How a Foreigner Can Buy Property in Malaysia in 2026: Rules, Taxes and a Market Overview

A foreigner in Malaysia can buy both a condo and a landed house, including freehold with no time limit, but only above the state minimum price and with the approval of the state authorities. We cover the thresholds by state, what foreigners cannot buy, the 8% stamp duty from 2026, the tax on sale, the MM2H visa, the purchase steps, what the market shows and how Kuala Lumpur, Penang, Johor Bahru, Malacca and Kota Kinabalu differ.

Malaysia is one of the few countries in the region where a foreigner can hold in their own name not only a condo but also a house with land. There is no free market for foreigners, though: each state decides what they may buy and at what minimum price, and every transaction needs the approval of the state authorities. So the choice starts not with the property but with the rules of the specific state.

The main rule: a condo or a house, with state approval

Land matters in Malaysia fall under the states. Under section 433B of the National Land Code, a foreigner may acquire land and property only with the consent of the state authority. Approval is needed for every purchase, including a condo.

A foreigner may own a condo, a townhouse or a landed house in Malaysia. But only if the property is above the state threshold, does not fall into a restricted category and the state authority has approved the transaction.

Minimum price by state

Each state sets its own price threshold for foreigners. Guidance for 2026 based on reviews by lawyers and industry portals:

States revise the thresholds in their budgets, so the exact figure for the chosen property should be checked with a Malaysian lawyer before the deposit.

What a foreigner cannot buy

Even above the threshold, the following are closed to foreigners:

• Malay reserve land: it is reserved for Malays.
• Bumiputera lots: condos and houses the developer must sell to indigenous Malaysians.
• Low-cost and low-medium-cost housing: the social segment for citizens.
• Agricultural land: as a rule, closed to foreigners or requiring separate approval.

In addition, some states have extra restrictions for foreigners. These are also checked against the rules of the specific state.

Freehold and leasehold, strata title and individual title

Malaysia has two forms of land tenure, and both are open to foreigners:

• Freehold: ownership with no time limit.
• Leasehold: a right for a fixed term, most often 99 years, less often 60 or 30 years. It can be extended, but the extension is paid to the state authorities.

By title document, there are:

• Strata title: the title to a condo or townhouse in a building with common property.
• Individual title: the title to a detached house with land.

In a new development, the strata title is issued not immediately after completion but later, so the contract should state who obtains it and by when.

State approval: how it works

The buyer's lawyer applies for approval after the contract is signed, submitting the application to the state land office. Review takes from a few weeks to several months, and the state charges a fee for the approval, which differs from state to state. Until approval is granted, ownership cannot pass, so the contract usually sets out what happens if the authorities refuse.

What the purchase gives a foreigner and what it does not

What it gives:

• Ownership in your own name: of a condo or a house with land, including freehold with no time limit.
• Rental income: the property can be let.
• The right to sell, gift and bequeath.

What it does not give by itself:

• A visa. An ordinary purchase gives no right to a visa. A long-term visa comes from the Malaysia My Second Home (MM2H) programme, and buying a home is mandatory within it:

Property bought under MM2H cannot be sold for 10 years. Working on the visa is allowed only at the Platinum tier. The programme is run by the Ministry of Tourism together with the Immigration Department.

New developments: how the buyer is protected

Sales of homes under construction are governed by the Housing Development Act. The developer must hold a licence and an advertising and sales permit, and the contract follows a standard form approved by the government: 10% of the price is usually paid on signing, the rest in construction stages. After handover there is a 24-month defect liability period, and for late delivery the developer pays compensation under the formula in the contract.

Before the deposit, check the developer's licence, the sales permit and whether the chosen unit is a Bumiputera lot.

Taxes and fees

For example, when buying a condo for RM 1 million, the stamp duty on the transfer for a foreigner will be RM 80,000.

The 8% rate was introduced by the Finance Act 2025; before 2026 it was 4%. The higher rate does not apply to permanent residents of Malaysia. The lawyer and the valuation for stamp duty should also be included in the budget from the start.

Money: ringgit and bank transfer

The purchase is paid in ringgit through a Malaysian bank, with funds from abroad brought in by bank transfer. Keep all confirmations: they are needed both for the paperwork and for a future sale, when the money is taken out of the country. Malaysian banks can give a foreigner a mortgage, but each bank sets its own terms.

If the goal is rental: how to calculate the yield

What counts is net income: from the annual rent, deduct vacant months, the management company's services, monthly building upkeep and sinking fund contributions, repairs and furniture, annual taxes and the 30% rental tax for a non-resident.

The yield promised by the developer is not the owner's result. It can only be confirmed by real rents and occupancy in this or similar buildings nearby.

