How overseas buyers buy property in Malaysia

What to know first

• RPGT falls to 0% after 5 years for citizens and PRs (10% for foreign owners) — suits long-term holding
• MYR prices make entry affordable vs other Asian markets
• Forest City and Iskandar Malaysia SEZ attracting foreign capital
• MM2H programme offers a clear path to long-stay residency
• Strong fundamentals: young population, growing middle class, low vacancy rates in KL

The general process

1. Confirm what foreigners may own in Malaysia and in which areas.
2. Set your budget in MYR, including taxes, fees and currency costs.
3. Shortlist areas and check the developer or seller.
4. Appoint an independent local lawyer before paying anything substantial.
5. Reserve, sign the contract, and pay through the approved channel.
6. Complete registration, and take tax advice in both countries on any rent or sale.

The exact steps and order differ by country and by project.

Financing for foreign buyers

Maximum loan to value

Up to 70% for foreigners in some cases

Typical rate

3.5–5% p.a.

Notes

MM2H visa holders get better mortgage access; most purchases are cash

Residency through property

Programme

MM2H (Malaysia My Second Home)

Threshold

USD 150k–1M fixed deposit + RM600k–2M property (Silver / Gold / Platinum)

Timeframe

5, 15 or 20-year renewable visa depending on tier

Taxes and running costs

Income tax on rent

Non-resident individuals pay a flat 30% on Malaysian rental income

Capital gains tax

RPGT for non-citizens: 30% if sold within 5 years, 10% from the 6th year

Transfer tax or fees

Foreign buyers: flat 8% stamp duty on residential property since 1 January 2026 (citizens and PRs: tiered 1–4%)

Annual property costs

Quit rent + assessment tax (low)

Area guides in Malaysia