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Property in Malaysia

Kuala Lumpur, Penang, Langkawi — FREEHOLD for foreigners + MM2H visa

from $150,000Starting price
4-7% grossYield

Ownership: Freehold for foreigners (min RM 1M, in Kuala Lumpur — RM 600K)

Malaysia — Kuala Lumpur, Penang, Langkawi

Market

Property market in Malaysia

Malaysia is one of the most developed countries in Southeast Asia, with a mature real-estate market and FREEHOLD ownership for foreigners. Key spots: Kuala Lumpur (megacity, Petronas Twin Towers, KLCC), Penang (UNESCO Georgetown, non-stop gastronomy, premium seafront residences), Langkawi (tropical island, duty-free), Johor Bahru (Forest City — growth reserve, next to Singapore). The MM2H (Malaysia My Second Home) programme grants a long-term visa tied to a purchase. Prices — from $150K. Yield 4-7%.

  • Freehold for foreigners is available with a minimum of RM 1 million (~$215K) in most states(WT Group Malaysia, 2026)
  • Kuala Lumpur: eased minimum of RM 600K (~$130K) for certain projects since 2025(Vitvet, 2026)
  • Penang (island) — RM 3 million threshold; mainland — RM 1 million(WT Group, 2026)
  • MM2H: deposit RM 1 million, income RM 40K/month, visa up to 20 years(Malaysia Immigration)
  • A foreigner cannot buy "bumiputra" property (a quota for native Malays)(National Land Code)

Prices

Price per m² by city and district — Malaysia

LocationPrice per m²Comment
Kuala Lumpur (KLCC)$3 000–5 500premium district by the Petronas Towers
Kuala Lumpur (Mont Kiara/Bangsar)$2 200–3 800expat districts
Penang (Georgetown)$1 200–2 800UNESCO historic centre
Penang (Tanjung Bungah)RM 5 500–8 500 (~$1 200–1 850)premium seafront (WT Group, 2026)
Langkawi$1 200–2 500beach island, duty-free
Johor Bahru / Forest City$1 000–2 200discounts of 30-50% on a controversial megaproject

Ownership

Ownership for foreigners in Malaysia

Malaysia is one of the few countries in Southeast Asia where a foreigner can buy freehold on an apartment, villa, or land without a limit on the number of properties. The main condition is the minimum property value per state. A purchase does not automatically grant a residence permit — MM2H is required.

  • Minimum property value from RM 600K to RM 3 million depending on the state
  • Cannot buy "bumiputra" category housing (a quota for native Malays) or social housing
  • Cannot buy agricultural land or property on the islands of Malaysian states without a special permit
  • Exemptions from Real Property Gains Tax on resale only after 6 years of ownership

Source: National Land Code 1965, MM2H Programme

Taxes

Taxes on purchase and ownership in Malaysia

TaxRateWhen paid
Stamp Duty (progressive)1-4%one-off at the transaction; 4% above RM 1 million (Stamp Act 1949)
Legal/notary~1%one-off, at registration (Bar Council Malaysia)
Quit Rent (land)~RM 100-300/yearannually, low (National Land Code)
Assessment Tax6-8% of ARVannually, of annual rental value (Local Government Act)
Rental tax (non-resident)24% flaton gross rent for non-residents (LHDN, Income Tax Act)
RPGT (capital gains)10-30%on sale; 30% if <3 years of ownership, 0% after 6 years (RPGT Act 1976)

Residency

Residency through property purchase in Malaysia

deposit RM 1 million (~$215K) + income RM 40K/monthMinimum investment
3-6 monthsProcessing time

MM2H (Malaysia My Second Home) — a long-term visa of 5-20 years for foreigners and their families. Requirements: proof of income RM 40K/month, a deposit of RM 1 million in a Malaysian bank for 10 years (part of it can be spent on housing/education/healthcare). The visa covers a spouse, children under 21, and parents.

Source: Malaysia My Second Home Programme, MOTAC

Rental yield

Rental yield by city in Malaysia

CityTypeGrossNet
Kuala Lumpur (KLCC)Condo, expat rental4–6%3–4%
Penang (island)Premium residences5–7%3–5%
LangkawiResort rental5–8%3–5%
Johor BahruSpeculative3–5%2–3%

FAQ

Frequently asked questions about buying property in Malaysia

Can a foreigner buy property in Malaysia?

Yes, FREEHOLD is available. The minimum purchase price is RM 1 million (~$215K) in most states. In Kuala Lumpur, after 2025 — RM 600K (~$130K). No limit on the number of properties and no residency obligations. You can buy land, villas, condos, and commercial properties.

What is MM2H (Malaysia My Second Home)?

A long-term visa programme for foreigners. Conditions: proof of income RM 40K/month (~$8.7K), a deposit in a Malaysian bank of RM 1 million (~$215K) for 10 years. The visa grants residence for the whole family, without an obligation to work or pay tax on foreign income. It is often combined with a property purchase.

Where is it best to buy in Malaysia?

Kuala Lumpur — for urban rentals and expats, liquidity, KLCC premium. Penang (Georgetown + island) — for living and a wellness format, the gastronomic capital of Asia, mild climate. Langkawi — for beach holidays + duty-free business. Forest City (Iskandar/Johor) — a controversial megaproject next to Singapore, with discounts of 30-50%.

What is the rental yield in Malaysia?

4-7% gross — lower than in Thailand or Vietnam due to the maturity of the market. Kuala Lumpur — 4-6% (stable expat rentals). Penang — 5-7% (premium seafront residences). Langkawi — 5-8% (seasonal beach). Malaysia wins not on yield, but on low risks and FREEHOLD ownership.

What is the minimum purchase threshold in each Malaysian state?

Kuala Lumpur and Selangor — RM 1 million (~$215K). Penang — RM 3 million (~$650K) on the island, RM 1 million on the mainland. Johor — RM 2 million in most zones. After 2025, KL eased the threshold to RM 600K for certain projects.

What taxes apply on purchase and ownership in Malaysia?

Stamp duty 1-4% progressive (1% up to RM 100K, 2% up to RM 500K, 3% up to RM 1 million, 4% above). Legal services ~1%. The annual quit rent (land tax) is low — ~RM 100-300/year for an apartment. Assessment tax ~6-8% of annual rental value. Rental income tax — 24% for non-residents or a progressive scale for MM2H residents.

How does MM2H differ from a regular tourist visa?

MM2H is a long-term visa of 5-20 years (previously up to 10) with the right of residence for the whole family without an obligation to work. Conditions: proof of income RM 40K/month, a deposit of RM 1 million in a Malaysian bank for 10 years (part of it can be spent on housing, education, healthcare). A tourist visa — only up to 90 days.

Other destinations

Explore other markets

UAEfrom $200,000Thailandfrom $80,000Omanfrom $180,000Turkeyfrom $80,000Cyprusfrom €200,000Greecefrom €150,000Indonesia (Bali)from $180,000Georgiafrom $40,000Vietnamfrom $50,000Montenegrofrom €100,000Serbiafrom €80,000 (~8.8M ₽)Mexicofrom $120,000Armeniafrom $80,000Bahrainfrom $200,000Saudi Arabiafrom $300,000Kuwaitunavailable for non-GCCPhilippinesfrom $50,000Dominican Republicfrom $150,000Mauritiusfrom $300,000 (PDS entry), from $375,000 (residence permit)Seychellesfrom $500,000 (Eden Island apartments)Sri Lankafrom $80,000Cambodiafrom $40,000 (~4M ₽)Cabo Verdefrom €50,000 (~5.5M ₽)

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