Buying property in Malaysia as a foreigner: Complete UK guide

Malaysia is a popular choice for foreigners looking to move there, invest in property or join a growing community of retiree expats.

The climate, culture and friendly people go a long way - and with Kuala Lumpur transforming itself into a global hub for startup businesses, it’s becoming particularly attractive to young professionals.

If you’re moving to Malaysia, you’ll need somewhere to live. In this handy guide, we’ll cover everything you need to know about buying property in Malaysia as a foreigner.

This includes info on mortgages, fees and taxes, property prices, where to start your search and the pitfalls to avoid.

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Can you get a mortgage from a Malaysian bank as a non-resident?

First up, you’ll need to think about how you’ll finance your Malaysia property purchase. Unless you have the cash upfront, you’re likely to need a mortgage.

The good news is that banks in Malaysia do offer mortgages to foreign citizens and non-residents.

However, you may find that the process is a little more difficult compared to the experience of local applicants. You’ll need lots of documentation and need to meet strict eligibility criteria.

You may also only get a loan-to-value (LTV) ratio of around 70% as a foreign buyer, although this may increase to 80% if you have the Malaysia My Second Home (MM2H) visa.¹ In general, the MM2H visa makes it easier for foreigners to secure financing for property purchases.

It’s a good idea to start shopping around for mortgages before starting your property search in earnest. It’s recommended to use a specialist broker, who can help you find the right mortgage for your circumstances.

Taxes and fees for owning property in Malaysia

In order to set your budget for the purchase, you’ll need to factor in legal fees, property taxes and other costs.

Here are the main ones to know about when buying property in Malaysia:

Tax/fee name	Rate/fee
Stamp duty	1% to 4% for Malay citizens and permanent residents 4% to 8% for foreign non-residents2
Legal fees	0.5%³ to 1.5%2
Admin fees - including land searches and title registration	1,000 to 3,000 MYR3
Mortgage valuation fees	0.25% to 0.5%3
Fixed transfer fee	10 MYR3
Property taxes (annual)	Rate/fee
Assessment tax (cukai taksiran)	4% to 8%4
Quit Rent (Cukai Tanah) and Parcel Rent (Cukai Petak)	Varies by region and property/land size4

📚 Is it better to use cash or card in Malaysia?

What’s the property market like in Malaysia?

The property market in Malaysia is in pretty good shape at the moment. It can be characterised by stable property prices, healthy demand and support from strong economic growth across the wider economy.

House prices grew by just over 3% in Q2 2025, compared to the year before.⁵ Unsurprisingly, the most expensive properties are found in Kuala Lumpur.

As a buyer, it could be a good time to invest in Malaysian property - as the country offers more affordable housing compared to other nearby countries, and the economic outlook is generally positive.

If you’re looking to buy a property to rent out, it could be useful to know that gross rental yields remain moderate at an average of 5.19% (as of Q3 2025) across the country.⁵

Can foreigners buy property in Malaysia?

Foreigners can buy property in Malaysia, but there are restrictions.

For example, you may not be able to buy cheaper properties valued under a certain threshold. This restriction and the detail of it varies by state, and it can also depend on your visa type.⁶

If you have the Malaysia My Second Home (MM2H) visa, some of these restrictions may be eased.⁶

You can own land in Malaysia as a foreign national, but it’s usually leasehold (fixed term up to 99 years, with the possibility of renewal) rather than freehold.⁶

In many cases, you may need written approval from the respective state land authority in order to buy property or land in Malaysia as a foreigner.²

Can you buy property in Malaysia and get residency?

Yes, there is a very attractive pathway through which foreign citizens can invest in property in Malaysia and get residency.

This is the Malaysia My Second Home (MM2H) programme. This grants a long-term renewable visa to foreign nationals who meet key criteria - such as being over a certain age and investing a minimum amount in real estate.

The scheme has multiple tiers, where generally speaking the more you invest, the longer you can stay. For example, invest $150,000 USD and you can get a visa for 5 years, €500,000 USD for a 15 year visa or $1 million USD for a 20 year visa. Other conditions apply, including a minimum stay requirement.⁷

So if you’re looking to move abroad and settle in Malaysia permanently, this could be the route to pursue.

📚 Moving abroad from the UK

How much are the property prices in Malaysia?

Now we come to the all important question - how much money do you need to afford your dream home in Malaysia?

According to cost of living database Numbeo, the cost of buying an apartment in Malaysia is 64% to 74% cheaper per square meter than the UK - depending whether you buy inside or outside a major city centre.⁸

Although of course, it depends on the type of home and the exact area you’re buying in.