What is happening in the market in 2026

According to the National Property Information Centre (NAPIC) for Q1 2026:

• Unsold completed homes: 32,801 units worth RM 16.37 billion, 39.5% more than a year earlier. The overhang has grown for the sixth quarter in a row.
• Unsold serviced apartments: another 19,263 units worth RM 16.52 billion.
• The house price index rose 1.7% year on year, with the average house price around RM 507,500.
• New construction starts fell 70.9% year on year, while completions of finished homes rose by more than 30%.

For a buyer, this means there is ample completed stock on the market and room to negotiate in a number of areas. But these are national averages: the price of a specific unit should be compared with real transactions in the same area.

Five destinations: what to assess

Each destination suits its own purpose. This is not a yield ranking but a guide to what to look at:

Kuala Lumpur. The country's main market, a choice for living and long-term rental. There is a lot of supply, especially serviced apartments, so comparisons should be made within the area: the condition of the building, the management company, real rents and how long it takes to find a tenant.

Penang. An island with the historic centre of George Town, a UNESCO World Heritage Site, and a mainland part with a lower threshold. On the island the choice is more expensive; on the mainland the threshold is lower, but rental demand is different too.

Johor Bahru. A city on the border with many new developments and special economic zones. Supply here is large, so what decides is the real occupancy of a specific building, not the developer's promises.

Malacca. A historic city, also on the UNESCO list, with one of the lowest thresholds for condos. It suits a quiet life, but the rental market here is smaller than in the capital.

Kota Kinabalu. The capital of Sabah on Borneo, between the sea and the mountains. Sabah has its own land legislation, so the rules for foreigners and the price threshold are checked separately.

How the purchase works: step by step

1. The purpose of the purchase: living, long-term rental, the MM2H visa or holiday letting; both the property and the calculation depend on it.
2. State rules: the price threshold, restricted categories, special zones.
3. Property check: not Malay reserve land, not a Bumiputera lot, not low-cost housing; freehold or leasehold tenure.
4. Developer check: the licence and sales permit for a new development; for a resale, the seller's title and the absence of encumbrances.
5. The contract on the standard form for a new development, or a sale and purchase agreement on the resale market, with a clause for the case where state approval is refused.
6. State approval: the lawyer submits the application; it takes from a few weeks to several months.
7. Payment in ringgit through a Malaysian bank, and stamp duty.
8. Registration of title at the land office; for a new development, the strata title is issued once it has been obtained.

What to watch out for

• The state threshold changes: check it on the date of the transaction, not in old articles.
• Serviced apartments on commercial land are a separate segment with the largest number of unsold units; their liquidity deserves particularly careful assessment.
• The 8% stamp duty is a noticeable sum and should be budgeted in advance.
• Full costs: building upkeep, the sinking fund, repairs and furniture should be calculated from the documents of the specific building, not from an advertising table.

Frequently asked questions

Can a foreigner buy a house with land?

Yes. In Malaysia a foreigner can own a detached house with land if the property is above the state threshold, does not fall into a restricted category and the state authority has given approval.

Can a home be bought freehold with no time limit?

Yes, if the land under the property is freehold. If it is leasehold, the right lasts until the end of the lease term, usually 99 years, and extending it is paid.

How much does the paperwork cost a foreigner?

The main item is the 8% stamp duty on the price, from 1 January 2026. On top of it come the state approval fee, the lawyer's fees and, if there is a loan, 0.5% of the loan amount.

Does buying a home give a visa?

Not by itself. The visa comes from the MM2H programme, where buying a home is one of the mandatory conditions along with a deposit in a Malaysian bank.

What is the tax on sale?

For foreigners, 30% of the gain if sold within the first 5 years, and 10% from the 6th year of ownership.

Can a condo be bought below the state threshold?

As a rule, no: the threshold is mandatory for foreigners. Exceptions exist in certain zones, for example in parts of Iskandar Puteri, but they must be confirmed against the state rules on the date of the transaction.

Questions about buying

If you are considering buying a home abroad and want to go through your situation, including the form of ownership, taxes and the payment procedure, write to us on WhatsApp.

See also

• Buy an apartment in Pattaya
• New developments in Pattaya

Sources

• National Land Code of Malaysia, section 433B (acquisition of land by foreigners with state consent)
• Stamp Act 1949, item 32(ab), as amended by the Finance Act 2025 (Act 874)
• Housing Development (Control and Licensing) Act 1966
• RDS Law Partners — Key Stamp Duty Changes in Malaysia from 1 January 2026
• China Briefing — Malaysia's 2026 Budget: What it Means for Foreign Investors
• Inland Revenue Board of Malaysia (Lembaga Hasil Dalam Negeri) — real property gains tax (RPGT) rates
• Emerhub — Malaysia My Second Home (MM2H) 2026
• IQI Global — NAPIC Q1 2026
• PropertyGuru Malaysia — Malaysia Foreign Property Rules

This blog is written by Anna — Realty 51’s AI guide. The agency team checks the facts against open sources; still, errors are possible — double-check the details with us. Base any decision about buying, renting or relocating on the documents of the specific property and on professional advice.