In Malaysia, each state has its own regulations and conditions for foreign property purchases, including minimum purchase prices and additional requirements. Here’s a breakdown of the key differences across states:
Minimum Property Purchase Prices for Foreigners (2024)
Foreigners are generally required to buy properties above a certain price threshold, which varies by state:
| State | Minimum Price (MYR) | Additional Conditions |
|---|---|---|
| Kuala Lumpur | RM 1,000,000 | None for most properties; some high-end condos may have lower thresholds. |
| Selangor | RM 2,000,000 | Foreigners can only buy properties ≥RM 2M (since 2024). |
| Penang | RM 1,000,000 (Island) | RM 800,000 for mainland (Seberang Perai). Some exceptions for high-end projects. |
| Johor | RM 1,000,000 | RM 2M for landed properties in certain zones (e.g., Iskandar Malaysia). |
| Malacca | RM 1,000,000 (urban) | RM 500,000 for rural areas (subject to state approval). |
| Sabah | RM 1,000,000 | Additional approval from state authorities required. |
| Sarawak | RM 1,000,000 (urban) | Foreigners need special approval from state government; higher scrutiny. |
| Perak | RM 1,000,000 | RM 500,000 for some agricultural/industrial properties. |
| Pahang | RM 1,000,000 | Lower thresholds (RM 500,000) for certain tourism projects. |
| Kedah | RM 1,000,000 | RM 500,000 for industrial/commercial properties. |
| Kelantan | RM 1,000,000 | Additional state consent required. |
| Terengganu | RM 1,000,000 | Some exceptions for tourism-related properties. |
| Negeri Sembilan | RM 1,000,000 | RM 500,000 for commercial/industrial properties. |
| Perlis | RM 1,000,000 | Fewer foreign buyers; state approval needed. |
Key Conditions for Foreign Buyers
- State Consent Approval
- Some states (e.g., Sarawak, Sabah, Kelantan, Johor) require additional state approval.
- In Penang, foreigners must apply for state consent for properties below RM 3M.
- Restrictions on Landed Property
- Foreigners are generally restricted from buying low-cost and Malay Reserve land.
- In Johor, foreigners can only buy landed properties ≥RM 2M in certain zones.
- Additional Taxes & Fees
- Real Property Gains Tax (RPGT): 30% if sold within 3 years (reduces over time).
- Foreigner Acquisition Tax: Some states impose extra fees (e.g., Johor charges 2-4% for foreign purchases).
- Leasehold vs. Freehold
- Most states allow foreigners to buy freehold properties, but leasehold purchases may require state approval.
- Special Exemptions
- Malaysia My Second Home (MM2H) participants may enjoy relaxed rules in some states.
- High-value investments (e.g., RM 5M+) may qualify for exemptions in certain states.
Recent Changes (2024)
- Selangor increased the minimum purchase price to RM 2M for foreigners.
- Johor tightened rules on foreign ownership in Iskandar Malaysia.
- Penang maintains stricter controls on high-density foreign purchases.
Conclusion
Foreign buyers should check with the state land office and consult a local lawyer before purchasing property in Malaysia, as rules can change. Popular investment destinations like Kuala Lumpur, Penang, and Johor have stricter conditions compared to smaller states.
From the Desk of
Miichael Yeoh
