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
Yes, foreigners can buy residential property in Malaysia, but the process is regulated state by state and buying a home does not automatically give you permanent residency or citizenship.
The only property-linked long-stay pathway in Malaysia right now is Sarawak's S-MM2H programme, which can require a residential investment of at least RM600,000 (around USD 127,000 or EUR 117,000) for certain age groups.
We constantly update this blog post to reflect the latest rules, thresholds, and tax changes affecting foreign property buyers in Malaysia.
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.
Insights
- Malaysia's foreign-buyer stamp duty is proposed to jump from 4% to 8% starting January 2026, which could add RM80,000 to the cost of a RM1 million property in Kuala Lumpur.
- Sarawak's S-MM2H is the only Malaysian programme where property ownership is an explicit eligibility condition, requiring RM600,000 in residential real estate for applicants aged 40 to 50.
- Most states in Peninsular Malaysia set a minimum purchase price of RM1 million for foreigners, but Selangor requires around RM2 million and Penang can reach RM3 million for landed homes.
- Malaysia's federal permanent residency (Entry Permit) is completely separate from property ownership, so buying a RM5 million condo in Mont Kiara does not guarantee or even help your PR application.
- Naturalisation for Malaysian citizenship requires at least 10 years of residence within a 12-year period, plus Malay language proficiency, making it one of the longer timelines in Southeast Asia.
- S-MM2H pass holders must spend at least 30 days per year in Sarawak to qualify for renewal, which is stricter than the federal MM2H programme's requirements.
- Foreign buyers in Malaysia should expect state consent workflows under the National Land Code, meaning your purchase is not just a private contract but requires government approval.
- Popular expat neighborhoods like Mont Kiara, KLCC, and Bangsar in Kuala Lumpur have condos that typically meet the RM1 million foreign-buyer threshold more easily than landed homes.
Can buying property help me get permanent residency in Malaysia?
Does buying a property qualify or at least help for residency in Malaysia?
As of early 2026, buying residential property in Peninsular Malaysia (including Kuala Lumpur, Penang, and Johor) does not qualify you for permanent residency and is not, by itself, a visa category.
The only exception is Sarawak's S-MM2H programme, where applicants aged 40 to 50 can qualify by investing at least RM600,000 (approximately USD 127,000 or EUR 117,000) in residential real estate.
Beyond the property investment itself, S-MM2H applicants must also prove liquid assets and monthly offshore income, so the property purchase alone is not enough to secure the pass.
For other visa categories like work permits or the federal MM2H, owning property in Malaysia can support your practical life (stable address, family setup) but does not count as a formal criterion for approval.
Is there any residency visa directly linked to property ownership in Malaysia right now?
Malaysia does not have a federal "property visa" where buying a home automatically grants residency, but Sarawak's S-MM2H programme explicitly ties eligibility to residential property investment for certain applicants.
Buying a primary residence (your main home) in Sarawak can qualify you for S-MM2H if you meet the RM600,000 threshold and other financial requirements, though the programme is technically a long-stay Social Visit Pass rather than permanent residency.
Buying a rental or investment property in Sarawak can also qualify under S-MM2H as long as it is classified as residential and meets the minimum value, since the programme does not require you to live in the property yourself.
What exactly do I get with a property-based residency in Malaysia?
Is this residency temporary or permanent in Malaysia right now?
The property-linked S-MM2H in Sarawak grants temporary residency in the form of a long-stay Social Visit Pass, not permanent residence.
The official name is the Sarawak-Malaysia My Second Home (S-MM2H) pass, which is administered separately from Peninsular Malaysia's federal MM2H programme.
The key legal distinction is that permanent residency (called an Entry Permit in Malaysia) cannot be revoked unless you breach specific conditions, while a Social Visit Pass like S-MM2H must be renewed and can be cancelled if you fail to meet ongoing requirements.
Because S-MM2H is temporary, it does not automatically give you the right to work, vote, or access certain government benefits that Malaysian permanent residents enjoy.
How long is the initial residency permit valid in Malaysia in 2026?
As of early 2026, the Sarawak S-MM2H pass is structured as a 10-year programme, typically issued as an initial 5-year pass that can be renewed for another 5 years.
This structure has remained consistent since Sarawak relaunched its S-MM2H programme, though federal MM2H has undergone changes in recent years that do not directly affect Sarawak's rules.
