Buy property in Malaysia đ˛đž [2025 Guide]
Fallen in love with Malaysia, and wondering how to buy Malaysian real estate so you can move there or travel there often? Buying property in Malaysia could make sense if youâre a frequent visitor – it can also be a good choice for investing or diversifying your assets. But what are the rules about Malaysian property? Can a US citizen buy property in Malaysia without restriction, or are there limits on your options?
This guide covers all you need to start your research. And because buying a property is always a big investment, weâll also touch on providers like Wise and OFX as good options to make cheap, fast and safe international transfers which could cut your costs when you buy.
Key points: Buying property in Malaysia as a foreigner
- US citizens can buy property in Malaysia with few or no restrictions – but minimum purchase prices apply from around 500,000 MYR (115,000 USD) to around a minimum of 2 million MYR (230,000 USD) in Selangor
- Buying a property can be one qualifying method for an MM2H Visa, subject to meeting all of the other conditions to acquire the visa
- The Malaysian real estate market has seen its share of volatility, so whether or not the market suits you as an investor may depend on your risk appetite
- Consider using a specialist to send your money to Malaysia for your purchase, such as Wise which uses the mid-market exchange rate and offers low cost, high-value transfers with discounts of up to 0.17% on fee costs, or OFX which has no transfer fee and no maximum payment limit.
| FAQs | Answers |
|---|---|
| Can I buy property in Malaysia as a US citizen without being a resident? | Yes, subject to meeting minimum purchase prices for foreign buyers. |
| Can I live in Malaysia permanently if I buy a property? | No – but buying a property can be one qualifying method for an MM2H Resident Visa, subject to meeting all of the other conditions to acquire the visa |
| What is the cheapest way to transfer money from the US to Malaysia? | Consider using a specialist to send your money to Malaysia such as Wise which uses the mid-market exchange rate, or OFX which has no transfer fee and no maximum payment limit |
| How much tax do you pay on buying a property in Malaysia? | The property tax system in Malaysia can include costs paid to both federal and state authorities – take local advice to learn more. |
Can US citizens buy property in Malaysia? đ˛đž
In most cases, US citizens can buy property in Malaysia with few or no restrictions. However, there are a few rules and exceptions to understand.
Most importantly, individual states can impose their own rules on foreign purchase of property – these may include taxes, fees or minimum purchase prices – so doing your own research based on where you intend to buy is essential.
Generally minimum purchase prices start from 500,000 MYR and run up to around a minimum of 2 million MYR in Selangor.
The key federal rules about Malaysian property are that foreigners can not buy:
- Low cost properties – definitions here are set by state
- Properties built on land reserved for Malays
- Properties allocated to Bumiputera groups
What are the requirements to buy a house in Malaysia?
Weâve touched on the basic eligibility rules for buying a property in Malaysia. Itâs important to note that Malaysia is a Federal country, which means that local laws can apply as well as national ones. Youâll need to invest some time checking out the rules which are active in the location youâre targeting to buy in.
Before you get started, youâll also need to prepare adequate documentation to support your purchase of Malaysian property. Youâll always need your proof of ID and address so you can verify yourself to the Malaysian agents you deal with, plus youâll probably also be asked for proof of funds, and proof of the source of the funds, to comply with anti money laundering law. Your solicitor will help you navigate the paperwork needed to buy a home in Malaysia – so getting a good local expert on side is a bonus.
How to buy a home in Malaysia step by step
Letâs walk through an outline of the usual steps you must take to buy a home in Malaysia as a US citizen:
1. Find the right property for you, and engage a lawyer to act on your behalf during the purchase.
Property searches are likely to start online – weâll have some good agents to look at, a little later. Once youâve spotted the right place, itâs time to get a property expert – a lawyer usually – to act for you in negotiation and finalising the purchase. Get advice from local friends, and do online research to find a property specialist who you can get on with – choosing someone who works with US citizens often can also help as theyâll know the sort of questions youâre likely to have.
2. Submit your letter of offer and initial payment.
Your lawyer can help you draft a letter of offer once your offer is accepted – youâll then also need to make an initial payment of around 2% of the purchase price. Your lawyer will also ask you to submit documents like your ID and tax information so they can seek state approval of your purchase a little later
3. Draft a Sale and Purchase agreement (SPA).
Your lawyer will draft your SPA, and youâll need to pay a downpayment of 10% – the initial payment youâve already deposited of 2% will count towards this down payment.
