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
Indians can legally buy property in Malaysia with certain restrictions and requirements. Malaysia allows foreign individuals to purchase residential and commercial properties above specific minimum values, though state consent is required and various taxes apply.
The Malaysian property market offers opportunities for Indian buyers seeking both investment returns and relocation options, with financing available through local banks and no specific visa requirements for property purchase.
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.
Indian citizens can purchase property in Malaysia above RM1 million minimum threshold in most states, with state authority consent required.
Foreign buyers face taxes including 30% Real Property Gains Tax within 5 years and must meet specific legal requirements for ownership transfer.
| Aspect | Requirement | Details |
|---|---|---|
| Minimum Property Value | RM1 million nationwide | Varies by state; Johor RM2M landed, Penang RM1.8M landed |
| Property Types Allowed | Condos, apartments, landed homes | Commercial units permitted; agricultural land restricted |
| Visa Requirement | None for purchase | MM2H program optional for lower thresholds |
| State Consent | Required (Section 433B) | Processing time 1-6 months depending on state |
| Financing Options | Up to 70-80% LTV | MM2H holders get better terms; 30-year tenure |
| Holding Period | 10 years under MM2H | Some states impose 5-10 year minimum |
| RPGT Tax | 30% within 5 years | 10% after 5 years for foreigners |
Can foreigners buy property in Malaysia?
Yes, foreigners including Indian citizens can buy property in Malaysia under specific conditions and restrictions.
Foreign individuals are permitted to purchase freehold and leasehold condominiums, apartments, landed homes including bungalows and semi-detached properties, as well as commercial units. The Malaysian government allows this foreign ownership to attract international investment while maintaining certain protective measures for local housing markets.
However, foreigners cannot purchase Malay Reserved land, Bumiputera lots, low-cost and medium-cost housing units, or most agricultural land. These restrictions ensure that affordable housing and culturally significant land remain accessible to Malaysian citizens and specific ethnic groups.
Each state in Malaysia has its own property regulations and minimum purchase requirements for foreigners, which can vary significantly from the national baseline of RM1 million. Some states like Johor require RM2 million for landed properties, while others like Sabah and Sarawak have lower thresholds of RM500,000 to RM1 million.
It's something we develop in our Malaysia property pack.
What are the legal requirements for foreign buyers in Malaysia?
Foreign buyers must obtain state authority consent under Section 433B of the National Land Code before completing any property purchase in Malaysia.
The legal process begins with signing a Sale and Purchase Agreement (SPA) with a 10% deposit, followed by applying for state consent which can take 1 to 6 months depending on the state's processing efficiency. Legal representation through a qualified Malaysian lawyer is strongly recommended to navigate the complex documentation and approval process.
Required documents include a valid passport, signed and stamped SPA, proof of payment for all applicable taxes and fees, and additional state-specific forms. The buyer must also provide evidence of meeting the minimum purchase price threshold for their chosen state and property type.
After receiving state consent, the final steps involve paying stamp duty ranging from 1% to 3% of the property value, registration fees, and transfer taxes before the documents are registered at the Land Office and a new title is issued. Foreign buyers must also comply with any holding period requirements, which can range from 5 to 10 years in certain states.
Are there any restrictions on the types of properties Indians can buy in Malaysia?
Indians face the same property type restrictions as all other foreign buyers, with no additional nationality-specific limitations.
| Property Type | Allowed for Indians | Restrictions/Notes |
|---|---|---|
| Condominiums/Apartments | Yes | Must meet minimum value requirements |
| Landed Houses (Bungalows) | Yes | Higher minimum values in most states |
| Semi-Detached Houses | Yes | Subject to state approval and minimums |
| Commercial Properties | Yes | Offices, retail spaces permitted |
| Low/Medium-Cost Housing | No | Reserved for Malaysian citizens |
| Malay Reserved Land | No | Constitutionally protected |
| Agricultural Land | Generally No | Very limited exceptions |
What is the minimum property value for foreign buyers in Malaysia?
The nationwide minimum property value for foreign buyers is RM1 million, but this threshold varies significantly by state and property type.
Kuala Lumpur maintains the standard RM1 million minimum for all property types, making it relatively accessible for foreign investors. Penang Island requires RM1.8 million for landed properties but only RM800,000 for strata-title properties like condominiums, while Mainland Penang has lower thresholds.
