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
When you buy residential property in Malaysia as a foreigner in 2026, you need to budget for much more than just the purchase price because there are stamp duties, legal fees, state consent fees, and other costs that can add up quickly.
We constantly update this blog post to reflect the latest regulations and market conditions so you always have accurate numbers to plan with.
Malaysia stands out because each state sets its own foreign approval fees, which means your total costs can vary dramatically depending on where you buy.
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 Malaysia.
Overall, how much extra should I budget on top of the purchase price in Malaysia in 2026?
How much are total buyer closing costs in Malaysia in 2026?
As of early 2026, total buyer closing costs for foreigners purchasing residential property in Malaysia typically range from 10% to 16% of the purchase price, which translates to roughly RM100,000 to RM160,000 (USD 22,000 to USD 35,000 or EUR 20,000 to EUR 32,000) on a RM1 million property.
The minimum extra budget you could achieve in Malaysia, if you pay cash, skip optional services, and buy in a state with low foreign consent fees, is around 9% to 11% of the purchase price, or approximately RM90,000 to RM110,000 (USD 20,000 to USD 24,000 or EUR 18,000 to EUR 22,000) on a RM1 million home.
The maximum extra budget you should realistically plan for, especially if you buy in Johor or another state with high foreign approval fees and take out a mortgage, is 16% to 20% of the purchase price, meaning up to RM200,000 (USD 44,000 or EUR 40,000) on a RM1 million property.
Whether your costs fall at the low or high end depends mainly on which Malaysian state you buy in, whether you need financing, and how complex the title situation is, since states like Johor charge a 3% foreign approval fee while others charge only fixed application fees.
What's the usual total % of fees and taxes over the purchase price in Malaysia?
The usual total percentage of fees and taxes for a foreign buyer in Malaysia in 2026 is around 12% to 15% of the purchase price, which reflects a typical transaction without major complications.
The realistic low-to-high range that covers most standard residential purchases by foreigners in Malaysia spans from 9% in the simplest scenarios to 18% or more in complex deals with high state fees.
Out of that total, government taxes like the 8% foreign stamp duty and state consent fees make up the largest share, often 70% to 80% of your closing costs, while professional service fees like legal and valuation work account for the remaining 20% to 30%.
By the way, you will find much more detailed data in our property pack covering the real estate market in Malaysia.
What costs are always mandatory when buying in Malaysia in 2026?
As of early 2026, the mandatory costs that every foreign buyer must pay in Malaysia include stamp duty on the transfer instrument, conveyancing lawyer fees, state consent application fees for foreign ownership, and land office registration and search fees.
Optional but highly recommended costs for foreign buyers in Malaysia include an independent building inspection for landed homes, a professional property valuation, and translation or interpreter services if you are not comfortable signing legal documents in Malay or English.
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What taxes do I pay when buying a property in Malaysia in 2026?
What is the property transfer tax rate in Malaysia in 2026?
As of early 2026, the main property transfer tax in Malaysia is stamp duty, and for foreigners buying residential property, the rate is a flat 8% of the property's value or purchase price, whichever is higher.
Yes, there is an extra transfer tax specifically for foreigners in Malaysia because Malaysian citizens and permanent residents pay stamp duty on a tiered scale of 1% to 4%, while non-citizens now pay the flat 8% rate introduced in January 2026.
Malaysia does not charge VAT on residential property purchases since the country uses a Sales and Service Tax (SST) system, and SST generally applies to services rather than property transfers, so your main tax cost at purchase is stamp duty.
You pay stamp duty in Malaysia during the conveyancing process when your lawyer submits the Sale and Purchase Agreement (SPA) and Memorandum of Transfer (MOT) for stamping, and it is calculated on the higher of the purchase price or the government-assessed market value.
Are there tax exemptions or reduced rates for first-time buyers in Malaysia?
Malaysia offers stamp duty exemptions for first-time homebuyers purchasing properties priced up to RM500,000, but as a foreigner, you should assume you do not qualify unless you hold permanent residency since these exemptions are targeted at Malaysian citizens and PRs.
If you buy property through a company instead of as an individual in Malaysia, you will still face the 8% foreign stamp duty if the company is foreign-owned, and you may also have higher ongoing compliance costs for corporate filings and accounting.
There is generally no tax difference between buying a new-build property versus a resale property in Malaysia because stamp duty applies to the transfer instrument either way, though developers sometimes offer packages that absorb certain legal or administrative costs.
To qualify for first-time buyer exemptions in Malaysia, you typically need to be a Malaysian citizen or permanent resident, purchasing a property under the price cap, and you must provide documentation proving you have never owned residential property before.
