Conveyancing for Foreign Buyers
We act for non-citizen buyers and foreign owned companies: State Authority consent under section 433B, the 8% transfer stamp duty, and registration of the title.
A non-citizen buying property in Malaysia needs the prior approval of the State Authority under section 433B(1) of the National Land Code, must meet the minimum purchase price set by the state, and pays transfer stamp duty at a flat 8% from 1 January 2026, up from 4%. Malay reserve land, Bumiputera allocated units and low cost housing are closed to non-citizens regardless of price. Conveyancing legal fees are the same as for a citizen because they are fixed by the Solicitors Remuneration Order 2023.
The foreign buyer conveyancing Malaysia process step by step
A purchase by a non-citizen runs through the same conveyancing as any other purchase, and then adds three things on top: an approval the State Authority must give before the transfer can be registered, a minimum price the property has to clear, and a higher rate of transfer stamp duty.
We handle all three, and we tell you at the start whether the property you are looking at will clear them.
Three checks before you pay a deposit
The first is whether the property is one a non-citizen may hold at all. Malay reserve land, Bumiputera allocated units and low cost housing are closed regardless of price or consent. That is a title question, and an official land search answers it.
The second is the minimum purchase price. Every state sets a floor for acquisition by a non-citizen. Below that floor the State Authority will not approve the transfer, and no amount of documentation fixes it.
The third is consent itself. Section 433B(1) of the National Land Code requires the prior approval of the State Authority before a non-citizen or foreign company may acquire land. It is a written application, it takes time, and it belongs in your timeline from day one rather than after the agreement is signed.
What the 8% rate means for your budget
Since 1 January 2026, transfer stamp duty for a non-citizen buyer or a foreign owned company is a flat 8% of the price or market value, whichever is higher. Before that date the rate was a flat 4%.
The change came through the Finance Act 2025, which inserted Item 32(ab) into the First Schedule of the Stamp Act 1949.
On a RM1.5 million property that is RM120,000 in transfer stamp duty, against roughly RM44,000 on the tiered citizen rates. The gap is large enough that it belongs in your offer, not in a surprise later. Our legal fee calculator has a buyer status field, so you can see the full figure before you commit.
What does not change
Conveyancing legal fees are fixed by the Solicitors Remuneration Order 2023 and are the same for a citizen and a non-citizen at the same price. Loan documentation, if you are financing, works the same way. The land search, the agreement, the stamping and the registration all follow the ordinary route.
What changes is the consent layer, the price floor and the stamp duty rate. Nothing else.
Selling later
Real property gains tax for a non-citizen disposer is a flat 10% regardless of how long the property was held. Citizens reach a zero rate after the sixth year. A non-citizen does not.
The retention sum the buyer solicitor holds back is also higher: 7% of the price for a non-citizen seller, against 3% for a citizen. Plan for that when you model your exit.
Working with us
Most of a foreign purchase can be handled without you being in Malaysia for every step. Documents can be reviewed electronically. Signing can be arranged before a notary public or a Malaysian mission abroad where that is the appropriate method for the document in question.
What we ask for early is the title details, so the search can be run before you are committed to anything. A purchase that fails on consent or on the price floor is far cheaper to discover at search stage than after a deposit has changed hands.
Estimated fees by property price
The table below shows an estimate for a purchase with a bank loan at 90% margin, property in Selangor, citizen buyer. Legal fees are calculated under Solicitors Remuneration Order 2023, in force from 15 July 2023.
| Property price | Legal fees | Stamp duty | Estimated total |
|---|---|---|---|
| RM250,000 | RM6,413 | RM5,125 | RM13,538 |
| RM500,000 | RM12,825 | RM11,250 | RM26,075 |
| RM750,000 | RM18,090 | RM19,875 | RM39,965 |
| RM1,000,000 | RM23,220 | RM28,500 | RM53,720 |
| RM1,500,000 | RM33,480 | RM50,750 | RM86,230 |
What your lawyer handles
- Running an official land search to confirm the tenure, the category of land use and whether any restriction closes the property to a non-citizen
- Confirming the minimum purchase price that applies in the state before an offer is made
- Preparing the application for State Authority consent under section 433B and following it through to approval
- Preparing or reviewing the sale and purchase agreement, including a condition that protects you if consent is refused
- Calculating and paying transfer stamp duty at the non-citizen rate, and filing the adjudication
- Coordinating with your bank if the purchase is financed, including the charge documentation
- Attending to registration of the transfer at the relevant land office and returning the title to you
Timeline
Documents you need to prepare
- Copy of the passport of every buyer, and of the spouse if buying jointly
- Copy of the title, or the developer sale and purchase agreement if no individual title has issued
- Proof of the source of funds, as required by anti money laundering obligations
- Company constitution, certificate of incorporation and register of members if the buyer is a foreign owned company
- Letter of offer from the bank, if the purchase is financed
- MM2H approval letter or pass, if you hold one, because some states treat pass holders differently
- Proof of any earnest deposit already paid to the estate agent
Costs people often overlook
- Transfer stamp duty at a flat 8% of the price or market value, whichever is higher, from 1 January 2026
- Conveyancing legal fees under the Solicitors Remuneration Order 2023, the same scale as for a citizen
- Service tax of 8% on legal fees, in force since 1 March 2024
- State Authority consent application fee, which is set by each state
- Official land search and land office registration fees
- Loan agreement stamp duty at 0.5% of the loan amount, if financed
When to stop and get advice first
- An agent tells you consent is a formality and suggests signing before anyone has run a land search
- The price is close to or below the state minimum for a non-citizen, and nobody has confirmed the current figure
- The title is Malay reserve land or the unit was allocated under a Bumiputera quota, which no consent can cure
- The agreement has no condition allowing you to withdraw and recover your deposit if consent is refused
- A quoted stamp duty figure still uses the old 4% rate rather than the 8% rate in force from 1 January 2026
- The land use category is agriculture, which is closed to non-citizens in most states
Frequently asked questions about foreign buyer conveyancing Malaysia
Can a foreigner buy property in Malaysia?
Yes, subject to three limits. The State Authority must give prior approval under section 433B(1) of the National Land Code, the price must meet the minimum the state sets for a non-citizen, and certain categories such as Malay reserve land, Bumiputera allocated units and low cost housing are closed entirely.
What is the stamp duty for a foreign buyer?
A flat 8% of the price or market value, whichever is higher, from 1 January 2026. It was a flat 4% before that. The change came through the Finance Act 2025, which inserted Item 32(ab) into the First Schedule of the Stamp Act 1949.
Do I need to be in Malaysia to complete the purchase?
Not for every step. Documents can be reviewed electronically and signing can often be arranged before a notary public or a Malaysian mission abroad, depending on the document. We tell you which documents require which method at the start.
Does MM2H let me skip the minimum price?
No. MM2H is an immigration pass. It does not remove the section 433B consent requirement and it does not by itself lower the minimum purchase price, although a few states have treated pass holders differently at various times. The current position has to be confirmed against the state guideline in force.
Ready to start your property matter?
An initial consultation with no obligation. Tell us about your matter and we will explain what is involved and what it is likely to cost.
No 1, Jalan Setia Dagang AL U13/AL, Setia Alam, 40170 Shah Alam, Selangor
014-4004293 · Monday to Friday, 9:00am to 5:00pm