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
Americans can legally purchase landed property in Malaysia, but must navigate state-specific restrictions and minimum price requirements that vary significantly across the country.
Foreign buyers face approval processes, tax obligations, and location limitations designed to protect local market interests while allowing international investment in Malaysia's property sector.
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.
Yes, Americans can buy landed property in Malaysia with state approval and minimum investment thresholds ranging from RM1,000,000 to RM2,000,000 depending on location.
Foreign ownership comes with specific restrictions on property types, approval requirements, and tax obligations that vary significantly by state.
| Key Requirements | Details | Restrictions |
|---|---|---|
| Minimum Price | RM1,000,000-RM2,000,000 | Varies by state and property type |
| Property Types | Landed houses, condos, commercial | No Malay Reserve land, low-cost housing |
| Approval Required | State authority approval mandatory | 2-6 months processing time |
| Visa Requirements | None for purchase | MM2H optional for residency |
| Financing | Up to 70% loan-to-value | 80% for MM2H holders |
| Ownership Duration | Indefinite for freehold | 99 years for leasehold |
| Sale Tax | 30% if sold within 5 years | 5% if sold after 6 years |
Can Americans buy landed property in Malaysia?
Yes, Americans can legally purchase landed property in Malaysia including bungalows, semi-detached houses, and townhouses.
Foreign buyers must comply with state-specific minimum price requirements that typically range from RM1,000,000 to RM2,000,000 (approximately USD 215,000 to USD 430,000) depending on the location and property type.
All foreign property purchases require mandatory approval from state authorities, which is processed through your solicitor as part of the standard purchase transaction and typically takes 2 to 6 months to complete.
The purchase process involves signing a Sale and Purchase Agreement, paying a deposit, obtaining state approval for the transfer, and completing registration with all applicable taxes and legal fees.
As of September 2025, there are no nationality-based restrictions that specifically prevent Americans from buying property in Malaysia.
Are there any restrictions for foreigners when purchasing property in Malaysia?
Foreigners face several key restrictions when buying property in Malaysia, primarily related to property types and locations.
Malay Reserved land cannot be purchased by foreigners under any circumstances, as this land is designated exclusively for ethnic Malays and certain indigenous groups.
Low-cost and medium-cost housing units are generally restricted from foreign ownership to ensure affordable housing remains available for local buyers, with definitions varying by state.
Properties allocated for Bumiputera interests (native Malay and indigenous populations) are typically off-limits to foreign buyers as part of government affirmative action policies.
Agricultural land purchases are usually prohibited unless special development approval is obtained from relevant state authorities, which involves additional bureaucratic processes.
What types of properties can foreigners own in Malaysia?
Foreigners can own various property types in Malaysia's real estate market with proper approvals and compliance with minimum price requirements.
Landed properties including bungalows, semi-detached houses, townhouses, and terraced houses are available for foreign ownership in most states.
High-rise residential units such as condominiums, apartments, and serviced residences can be purchased by foreigners without significant restrictions.
Commercial properties including office buildings, retail spaces, warehouses, and mixed-use developments are generally accessible to foreign investors.
Industrial real estate such as factories, manufacturing facilities, and logistics centers can be acquired by foreigners for business purposes.
What is the minimum price requirement for foreigners buying property in Malaysia?
Minimum price requirements for foreign property buyers vary significantly across Malaysian states, ranging from RM500,000 to RM2,000,000 as of September 2025.
| State/Territory | Minimum Price (RM) | Special Conditions |
|---|---|---|
| Kuala Lumpur | 1,000,000 | Standard rate for all property types |
| Selangor | 2,000,000 | Higher for landed properties |
| Penang (Island) | 2,000,000 | Premium location pricing |
| Penang (Mainland) | 1,000,000 | Lower mainland rates |
| Johor | 1,000,000-2,000,000 | Higher in international zones |
| Sabah | 1,000,000 | East Malaysia standard |
| Sarawak | 600,000-1,000,000 | Varies by area and property type |
Don't lose money on your property in Malaysia
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Are there any specific visa requirements for foreigners looking to buy property?
No specific visa is required for foreigners to purchase property in Malaysia, and property ownership does not automatically confer residency rights.
Americans can buy Malaysian property while on tourist visas, business visas, or any other legal entry status without needing long-term residency permits.
The Malaysia My Second Home (MM2H) program offers long-term residency benefits for property buyers but participation is completely optional and not mandatory for property purchase.
MM2H visa holders may access lower minimum price thresholds in select states and higher loan-to-value ratios from banks, making it advantageous for some buyers.
Property purchase can support MM2H applications but the program has separate requirements including financial thresholds and health insurance that must be met independently.
Do Americans need to get approval from the government before purchasing property in Malaysia?
Yes, all foreign property purchases in Malaysia require mandatory state authority approval according to the National Land Code.
The approval process is handled by your solicitor as part of the standard property purchase transaction and cannot be bypassed or expedited significantly.
State authority approval typically takes 2 to 6 months to process and involves review of the buyer's financial capacity, property details, and compliance with local regulations.
