What it costs to buy property in Malaysia as a foreigner
Malaysian property looks inexpensive next to Singapore, Hong Kong or London, but foreign buyers pay noticeably more in taxes and fees than locals do. Since 2024 there has been a dedicated stamp duty rate for non-citizens, and some states add their own levies on top.
Here are the main costs to budget for in 2026 - on the way in, while you own, and on the way out.
Stamp duty: a flat 4% for foreign buyers
Malaysian buyers pay stamp duty on the transfer of property on a sliding scale: 1% on the first RM100,000, 2% on the next RM400,000, 3% on the next RM500,000 and 4% on anything above RM1 million.
For instruments executed from 1 January 2024, however, non-citizen individuals (excluding Malaysian permanent residents) and foreign-owned companies pay a flat 4% on the whole price or market value, whichever is higher, under item 32(aa) of the First Schedule to the Stamp Act 1949, according to the Chartered Tax Institute of Malaysia's Budget 2024 commentary. On a RM1.2 million condominium that is RM48,000, against RM32,000 for a citizen.
- Citizens: 1% to 4% on a sliding scale
- Non-citizens and foreign companies: flat 4% since 1 January 2024
- Malaysian permanent residents keep the sliding scale
State consent fees and foreign levies
Every foreign purchase needs consent from the state authority, and most states charge for it. The standout is Johor, which from 1 July 2025 raised its levy on foreign buyers to 3% of the property value for residential, commercial and agricultural property (4% for industrial), on top of a fixed registration fee of RM4,500 for a RM1 million property plus RM250 per additional RM50,000, according to law firm Y Kong, Wong & Partners.
That takes total entry costs for a foreign buyer in Johor to roughly 7% before legal fees. Other states charge substantially less, so the same budget goes further outside Johor - factor the state levy into any comparison.
- State consent is mandatory and usually carries a fee or levy
- Johor: 3% foreign levy on residential property from 1 July 2025
- A RM1.2 million Johor purchase attracts about RM36,000 in levy plus RM5,500 in registration fees
Legal fees and the other line items
Conveyancing fees for solicitors in Malaysia are set on a regulated sliding scale that tapers as the price rises, and you should also budget for valuation fees if you take a mortgage, plus loan stamp duty on the financing documents. Figures depend on the price and the lender, so get a written quote from a Malaysian conveyancing solicitor early.
Foreign buyers can generally obtain Malaysian mortgages, though loan-to-value ratios offered to non-residents are usually lower than for locals.
RPGT: the tax when you sell
Malaysia has no annual wealth tax on homes and no capital gains tax as such, but it charges Real Property Gains Tax (RPGT) on disposal. For non-citizens the rate is 30% of the gain if you sell within five years of acquisition, and 10% from the sixth year onwards - it never falls to zero, unlike for citizens, who pay nothing after five years, according to PwC's Malaysia tax summary.
One exception: non-citizens selling property in the Forest City Special Financial Zone in Johor pay preferential rates of 0% to 15% under agreements executed between 1 September 2024 and 31 July 2034.
- Non-citizens: 30% RPGT within 5 years, 10% thereafter
- Citizens and permanent residents: 30%/20%/15% in years 1-5, then 0%
- Forest City SFZ: preferential 0-15% for non-citizens until 2034
A worked example
Take a RM1.2 million condominium - comfortably above the RM1 million federal minimum price that applies to foreign buyers under the Ministry of Economy's acquisition guideline.
In most states you would pay RM48,000 in stamp duty plus state consent fees and legal costs. In Johor, add around RM36,000 in foreign levy and RM5,500 in registration fees, taking government charges alone to about RM89,500 - roughly 7.5% of the price. Prices and fee scales change, so confirm current figures with the state land office and a local solicitor. Habio's Malaysia buyer guides and listings can help you compare what different budgets buy across the country.
- Stamp duty at 4%: RM48,000
- Johor foreign levy at 3%: RM36,000
- Johor registration fee: RM5,500
Frequently asked questions
How much stamp duty does a foreigner pay on Malaysian property?
A flat 4% of the purchase price or market value, whichever is higher, for instruments executed from 1 January 2024. Malaysian citizens and permanent residents pay a sliding scale of 1% to 4% instead.
What is RPGT in Malaysia for foreigners?
Real Property Gains Tax is charged on the profit when you sell: 30% if you dispose within five years of buying, and 10% from the sixth year onwards for non-citizens.
What extra costs do foreign buyers face in Johor?
From 1 July 2025 Johor charges foreign buyers a 3% state levy on residential property plus a tiered registration fee (RM4,500 on the first RM1 million, then RM250 per RM50,000), on top of the nationwide 4% stamp duty.
Are there annual property taxes in Malaysia?
There is no national annual property or wealth tax on homes. Owners pay modest local assessment rates and land tax (quit rent) to state and local authorities, which vary by property and location.
Is there capital gains tax on Malaysian property?
Not as such - gains on real estate are taxed under the separate RPGT regime, with rates based on how long you have held the property and whether you are a citizen.
Sources
This article is general information, not legal, tax or financial advice. Markets and rules change — verify the current position with official sources before acting. Published 2 August 2026.