Foreign Buyer Guide 2026: Owning in Kuala Lumpur and TRX, from Stamp Duty and Financing to MM2H
- RM1MMinimum price for foreign buyers in KL
- 8%Stamp duty on foreign residential transfers
- 30%RPGT on disposals within five years
Private registration
Beverly Residence TRX: 315 freehold residences of 688 to 3,600 sq ft inside Tun Razak Exchange, from RM1.7M, launching December 2026. Private viewings are being arranged now; registered guests receive floor plans and pricing first.
Register now for Q4 private viewingForeigners can buy freehold condominiums in Kuala Lumpur, TRX included, from a minimum price of RM1M, with state consent and a flat 8% stamp duty on residential transfers from 1 January 2026. Few prime Asian cities admit overseas owners on terms this clear.
Key facts: a RM1M minimum; all-in acquisition costs of about 10-12%; and gains taxed at 30% within five years, 10% from the sixth. Funds can be repatriated in foreign currency. MM2H is optional: it adds long-stay residence, not the right to buy.
This guide is general information, not legal, tax or investment advice. It reflects the rules in force in October 2026.
1. The rules: minimum purchase price in Kuala Lumpur
Each Malaysian state sets its own minimum price for foreign purchases. For Kuala Lumpur, the minimum is RM1M, per the 2025 Chambers real estate guide. Foreigners are generally barred from certain categories, such as low-cost housing, Bumiputera-quota units and Malay reserved land.
The threshold is under discussion. In July 2026, per EdgeProp, the developers’ association Rehda proposed lowering Kuala Lumpur’s threshold to RM600,000, in line with the MM2H minimum. The RM1M minimum applies until a change is gazetted.
For TRX, the threshold rarely binds. Brickz data shows the median deal at TRX Residences is about RM1.83M. See TRX Residences: what 560 transactions tell us, and new launches in TRX for 2026.
2. State consent
A foreign purchase needs prior written approval from the state authority under Section 433B of the National Land Code. In Kuala Lumpur this goes through the Federal Territory land office. Lawyers quoted by EdgeProp in July 2026 put typical processing at one to three months. Your lawyer files the application, and the sale and purchase agreement is usually made conditional on approval.
3. The costs: stamp duty and legal fees
Stamp duty. From 1 January 2026, residential transfers involving non-Malaysians attract a flat 8% stamp duty on the transfer instrument, per EdgeProp in July 2026. It was 4% before. On a RM1.5M purchase, that is RM120,000. Commercial property remains at a flat 4%.
Legal fees. Conveyancing fees in Peninsular Malaysia follow the Solicitors’ Remuneration Order 2023. For a sale and transfer, the scale is 1.25% on the first RM500,000 and 1% on the next RM7M, and a solicitor may discount up to 25%. Purchases from a developer follow a reduced scale, and a separate scale applies to loan documents if you borrow.
All-in cost. Lawyers quoted by EdgeProp estimate total acquisition costs for a foreign cash buyer of residential property at about 10-12% of the price, once stamp duty, legal fees, consent and disbursements are included.
4. Financing as a foreigner
Bank Negara Malaysia allows non-residents to borrow in ringgit to finance real-sector activity in Malaysia, including the purchase of immovable property, though not land alone. Malaysian banks do lend to foreign buyers, but margins of finance and income tests are set case by case and are generally more conservative than for residents. Many high-net-worth buyers pay cash; those who borrow secure a bank’s written indicative offer before signing.
5. Real property gains tax for non-citizens
LHDN’s published schedule for disposers who are not citizens or permanent residents, which also covers foreign companies, is:
| Disposal within | RPGT rate |
|---|---|
| Years 1 to 5 | 30% |
| Year 6 onwards | 10% |
Unlike Malaysian citizens, foreign individuals never reach a 0% rate, so most foreign buyers plan a hold of at least five years. When you sell, your buyer withholds a retention sum from the proceeds towards RPGT, which your lawyer settles at completion.
6. Repatriation of funds
Bank Negara’s guidance for non-residents states that they are free to invest in ringgit assets and free to remit divestment proceeds, profits and income abroad, provided repatriation is made in foreign currency. Rental income and sale proceeds can therefore be taken home, subject to tax, documentation and bank compliance checks. A clean paper trail for the funds you bring in makes the eventual outflow easier.
