You’ve been in Malaysia long enough to fall in love with the food, the weather, the lifestyle, and now you’re wondering: Should I buy a place here? Whether you’re working in KL, retiring in Penang, or bouncing between countries with Malaysia as your base, owning property here could be more than just a smart financial move, it could be your next big step toward building a life.
But buying property in a foreign country can feel overwhelming. The rules are different. The paperwork sounds intimidating. And you’re not sure who to trust.
That’s where this guide comes in.
This isn’t just another generic overview, it’s the 2025 blueprint tailored for expats like you. Whether you’re looking for a permanent home, a rental investment, or just a safe place to park your money, we’ll break down every piece you need to know: minimum prices by state, visa-linked benefits, legal steps, financing options, tax implications, and most importantly, how to avoid the common mistakes.
Because when done right, buying property in Malaysia can feel like more than an investment, it can feel like coming home.
Can Foreigners Buy Property in Malaysia?
Yes, foreigners can legally buy property in Malaysia. But there are a few important caveats:
- You can only buy property above a certain minimum price, which varies by state.
- Foreigners cannot buy low-cost homes, Bumiputera-reserved units, or properties built on Malay Reserved Land.
- You’ll need state approval to finalize the purchase, especially if it’s landed property.
But the good news? Foreigners are eligible to own freehold and leasehold titles, and many opt for high-rise condos, which are easier to get approved for.
Minimum Property Price for Foreign Buyers (2025)
| State | Minimum Price | Notes |
|---|---|---|
| Kuala Lumpur | RM1,000,000 | Applies to all property types |
| Selangor | RM2,000,000 (landed), RM1,500,000 (strata) | Lower thresholds in selected areas for MM2H holders |
| Penang | RM3,000,000 (landed, island), RM1,000,000 (high-rise) | Mainland may be lower |
| Johor | RM1,000,000 | RM2,000,000 for landed in Iskandar |
| Sabah & Sarawak | RM600,000–RM1,000,000 | Subject to state rules |
Tip: Medini in Johor is a special zone where minimum price rules are waived for foreigners.
What Type of Property Can Expats Own?
Foreigners can buy:
- Strata-title condos and serviced apartments (easiest)
- Landed property, like terrace or semi-D homes (with state approval)
- Commercial property (minimum prices apply)
They cannot buy:
- Low-cost homes
- Properties under Bumiputera quota
- Agricultural land (without special approval)
Step-by-Step Buying Process for Expats
- Find a Property Work with a licensed real estate agent who understands expat rules.
- Check Minimum Price Ensure it meets the threshold in that state.
- Sign SPA (Sale & Purchase Agreement) Pay a 10% deposit to lock in the deal.
- Get State Consent Your lawyer will submit this application on your behalf.
- Secure Financing (Optional) Most banks allow foreigners to borrow up to 70%–80%.
- Pay Duties & Complete Transfer Final balance, legal fees, and stamp duty, then you’re the owner.
🕒 Timeline: Expect the process to take 2–4 months, sometimes longer for landed homes.
Financing Options for Expats
Most major Malaysian banks offer loans to foreigners, especially those on MM2H or long-term work visas.
| Bank | Max Loan Margin | Estimated Interest (2025) |
| Maybank | Up to 80% | 4.2% – 4.8% |
| CIMB | Up to 80% | 4.3% – 5.0% |
| HSBC | Up to 70% | 4.1% – 4.7% |
| Public Bank | Up to 75% | 4.5% – 5.2% |
Note: You’ll need proof of income (usually RM10,000/month+), a valid visa, and credit documentation.
Taxes, Fees & Hidden Costs
When you buy:
- Stamp Duty: 1%–4%, depending on property value.
- Legal Fees: Around 1% of purchase price.
- Agent Commission: Typically paid by seller.
Ongoing Costs:
- Quit Rent: RM50–RM500 annually.
- Assessment Tax: 2%–7% of annual rental value.
- Rental Income Tax: 30% flat for non-residents; progressive for tax residents.
- Real Property Gains Tax (RPGT): 30% if sold within 5 years, 10% after.
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MM2H and PVIP: Property Benefits for Expats
If you’re under the Malaysia My Second Home (MM2H) program:
- You may get lower minimum property price eligibility in certain states.
- Banks are more likely to approve higher loan margins.
- No inheritance tax applies.
- Some flexibility on length of stay.
If you’re on the Premium Visa Program (PVIP):
- You can work, own businesses, and invest with fewer restrictions.
- RM1 million fixed deposit required, but you can withdraw 50% after one year.
Where Do Most Expats Buy Property in Malaysia?
Kuala Lumpur
- Mont Kiara, Bangsar, KLCC, Bukit Bintang
- Ideal for professionals, families, and investors.
- Strong rental demand, international schools, walkability.
- Estimated Rental Yield: 4% – 6%
Penang
- George Town, Tanjung Tokong, Batu Ferringhi
- Great for retirees and beach lovers.
- Active expat scene and food culture.
- Estimated Rental Yield: 3.5% – 5%
Johor Bahru
- Medini, Iskandar Puteri, Horizon Hills
- Close to Singapore, making it a commuter-friendly base.
- Mixed development projects and growth potential.
- Estimated Rental Yield: 5% – 6.5%
Others
- Kota Kinabalu: coastal living with laid-back vibes
- Malacca / Ipoh: charming historical cities with quiet lifestyles
What to Watch Out For (Common Mistakes)
Final Thoughts
Malaysia remains one of the few countries in Asia where foreigners can legally own freehold property, and that alone makes it a rare opportunity. But buying here in 2025 isn’t without its complexities.
If you plan to live in Malaysia long-term or want to diversify your investments into real estate, it’s worth exploring. Just do it right: research, work with a trusted lawyer, and know your numbers.
Whether you’re relocating, retiring, or just investing, Malaysia has options for every expat profile.
Need help navigating expat life in Malaysia? Stay tuned with RinggitWise.my for real estate updates, tax guides, and personalized investment tips for foreigners in Malaysia.
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