4. Get state authority consent, and complete.
Your lawyer will apply for state authority consent and once approved, youâll need to make the outstanding 90% payment before completing the purchase
As you can see, there are several large payments involved in buying a property in Malaysia as a US citizen. Youâll need to pay your down payment and then the balance of the purchase price, naturally, but there will also be legal costs and tax to consider. When youâre sending money overseas from the US, using a specialist provider like Wise could mean you get a faster service – and a lower fee – compared to using your bank. Be sure to shop around before you make any international transfers, to keep down your costs as far as possible, and avoid unnecessary fees and delays.
How much does it cost to buy property in Malaysia?
Malaysia has an extremely varied property market, with all types of property available – meaning a very varied range of costs.
The key thing to consider with buying a property in Malaysia is likely to be the minimum purchase price for foreigners, which is decided based on the specific state you want to buy in. Costs can vary a lot from around 500,000 MYR up to 2 million MYR, with minimum prices reviewed regularly. As these minimum prices are subject to change youâll need to do a bit of research based on your budget, to see what options are open to you.
On top of the agreed sale price there are also other costs, for example:
- Stamp duty of 4%
- Legal fees on a sliding scale based on property price
In addition to property costs, international transfer fees and marked up exchange rates can also contribute to costs when youâre making an overseas property purchase. Non bank providers like Wise and OFX offer cheap, fast and secure international transfers. Take a look at these providers compared to your bank – to see if you can cut out a few fees here to bring down your overall cost. Wise offers an automatic discount for higher transfers and OFX can offer competitive rates for large transfers as well. Hereâs a summary:
- Wise: Wise uses the mid-market exchange rate and offers low cost, high-value transfers with discounts of up to 0.17% on fee costs. Transfers are typically completed within 1â2 business days.
- OFX: OFX doesnât have maximum transfer limits meaning you can send as much currency as you need to, making them a good option for substantial property transactions.
Cheapest places to buy property in Malaysia đ˛đž
Bear in mind that the cheapest of homes in Malaysia may be out of limits for a US buyer due to Malaysian property law which sets the minimum prices foreigners are allowed to buy at. These minimums vary based on location on a state and city level, as well as depending on the property type in question.
Generally the lowest minimum purchase prices are in places like Perlis and Sarawak, while the highest minimums are to be found in Johor and Selangor.
Best ways to transfer money to Malaysia to buy property from the US
If youâre transferring money to Malaysia to buy property, you may find that you can save money on fees if you use a specialist international money transfer service instead of your bank. There are many services available which can offer low costs and high transfer limits, which can make them convenient and quick solutions for transferring money to buy Malaysian property.
Here are a few options to consider:
| Provider | Limits | Fees | Exchange rate | Speed |
|---|---|---|---|---|
| Wise | Varied limits, usually up to 1 million USD per transfer | From 0.57% | Mid-market rate | 45% of transfer arrive instantly, 90% in 24 hours* |
| Xe Money Transfer | 535,000 USD per transfer | Variable fee depending on destination | Exchange rate includes a markup | Variable depending on destination and payment method |
| OFX | No limit per transfer | No fee | Exchange rate includes a markup | Variable – usually 1 – 2 days |
| TorFX | No limit per transfer | No fee | Exchange rate includes a markup | Variable – usually 1 – 2 days |
Details correct at time of writing -27th January 2025.
*The speed of transaction claims depends on individual circumstances and may not be available for all transactions
Wise review: Wise payments can be sent online or in the Wise app, and offer discounts on fees for higher value payments. Youâll be able to fund your transfer from your bank or with a card, and the money could be deposited into a bank account in Malaysia quickly and using the mid-market rate with a low, transparent fee.
Xe Money Transfer review: Xe is part of one of the largest money transfer companies globally, and offers payments online and in app, to many countries including Malaysia. Xe uses variable fees and an exchange rate which has a small markup added. You can sign up for an account to view the fees which apply based on different payment methods, and to compare the rate youâre quoted against those from other providers.
