Purchase a Property in Malaysia

Updated on Monday 27th May 2024

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If you want to buy a property in Malaysia and you want to know the conditions, we advise you to contact one of our specialists. A property lawyer in Malaysia can explain to you what are the conditions that must be respected and can take care of the formalities of the purchase process. In the following lines, you can discover some information about this subject as well as about the services offered by our real estate lawyer in Malaysia.

 Quick Facts  
Types of properties that can be purchased in Malaysia 

- commercial and residential properties,

- land plots 

The institution in charge of property registration in Malaysia 

Malaysian Land Registry 

What is SPA?  

 SPA is the Sale-Purchase Agreement in Malaysia

Documents for buying a property in Malaysia

- property documents that show the former owners,

- Title Deed,

- cadastral documents,

- building permits, etc. 

Requirements for foreigners buying a property in Malaysia 

 Should buy a property worth at least RM 1 million

Expert advice for price property in Malaysia (YES/NO) 


Verification of properties with local institutions or municipalities (YES/NO) 


Inspection trip before property purchase (YES/NO) 


Pre-sale agreement for properties in Malaysia 

It represents a guarantee that the chosen property is reserved and ready to be sold to a new owner in Malaysia. 

Minimum deposit solicited   At least 3% of the total value of property in Malaysia, however, no more than 10%.
Can a property price be negotiated in Malaysia? 

In most cases yes, but you can discuss this aspect with the real estate agent in charge of your case.

Currency solicited for the payment of property in Malaysia 


Real Property Gains Tax in Malaysia 

 10% for foreigners and  business owners in Malaysia

Residency through property purchase in Malaysia 

 Available through Malaysia My Second Home Program (MM2H)

Why choose our lawyers in Malaysia for property purchase? 

-  professionalism,

- attention to detail,

- efficiency,

- experience in the real estate field in Malaysia

 SST (Sales & Services Tax) for buying a house in Malaysia   8% 

 Other fees that are paid by both seller and buyer in Malaysia  

- stamp duty registration fee,

- real estate agent's fee, etc. 

 Requirements to enter the MM2H program  

- buying a property worth at least MYR 1 million,

- being at least 35 years old,

- providing the source of funds,

-  other relevant immigration conditions 

 Stamp duty on sale & purchase contract   Around RM 10. Exemption from this tax is applicable for property transfer between family members.
 Real estate agent fee (approx.)  

 3% of the property price

 Can a foreigner buy a property in Malaysia on her/his own?  

Yes, but to avoid legal problems and complexities, it is suggested to work with a real estate lawyer who knows the legislation and can provide his/her expertise. 

 Buying a house through a mortgage in Malaysia  

 Available option, but foreigners should pay attention to the conditions imposed by banks and other relevant authorities.

 Recommendations for loans in Malaysia  

It is advisable to work with a conveyancing lawyer and discuss your options. 

 What happens with the deposit if the buyer changes his/her mind? 

 The deposit cannot be returned.

 What comes after signing the SPA?    The new owner can have his/her house in Malaysia.
 Post-sale requirements  

The buyer must pay relevant taxes and register as a new owner with the local municipality. 

 What is a Memorandum of Transfer?  

A legal document that confirms the actual ownership transfer. 

 Warranty against defects  

 Available in case of buying a new house and if repairs must be done, at no costs on behalf of the buyer.

 Popular cities for buying a house in Malaysia  

- Kuala Lumpur,

- Penang,

- Klang Valley,

- Subang, etc. 

