Authored by the expert who managed and guided the team behind the Malaysia Property Pack
Yes, the analysis of Johor's property market is included in our pack
Buying property in Johor as a foreigner in 2026 comes with costs that can catch you off guard if you only budget for the purchase price.
Johor has its own state-level charges on top of Malaysia's federal taxes, which makes the total closing bill higher than in many other Malaysian states.
We constantly update this blog post to reflect the latest rules and fees, so you always have current information.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Johor.
Overall, how much extra should I budget on top of the purchase price in Johor in 2026?
How much are total buyer closing costs in Johor in 2026?
As of early 2026, foreign buyers in Johor should budget roughly 12% to 17% of the purchase price for total closing costs, which on a RM1,000,000 property (about USD 210,000 or EUR 195,000) means setting aside RM120,000 to RM170,000 (USD 25,000 to 36,000 or EUR 23,000 to 33,000) extra.
The minimum extra budget possible is around 12% of the purchase price if you pay cash, have a straightforward title, and skip optional services.
The maximum you should realistically plan for is about 17% to 18% of the purchase price when you factor in a mortgage, certified translations, valuation fees, and more complex title checks.
Whether you land at the low or high end depends mainly on whether you take out a loan (which adds loan stamp duty and loan legal fees), whether you need translation or interpreter services, and how complicated your title verification turns out to be.
What's the usual total % of fees and taxes over the purchase price in Johor?
For a foreign individual buying residential property in Johor in 2026, the usual total percentage of fees and taxes over the purchase price falls between 13% and 16%.
This range covers most standard transactions, with cash buyers landing closer to 13% and mortgage buyers pushing toward 16% or slightly higher.
The bulk of that percentage goes to government taxes and state levies (mainly federal stamp duty and the Johor foreign acquisition levy), while professional service fees like legal and admin costs make up a smaller portion.
By the way, you will find much more detailed data in our property pack covering the real estate market in Johor.
What costs are always mandatory when buying in Johor in 2026?
As of early 2026, the mandatory costs for foreign buyers in Johor include the Johor state consent and foreign acquisition levy, federal stamp duty on the transfer instrument, conveyancing legal fees, and land office registration fees.
Optional but highly recommended costs include an independent property valuation (especially for cash buyers), extra legal due diligence for landed homes, and translation or interpreter services if you are not comfortable with bilingual documents.
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What taxes do I pay when buying a property in Johor in 2026?
What is the property transfer tax rate in Johor in 2026?
As of early 2026, Malaysia charges stamp duty on the transfer instrument (not a separate "transfer tax"), and foreign buyers should budget for the foreigner-residential stamp duty rates highlighted in Budget 2026, which represent a significant percentage of the purchase price.
Yes, foreigners face extra transfer costs in Johor because the state adds a foreign acquisition levy on top of federal stamp duty, making Johor one of the more expensive states for foreign property purchases.
Malaysia does not have VAT; instead it uses Sales and Service Tax (SST), which you will mainly notice as an 8% charge on taxable professional services like legal or agency fees rather than on the property price itself.
Stamp duty is paid during the conveyancing process, typically around the execution and registration steps handled by your lawyer, and late stamping risks penalties so you should assume it is due at closing.
Are there tax exemptions or reduced rates for first-time buyers in Johor?
As a foreigner buying in Johor in 2026, you should not count on first-time buyer relief because these exemptions are typically designed for Malaysian citizens and permanent residents, and foreign-buyer measures can override standard expectations.
If you buy through a company, you may be treated as a "foreign company" for stamp duty purposes under Budget 2026 measures, and your exit tax profile will differ when you sell because Real Property Gains Tax (RPGT) categories vary for companies versus individuals.
There is no major tax difference between buying a new-build versus a resale property in Johor; the main taxes remain federal stamp duty and the Johor consent levy, though new-build transactions may feel different operationally due to developer documentation requirements.
Since most exemptions target citizens and PRs, foreign buyers generally need to document their foreign status rather than prove first-time buyer eligibility, and conditions vary so always verify with your lawyer.
