Since January 2026, the margin for error on an acquisition decision in Malaysia has effectively doubled. The headline price is no longer the right basis for choosing an asset.

The cost stack

Stamp duty on residential acquisitions by foreign buyers is now a flat 8%, doubled from 4%. On a RM2,000,000 purchase, that is RM160,000 committed on day one. Including legal and valuation fees and state authority consent, total acquisition costs typically range from 9.25% to 12% of the purchase price.

Real property gains tax

Holding period	RPGT (foreign buyers)
Years 1–3	30%
Year 4	20%
Year 5	15%
Year 6 onwards	10% (permanent)

Malaysians pay no RPGT from year six; foreign buyers retain a permanent 10% floor. Exit strategy and timing should therefore be modelled at the point of acquisition, not at the point of sale. Non-resident rental income is taxed at 30% on gross rent.

Financing

Malaysian banks do lend to foreign buyers. For a first or second residential property, financing of up to around 90% loan-to-value is available subject to income documentation and lender assessment; from the third property, the maximum is 70%. State minimum purchase thresholds also apply — RM1 million in Kuala Lumpur and Johor, RM2 million in Selangor, and RM3 million and above for landed property on Penang Island.

Figures are current as at October 2026 and are subject to revision by the relevant authorities without notice. This article is general information only and does not constitute financial, legal or tax advice. Speak to us before making any acquisition decision.