# Buying Property as a Foreigner

What Is It

Foreigners are permitted to own real estate in Malaysia under the National Land Code, subject to minimum price thresholds determined by individual State Authorities and obtaining formal State Consent.

Who Is Eligible

  • Foreign individuals, permanent residents, and foreign companies.
  • Exclusions: Foreigners cannot purchase Malay Reserved lands, agricultural properties (unless zoned commercial), low-and-medium-cost housing, or properties allocated under Bumiputera quotas.

    • Required Documents

  • Valid Passport.
  • Draft Sales & Purchase Agreement (SPA).
  • Form 11B (Application for State Authority Consent under Section 433B of National Land Code).
  • Bank financing approval letters (if borrowing locally).
  • Tax payment details.

    • Step-by-Step Procedure

    1. Choose Property: Ensure the property price exceeds the state-designated foreigner minimum threshold (e.g. RM1 million in Selangor for high-rise, RM2 million in Penang). 2. Sign Booking Form: Sign the booking form and pay a deposit (usually 2% to 3%). 3. Execute SPA: Sign the formal Sales & Purchase Agreement (SPA) (usually within 14 days). 4. Apply for State Consent: Submit the application for State Authority Consent (Permohonan Kebenaran Pihak Berkuasa Negeri) under Section 433B. 5. State Consent Issuance: Once the state approves (takes 2 to 3 months), the lawyer processes the transfer deeds (Memorandum of Transfer - MOT). 6. Settle Payments: Settle the balance purchase price and stamp duties to take possession of the property.

    Cost & Processing Time

  • Cost:
    • - State Consent Application Fee: RM500 to RM2,000 depending on the state. - State Consent Approval Levy: Capped at 2% of property price in selected states (e.g. Penang, Johor). - Lawyer fees and stamp duties (MOT).
  • Processing Time: 2 to 4 months for state authority approvals.

    • Where to Apply

  • Handled through appointed real estate lawyers submitting documents to respective State Land Offices (Pejabat Tanah dan Galian).

    • Important Notes

  • Minimum purchase thresholds vary by state and property type. E.g. WP Kuala Lumpur requires RM1 million for all properties; Selangor requires RM2 million for landed houses.