The validity period generally begins from the date the pass is endorsed in your passport, not from when you first applied or entered Sarawak.
Pass holders should begin the renewal process at least 3 to 6 months before expiration to allow time for document preparation and processing by Sarawak immigration authorities.
How many times can I renew residency in Malaysia?
The Sarawak S-MM2H pass can be renewed once to complete the full 10-year span (5 years initial plus 5 years renewal), and further extensions may be possible depending on programme rules at the time.
Each renewal period in Sarawak is typically 5 years, matching the initial pass duration.
Renewal conditions do not become significantly stricter with each cycle, but you must continue to meet the original financial and residency requirements, including the 30-day minimum stay in Sarawak.
The most common reason renewal applications are rejected in Malaysia is failure to meet the minimum physical presence requirement or allowing financial documentation to lapse.
Can I live and work freely with this residency in Malaysia?
S-MM2H pass holders in Sarawak are explicitly not allowed to work or run businesses in Malaysia, making this a lifestyle and retirement-oriented programme rather than a work visa.
This means neither regular employment nor self-employment is permitted under S-MM2H, so you cannot legally earn Malaysian-sourced income while holding this pass.
All professions and business sectors are restricted for S-MM2H holders, since the pass is designed for people who will support themselves from offshore income and savings.
If you want to work in Malaysia, you would need to apply for a separate work permit through an employer, which is a completely different immigration track from S-MM2H.
Can I travel in and out easily with residency in Malaysia?
S-MM2H pass holders can travel in and out of Sarawak and Malaysia with relative ease, as the pass is designed to support a flexible lifestyle for long-term visitors.
However, you must spend at least 30 days per year in Sarawak to maintain your S-MM2H status, so extended absences could jeopardize your renewal eligibility.
The S-MM2H pass does not grant visa-free access to other countries or regions like the Schengen Area, as your travel privileges abroad depend entirely on your original passport.
When re-entering Malaysia, you must carry your passport with the valid S-MM2H endorsement, and the pass validity may be linked to your passport expiry date.
Does this residency lead to permanent residency in Malaysia eventually?
S-MM2H does not automatically lead to Malaysian permanent residency, because PR (Entry Permit) is a separate federal immigration status with its own criteria unrelated to property ownership.
There is no defined number of years on S-MM2H that qualifies you for PR, since the two programmes operate independently under different government authorities.
To qualify for Malaysian PR, you would need to meet the Entry Permit requirements, which typically involve employment-based sponsorship, marriage to a Malaysian citizen, or exceptional contributions to Malaysia.
Since PR is not connected to S-MM2H, obtaining permanent residency would not depend on maintaining your original property investment in Sarawak.
What conditions must I keep to maintain residency in Malaysia?
Do I need to keep the property to keep residency in Malaysia?
For S-MM2H pass holders who qualified through the property investment track, the safe assumption is that you must maintain ownership of the qualifying residential property throughout the validity of your pass.
If you sell the property before your S-MM2H pass expires, your eligibility for renewal could be affected since property ownership was a condition of your original approval.
The S-MM2H programme does not explicitly state whether you can replace one qualifying property with another, so applicants should consult Sarawak immigration authorities before making any changes to their real estate holdings.
During renewal applications, authorities verify ongoing property ownership through your Sale and Purchase Agreement (SPA) and land title documentation.
Is there a minimum stay requirement per year in Malaysia?
S-MM2H pass holders must spend at least 30 days per year in Sarawak to remain eligible for renewal, which is an additional requirement beyond simply holding the property.
This minimum stay requirement is monitored through immigration entry and exit records, and Sarawak authorities check compliance when you apply for pass renewal.
If you fail to meet the 30-day minimum stay in a given year, your renewal application could be rejected or your pass could be subject to cancellation.
The physical presence requirement becomes even more demanding if you later pursue Malaysian citizenship through naturalization, which requires at least 10 years of residence within a 12-year period.
Can I rent out the property and keep residency in Malaysia?
The S-MM2H programme describes the property requirement as "for residential purpose" but does not explicitly require you to live in the property yourself, so renting it out is likely permitted.
Malaysia does not have specific restrictions distinguishing short-term versus long-term rentals for S-MM2H-linked properties, though local strata by-laws may impose their own rules on short-term letting.