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.
Which professional fees will I pay as a buyer in Johor in 2026?
How much does a notary or conveyancing lawyer cost in Johor in 2026?
As of early 2026, conveyancing legal fees in Johor follow Malaysia's Solicitors' Remuneration Order 2023, which means for a RM1,000,000 property you would pay roughly RM11,250 (about USD 2,400 or EUR 2,200) before service tax and disbursements.
Lawyer fees are charged as a percentage of the property price on a sliding scale: 1.25% on the first RM500,000 and 1% on the next RM7,000,000, with amounts above that negotiable up to a cap.
Translation or interpreter services for foreign buyers in Johor typically cost between RM500 and RM2,000 (USD 105 to 420 or EUR 100 to 390), depending on how many documents need certified translation.
A tax advisor is not mandatory for a simple purchase, but if you plan to rent out the property or want a clean exit strategy, budget RM1,000 to RM3,000 (USD 210 to 630 or EUR 195 to 590) for a basic consultation.
We have a whole part dedicated to these topics in our our real estate pack about Johor.
What's the typical real estate agent fee in Johor in 2026?
As of early 2026, the typical real estate agent fee in Johor ranges from 2% to 3% of the sale price, which on a RM1,000,000 property means RM20,000 to RM30,000 (about USD 4,200 to 6,300 or EUR 3,900 to 5,900).
In Johor and throughout Malaysia, the seller usually pays the agent commission, so as a buyer you typically do not pay an additional fee on top of the purchase price.
The realistic range runs from 0% for buyers (when the seller covers everything) up to about 1% if you use a dedicated buyer's agent or have a special sourcing arrangement.
How much do legal checks cost (title, liens, permits) in Johor?
Basic legal checks in Johor are typically included in your lawyer's disbursements, but enhanced title searches, liens verification, and permits review can add RM500 to RM2,500 (about USD 105 to 530 or EUR 100 to 490) on top of base legal fees.
Property valuation fees in Johor generally run from RM1,000 to RM3,000 (USD 210 to 630 or EUR 195 to 590), with higher amounts for complex or large landed homes.
The most critical check you should never skip in Johor is verifying the title status and any outstanding encumbrances, especially for landed properties where boundary issues or missing renovation approvals can create expensive problems later.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Johor.
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What hidden or surprise costs should I watch for in Johor right now?
What are the most common unexpected fees buyers discover in Johor?
The most common unexpected fees foreign buyers discover in Johor include the state consent levy (often learned about late if relying on informal advice), service tax of 8% on professional invoices, and strata arrears or unpaid maintenance fees on condos.
Yes, you could inherit unpaid property debts, so always verify that assessment tax (cukai harta) is settled with the local council and quit rent (cukai tanah) is cleared with the land office before completing your purchase.
Scams with fake listings or fake booking fees do happen in Johor, so protect yourself by paying earnest money into your lawyer's stakeholder account, verifying agent credentials, and insisting all fees appear on official itemized invoices.
Fees usually not disclosed upfront include small admin stacks like extra certified copies, statutory declarations, courier charges, and expedited work, which are individually small but can add up.
In our property pack covering the property buying process in Johor, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Johor?
If the property has a tenant in Johor, you should budget for tenancy documentation and handover legal work, deposit and utility reconciliations, and potentially vacant possession negotiation costs, which together could add RM1,000 to RM5,000 (about USD 210 to 1,050 or EUR 195 to 980).
When you buy a tenanted property in Johor, you inherit the existing tenancy agreement and must honor its terms, including the tenant's right to remain until the lease expires.
You generally cannot terminate the existing lease immediately after purchase in Johor unless the lease contains specific break clauses or you negotiate a buyout with the tenant.
A sitting tenant typically reduces your negotiating leverage since many buyers prefer vacant possession, though investor-buyers may see stable rental income as a plus.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Johor.
We have made this infographic to give you a quick and clear snapshot of the property market in Malaysia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Johor?
Which closing costs are negotiable in Johor right now?
