxes mentioned above.
It's something we develop in our Malaysia property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Malaysia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Is it possible for a foreigner to buy property under their own name without a local partner?
Yes, foreigners can buy property directly under their own names without requiring local partners, nominees, or joint ownership arrangements.
Malaysian law explicitly allows direct foreign ownership of eligible properties, and nominee arrangements are actually discouraged due to legal risks and potential complications. Foreigners receive the same property title and ownership rights as Malaysian citizens for eligible properties.
Using nominee arrangements or local partners can create significant legal risks including disputes over actual ownership, difficulties in selling or transferring property, and potential violations of foreign ownership regulations.
Property titles clearly identify the actual owner, and foreign names appear directly on all official documents including the strata title or individual title. This provides full legal protection and ownership rights under Malaysian property law.
Banks and financial institutions also prefer direct ownership when providing mortgages to foreign buyers, as nominee arrangements can complicate loan security and documentation.
Can foreigners get a mortgage from Malaysian banks to finance the property?
Yes, many major Malaysian banks offer mortgages to foreign buyers, though with stricter requirements and different terms compared to loans for Malaysian citizens.
Foreign buyers typically qualify for loan-to-value ratios of 60-80%, compared to up to 90% for Malaysian citizens. This means foreigners need larger down payments, often 20-40% of the property value rather than the 10% minimum for locals.
Required documentation for foreign buyers includes passport copies, visa information, employment letters, salary certificates, bank statements from their home country, and tax returns. Some banks also require proof of existing properties or investments in Malaysia.
Interest rates for foreign buyers are often 0.5-1% higher than rates offered to Malaysian citizens. MM2H visa holders may access better terms, but non-MM2H foreigners can still qualify for competitive financing.
Major banks offering foreign mortgages include Maybank, CIMB, Public Bank, and RHB Bank. Each institution has different criteria, so comparing multiple lenders is recommended for the best terms.
What are the long-term ownership rights for foreigners, such as freehold or leasehold?
Foreigners can hold both freehold and leasehold titles in Malaysia, subject to the same property type and price restrictions that apply to their initial purchase.
Freehold ownership grants perpetual ownership rights with no time limitations, allowing foreigners to hold properties indefinitely and pass them to heirs through inheritance. This provides the strongest form of property ownership available in Malaysia.
Leasehold properties typically grant 99-year terms with possible renewal options, though some developments offer shorter 60-year or 30-year leases. Leasehold is more common for high-rise apartments and condominiums, especially in prime urban locations.
Both freehold and leasehold properties can be sold, rented, or mortgaged by foreign owners following the same procedures as Malaysian citizens. There are no restrictions on the duration of foreign ownership once the property is legally acquired.
Inheritance rights allow foreign property owners to transfer ownership to their heirs, though beneficiaries must still comply with foreign ownership restrictions if they are not Malaysian citizens.
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Are there any residency or visa requirements tied to owning property without MM2H?
No, there are no residency or visa requirements tied to owning property in Malaysia, and property ownership does not grant any residency rights or extend visa validity.
Foreign property owners must still comply with standard tourist visa regulations when visiting Malaysia, typically allowing 30-90 day stays depending on nationality. Property ownership does not provide exemptions from immigration requirements or enable longer stays.
Owners who wish to live in their Malaysian properties long-term must obtain appropriate visas such as MM2H, work permits, or spouse visas through separate application processes. Property ownership may support these applications but does not guarantee approval.
Foreign property owners can visit their properties as tourists and manage them remotely without any special visa requirements. Many foreign investors successfully own and rent Malaysian properties while residing in their home countries.
The separation between property ownership and residency rights provides flexibility for investors who want Malaysian real estate exposure without committing to long-term residence in the country.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Foreign property ownership in Malaysia offers significant opportunities for international investors willing to navigate state-specific regulations and minimum price requirements.
Success requires understanding the approval process, financing options, and long-term ownership implications before making investment decisions.
Sources
- BambooRoutes - Foreigner Buy Property Malaysia Without MM2H
- EmerHub - Buying Property in Malaysia
- Alestria Property - Can Foreigners Buy Property in Malaysia 2025
- Housing Watch - How to Buy House in Malaysia as Foreigner
- Terra Group - Can Foreigners Buy Land in Malaysia
- Lylu - Complete Guide Foreigner Buying Property Malaysia
- FAR Academy - Minimum Property Price Foreigner Can Buy
- InvestAsian - Invest Malaysia Property
- Berinda - Buying Property Malaysia as Foreigner
- BambooRoutes - Malaysia Property Taxes