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 Malaysia in 2026?
How much does a notary or conveyancing lawyer cost in Malaysia in 2026?
As of early 2026, conveyancing lawyer fees in Malaysia for a RM1 million property typically range from RM9,000 to RM14,000 (USD 2,000 to USD 3,100 or EUR 1,800 to EUR 2,800), based on the regulated scale fee structure.
Lawyer fees in Malaysia are charged as a percentage of the property price following a regulated scale, with 1.25% on the first RM500,000 and 1% on the next RM7,000,000, which means your actual rate decreases as the property value increases.
Translation or interpreter services for foreign buyers in Malaysia typically cost between RM500 and RM2,000 (USD 110 to USD 440 or EUR 100 to EUR 400) for a straightforward transaction, though costs rise if multiple signings or sworn translations are required.
A tax advisor is not mandatory for buying property in Malaysia, but if you plan to rent out or sell later, you may want one, and fees typically range from RM1,000 to RM5,000 (USD 220 to USD 1,100 or EUR 200 to EUR 1,000) for personal tax structuring advice.
We have a whole part dedicated to these topics in our our real estate pack about Malaysia.
What's the typical real estate agent fee in Malaysia in 2026?
As of early 2026, the typical real estate agent commission in Malaysia is 2% to 3% of the sale price plus applicable service tax, which on a RM1 million property amounts to RM20,000 to RM30,000 (USD 4,400 to USD 6,600 or EUR 4,000 to EUR 6,000).
In Malaysia, the seller usually pays the real estate agent fee in most resale transactions, though buyers may agree to pay in certain situations such as when they engage a dedicated buyer's agent.
The realistic range for agent fees in Malaysia spans from 0% if you buy directly from a developer or without an agent, up to 3% plus service tax if a full-service agent is involved on your side of the transaction.
How much do legal checks cost (title, liens, permits) in Malaysia?
Legal checks including title searches, liens verification, and permit reviews in Malaysia are typically bundled into lawyer disbursements and cost between RM1,000 and RM5,000 (USD 220 to USD 1,100 or EUR 200 to EUR 1,000), depending on title complexity.
The property valuation fee in Malaysia, often required if you take a mortgage, typically costs between RM800 and RM3,000 (USD 175 to USD 660 or EUR 160 to EUR 600) for standard residential properties.
The most critical legal check that foreign buyers in Malaysia should never skip is the title search and encumbrance verification because it confirms the seller actually owns the property free of undisclosed charges, caveats, or restrictions.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Malaysia.
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What hidden or surprise costs should I watch for in Malaysia right now?
What are the most common unexpected fees buyers discover in Malaysia?
The most common unexpected fees foreign buyers discover in Malaysia include state consent approval fees that can reach 3% of the property value in states like Johor, strata maintenance arrears the seller failed to clear, and penalty charges for late document stamping.
Yes, there are unpaid property debts you could inherit in Malaysia if you do not contractually require the seller to settle assessment tax (cukai taksiran) arrears, quit rent, and maintenance or sinking fund charges before completion.
Scams involving fake listings, fake booking fees, or fraudulent agents do occur in Malaysia, so you should only pay deposits to stakeholder accounts your lawyer recognizes, always verify agent registration with the Board of Valuers, Appraisers, Estate Agents and Property Managers, and demand official receipts.
Fees that are usually not disclosed upfront by sellers or agents in Malaysia include the exact state consent fee for foreigners, potential strata special levies from recent AGM decisions, and any outstanding charges registered against the property title.
In our property pack covering the property buying process in Malaysia, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Malaysia?
Extra fees when buying a tenanted property in Malaysia typically include legal and administrative costs for tenancy assignment and deposit handling, which can add RM500 to RM2,000 (USD 110 to USD 440 or EUR 100 to EUR 400) to your closing costs.
When you purchase a tenanted property in Malaysia, you generally inherit the existing tenancy agreement and must honor its terms, including the rental rate and notice periods, until the lease expires.
Terminating an existing lease immediately after purchase in Malaysia is usually not possible unless the tenancy agreement includes an early termination clause or the tenant agrees to leave, so you should review the lease carefully before buying.
A sitting tenant in Malaysia can affect the property's value both ways: it may appeal to investors seeking immediate rental income, but it can also reduce the price if vacant possession is preferred or if the tenant's rent is below market rate.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Malaysia.
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 Malaysia?
Which closing costs are negotiable in Malaysia right now?
The closing costs that are negotiable in Malaysia include who pays the legal fees for the SPA or MOT, how agency commission is split between buyer and seller, and the bundling or capping of certain lawyer disbursements.