Negotiable closing costs in Johor include legal fee discounts (lawyers can offer discounts within SRO limits), how disbursements are bundled or itemized, and who pays the agent commission.
The costs you cannot negotiate are the Johor state consent levy and charges, federal stamp duties, and land office registration fees, as these are fixed by law or regulation.
On negotiable fees, buyers can typically achieve small discounts of 10% to 20% on legal fees if you shop around, and you may successfully shift some disbursement costs to the seller during negotiations.
Can I ask the seller to cover some closing costs in Johor?
Yes, it is reasonably common for sellers in Johor to agree to cover some closing costs, especially in slower market conditions or for motivated sellers.
Sellers are most commonly willing to cover a portion of legal fees, clear outstanding assessment or maintenance arrears before completion, and absorb small admin friction to keep the deal moving.
Sellers are more likely to accept covering closing costs when the market favors buyers, properties have been listed for a long time, or the seller needs a quick sale.
Is price bargaining common in Johor in 2026?
As of early 2026, price bargaining is common in Johor, and negotiating below the asking price is a normal part of most residential property transactions.
Buyers in Johor typically negotiate about 3% to 8% below the asking price, which on a RM1,000,000 property means potential savings of RM30,000 to RM80,000 (about USD 6,300 to 16,800 or EUR 5,900 to 15,700), though distressed or overpriced listings can see even bigger discounts.
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What monthly, quarterly or annual costs will I pay as an owner in Johor?
What's the realistic monthly owner budget in Johor right now?
A realistic monthly owner budget in Johor ranges from RM250 to RM1,500 (about USD 55 to 315 or EUR 50 to 295), depending heavily on whether you own a condo or a landed home.
The main recurring expense categories include maintenance fees and sinking fund contributions for strata properties, or general upkeep and repairs for landed homes, plus utilities which are separate.
For condos, expect RM250 to RM500 monthly for smaller or older units, RM400 to RM900 for mid-market condos, and RM800 to RM1,500 or more for premium facilities or larger units; landed homes have lower fixed fees but higher repair variability.
The cost that varies the most is the maintenance fee for condos, which depends on building facilities, age, and management quality, while for landed homes it is repair and maintenance which can swing widely year to year.
You can see how this budget affect your gross and rental yields in Johor here.
What is the annual property tax amount in Johor in 2026?
As of early 2026, Johor does not have a single uniform annual property tax; instead, owners pay assessment tax (cukai harta) to the local council and quit rent (cukai tanah) to the state land office, which together typically total RM850 to RM3,500 (about USD 180 to 740 or EUR 165 to 685) annually for most residential properties.
The realistic range is roughly RM800 to RM3,000 per year for assessment tax in prime areas like Johor Bahru or Iskandar Puteri, plus RM50 to RM500 per year for quit rent, though amounts vary widely based on assessed value and land category.
Assessment tax is calculated by the local council based on the property's assessed annual value and the council's rate table, while quit rent is determined by the land title category and size.
Exemptions or reductions on these taxes are generally limited and typically target specific groups like senior citizens or certain land uses, so most foreign owners should budget for the full amounts.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Malaysia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Johor in 2026?
What tax rate applies to rental income in Johor in 2026?
As of early 2026, rental income from Johor property is taxed under Malaysia's income tax rules, with foreign non-resident individuals often facing a flat rate of around 30% on gross rental income.
Yes, landlords can deduct certain expenses from rental income before calculating tax, including agent fees, repair costs, maintenance charges, and a portion of loan interest, subject to Malaysian tax rules and proper documentation.
After allowable deductions, the effective tax rate for typical landlords can be lower than the headline rate, but non-residents generally face less favorable treatment than tax residents.
Foreign property owners in Johor are usually taxed at non-resident rates, which are higher and less flexible than rates for Malaysian tax residents, making it important to understand your tax residency status.
Do I pay tax on short-term rentals in Johor in 2026?
As of early 2026, short-term rental income in Johor is subject to Malaysian income tax, and you should also be aware that platform fees, higher furnishing costs, and some strata buildings restrict Airbnb-style rentals.
