Malaysia property buying guide for foreigners in 2024

1. Can foreigners buy a property in Malaysia in 2024?

The National Land Code (NLC) 1965, one of the primary property laws in Malaysia, defines a foreigner as any natural citizen who is not a permanent resident of Malaysia. In principle, foreigners can own any type of property (residential unit – both landed and highrise, commercial property and land, industrial property and land). The NLC also states a similar provision for foreign companies in acquiring property or land in this country.

As Malaysia is governed under a federal system, land matters lie within the state government’s jurisdiction. The rules in the states of Peninsula Malaysia differ from those of Sabah and Sarawak.

Each state has implemented different regulations governing foreign property acquisition i.e. types of property and application procedures. However, there are three types of properties that foreigners are not eligible to purchase:

1 ) Properties built on Malay Reserved land
2) Low and medium-cost residential units as defined by the state authorities
3) As determined by state authorities, properties distributed to Bumiputera interest in any development project.

Foreigners are also not allowed to purchase agricultural land. Nevertheless, in respect of building land or agricultural land gazetted for development, they may do so after receiving consent from the relevant state authority.

2. How to buy a property under MM2H in 2024

Unlike other countries, Malaysia offers a special avenue for foreigners to purchase homes via Malaysia My Second Home (MM2H) programme. The scheme provides a renewable visa (5-year maximum) and applies to all the states in Peninsula Malaysia and Sabah (Sarawak has its own rule and requirement as the state controls their immigration). To learn more, check out this link: Sarawak MM2H (S-MM2H)

You will need to be sponsored by a Malaysian citizen and in Peninsula Malaysia, a registered MM2H agent can replace a citizen sponsor.

As MM2H visa holders, you will enjoy some benefits when it comes to owning houses in Malaysia, which include discounts on certain types of properties available in the market. 

The following are the revised requirements as of August 2021, applicable for those aged 35 and above:

Requirement Amount Remarks

Monthly Income (Offshore)RM40,000– Salary or pension – 3 months’ income statement.  
– Dividends or other sources of investment – more than 3 months statement and must average out to an equivalent amount of the required monthly income.
– Rental – acceptable, depending on the duration of the tenancy agreement.Liquid AssetsRM1.5 millionIn cash form or any form of investment that can be easily turned into cash.Fixed DepositRM1 million– An additional amount of RM50,000 for every additional dependent.
– Fund to be deposited in a local bank and any amount of withdrawal will require approval.
– The fund can receive interest.Applicant ChargesRM5,000An additional amount of RM2,500 for every additional dependent.Health Insurance–Required, the coverage amount is not specified.

In addition to the above, MM2H visa holders must be in the country for at least 90 cumulative days in a year.

Can a foreigner buy a property without MM2H?

In September 2022, Malaysia introduced a Premium Visa Programme (PVIP), a long-term residency visa that enables foreign investors and entrepreneurs to live, work or study in this country.

Open to all age categories, the programme provides visa approval for up to 20 years (valid for 5 years and issued at 5-year intervals up to a maximum of 4 times) and foreigners will be able to purchase real estate for residential, commercial or industrial purposes.

There are two main conditions a foreigner must meet to be eligible for PVIP:

1. An offshore income of RM40,000 per month or RM480,000 annually
2. A fixed deposit account of RM1 million with a licensed bank in Malaysia

Source: Immigration Department of Malaysia

All applications are required to be made through an authorised consultant or agency appointed by the Immigration Department of Malaysia. The participation fee for an applicant is RM200,000, while for every dependent is RM100,000. Payment of 10% initial participation fee of RM200,000 must be paid before the PVIP consultant/agency submits the online application. The remaining balance of the participation fee, pass fee, visa fee and security bond will be paid once the online application is approved.

The following documents also needed to be provided to the PVIP consultant/agency that will be uploaded through the online application:

1. The biodata page of the passport

2. The Certificate of Good Conduct

3. Resume, including the latest 3 months’ pay slip

4. Birth Certificate/legal documents (if accompanied by children)

5. Marriage/ Divorce Certificate

6. Letter of verification from Medical Specialist/General Practitioner

7. Approval from Royal Malaysian Police for security screening
   

All documents and certificates must be in English or translated into English, certified by the Malaysian Embassy/Consulate.