Can Foreigners Buy Property in Malaysia in 2025? Rules, Prices & Updated Guide
Malaysia continues to attract international property buyers thanks to its relatively affordable real estate, strong English-speaking infrastructure, and favourable climate. But in 2025, what are the rules for foreigners looking to invest or live here long-term? This updated guide answers the most common questions being asked by buyers and expats today.
Can Foreigners Own Property in Malaysia?
Yes, foreigners can legally buy and own property in Malaysia, with some limitations:
You can only purchase strata-titled residential properties (like condos and apartments).
You cannot buy landed property in most cases unless under MM2H or special state conditions.
Every state sets a minimum price threshold for foreign buyers, usually RM600,000 to RM1 million and above.
Foreigners can own freehold property, provided it’s within a legal category for non-citizens.
Ownership is on a 100% freehold or leasehold basis, no local nominee or partnership is required.
What Is the Minimum Property Price for Foreigners?
The minimum varies by state. Here are typical thresholds as of 2025:
| State / Territory | Minimum Price for Foreign Buyers (2025) | Notes |
|---|---|---|
| Kuala Lumpur (Federal Territory) | RM1,000,000 | Standard threshold for most residential property. |
| Johor | RM1,000,000 | Two exemptions: Medini (no minimum) and R&F Princess Cove (selected phases below RM1M, primary market only)*. |
| Penang (Island) | RM3,000,000 | Legal minimum for high-rise and landed property on Penang Island. |
| Penang (Mainland) | RM1,000,000 | Standard mainland threshold across Seberang Perai. |
| Selangor (Landed) | RM1,500,000 – RM2,000,000 | District-dependent; higher thresholds apply to premium landed areas. |
| Selangor (Strata/High-Rise) | RM1,000,000 | Applies to most condos and serviced apartments; varies by district. |
| Sabah & Sarawak | RM600,000 – RM1,000,000 | Ranges differ by division; additional land-use restrictions apply. |
*Johor: RM1 million for most properties. However, foreigners may legally purchase below this threshold when buying new strata-titled units directly from developers in Medini Iskandar, a designated international zone exempt from state minimums. In addition, R&F Princess Cove in Johor Bahru has secured special state approval allowing foreign buyers to purchase selected units (especially in Phases 1 and 2) below RM1 million. This makes it one of the few projects outside Medini with such an exemption. Buyers should note, though, that while purchasing below RM1 million is legal in these zones or projects, this threshold may apply on resale. Given the resale market is predominantly foreign-driven, it's often wise to choose properties priced at or above RM1 million, or close to it, to support future liquidity and appreciation.
Is It Easy to Buy as a Foreigner?
The process is relatively straightforward:
Reserve the unit and sign a Letter of Offer
Engage a lawyer (recommended) to draft and vet the Sale & Purchase Agreement
Submit an application to the State Authority for foreign buyer consent
Pay stamp duty, legal fees, and necessary taxes
Register the property title with the Land Office
Expect a timeline of 3–6 months from offer to full registration.
What About MM2H and the New SEZ Visa?
The Malaysia My Second Home (MM2H) programme has been updated with three tiers: Silver, Gold, and Platinum, each offering visa privileges in exchange for fixed deposits and income requirements. Under MM2H, you may:
Access lower minimum purchase thresholds in select states
Enjoy renewable long-stay visas (5–15 years)
Qualify for developer incentives in selected projects (some waive legal or levy fees)
Johor is also piloting a Special Economic Zone (SEZ) near the Singapore border, linked to the RTS rail project. A special SEZ visa is being designed to attract remote workers and entrepreneurs, details are still unfolding, but property investment could be a qualifying route.
Are There Taxes or Fees?
Yes. Key costs include:
| Cost item | Typical rate / amount | Notes |
|---|---|---|
| Stamp duty | Foreign buyers: 4% Malaysians: 1–4% |
Foreigners always pay 4%. Malaysians remain on tiered rates. Proposed foreign rate: 8% from 2026* |
| Legal fees | Typically 1–2% of purchase price | Charged under Malaysia’s Solicitors’ Remuneration Order (SRO) scale. |
| State levy (Johor) | 2% of purchase price | Applies to foreign buyers in Johor; often covered or rebated by developers on new projects. |
*For the latest update on Malaysia’s 2026 stamp duty changes for foreign buyers, see our new guide.
There is no ABSD or heavy foreign buyer tax, unlike in Singapore. Malaysia remains relatively low-cost in terms of property entry.
Can I Rent Out My Property?
Yes. Foreigners are allowed to rent out residential property they own, either as:
Long-term rentals (standard tenancy)
Short-term rentals, although this depends on local council regulations and building rules (e.g., AirBnB restrictions apply in KLCC and some condos)
Rental yields in Malaysia typically range between 3–6%, depending on location, project, and unit type.
Best Places for Foreign Buyers in 2025
Some of the most attractive regions right now include:
Johor Bahru: Strong growth tied to the Singapore RTS link, MM2H incentives, and SEZ developments
Kuala Lumpur: Premium city living, infrastructure, and stable rental demand
Penang: Heritage charm and tech industry growth, popular with retirees
Iskandar Puteri & Medini: Special zones with relaxed rules and developer-backed incentives
In Summary
Malaysia offers one of the most accessible paths to property ownership for foreigners in Southeast Asia. With stable freehold rights, MM2H-linked benefits, and no punitive taxes, it’s a compelling option in 2025 for lifestyle buyers, long-stay expats, and global investors.
Always check current state policies, and work with a lawyer or licensed agent familiar with foreign ownership regulations.
Want help navigating Malaysia’s property market in 2025? Get in touch for tailored insights on projects, locations, and strategies that match your goals.
FAQs: Buying Property in Malaysia as a Foreigner (2025)
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Minimum purchase thresholds are set by each state and typically range from RM600,000 to RM1,000,000. Johor and Kuala Lumpur commonly set RM1,000,000. Medini Iskandar has exemptions for new strata units, and some projects may secure state-approved exceptions. Always confirm the current threshold for the specific state and project.
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Generally, foreigners buy strata-titled properties (condos/apartments). Landed property is usually restricted unless covered by specific state approvals or eligible long-stay programmes. Always check the State Authority consent conditions before committing.
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MM2H operates on three tiers. At the time of writing, typical structures are:
Silver – fixed deposit (c. RM500k) with long-stay visa (around 5 years, renewable)
Gold – fixed deposit (c. RM2m) with longer visa (around 10–15 years)
Platinum – fixed deposit (c. RM5m) with the longest visa tenure (up to ~20 years)
Some tiers allow partial withdrawal for approved uses (e.g., property purchase). Sabah, Sarawak and Johor may run variants. Always verify the latest figures and conditions.
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Yes. Both states have greater autonomy over land matters under Malaysia’s Federal Constitution.
Foreign ownership rules differ slightly from Peninsular Malaysia:State consent is mandatory for every foreign purchase.
Landed property is more restricted, especially in residential zones.
Minimum purchase prices are usually between RM600,000 and RM1 million, but they can vary by district or property type.
Both states run their own long-stay programmes (Sabah MM2H and Sarawak MM2H) that have separate deposit and visa requirements from the national scheme.
Because of these local variations, buyers should always verify current state guidelines and obtain formal State Authority approval before committing.