No separate federal government agency approval is required beyond the state-level approval, simplifying the bureaucratic process for buyers.
It's something we develop in our Malaysia property pack.
Can Americans buy property in any state in Malaysia, or are there limitations?
Americans can buy property in all Malaysian states, but each state imposes different rules, minimum prices, and location restrictions.
Selangor generally restricts foreign landed property purchases to gated communities with landed strata titles, limiting options compared to other states.
Penang allows foreign purchases on both the island and mainland but applies different minimum price thresholds based on location desirability.
Johor has varying minimum prices depending on proximity to Singapore and designation as international zones, with higher thresholds near the border.
Some states like Kelantan and Terengganu have more conservative policies regarding foreign ownership, though purchases remain legally possible with proper approvals.
What taxes or fees do foreigners need to pay when buying property in Malaysia?
Foreign property buyers in Malaysia face several taxes and fees that significantly impact the total cost of acquisition.
1. **Stamp duty**: Calculated on a sliding scale from 1% to 4% of the property value, with higher rates for more expensive properties2. **State levy or approval fee**: Ranges from 1% to 3% in certain states like Johor, adding to upfront costs3. **Legal fees**: Attorney costs for handling the purchase transaction, property searches, and documentation4. **Valuation fees**: Required professional property assessment for loan approval and transfer purposes5. **Real estate agent commission**: Typically 2% to 3% of property value, usually paid by the sellerOngoing annual costs include quit rent (land tax) and assessment tax (local council charges), which are relatively small amounts typically under RM1,000 per year.
Real Property Gains Tax (RPGT) applies when selling the property, with rates of 30% if sold within 5 years and 5% if sold after 6 years for foreign owners.
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.
What is the process for transferring property ownership in Malaysia for foreigners?
Property ownership transfer for foreigners follows a structured legal process that typically takes 3 to 6 months to complete.
The process begins with signing a Sale and Purchase Agreement and paying a deposit (usually 10% of property value) to secure the transaction.
Your solicitor will conduct property searches, verify ownership documents, and submit the foreign buyer approval application to relevant state authorities.
Once state approval is obtained, the transaction proceeds to completion where the balance payment is made and ownership documents are transferred.
Final registration with the land office updates the property title to reflect the new foreign ownership, completing the legal transfer process.
Are there any restrictions on how foreigners can finance their property purchase in Malaysia?
Foreigners can access both local Malaysian bank financing and international funding sources for property purchases with certain limitations.
Malaysian banks typically offer maximum loan-to-value ratios of 70% for standard foreign buyers, requiring 30% down payment plus costs.
MM2H visa holders can access higher financing up to 80% loan-to-value ratios from participating banks due to their long-term residency status.
Loan tenure is generally available up to 30 years, subject to bank eligibility criteria including age limits and income verification requirements.
It's something we develop in our Malaysia property pack.
How long can an American own property in Malaysia?
Americans can own freehold properties in Malaysia indefinitely with no time restrictions on ownership duration.
Freehold ownership means the buyer owns both the property and the land permanently, with rights that can be transferred to heirs or sold to other parties.
Leasehold properties typically come with 99-year leases that are renewable upon expiration, though renewal terms depend on state policies at the time.
There are no legal requirements for foreign owners to sell properties within specific timeframes or transfer ownership to Malaysian citizens.
Property ownership rights remain valid as long as annual quit rent and assessment taxes are paid and the property is held legally.
What happens if a foreigner wants to sell their property in Malaysia?
Foreigners have the same rights as locals to sell their Malaysian properties, but must comply with tax obligations and transfer procedures.
Real Property Gains Tax (RPGT) applies to the sale, with rates of 30% on gains if the property is sold within 5 years of purchase.
Properties sold after 6 years of ownership are subject to 5% RPGT on any capital gains realized from the sale transaction.
The sale process requires a valid Sale and Purchase Agreement, state authority approval for the ownership transfer, and payment of all applicable taxes and fees.
It's something we develop in our Malaysia property pack.
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.
Americans can successfully purchase landed property in Malaysia by understanding state-specific requirements, minimum price thresholds, and approval processes that vary significantly across the country.
Foreign buyers should budget for approval timelines of 2-6 months, various taxes and fees including stamp duty and potential RPGT, while considering financing options that typically allow 70% loan-to-value ratios for standard foreign buyers.
Sources
- Emerhub - Buying Property in Malaysia
- IQI Global - Buying Land in Malaysia for Foreigners
- Berinda - Buying Property in Malaysia as a Foreigner
- PropertyGenie - Can Foreigners Buy Property in Malaysia
- MM2H - Buying Property
- HousingWatch - How to Buy a House in Malaysia as a Foreigner
- Moore BZI - What Kind of Properties Can Foreigners Own in Malaysia
- Low Partners - Foreigner Purchase of Property
- LyLu - Complete Guide Foreigner Buying Property in Malaysia
- IQI Global - How to Sell Your Property in Malaysia