7. MM2H: what it is and what it costs in 2026
Malaysia My Second Home is a long-stay residence programme. You do not need it to buy property, but many buyers combine the two. The official portal now lists four categories: Platinum, Gold, Silver and a Special Economic Zone and Special Financial Zone (SEZ/SFZ) category.
| Tier | Fixed deposit | Minimum property purchase |
|---|---|---|
| Silver | US$150,000 | RM600,000 |
| Gold | US$500,000 | RM1M |
| Platinum | US$1M | RM2M |
Fixed deposit figures are from Bernama’s June 2024 report of the revised programme, and property minimums from The Edge. EdgeProp’s July 2026 report describes Silver as a five-year renewable pass and Gold as carrying a headline 15-year validity, still endorsed on five-year renewals.
Other conditions on the official portal and in official statements:
- Applicants for Silver, Gold and Platinum must be at least 25. SEZ/SFZ applicants must be at least 21.
- Participants must spend at least 90 days a year in Malaysia.
- Buying a residence is compulsory after approval, and it cannot be sold for 10 years except to upgrade to a higher-value property.
- Up to 50% of the fixed deposit can be withdrawn after approval for a residence, education, medical or tourism purposes.
- New participants are not eligible to apply for permanent residence.
8. Who is buying, and how purchases are structured
In the first half of 2025, non-citizens made 913 residential purchases worth RM1.904 billion in Malaysia. Buyers from China led with 329 deals worth RM834.64M, with Hong Kong at 15 and Taiwan at 12, per housing ministry figures published by the NST. Among MM2H participants who had bought homes by the end of 2025, China accounted for 304, Taiwan 91, Hong Kong 34 and Japan 14.
The common structures:
- Personal name. The simplest route, and the one lawyers cited by EdgeProp highlight: the foreign buyer is registered as owner on the title.
- Funds from an offshore account. Buyers from Hong Kong, Taiwan and Japan can generally remit foreign currency from their home bank to the lawyer’s or developer’s account. Mainland Chinese buyers work within personal foreign-exchange controls at home, which shape how funds already held offshore are used.
- Company ownership. A foreign company is taxed at the same RPGT rates as a foreign individual and generally needs the same consent. It adds cost and earns its place only for wider estate or tax reasons.
How it compares
Our KL vs Asia radius maps set prime Kuala Lumpur beside Hong Kong, Singapore, Tokyo and six other cities at the same scale: RM5 million buys about 3,043 sq ft near KLCC, against 372 sq ft in Hong Kong, 665 in Singapore and 699 in Tokyo.
Within the city, see luxury housing in Kuala Lumpur 2026 and new launches in KLCC, Mont Kiara and Bukit Damansara.
What to weigh
- The Kuala Lumpur minimum governs MM2H buyers too. An MM2H participant buying in the city meets the RM1M foreign-buyer minimum, even under the Silver tier’s lower MM2H minimum.
- Plan for a hold of five years or more. Timing shapes the net return.
- Protect the purchase price. Have it held in a lawyer’s stakeholder or trust account until title or consent conditions are met, as lawyers quoted by EdgeProp advise.
Our view
Malaysia remains one of Asia’s most open prime markets for an overseas owner. Freehold title, a clear threshold and free repatriation set Kuala Lumpur apart from cities that ration foreign ownership.
The 8% stamp duty raises entry cost, but it is a one-off, and the tax schedule rewards a hold beyond five years.
For most buyers, the cleanest route is a personal-name cash purchase, with MM2H added only if long-stay residence matters. In TRX, the rules rarely constrain the choice of home.
Frequently asked questions
Can foreigners buy freehold property in TRX?
Yes. TRX Residences and CORE Residence @ TRX are both freehold. Foreign buyers need state consent and must meet Kuala Lumpur’s RM1M minimum price.
What is the stamp duty for foreigners in Malaysia in 2026?
A flat 8% on residential transfers involving non-Malaysians, effective 1 January 2026. Commercial property remains at 4%.
Do I need MM2H to buy property in Malaysia?
No. MM2H is a residence programme. Foreigners can buy without it, subject to the state minimum price and consent.
What tax do foreigners pay when they sell?
RPGT of 30% on gains within five years and 10% from the sixth year, per LHDN.
Register for a private viewing
For the market context, read why TRX is Kuala Lumpur’s new prime address and TRX vs KLCC vs Bukit Bintang. If you are planning a purchase, we are arranging private previews of a new private residence launching near TRX in Q4 2026. Register for a private viewing.
This article is general market information, not investment advice.
Cover: Photo: ELIZABETH XIONG / Wikimedia Commons, CC BY 4.0