Can foreigners buy property in Malaysia? Learn more about how to buy in Penang, Selangor and more

If you’re living in Malaysia as an expat and have fallen in love with the place, you may be wondering if a foreigner can buy property in Malaysia. Or maybe your question is: _Can foreigners buy property in Malaysia as an investment? _ In either case, you’re in luck. Foreigners can buy property in Malaysia with just a few restrictions and rules - which we’ll cover in this guide.

And because you don’t want to lose out on unnecessary fees when making a big purchase like a property, we’ll also introduce Wise. Use Wise to cover your costs in Malaysia from abroad, with low cost currency conversion and fast, cheap and easy international transfers with the mid-market rate and low fees¹. More on that later.

Can foreigners buy property in Malaysia?

Yes. Foreigners can buy property in Malaysia, subject to certain restrictions.

Generally, foreigners are able to buy property in Malaysia aside from:

• Developments on Malay reserved land
• Low- and medium-cost affordable units
• Properties allocated to Bumiputera groups

The laws relating to buying property in Malaysia are largely captured in the National Land Code of 1965² and state that foreign individuals and companies can acquire properties and land with the approval of the state authority. In practice this means that aside from some out of bounds locations, different states allow the purchase of property by foreigners, but with limits in terms of the value of properties which can be bought and sold.

The fact that some of the decisions about and ownership are devolved to a state level also means that there may be different fees or taxes when buying a property in Malaysia as a foreigner, depending on where the property is situated.

Can permanent residents buy property in Malaysia?

Malaysian permanent residents can buy a property in Malaysia - but they’re subject to the same rules as foreigners. In practice, the process, property value limits and restrictions are not any different from those which apply to non-PRs.

How to buy property in Malaysia?

You can buy property in Malaysia subject to a few key rules, as we've seen. The process is fairly straightforward, but it’s a good idea to get some local advice on board early on to make sure you're completely clear on the requirements. Navigating any real estate purchase can be pretty tricky - not least if it’s in a different country.

We’ve already seen that some requirements relating to buying a property in Malaysia as a foreigner are devolved to the state to decide. This can include taxes, fees and - importantly - the value of homes available for foreign residents. This guide walks through some of the roles for a foreigner to buy a house in Malaysia in different places. Bear in mind that different limits and requirements may be in place if you’re looking to buy a place in Malaysia as part of an MM2H visa application. In this case, the chances are that you’ll be required to invest more in a property to back your visa application.

Information in this guide has been taken from various online sources including popular real estate sites like PropertyGuru³. Before you decide to buy a property in Malaysia you’ll need to do your own research, and engage a local professional to advise you on the rules, requirements, and processes in place in the Malaysian state you’re planning on buying in.

Foreigners buy property: In Penang

The minimum purchase costs for foreigners to buy property in Penang depends on whether you’re buying a landed property or something more like a high rise condo, and whether you’re on the mainland or island. Generally, the minimum requirements are less for condos compared to landed developments, and the requirement on the mainland is about half of that if you prefer to live on Penang island.

Foreigners buy property: In Selangor

For foreigners to buy property in Selangor they’ll need to stick to landed properties with landed strata titles. As a foreigner or PR you’re also not allowed to bid on properties at auction, or own agricultural land in Selangor.

Foreigners buy property: In Kuala Lumpur (KL)

You may be surprised to see that the limits on buying property in the capital, KL, are not higher than in many other places - coming in at 1 million MYR. However, this might be a moot point, as Kuala Lumpur has some of the most expensive real estate in the country, with average prices per square metre higher than in many other locations.

🏠 If you're a Singaporean looking to buy property in Malaysia, check out our essential guide everything you need to know before making your purchase

Foreigners buy property: In Johor

The minimum purchase price to buy property in Johor as a foreigner depends on the type and location of the place you’re interested in. Broadly speaking you’ll lay out at least 2 million ringgit if you want a landed property in a designated international zone, with minimums of 1 million MYR on most high-rise or strata title properties outside of the international zones.

Foreigners buy property: In Sarawak

For foreigners to buy property in Sarawak the minimum price payable will depend on whether you want to buy in Kuching or elsewhere. In Kuching the minimum price - and the minimum MM2H price - is 600,000 MYR, whereas you’ll knock that down to 500,000 MYR if you’re able to look in different locations in the state.

Save on international transfers with Wise when you buy property in MYR

If you’re buying a place in Malaysia as a foreigner, you need Wise.

Wise offers low cost currency conversion and international transfers, which use the mid-market exchange rate and low, transparent fees from 0.33%. It’s safe to send payments with Wise - which is regulated and licensed in Malaysia and many other countries and regions globally - and your money could be where it needs to be fast, or even instantly.

International transfer fees can be pretty staggering when you’re sending a high value payment for a downpayment, or to cover the balance of the costs of an overseas property. Take a look at how the costs and fees might rack up, here:

Looking for more? Once you arrive, use Wise and the Wise card for your day to day spending and cash withdrawals. You’ll still get the mid-market rate and the low, transparent fees Wise is known for, so you can do more with your money once you’re in your new Malaysian home.

Save on large MYR transfers with Wise