OFX review: OFX is a global provider of international payments and currency risk management services. There are no transfer fees and thereâs no maximum payment limit, making this a good option for high value transfers such as buying a home. The OFX exchange rate has a small markup added. OFX has a 24/7 phone service if you want to arrange your payment by phone instead of online.
TorFX review: TorFX doesnât have a transfer fee, but uses an exchange rate which has a small markup added. You can arrange your payment online, in app or by phone, and pay using your bank. TorFX has a very strong reputation for customer service, and the strongest possible credit rating which shows theyâre a legit company to use.
Is it a good idea to buy a house as an investment in Malaysia?
Thereâs no correct answer to whether or not itâs a good idea to invest in Malaysian property as a US citizen.
There are risks and challenges associated with buying property for investment purposes in any country, so doing your research and acting on personal advice is essential. If growing your investment is the key priority for you, make sure you cut out all unnecessary costs when buying your property in Malaysia by using a money transfer service like Wise or OFX.
Pros and cons of buying property in Malaysia
| Pros of buying property in Malaysia | Cons of buying property in Malaysia |
|---|---|
| â
Malaysian property prices are still relatively low, which may make an investment attractive â MM2H Visa options could offer a route to long term residency â Large range of property types and prices â Desirable place to live and work – with quite low costs of living | â Minimum purchase prices are imposed by Malaysian states which may impact where you can buy â Youâll incur additional legal and agent fees in most cases â There is a risk that your property will lose value if markets are volatile |
Financing a property purchase in Malaysia
If youâre taking a mortgage in Malaysia, the amount you can get is likely to depend on your resident status. If you have an MM2H visa you may be able to get a mortgage of up to 80% of the property value – in other cases the amount youâll be able to apply for is likely to be lower.
Taking a mortgage in the US to find a purchase overseas will come down to your relationship with your bank.
Buying a property in Malaysia with cash
If youâre a cash buyer and paying using international transfers, bear in mind that moving money from USD to MYR can be extremely expensive with a bank. Consider using an alternative like Wise instead for a seamless and cheap transfer to Malaysia.
How much down payment do you need to buy a house in Malaysia?
Usually, when you submit a letter of offer to the seller, youâll need to make an initial payment of around 2% of the purchase price. Once your lawyer has drafted a Sale and Purchase agreement (SPA) youâll need to pay a downpayment of 10% – the initial payment youâve already deposited of 2% will count towards this down payment.
Paying property tax in Malaysia
The property tax system in Malaysia can include costs paid to both federal and state authorities – your lawyer will let you know what to consider when youâre starting to confirm your purchase. Get local advice on this as soon as possible so there are no surprise fees once you own your new home in Malaysia.
Factors affecting the house prices
The primary factors affecting property prices are location and property type. Other factors include government policies, supply and demand, and in the case of buyers from overseas, the relative strength of the currency.
Whatâs the property market like in Malaysia?
The Malaysian real estate market has seen its share of volatility, which is not likely to change soon.
Property prices towards the end of 2024 were relatively stable, but as house prices are linked to many regional and global factors, this can change quickly. For example, if demand from China cools, the prices of homes in Malaysia will likely fall, while increased local interest can push up the costs of housing. Whether or not the market suits you as an investor or when looking for a family or vacation home may depend on your risk appetite.
Cheapest ways to pay for a property in Malaysia
Assuming youâll be paying for your new property in Malaysia from the US, youâll need to figure out the best way to move your money to avoid excessive costs. This will mean looking for a provider which offers low fees and a great exchange rate.
When sending a high amount of money overseas, the exchange rate is especially important. If the provider you use adds a markup to the rate used to convert your USD to MYR, this can add up quickly for higher value transfers. If youâre sending 250,000 USD for example, and the provider uses a 3% markup, this means paying an additional 3% for the transfer – a huge 7,500 USD. Thatâs likely to be far more than the transfer fee, but you may ever even know youâre paying it.
Not all providers use this approach. Wise uses the mid-market exchange rate and offers low cost, high-value transfers with discounts of up to 0.17% on fee costs.