Here’s a look at what you can expect to pay for a home in each of the main states of Malaysia:⁵

Area	Average property price (MYR)
Kuala Lumpur	804,642
Selangor	553,196
Sarawak	540,884
Sabah	533,614
Pulau Pinang	504,845
Johor	471,485
Kedah	322,890
Negeri Sembilan	314,652
Terengganu	307,717
Perlis	246,254
Malacca	250,311

Another thing to note when figuring out the price for property in Malaysia is that international transfers could get expensive, especially if the bank or provider adds a margin to the exchange rate to convert your pounds to Malaysian ringgit (MYR).

Consider checking out Wise to securely handle your large transfers at the mid-market exchange rate and low, transparent fees*.

Where is the cheapest place to buy property in Malaysia?

If you’re house hunting on a budget, you might want to look at the states of Malacca and Perlis. They may be on opposite ends of the country to each other, but property prices tend to be much cheaper than in Kuala Lumpur.

Generally speaking, you’ll find more affordable property prices when you look outside of major city centres and towards smaller towns and villages in more rural areas.

Buying property in Malaysia as a foreigner - a step-by-step guide

Before you start your house hunt, it can be useful to know a little about how the process of buying property works in Malaysia.

Here’s a quick overview of the steps involved:

1. Get your finances in order

The first step is to get your finances sorted. This means setting a budget, getting a mortgage offer (approval in principle) and getting all your paperwork together.

You may also want to open a Malaysian bank account to facilitate easier transactions, especially if you’ll be getting a mortgage.

📚 Opening a bank account in Malaysia

2. Find a property and arrange viewings

Now it’s time to start searching for your dream home. You can use online property portals and/or local estate agents to find properties. We’ll run through some tips later on how and where to start your search.

If you’ve found somewhere you like, arrange a viewing as soon as you can, and start researching the area in the meantime.

3. Make an offer

If you’ve found the perfect property, the next step is to submit a competitive offer to the estate agent - this should be in writing in the form of a Letter of Offer. You can negotiate, just like in other countries.

If accepted, the seller may ask for a small deposit of between 2% and 3% to reserve the property.²

4. Appoint a solicitor and carry out due diligence checks

While it’s not mandatory, it’s a good idea to find and appoint a property lawyer.

A personal recommendation is a good way to find a solicitor, but you can also find a list of English-speaking property solicitors on the UK Government website.

Your solicitor will check over and translate all documents and contracts, as well as carrying out due diligence on the transaction.

This will include checking for encumbrances, drafting and reviewing contracts, verifying the property title and ensuring that the property is legally allowed to be sold.

5. Get a survey

While legal work and due diligence checks are being carried out, you might want to book a building survey. This involves hiring a surveyor to check the property for structural or other issues.

If the survey flags anything up, you may be able to re-negotiate on price.

6. Sign the Sale and Purchase Agreement (SPA)

If all checks are completed and you’re happy to go ahead, the next step is for both parties to sign the sales agreement.

At this stage, you’ll need to arrange a transfer to pay a further deposit, usually around 7% to 8%.²

📚 Sending large sums of money

7. Closing

The final stage is to work towards closing, which involves:

• Solicitors for both parties completing all remaining legal checks and paperwork
• Applying for State Authority consent (if required)
• Paying registration fees and taxes
• Finalising the mortgage
• Registering your property with the relevant Land Office - an official land ownership certificate will be issued in your name.

After all that’s done, you’ll get the keys to your new home.

📚 How to buy a house abroad

How can you find a property in Malaysia?

The two main routes to find property to buy in Malaysia are local real estate agencies and online property websites.

Property agencies and agents in Malaysia

It isn’t necessary to use a real estate agent to find a property to buy overseas. But it can be helpful, especially if you’re moving to Malaysia from the UK and are unfamiliar with the local property market.

A specialist buying agent or broker will be able to offer helpful advice and insight into the local market, and guide you through the buying process.

However, there will usually be a fee to pay for this service, and you should make sure the agent is registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP).

📚 Moving to Malaysia from the UK

Property websites in Malaysia

The best way to get a headstart on finding a place to buy in Malaysia is to look online. Great websites to find a house or apartment to buy include:

• PropertyGuru
• EdgeProp.my
• iProperty
• Sime Darby Property (developer)
• Knight Frank.

What are some of the pitfalls of buying property in Malaysia?

One of the main things to watch out for when buying property abroad are scams.