Johor state imposes the highest requirements with RM2 million for landed properties, though strata-title properties in non-international zones require only RM1 million. The eastern states of Sabah and Sarawak offer more affordable entry points with minimums ranging from RM500,000 to RM1 million.
MM2H (Malaysia My Second Home) program participants often benefit from reduced minimum purchase requirements, with some states offering discounts of 20% to 50% below the standard foreign buyer thresholds. These preferential rates make the MM2H program attractive for Indians planning long-term residence in Malaysia.
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Do Indians need a specific visa to buy property in Malaysia?
No, Indians do not need a specific visa to purchase property in Malaysia, and can buy property while on tourist status.
Property purchase is completely separate from visa or residency status, allowing Indians to invest in Malaysian real estate without long-term commitment to living in the country. This flexibility makes Malaysia attractive for portfolio diversification and investment purposes.
However, the Malaysia My Second Home (MM2H) program provides significant advantages for those planning extended stays or investment activities. MM2H participants often qualify for reduced minimum purchase thresholds and better financing terms from local banks, with loan-to-value ratios reaching up to 80% compared to 70% for other foreigners.
For Indians considering both property investment and relocation, the MM2H program offers 10-year renewable visas with multiple entry privileges, making it easier to manage property investments and potentially qualify for better banking relationships in Malaysia.
What is the process for transferring property ownership to a foreigner in Malaysia?
The property ownership transfer process for foreigners involves multiple steps requiring state approval and legal documentation.
The process begins with signing the Sale and Purchase Agreement (SPA) with a 10% deposit, typically handled through a qualified Malaysian lawyer who ensures all documentation meets legal requirements. The buyer then submits an application for state authority consent under Section 433B of the National Land Code, which is mandatory for all foreign property acquisitions.
During the consent waiting period of 1 to 6 months, buyers should arrange financing if needed and prepare for the various fees including stamp duty (1-3% of property value), legal fees (0.4-1% of property value), and registration charges. State processing times vary significantly, with some urban areas like Kuala Lumpur processing faster than rural states.
Once state consent is granted, the final ownership transfer occurs at the Land Office where all documents are registered, taxes are paid, and a new title deed is issued in the buyer's name. The entire process typically takes 3 to 8 months from SPA signing to completed ownership transfer.
It's something we develop in our Malaysia property pack.
Are there any taxes or fees that Indian buyers should be aware of when purchasing property in Malaysia?
Indian buyers face several significant taxes and fees when purchasing Malaysian property, with ongoing tax obligations after acquisition.
Upfront costs include stamp duty ranging from 1% to 3% of the property value, legal fees typically 0.4% to 1% of the purchase price, and real estate agent fees of 2% to 2.75% usually paid by the seller. Additional charges include loan stamping fees if financing is used, valuation fees, and various administrative costs that can add another 0.5% to the total purchase cost.
The most significant ongoing tax is the Real Property Gains Tax (RPGT), which applies when selling the property. Foreign owners pay 30% RPGT on gains if selling within 5 years of purchase, reducing to 10% after holding the property for more than 5 years. This tax structure encourages longer-term investment and discourages speculative trading.
Annual recurring costs include assessment tax of approximately 6% of the property's annual rental value, quit rent of less than RM100 per year, and maintenance fees for condominiums which can range from RM200 to RM800 monthly depending on facilities and location.
How long can foreigners hold property in Malaysia?
Foreigners can hold property in Malaysia indefinitely on freehold titles, while leasehold properties follow the terms of the lease agreement.
For MM2H program participants, there is typically a minimum holding period of 10 years before selling the property, unless upgrading to a higher-value property within the program requirements. This restriction ensures that MM2H benefits are used for genuine long-term investment rather than short-term speculation.
Some individual states impose their own minimum holding periods ranging from 5 to 10 years for all foreign buyers, regardless of MM2H status. These state-level restrictions vary and buyers should verify specific requirements in their chosen state before purchase.
After meeting any minimum holding requirements, foreign owners have the same rights as local owners to sell, transfer, or bequeath their property. However, any future foreign buyer of the property would still need to meet the prevailing foreign ownership requirements and obtain state consent.
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Do Indian buyers need a local bank account to purchase property in Malaysia?
While not strictly required for property purchase, a local Malaysian bank account is essential for practical property ownership and ongoing expenses.
