Investing in Malaysian Property

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The laws in Malaysia vary slightly between states, and the restrictions on foreigners owning property in Malaysia also differ. Here are some general thresholds: 

• Kuala Lumpur: RM 1 million and above
• Selangor: RM 2 million and above 
• Penang Island: RM 800,000 and above (apartments), RM 1.8 million and above (landed properties) 
• Johor: RM 1 million and above (apartments), RM 2 million and above (landed properties in specific areas) 
• Pahang: RM 1 million and above 

However, some projects, with special approval from the state government, allow foreigners to own property for as low as RM 400,000.

Property acquisition tax for foreigners also differs. 

Here are the rates for some states: 

• Penang - 3% 
• Johor - 2% 
• Pahang - 5% 
• Melaka - 2%

Taking Johor as an example: 

• Assuming the contract price is: RM1,000,000. Levy = RM20,000 
• Assuming the contract price is: RM1,200,000. Levy = RM24,000 
• Assuming the contract price is: RM400,000. Levy = RM20,000 
• Assuming the contract price is: RM990,000. Levy = RM20,000 

The minimum charge is RM20,000 + law firm's disbursement fee (approximately RM2,000).