Property Financing For Foreigner

Foreign Investors

The great news about buying Malaysian real estate is that there are very few restrictions on foreigners who wish to get a piece of the booming market. If you are a foreigner, you will be happy to know that you can buy an unlimited number of properties – as many as you can afford. This includes both leasehold and freehold properties.


You can also buy anywhere across the country, provided the property is priced at RMl million and above, not a low or low-medium cost unit, and not a Bumiputera lot or built on Malay Reserve Land. Direct and full ownership is allowed. Nowhere else in the world do foreigners enjoy such large freedoms and privileges to purchase property.

You can also apply for bank loans from local banks with a high chance of approval if you qualify. Funds from the disposal of properties can easily be repatriated to anywhere in the world with little restriction or taxation.

Properties sold after five years is subjected to a nominal 5% Real Property Gains Tax (RPGT) upon disposal. There is also no inheritance tax on property. Provided there are no encumbrances, you can have your property distributed according to your wishes.

However, certain states may have other restrictions. In Selangor, foreign investors can buy all types of properties if they are priced at RM2 million or more in most of the state’s districts. Specifically, they are allowed to only acquire strata and landed strata properties only.

As per guidelines given by the Economic Planning Unit (EPU) of the Prime Minister’s Department, foreigners are defined as any interest, associated group of interests or parties acting in concern which comprises:

  • An individual who is not a Malaysian citizen;
  • An individual who is a Permanent Resident in Malaysia;
  • A foreign company or institution;
  • A Malaysian company or institution whereby the Parties stated in (1), (2) or (3) hold more than 50% voting rights.