Property purchases can technically be completed using international wire transfers and foreign bank accounts for the initial transaction. However, ongoing expenses such as loan repayments, property taxes, maintenance fees, utility bills, and rental collection require local banking facilities for efficient management.
Opening a Malaysian bank account as an Indian citizen requires a valid long-term visa or pass beyond tourist status. Banks typically require MM2H status, work permits, or student visas to open accounts, making the account opening process more complex for Indians purchasing property while on tourist visas.
For Indians planning property investment, securing MM2H status or another long-term visa before purchase can simplify both the banking and property management process significantly. Local bank accounts also facilitate better relationships with mortgage lenders and property management companies.
Is financing available for foreign buyers in Malaysia, and what are the terms?
Malaysian banks offer home loans to foreign buyers, but with stricter criteria and higher requirements compared to local buyers.
| Financing Aspect | MM2H Holders | Other Foreigners |
|---|---|---|
| Loan-to-Value Ratio | Up to 80% | Up to 70% |
| Maximum Tenure | 30 years (not past age 70) | 30 years (not past age 70) |
| Income Documentation | 3 months payslips/business statements | 6 months payslips/business statements |
| Additional Requirements | Tax returns, employment letter | Tax returns, employment letter, bank statements |
| Interest Rates | Competitive rates available | Typically 0.5-1% higher than locals |
| Processing Time | 4-6 weeks | 6-8 weeks |
Major Malaysian banks including Maybank, CIMB, Public Bank, and RHB offer specialized overseas property financing programs for foreign buyers. These banks typically require comprehensive income documentation, proof of employment stability, and demonstration of sufficient income to service the loan.
It's something we develop in our Malaysia property pack.
Are there any specific states in Malaysia that restrict foreign property ownership?
While all Malaysian states allow foreign property ownership above certain thresholds, each state imposes its own specific restrictions and requirements.
Johor state has the most stringent requirements with RM2 million minimum for landed properties and additional approval processes for properties in development corridors like Iskandar Malaysia. Penang Island requires RM1.8 million for landed properties but maintains lower thresholds for high-rise developments to encourage urban density.
Selangor imposes varying minimums depending on the district, with some areas requiring RM2 million while others maintain the RM1 million national standard. The state also has specific restrictions on certain types of developments and locations near government facilities or environmentally sensitive areas.
Sabah and Sarawak offer the most accessible foreign ownership policies with lower minimum thresholds of RM500,000 to RM1 million, but processing times can be longer due to additional federal oversight requirements for East Malaysian states. These states also have unique requirements for properties in indigenous areas or near protected environments.
How does the property market in Malaysia compare for Indian buyers compared to other foreign buyers?
Indian buyers face identical legal requirements and market conditions as other foreign nationals, with no preferential or discriminatory treatment based on nationality.
The Malaysian government applies uniform foreign ownership policies regardless of the buyer's country of origin, meaning Indians compete on the same terms as buyers from China, Singapore, Australia, or any other country. This level playing field extends to minimum purchase thresholds, financing availability, tax obligations, and legal procedures.
However, practical advantages may exist for Indian buyers due to shared colonial history and similar legal systems. Many Malaysian legal and banking professionals are familiar with Indian documentation and business practices, potentially smoothing transaction processes compared to buyers from countries with very different legal frameworks.
The Malaysian property market offers competitive advantages compared to other Southeast Asian countries, with relatively low entry barriers, established legal frameworks, and no restrictions on capital repatriation. For Indian investors seeking regional diversification, Malaysia provides easier access than Singapore's cooling measures or Thailand's foreign ownership restrictions.
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.
Indian buyers can successfully purchase property in Malaysia by understanding the state-specific requirements and following proper legal procedures.
With minimum investments starting from RM1 million in most states and comprehensive financing options available, Malaysia offers accessible real estate investment opportunities for Indians seeking portfolio diversification or relocation options.
Sources
- Emerhub - Buying Property in Malaysia
- Housing Watch Malaysia - Foreign Property Buying Guide 2025
- Estate Agent Power - Foreign Property Laws Malaysia
- Berinda - Complete Guide for Foreign Property Purchase
- Moore BZI - Foreign Property Ownership Types
- FAR Academy - Foreign Property Minimum Prices 2025
- Global Property Guide - Malaysia Property Taxes
- Wise - Property Buying Guide Malaysia
- RealEstate.my - Foreign Property Buying Process
- FAR Academy - Foreign Property Financing Malaysia