Short-term rental income is generally taxed similarly to long-term rental income under income tax rules, but you may face additional service tax implications in certain structured leasing situations and should verify building rules before listing.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Johor.
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If I sell later, what taxes and fees will I pay in Johor in 2026?
What's the total cost of selling as a % of price in Johor in 2026?
As of early 2026, the total cost of selling a property in Johor typically ranges from 4% to 7% of the sale price, not including any Real Property Gains Tax (RPGT) that may apply on your profit.
The realistic range is about 4% for straightforward sales with minimal agent involvement, up to 7% or more when you factor in full agent commission, seller legal fees, and any discharge or admin items.
These selling costs typically include agent commission (often 2% to 3%), seller's legal fees, minor discharge and administrative charges, and any outstanding taxes or fees that must be cleared before transfer.
The single largest contributor to selling expenses in Johor is usually the agent commission, which alone can account for half or more of your total selling costs.
What capital gains tax applies when selling in Johor in 2026?
As of early 2026, Malaysia applies Real Property Gains Tax (RPGT) on profits from selling property, with non-citizen and non-PR individuals facing rates of 30% if sold within the first five years and 10% from year six onward.
Exemptions to RPGT exist, such as certain individual relief amounts and a "one private residence" exemption, but these are typically designed for Malaysian citizens and permanent residents, so foreign sellers should not assume they qualify.
Yes, foreigners often face an extra surprise: when you sell as a non-citizen or non-PR, the buyer may be required to withhold and remit a portion of the sale price directly to the tax authority on your behalf.
The capital gain is generally calculated as the sale price minus the acquisition price, with adjustments allowed for documented improvement costs and certain permitted expenses, though the exact formula follows Malaysian RPGT rules.
We made this infographic to show you how property prices in Malaysia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Johor, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| PTG Johor (Foreign Acquisition) | Official Johor state land authority for foreign buyer rules. | We used it to anchor Johor-specific state consent requirements for foreign buyers. We also used it to tailor advice specifically to Johor rather than generic Malaysia guidance. |
| Malaysian Bar SRO 2023 | Official scale-fee framework for conveyancing lawyers in Malaysia. | We used it to price typical conveyancing legal fees using actual scale tables. We then added realistic disbursements separately since SRO excludes them. |
| PwC Malaysia RPGT Guide | Major tax firm summarizing Malaysian tax law accurately. | We used it for RPGT rate tables and buyer withholding rules for non-citizens. We triangulated it with Johor's state consent timing realities. |
| KPMG Finance Bill 2026 | Globally recognized tax firm with professional reference documents. | We used it to reflect early 2026 stamp duty measures affecting foreigners. We cross-checked policy direction with independent legal commentary. |
| MBJB (Johor Bahru City Council) | Local authority that levies assessment tax in Johor Bahru. | We used it to explain local property tax (cukai harta) in Johor Bahru. We then provided practical budgeting ranges based on typical assessed values. |
| PTG Johor (Quit Rent) | State land authority process for land tax payment and deadlines. | We used it to flag quit rent as a recurring owner cost with deadline penalties. We provided conservative annual budget ranges based on title categories. |
| iProperty Malaysia | Major Malaysian property portal with market-based explainers. | We used it to translate maintenance fees and sinking funds into monthly budget items. We kept numbers conservative and paired them with legal requirements. |
| PropertyGuru Malaysia | Dominant Malaysian property portal reflecting standard practice. | We used it to explain typical agent fee responsibility and commission ranges. We treated it as market practice, not law, and noted that fees are negotiable. |
| RSM Malaysia (Service Tax) | Professional summary referencing official RMCD policy on service tax. | We used it to justify budgeting 8% service tax on taxable professional services. We simplified this into practical invoice-watching advice. |
| RMCD Rental Services Guide | Official industry guide from Malaysia's SST tax authority. | We used it for the rental section to explain when service tax applies to leasing. We avoided over-claiming taxes that do not apply to normal residential tenancies. |
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