The Process of Purchasing Real Estate in Malaysia
In Malaysia, acquiring property necessitates engaging a real estate lawyer to facilitate the transaction. Once the decision to purchase a property is made, a deposit must be paid.
Furthermore, the process of buying property in Malaysia requires signing a sale and purchase agreement within 14 days and making staggered payments according to the stipulated procedures.
The sale and purchase agreement must be stamped and submitted for scrutiny by the Valuation and Property Services Department. In the case of property transfer, the transaction must be registered with the Land Registry.
Conditions for Purchasing Real Estate
1. Minimum Purchase Price
Foreigners are required to meet a minimum purchase price of MYR 1 million when acquiring property. However, it’s important to note that the price may vary by state.
2. Types of Land Available for Purchase
According to Malaysian law, foreign nationals are free to purchase any type of property in Malaysia, including detached houses, luxury apartments, landed properties, and townhouses. They are allowed to buy residential and commercial properties under personal or corporate names. However, the following types of land cannot be acquired :
◾ Agricultural land
◾ Native land
◾ Land reserved for Malays
3. Is there a limit on the number of properties that can be purchased?
No. There are no restrictions on the number of properties that foreigners can purchase in Malaysia. These acquired properties can be utilized for personal residence, rental, or resale.
Cost of Purchasing Property
1. Lawyer fees (sale and purchase agreement + loan agreement)
are levied in proportion to the total real estate price:
| Property Price | Lawyer Fees |
| First RM500,000 | 1% |
| Then RM1,000,000 | 0.8% |
| Then RM3,000,000 | 0.7% |
| Then RM5,000,000 | 0.6% |
| Excess | 0.5% |
2. Stamp duty on property purchase
When purchasing a property, stamp duty must be paid.
| Property Price | Stamp Duty to be Paid |
| First RM100,000 | 1% |
| Then RM400,000 | 2% |
| Excess | 3% |
3. Stamp duty on loan
Stamp duty on loan amount = 0.5%
4. House tax
is levied by the local municipality and is paid every six months. It varies by location and cannot be calculated accurately.
5. Land tax
It is levied by the local municipality and paid once a year. It varies by location and cannot be calculated accurately.
Other Real Estate Information
1. Types of land tenure in Malaysia
There are two types of land ownership, one is Freehold, which has no time limit and is held permanently; the other is Leasehold, which can be obtained with a lease with a maximum validity period of 99 years and is submitted to the state. The government is allowed to continue after paying a premium.
2. Rent
Generally rent is paid monthly.
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