The very best way to protect yourself when buying property in Malaysia is to consult an independent real estate lawyer. This is an expert who works just for you and has your interests at heart, rather than working for the seller or real estate agent at the same time.

The UK Government has a handy list of English speaking lawyers around the world.

Other key things to remember for a safe property purchase in Malaysia:

• Make sure you only work with licensed and registered estate agents
• Never sign any sales agreement or pay a deposit until your lawyer has carried out all the necessary due diligence on the property
• Have your solicitor check restrictions relating to foreign ownership - including leasehold contracts for land
• Be very cautious if an agent or lawyer asks you to cut corners to save time or money
• Don’t be bullied by aggressive sales or marketing tactics - take your time, do your research and complete the process carefully
• Get an inspection/survey carried out if you have any concerns about the property.

How do you choose the right property in Malaysia?

Your dream home in Malaysia will be the one that closest fits your search criteria. The most important factors will be location, the type of home and of course, how much you can afford to spend.

If you’re not already living there, it’s worth making a trip to the specific town or city in Malaysia you’re interested in.

You’ll want to check out the local area and view properties, making sure to pay attention to local transport links and amenities.

Condition of the property

It’s a good idea to do as much research as possible before committing to purchase a property.

It’s not mandatory, but it is strongly recommended to commission a building survey or inspection. This will flag up any major issues and give you a better idea of what you’re buying.

Type of property

Malaysia offers a variety of different property types, from high rise apartments in city centres to luxury beachfront bungalows.

You may prefer to buy a new build from a developer, but you could potentially get a better deal with an older property in a rural area. Just remember though that these homes are likely to come with high renovation costs.

If you’re buying in a city, an apartment is likely to be the best choice in terms of location and local amenities.

Moving into your Malaysia property

Before you can get the keys to your new home, you’ll have a few key tasks to run through. These include taking out insurance and setting up your utilities.

Insurance

It’s strongly recommended to take out a buildings insurance policy starting from your completion date. In fact, you might find it's a mandatory condition of your mortgage offer.

Setting up utilities and bills in Malaysia

If you know when your completion date will be, it makes sense to get some essentials set up in advance of moving in.

A prime example is utilities, such as heating, power and water. Get these sorted as early as you can, and the moving process should be a little smoother.

Renovating property in Malaysia

For some properties, some building work or improvements may be needed before you can move in.

Read our guide below on building and renovating property abroad, covering everything from planning permission to finding a local builder - and some of the main costs you can expect.

📚 How to build and renovate abroad

Save on currency conversion fees with Wise when buying property in Malaysia

After reading this guide, you should have all the essential info you need to start your property search in Malaysia. This includes those crucial first steps such as finding a broker and searching online property portals, and getting your finances in order.

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Additional FAQs about buying property in Malaysia

Can foreigners buy property below 500k in Malaysia?

Foreign nationals are not generally permitted to buy properties valued under 500,000 MYR, even if they have the MM2H visa.

This is the minimum limit to buy condos in Penang, but it’s much higher (1 million MYR in Kuala Lumpur) and even higher if you’re buying property with land.³

What is the stamp duty for foreigners in Malaysia?

The stamp duty for non-resident foreign property buyers in Malaysia increased in 2026. It is now 4% to 8%, whereas previously it was capped at 4%³

Can I buy a property in Malaysia if I own a HDB flat in Singapore?

Owners of HDB (public housing) flats in Singapore have restrictions on buying any other private property - which includes buying property in another country, such as Malaysia. They must meet a Minimum Occupation Period (MOP) of living in the flat, before they can sell it and buy property abroad, including in Malaysia.⁹

Malaysia doesn’t have HBD flats, although it does have similar public housing programs like PPR (Program Perumahan Rakyat).

Can a leasehold be converted to freehold in Malaysia?

It is possible to convert leasehold properties to freehold in Malaysia, but the process can be very difficult and time-consuming - and whether it is permitted can vary by state.

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Sources used:

1. Crown Continental - LTV mortgage info for foreign applicants
2. Global Law Experts - stamp duty, legal fees, deposit info and written approval
3. Alestria Property - minimum value thresholds for foreign purchases, admin, valuation fees and low estimate of legal fees
4. StashAway - annual taxes
5. Global Property Guide - average prices by city, Malaysia property market statistics and info
6. Global Property Guide - foreign ownership restrictions
7. Alestria Property - MM2H requirements and info
8. Numbeo - cost of living comparison between UK and Malaysia
9. Housing & Development Board - HBD restrictions

Sources last checked on date: 22-Jan-2026