Average price for a property in Kuala Lumpur  Around RM 11,751 per square meter for an apartment in city center 

Requirements for foreigners purchasing a Malaysian property 

Since 2014, the legislation stipulates that a foreigner is allowed to purchase a property (regardless of its type) if the property has a minimum value of MYR 1 million. A provision of this law specifies that foreigners can purchase even two properties if they are listed as condominiums. It is quite recommended to request the assistance of our Malaysian lawyers when purchasing a real estate property.  In terms of conditions, after the property has been chosen, the buyer should deposit a minimum of 3% of the value of the property; our team of lawyers in Malaysia can provide more details on the matter. We can also put you in touch with our foreign partners. Here is an infographic about how to buy a house in Malaysia:

Purchasing process of a property in Malaysia 

After depositing the minimum sum in a period of two weeks, the purchasing process can be completed by signing the sale and purchase agreement and the transfer of ownership will be registered at the Land Office Registry.  In three months after the document was signed the buyer must pay the entire property price. As a general rule, any purchase implies the following taxes: 
  • stamp duty;
  • legal fee;
  • real estate agent’s fee;
  • registration fee. 

Property market in Malaysia

If you want to buy a property in Malaysia, it is good to do a market inspection, to know the conditions imposed for foreign citizens and it is recommended to collaborate with a property lawyer in Malaysia. Depending on the possibilities, one can buy a house in Malaysia from personal funds or apply for a loan. Here is what should be taken into account when you want to buy a property in Malaysia, specifying that you can always collaborate with our real estate lawyer in Malaysia:
  • It is recommended to analyze market offers and make a decision based on preferences: city, area, prices, facilities, etc.
  • Collaboration with a conveyancing lawyer in Malaysia is important. Such a specialist can make various checks from a legal point of view when choosing a property to buy in Malaysia.
  • If you want to apply for a loan to buy a property in Malaysia, make sure you know the conditions imposed by the chosen bank or financial institution. Some of these require extra documents for foreigners who want to purchase a property in Malaysia.
  • There are certain rules regarding the price of a property for purchase in Malaysia. For example, the minimum value is RM 1 million.

We invite you to find out all the legal details from our property lawyer in Malaysia. He or she can guide you on how to buy a property in MalaysiaYou can also watch the following video on how to purchase a property in Malaysia


Malaysia My Second Home Program for foreigners

Property purchases in Malaysia can also be made with the help of a program dedicated to foreigners. Malaysia My Second Home Program or MM2H is one such program that allows foreigners to own real estate in Malaysia, under certain conditions:
  • Financial information is required and more specifically a minimum investment of MR 1 million for the purchase of a real estate property. Our conveyancing lawyer in Malaysia can tell you more.
  • You must be at least 35 years old to access this program.
  • This residence by investment program is also addressed to family members, but there is a specific payment fee for each applicant.

What is important to specify is the fact that once the property is bought through this investment program, a residence permit is issued in Malaysia. Other benefits refer to the 10-year multiple-entry visa allowing applicants and family members to live in Malaysia.

Property tax exemptions in Malaysia

If you bought a property in Malaysia for the first time, you should know that you can also benefit from tax exemptions. This refers to real estate property gain tax for which you can apply and be eligible. Thus, RPGT is not imposed for first-time property buyers in Malaysia, with residency in this country. However, real estate property gains tax is set at a 10% rate.

Here are some interesting facts about the real estate market in Malaysia:
  • The national house price index in Malaysia grew by around 0.72%, in Q2 of 2022.
  • The residential real estate sector in Malaysia is projected to reach around USD 22.41 billion in 2024, and about USD 29.84 billion by 2029.

Interested in citizenship in Malaysia? You can contact one of our immigration lawyers in Malaysia who has experience in this field and who can explain the eligibility criteria. It is much more recommended to ask for legal help and ensure a process without errors or rejections in terms of documents. We mention that this citizenship can be obtained by people who prove that they have lived in this country for at least 10 years and who also know the spoken language. Contact us to find out more information.

In addition to the services offered by our attorneys in Malaysia in the real estate field, you can also opt for those offered by our commercial lawyer in Malaysia. On the other hand, those who want details about immigration to Malaysia can benefit from full legal assistance and representation before the authorities. We can also help you obtain residency in Malaysia. Persons interested in receiving further information on the purchase of property in Malaysia can address our law firm in Malaysia for legal representation.