Frequently Asked Questions

In Malaysia, you can buy:

• Shop lots

• Offices

• Factories / industrial units

• Retail units (in malls)

• Hotels or resorts (with license)

• Mixed-use developments

Yes, but with restrictions:

• Minimum threshold: Varies by state (e.g. RM1 million in KL and Selangor; higher in Johor and Penang)

• Some states restrict foreign ownership of certain types of land (e.g. Malay Reserved Land, Bumiputera lots)

Both options are possible. Using a company may provide tax benefits and liability protection but comes with higher compliance costs.

• Freehold: Full ownership, permanent title.

• Leasehold: Limited time (30–99 years), extension possible but subject to premium.

• Strata title: Applies to multi-unit buildings; includes management fees, sinking funds, and JMB/MC rules.

Generally no, but in some projects, certain quotas may apply depending on state policies. Always check with the developer or local land office.

Yes, foreigners need:

• State Authority Consent

• Economic Planning Unit (EPU) approval in certain cases (e.g. if buying agricultural land or property > RM20 million)

• Individual title: Easier transfer

• Strata title: Shared facilities, common in office suites or retail units in a mall

• Company-owned property may involve transfer of shares instead of property title (share sale vs asset sale).

• Foreigners can buy in personal name, but some choose to set up Malaysian Sdn. Bhd. companies for:

  • Flexibility

  • Tax planning

  • Developing or leasing commercial assets

  • Circumventing certain restrictions (case-by-case)

• Stamp Duty: 1%–3% depending on property price

• Legal Fees: 0.4%–1% of the property value

• Real Property Gains Tax (RPGT):

  • Locals: 0–30% (based on holding period)

  • Foreigners: 10% (flat rate if sold anytime)

• Valuation Fees: Based on a fixed scale by the Board of Valuers

• Locals: Yes, up to 80% margin of financing

• Foreigners: Yes, but often capped at 60–70%, subject to creditworthiness and approval by Malaysian banks

Always check the title. Freehold gives perpetual ownership; leasehold (usually 30–99 years) has expiry concerns and affects resale value.

Yes. Check:

• Zoning laws (commercial, industrial, etc.)

• Local council approvals if you plan to change use

• Business licenses needed for hotels, restaurants, etc.

Yes. Commercial property can be leased or rented out to third parties. Ensure tenancy agreements are properly drafted and stamped.

Mandatory if:

• Foreigners buy agricultural land

• Buying commercial properties worth over RM 20 million

• Involves merger, acquisition, or joint venture with Malaysian entity

Foreigners may buy under:

• • Personal name

  • Malaysian-incorporated company (Sdn. Bhd.)

• Companies with ≥50% foreign ownership face additional regulatory oversight

• Must register with Companies Commission of Malaysia (SSM)

1. Initial Research and Selection
2. Offer to Purchase / Letter of Offer
3. Engaging a Lawyer
4. Signing the Sale and Purchase Agreement (SPA)
5. Financing & Loan Agreement (if applicable)
6. Stamp Duty & Legal Fees & Cost 
7. Title Transfer and Registration
8. Vacant Possession & Final Steps

1. When you’re under the Malaysia My Second Home (MM2H) program, there are specific rules and conditions that will directly affect how and what property you can buy in Malaysia.

Under the revised MM2H rules (2021 onward, with updates in 2023–2025), MM2H visa holders are required to purchase residential property within a certain timeframe after visa approval:

• Property must be residential, not commercial or agricultural.

• If you fail to buy within the timeframe, your visa may be revoked or renewal denied.

2) Minimum Property Price Must Meet the Higher of Two Thresholds.

3) 10-Year Holding Period (No Downgrading) – Once you purchase a property under the MM2H program, you are required to hold it for a minimum of 10 years and are not allowed to downgrade to a lower-value property during this period

4) Proof of Purchase for Visa Continuation – Property purchase is part of MM2H visa compliance. Applicants must provide a valid Sale & Purchase Agreement (SPA) or property title deed to support visa continuation or renewal.

5) Only Residential Property is Allowed – Under the MM2H program, only residential properties are permitted—such as condominiums, apartments, landed homes (subject to state regulations), and landed strata properties (where allowed by state law).

6) State Authority Consent – You must obtain consent from the relevant State Authority before purchasing any property. This process typically takes 1 to 3 months, but approval may be denied if the property is below the minimum price threshold, is a Bumiputera-reserved unit, or is located on Malay Reserved Land.

7) Loan / Financing Rules – MM2H holders may be eligible for home loans but typically receive a lower Loan-to-Value (LTV) ratio, usually between 60% and 70%. Loan approval is subject to meeting the bank’s requirements, including income verification and valid MM2H status.

8) Fixed Deposit Withdrawal for Property – MM2H allows you to withdraw a portion of your fixed deposit for property purchases, with the withdrawable amount varying according to your specific tier.

9) Taxes & Fees – MM2H does not exempt you from paying stamp duty (on the Sale & Purchase Agreement and property transfer), legal fees, or Real Property Gains Tax (RPGT) upon sale