Rental income from your Malaysian property is subject to Malaysian income tax, but this tax obligation is separate from your S-MM2H immigration status and does not affect your residency eligibility.
You should keep clear records of your rental arrangement and ensure the property remains classified as residential, though formal registration of rental activity is generally not required for immigration compliance.
Can residency be revoked after approval in Malaysia right now?
Both S-MM2H passes and Malaysian permanent residency (Entry Permit) can be revoked if you violate conditions, though revocation is relatively uncommon for pass holders who maintain their requirements.
For S-MM2H, revocation or non-renewal typically follows a formal review by Sarawak immigration authorities after they identify a breach such as failing the minimum stay requirement or losing property eligibility.
There is no clearly published appeals process specific to S-MM2H revocation, but affected individuals can generally submit representations to immigration authorities before a final decision is made.
If your S-MM2H pass is cancelled, you would typically have a short period (often 30 days or until your current visa stamp expires) to leave Malaysia or regularize your status through another visa category.
Can real estate investment lead to citizenship in Malaysia?
Can property investment directly lead to citizenship in Malaysia?
Malaysia does not have a citizenship-by-investment programme, so there is no direct pathway from property investment to Malaysian citizenship regardless of how much you spend.
A higher property investment amount (whether RM1 million, RM5 million, or more) does not accelerate the citizenship timeline because property ownership is simply not a criterion for naturalization in Malaysia.
The typical timeline from arriving in Malaysia to citizenship eligibility is at least 10 to 12 years, since you must reside in Malaysia for 10 years within a 12-year period before you can even apply.
The key difference is that Malaysia only offers naturalization through long-term residency, language proficiency, and demonstrated intent to reside permanently, rather than allowing wealthy investors to "buy" a passport.
Is citizenship automatic after long-term residency in Malaysia?
Malaysian citizenship is never automatic and always requires a formal application through the National Registration Department (JPN), even after decades of legal residency.
You must have resided in Malaysia for at least 10 years within a 12-year period, including the 12 months immediately before your application, to be eligible for naturalization under Article 19 of the Federal Constitution.
Beyond the residence requirement, you must demonstrate adequate knowledge of the Malay language and an intention to reside permanently in Malaysia.
Processing times for Malaysian citizenship applications can vary widely and are not publicly disclosed, but many applicants report waiting several years for a decision due to the discretionary nature of the process.
What are the real requirements to become a citizen in Malaysia?
Do I need physical presence for citizenship in Malaysia right now?
Malaysian naturalization requires you to have resided in the country for at least 10 years within a 12-year period, which translates to spending the majority of each year physically present in Malaysia.
The requirement is calculated as a cumulative total within a rolling 12-year window, with the additional condition that you must have been continuously resident for the 12 months immediately before applying.
Malaysian authorities verify physical presence through immigration records, passport stamps, and supporting documentation such as tax filings and utility bills when processing citizenship applications.
There are no widely publicized exemptions or reductions to the physical presence requirement for foreign investors, as Malaysia does not offer accelerated naturalization for wealthy applicants.
Can my spouse and kids get citizenship too in Malaysia in 2026?
As of early 2026, spouses and children do not automatically become Malaysian citizens when the main applicant naturalizes, and each family member must pursue citizenship through the appropriate JPN process for their situation.
Family members generally cannot apply together with the main applicant under Article 19 naturalization, since each person must individually meet the residence, language, and intent requirements.
Children born in Malaysia to non-citizen parents do not automatically receive Malaysian citizenship, and the rules for registering children as citizens are separate from adult naturalization pathways.
Spouses of Malaysian citizens have a distinct registration pathway under Article 15(1), which typically requires at least two years of marriage and residence in Malaysia, though approval remains at the government's discretion.
What are the most common reasons citizenship is denied in Malaysia?
The most common reason Malaysian citizenship applications are denied is failure to meet the 10-year residence requirement, particularly the condition of continuous residence for the 12 months immediately before applying.
Two other frequently cited reasons for denial are insufficient Malay language proficiency and inability to demonstrate a genuine, long-term intention to reside permanently in Malaysia.
Applicants who are denied can generally reapply, though there is no fixed waiting period and it is advisable to address the specific deficiencies that led to the initial rejection before submitting a new application.
The single most effective step to avoid citizenship denial in Malaysia is to maintain meticulous records of your physical presence, tax payments, and community ties throughout your years of residence.