Can a foreigner buy a property in Malaysia?
Foreign ownership of property in Malaysia is liberal (foreigners can even own 100% of the property) as long as minimum requirements are met. In law, foreigners can own any type of properties with the exception of ( means CANNOT BUY ):
- Properties valued less than RM1 million in most of the major states. *
- Properties built on Malay Reserved land
- Low and medium cost residential units as defined by the state authority
- Properties distributed to Bumiputera interest in any development project as determined by the state authority.
Having said that, foreigners can easily own a studio unit, condominium, landed properties including terrace houses and bungalows, commercial property, industrial property, agricultural land and industrial land (except for Malay Reserved Land).
*Under the recent Budget 2020 announcement, the threshold for foreigners to purchase urban high-rise properties has been reduced from RM1 million to RM600,000 in 2020.)
How high are realtor and legal fees in Malaysia?
|
Transaction Costs |
Percentage |
Who Pays? |
|
Stamp Duty |
1% – 4% |
Buyer |
|
Lawyer/Solicitor´s Fees |
0.4% – 1% |
Buyer/Seller |
|
Real Estate Agent´s Fees |
2% – 3% |
Seller |
|
Costs paid by buyer |
1.40% – 5% |
|
|
Costs paid by seller |
2.40% – 4% |
|
|
ROUNDUP OF TRANSACTION COSTS |
3.80% – 8.8% |
|
Should you require more information regarding Malaysian property market, please fill in the contact form.