Buying in Kuala Lumpur
Check eligibility and the complete budget before choosing a property.
Eligibility and location-specific thresholds
Foreigners can buy qualifying Malaysian property, subject to applicable approvals and restrictions. Check state thresholds, land restrictions and property category individually. MM2H purchase conditions are not a substitute for state or project rules. Verify eligibility before paying a deposit.
2026 residential transfer stamp duty
Under the current HASIL guide, from 1 January 2026 residential transfers to a foreign company or an individual who is neither a Malaysian citizen nor permanent resident attract 8%, based on the higher of consideration or market value. This is not a universal rate for all buyers or properties. Check status, property category, transfer-instrument dates, exemptions and transitional treatment; the SPA date alone is not decisive.
Legal fees and the wider budget
For ordinary sale/transfer work, SRO 2023 Table A sets 1.25% on the first RM500,000 (minimum RM500) and 1% on the next RM7 million; the excess follows the applicable negotiated scale. HDA transactions use Table B. Obtain separate quotations for financing work, taxes, registration, searches and disbursements rather than assuming a universal 1–2% fee.
Developer packages and financing
Some developers cover specified legal fees, stamp duties or administrative charges. Check the formal package, eligible documents and exclusions; such offers are not universal. Banks assess foreign applicants by status, income, property and risk, with no guaranteed approval or financing ratio.
Documents, handover and ownership costs
Have a qualified lawyer check title, restrictions, approvals, the SPA and existing tenancies. Budget for management charges, sinking fund, local assessments and maintenance. Inspect equipment and defects at handover. Buying a home does not automatically grant a long-term visa, MM2H or permanent residence.
Frequently asked questions
Can foreigners buy property in Malaysia?
Eligible properties may be available, but foreign land acquisition involves State Authority approval and title-specific restrictions. Have a solicitor check the location, property category, buyer status and current policy before making a binding payment.
Is the foreign-buyer minimum price the same nationwide?
Do not apply one figure to every state or development. Verify the state or federal territory, property category, buyer status and approval conditions; MM2H purchase conditions do not automatically replace local requirements.
What is the 2026 residential transfer duty for foreign buyers?
From 1 January 2026, qualifying residential transfer instruments to foreign companies or individuals who are neither citizens nor permanent residents generally attract 8%, on the higher of consideration and market value. Permanent residents are excluded from this foreign-individual flat rate; an SPA date alone does not settle a cross-year case.
How does the general graduated transfer duty work?
Where the general scale applies without relief, rates are 1% on the first RM100,000, 2% on the next RM400,000, 3% on the next RM500,000 and 4% above RM1 million. Confirm applicability, valuation and any exemption with a solicitor or HASIL.
Can I simply budget 1% for conveyancing legal fees?
Under SRO 2023 Table A, the first RM500,000 is 1.25% (minimum RM500), the next RM7 million is 1%, and excess above RM7.5 million is negotiable up to 1%. HDA transactions have a separate table; request separate financing, tax and disbursement quotations.
What costs should I allow for beyond the down payment?
Allow for transfer and financing costs, legal disbursements, valuation, insurance, maintenance and moving or renovation. Request a unit-specific budget reflecting your status and financing rather than treating an advertised package as the full cost.
Are foreign buyers guaranteed 70% financing?
Banks assess loan margins, rates and tenure using income, status, valuation and credit, so no margin is guaranteed. Obtain an individual assessment and check the contract consequences of a shortfall or rejection before paying.
When do I pay the deposit and balance down payment?
Payment stages depend on the transaction type and signed documents. Have a solicitor verify the amounts, recipient account, stakeholder arrangement and refund conditions before payment.
What title information should be checked?
Ask your solicitor to check the registered owner, land or strata title, remaining tenure, use, restrictions, charges and other encumbrances. Advertising descriptions such as “freehold” or “residential” do not replace a title search.
How should I compare freehold and leasehold property?
Compare remaining tenure, title restrictions, location, price, upkeep and financing together. Extension may involve approval and costs, so future renewal or appreciation should not be assumed.
What should I compare between new and resale homes?
For new projects, examine developer details, delivery commitments, payment schedules and documents; for resale, examine condition, title, occupiers and the seller’s redemption arrangements. Use formal documents and independent checks for both.
How do I check condominium maintenance and sinking-fund charges?
Request current bills, arrears information, management budgets and recent meeting records, and confirm parking and facilities. Have the solicitor check apportionment and settlement arrangements before completion.
Can advertised rental yields be treated as guaranteed?
Deduct vacancy, repairs, maintenance, taxes and financing when evaluating projected yields. For a rental guarantee, review the provider, duration, payment conditions and remedies; an ordinary projection is not a guarantee.
Will a purchase always complete within three months?
Completion depends on the contract, financing, redemption, title documents and required approvals. Ask your solicitor to identify conditions, start dates, extensions and late interest rather than treating an estimate as a commitment.
What should I confirm at handover?
Check the contractual condition, occupancy, keys, access cards, inventory, meter readings and settled charges. Document defects promptly and confirm the applicable repair procedure and deadlines under the transaction documents and law.
Will I pay Real Property Gains Tax when I sell?
RPGT concerns chargeable disposal gains, with rates depending on seller category and holding period rather than simply applying to the full sale price. Individuals who are neither citizens nor permanent residents generally face 30% through year five and 10% from year six; assess deductions, exemptions, filing and purchaser retention separately.
If a developer covers stamp duty and legal fees, will I pay nothing else?
Obtain a written incentive schedule distinguishing SPA legal fees, transfer duty, financing legal fees and financing duty. Check buyer eligibility, caps, disbursements, taxes, later title costs and cancellation conditions; “all-inclusive” advertising does not establish a blanket exemption.
Must I have MM2H to buy, and does buying give me a long-term visa?
Property eligibility and immigration status require separate assessment; MM2H should not be treated as a universal prerequisite for every foreign purchase. A purchase does not automatically grant a long-term pass or permanent residence, and MM2H requires its own application, approval and ongoing conditions.
Policy sources checked: 2026-10-27
Sources and verification date
Checked: 2026-10-27
General information only, not a substitute for legal, tax, immigration or education advice. Confirm eligibility, charges and terms against current rules and individual documents.