The closing costs that are fixed by law and cannot be negotiated in Malaysia include stamp duty rates set by the Stamp Act, state-imposed foreign consent approval fees, and land office registration charges.
The typical discount or reduction buyers can realistically achieve on negotiable fees in Malaysia is modest, usually involving the seller agreeing to absorb some legal costs or an agent reducing commission by 0.5% to 1% in a competitive market.
Can I ask the seller to cover some closing costs in Malaysia?
The likelihood that a seller will agree to cover some closing costs in Malaysia depends heavily on market conditions and seller motivation, and it is more common in buyer's markets or when properties have been listed for a long time.
The specific closing costs sellers in Malaysia are most commonly willing to cover include clearing outstanding assessment tax or maintenance arrears, and sometimes absorbing part of the legal fees as part of a negotiated package deal.
Sellers in Malaysia are more likely to accept covering closing costs when market conditions favor buyers, such as during periods of oversupply, economic uncertainty, or when the property has unique issues that make it harder to sell.
Is price bargaining common in Malaysia in 2026?
As of early 2026, price bargaining is common and expected in most resale property transactions in Malaysia, with sellers typically listing slightly above their target price to allow room for negotiation.
Buyers in Malaysia typically negotiate 3% to 7% below the asking price depending on the property condition, location desirability, and how long the listing has been on the market, which on a RM1 million property means savings of RM30,000 to RM70,000 (USD 6,600 to USD 15,400 or EUR 6,000 to EUR 14,000).
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What monthly, quarterly or annual costs will I pay as an owner in Malaysia?
What's the realistic monthly owner budget in Malaysia right now?
The realistic monthly owner budget for a typical condo in Malaysia ranges from RM400 to RM1,500 (USD 90 to USD 330 or EUR 80 to EUR 300), covering maintenance fees, sinking fund contributions, utilities, and minor repairs.
The main recurring expense categories that make up this monthly budget in Malaysia include condo maintenance fees (the largest), sinking fund contributions, utility bills, and occasional minor repairs or replacements.
The realistic low-to-high range for monthly owner costs in Malaysia spans from RM300 (USD 65 or EUR 60) for a simple low-rise apartment to RM2,500 or more (USD 550 or EUR 500) for a large luxury condo with extensive amenities.
The monthly cost that tends to vary the most in Malaysia is the maintenance fee because it depends heavily on the building's age, facilities, management quality, and whether any special levies have been approved by the management corporation.
You can see how this budget affect your gross and rental yields in Malaysia here.
What is the annual property tax amount in Malaysia in 2026?
As of early 2026, annual property taxes in Malaysia consist primarily of assessment tax (cukai taksiran) and quit rent (cukai tanah), with combined costs typically ranging from RM400 to RM2,800 (USD 90 to USD 620 or EUR 80 to EUR 560) per year for standard residential properties.
The realistic low-to-high range for annual property taxes in Malaysia spans from around RM300 (USD 65 or EUR 60) for a modest apartment to RM3,000 or more (USD 660 or EUR 600) for larger or higher-value homes in prime locations.
Property tax in Malaysia is calculated based on the annual rental value of the property as assessed by the local authority for assessment tax, and on the land area or parcel size for quit rent, rather than on market value or purchase price.
Some exemptions or reductions are available for certain property owners in Malaysia, such as reduced rates for owner-occupied homes in some states, but foreigners should generally assume they pay the standard rates unless explicitly stated otherwise by the local authority.
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 Malaysia in 2026?
What tax rate applies to rental income in Malaysia in 2026?
As of early 2026, if you are a non-resident foreigner renting out property in Malaysia, your rental income is taxed at a flat rate of 30% on the net taxable amount after allowable deductions.
Yes, landlords in Malaysia can deduct allowable expenses from rental income before tax, including property repairs, assessment tax, quit rent, insurance, agent commissions for finding tenants, and interest on loans used to acquire the property.
The realistic effective tax rate for typical landlords in Malaysia, after deducting allowable expenses, ranges from around 15% to 25% for residents on progressive rates, but non-resident foreigners still face the flat 30% rate on net income.
Yes, foreign property owners in Malaysia pay a higher rental income tax rate than residents because non-residents are taxed at a flat 30% with no personal reliefs, while tax residents benefit from progressive rates starting at 0% and capping at 30%.
Do I pay tax on short-term rentals in Malaysia in 2026?
As of early 2026, short-term rental income in Malaysia is subject to income tax just like long-term rentals, and if you operate the rental in a business-like manner, you may also be liable for 8% service tax on the rental charges.