Hereâs a summary of international transfer fees and rates for the providers we looked at earlier:
| Provider | Fees | Exchange rate |
|---|---|---|
| Wise | From 0.57% Discounts of up to 0.17% on fees for high value transfers | Mid-market exchange rate |
| Xe Money Transfer | Variable fee depending on destination | Exchange rate includes a markup |
| OFX | No fee | Exchange rate includes a markup |
| TorFX | No fee | Exchange rate includes a markup |
*Details correct at time of writing -27th January 2025
Another great option is to open a multi-currency account with a provider like Wise which lets you hold, exchange and send in both USD and MYR from the same account.
You can open a Wise account online or in the Wise app, and use it to manage currency exchange and payments to Malaysia and around the world. Youâll also be able to order a Wise debit card for easy spending and withdrawals and thereâs no fee to spend the currency you hold in your account.
If you are looking to exchange USD to MYR conveniently, this page might be helpful: Best ways to buy MYR online.
Can I live in Malaysia permanently if I buy a property?
You canât just buy property in Malaysia to get a residency – but buying a property can be one qualifying method for an MM2H Visa, subject to meeting all of the other conditions to acquire the visa.
The MM2H Visa is a long established route to residency which was initially aimed at retirees but which has been extended for younger people in many areas. There are various qualifying rules including having a fixed deposit or a residential property which needs to meet the local and national guidelines.
Tips for foreigners to buy property in Malaysia
Letâs get a few final tips on buying a property in Malaysia as a US citizen:
- States set minimum purchase limits so you will need to know what properties are available to you based on your location
- Youâll need a visa if you intend to stay in Malaysia for more than 90 days at a time – check US State Department information for details
- Banks may lend you more money in Malaysia if you have an MM2H visa
- When sending money to Malaysia for your purchase, check out and compare a few different money transfer services like Wise and OFX, to make sure you get the best available deal
How to find a Malaysian property
Youâll want to start your search for properties in Malaysia using online platforms, real estate agents, and local listings. Umbrella websites like Property Guru are a great place to get a feel for the property prices and options on different places in Malaysia.
Be sure to learn about the minimum prices for foreign purchase, based on where you want to be, to avoid wasting time. Generally sites have filter options so you can filter out any properties which you would not be entitled to buy as a US citizen buying a property in Malaysia.
Should you rent or buy a house in Malaysia?
If youâre moving to Malaysia, the decision to buy or rent may simply come down to your long term plans. If youâre planning on staying a long time – or want to buy now as an investment – buying could be tempting. But renting is also a good option if youâre testing the market or donât have the funds right now to buy.
Malaysia property websites
Not sure where to start? Kickstart your search for property in Malaysia at any of these popular Malaysia property websites:
Conclusion
Malaysia is a popular place to take vacations, but also a great option to live, study, work and retire.
If youâre thinking of investing in property there, or want to move to Malaysia yourself, youâll be able to buy a place subject to a few important restrictions. Familiarise yourself in particular with the minimum purchase prices for foreigners which can vary based on where in Malaysia you want to buy, and which usually means paying around 1 million MYR (about 230,000 USD) as a minimum for property. Property can be used in some cases to fulfil one of the requirements to apply for an MM2H visa, which is a route to residency and ideal for retirees.
This guide gives you some resources to start your search for a new home in Malaysia. Before you make any payments from USD to MYR, be sure to look at providers like Wise and OFX which can be helpful when buying property abroad, with fast, cheap and secure international transfers, with good exchange rates.
FAQs on buying Property in Malaysia
Can US citizens buy property in Malaysia?
Yes. You can buy a property in Malaysia as a US citizen as long as youâre buying somewhere which exceeds the Malaysian minimum purchase prices for foreigners, which can vary by state.
How much deposit do you need to buy a property in Malaysia?
Youâll need to pay a downpayment of about 10% of the property purchase price when you agree to your sale. Consider using a specialist service like Wise or OFX to transfer your down payment from the US to Malaysia, to cut down on costs.
If you donât have a bank account in Malaysia, you might be able to open an account online from the US. Learn more from this guide: How to open a bank account in Malaysia.
Is Malaysia a good country to buy property?
Malaysia has a good range of properties at very varied prices – often cheaper than the equivalent in the US. However, whether or not it is the right place for you to buy a home depends on your personal preferences, risk appetite and what youâre planning on doing with the place.