Short-term rental income is generally taxed similarly to long-term rental income in Malaysia under income tax rules, but the key difference is that service tax at 8% may apply to short-term or commercial-style leasing services from July 2025 onward.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Malaysia.
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If I sell later, what taxes and fees will I pay in Malaysia in 2026?
What's the total cost of selling as a % of price in Malaysia in 2026?
As of early 2026, the total cost of selling a property in Malaysia typically ranges from 3% to 8% of the sale price, depending on whether Real Property Gains Tax (RPGT) applies and how much commission you pay your agent.
The realistic low-to-high percentage range for total selling costs in Malaysia spans from around 3% if you sell after the RPGT exemption period and negotiate a low agent fee, to 8% or more if significant RPGT is owed.
The specific cost categories that make up total selling costs in Malaysia include agent commission (2% to 3%), lawyer fees for discharge and documentation, and RPGT if you sell within the taxable holding period.
The single largest contributor to selling expenses in Malaysia is usually either the agent commission or the RPGT, with RPGT being especially significant for foreigners who face a 30% rate if selling within five years of purchase.
What capital gains tax applies when selling in Malaysia in 2026?
As of early 2026, the capital gains tax on property sales in Malaysia is called Real Property Gains Tax (RPGT), and for foreigners, the rate is 30% on gains if you sell within five years of purchase, dropping to 10% if you sell after five years.
Exemptions to RPGT in Malaysia include a deduction of RM10,000 or 10% of the chargeable gain (whichever is higher) for individuals, and Malaysian citizens and permanent residents can claim a once-in-a-lifetime exemption on one private residence, but foreigners generally do not qualify for the residence exemption.
Yes, foreigners pay higher RPGT than Malaysian citizens because citizens are exempt from RPGT after holding for more than five years, while non-citizens and non-permanent residents still owe 10% even after the five-year mark.
The capital gain in Malaysia is calculated as the disposal price minus the acquisition price (including stamp duty and legal fees paid at purchase) and minus any allowable expenses such as renovation costs with valid receipts, agent commissions, and legal fees at sale.
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 Malaysia, 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 |
|---|---|---|
| Inland Revenue Board of Malaysia (LHDN) | Malaysia's official tax authority that administers stamp duty. | We used it to confirm what stamp duty legally applies to and the e-stamping process. We also used it to anchor the baseline tax framework for property transfers. |
| Skrine Law Firm (Budget 2026 Alert) | Top Malaysian law firm providing practitioner analysis of new legislation. | We used it to confirm the 8% stamp duty rate for foreigners effective January 2026. We also used it to understand how the flat rate replaces the previous tiered system. |
| KPMG Malaysia (Budget 2026 Note) | Major global tax advisory firm with detailed budget analysis. | We used it to triangulate stamp duty reform details and effective dates. We also used it to support conservative budgeting for foreign buyers. |
| Johor Land Office (PTG Johor Circular) | Official state land office circular on foreign approval fees. | We used it to quantify the 3% state consent fee foreigners pay in Johor. We also used it as a benchmark for high-cost state scenarios. |
| Selangor Land Office (PTG Selangor) | Official Selangor state land office fee schedule portal. | We used it to show that some states charge fixed application fees rather than percentage levies. We also used it to build realistic minimum cost scenarios. |
| Solicitors' Remuneration Order 2023 | Regulated scale fees for legal work in Peninsular Malaysia. | We used it to estimate conveyancing lawyer fees using official percentage bands. We also used it to set realistic ranges for legal costs at different property prices. |
| LHDN RPGT Rate Table | Official government source for Real Property Gains Tax rates. | We used it to quote RPGT rates for foreigners selling property. We also used it to compute realistic exit cost ranges based on holding period. |
| Malaysian Bar (Retention Sum Circular) | National bar association guidance used by practicing lawyers. | We used it to confirm the 7% retention sum buyers must withhold when the seller is a foreigner. We also used it to explain compliance obligations at completion. |
| Royal Malaysian Customs (SST Guide) | Official SST authority guidance on rental and leasing services. | We used it to reflect the 8% service tax on rental services effective July 2025. We also used it to keep the rental income section accurate for 2026. |
| DBKL (Kuala Lumpur City Hall) | City authority that bills and enforces assessment tax in KL. | We used it to define the recurring local property tax owners pay. We also used it to structure the annual owner cost section accurately. |
| PropertyGuru Malaysia | Major Malaysian property portal citing industry body standards. | We used it to explain who typically pays agent fees and the 2% to 3% commission norm. We also used it to model buyer cost scenarios involving agency fees. |
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