Most foreigners assume they need an MM2H visa before they can buy property in Malaysia. They are wrong. MM2H is a long-term residency programme — not a property purchase prerequisite. Thousands of non-resident foreigners buy Malaysian property every year without holding any visa at all.
The confusion is understandable. Property agents regularly conflate MM2H with property ownership eligibility because it makes a convenient upsell. Immigration consultants reinforce the myth because it justifies their fees. But the legal position is straightforward: any foreigner can buy property in Malaysia provided they meet the state minimum price threshold and obtain state authority consent. No visa required.
This guide separates the MM2H programme from property ownership rules, explains what you actually need to buy, and shows where MM2H genuinely helps — and where it does not.
What the Law Actually Says
Foreign property ownership in Malaysia is governed by the National Land Code 1965 (Act 56), as amended, and individual state land rules. The code does not mention MM2H. It does not require any specific visa category. What it requires is:
- The property must be above the state-mandated minimum price threshold for foreign buyers.
- The buyer must obtain state authority consent under Section 433B of the National Land Code for the transfer of title.
- The property must not fall into a restricted category (Malay Reserve land, Bumiputera lots, agricultural land under 5 acres, low-cost housing as determined by the State Authority).
That is it. Three conditions. None of them involve immigration status.
The state consent process is handled by the Economic Planning Unit (EPU) at the federal level (now under the Ministry of Economy) or equivalent state authority. When you submit your consent application, you provide your passport details — not your visa. A tourist visa holder, a work permit holder, and an MM2H holder all go through the same consent process for the same property.
Foreign Buyer Edition available. The PropCashflow Ebook has a dedicated Foreign Buyer Edition covering minimum price thresholds, state consent fees, RPGT for non-citizens, and financing options. Get Instant Access — SGD 999 →
Minimum Price Thresholds by State
The biggest real barrier for foreign buyers is not visa status. It is the minimum purchase price. Each state sets its own floor, and these have increased significantly over the past decade.
| State | Strata Min (RM) | Landed Min (RM) | Key Notes |
|---|---|---|---|
| Kuala Lumpur | 1,000,000 | 1,000,000 | Federal territory; all property types, same threshold |
| Selangor (Zone 1 & 2) | 2,000,000 | 2,000,000 | Zones 1 & 2 (Petaling, Gombak, Hulu Langat, Sepang, Klang, Kuala Selangor, Kuala Langat). Foreigners restricted to strata and landed strata only |
| Selangor (Zone 3) | 1,000,000 | 1,000,000 | Zone 3 (Hulu Selangor, Sabak Bernam) |
| Penang Island | 1,000,000 (strata) | 3,000,000 (landed) | Landed purchases allowed but at RM3M minimum; strata at RM1M. State levy of 3% applies |
| Penang Mainland | 500,000 (strata) | 1,000,000 | Seberang Perai — significantly cheaper than island |
| Johor | 1,000,000 (strata) | 2,000,000 (landed/designated zones) | Medini/SFZ zone may have specific guidelines |
| Sabah | 600,000 (strata) | 1,000,000 | Separate land law (Sabah Land Ordinance); state approval required |
| Sarawak | 500,000 | 500,000 | Requires LCDA approval — additional layer; Kuching division RM600K |
| Melaka | 500,000 (strata) | 1,000,000 | Lower strata threshold than many Peninsular states |
| Perak | 1,000,000 | 1,000,000 | Previously RM500K, revised upward |
| Negeri Sembilan | 600,000 (strata) | 1,000,000 | Customary (adat) land is off-limits |
| Pahang | 1,000,000 | 1,000,000 | Applies to all residential |
| Kedah (Mainland) | 600,000 | 600,000 | Mainland threshold |
| Kedah (Langkawi) | 1,000,000 | 1,000,000 | Langkawi has higher thresholds |
| Kelantan | 1,000,000 | 1,000,000 | Limited to non-Malay Reserve areas |
| Terengganu | 1,000,000 | 1,000,000 | Limited availability above threshold |
| Perlis | 500,000 | 500,000 | Smallest state, limited stock |
| Putrajaya | 1,000,000 | 1,000,000 | Federal territory |
| Labuan | 1,000,000 | 1,000,000 | Federal territory |
These thresholds are set by individual state authorities and the EPU and change periodically. Always verify current thresholds with a Malaysian property lawyer before committing.
These thresholds apply identically to MM2H holders and non-MM2H foreigners in most states. The threshold is about nationality, not visa type.
If you can find a property above the state minimum that makes cashflow sense, you do not need MM2H to buy it. Full stop.
What MM2H Actually Gives You
MM2H is not useless — it just does not do what most people think it does regarding property. Here is what the programme genuinely provides:
Long-term residency. Under the 2024-revised programme, visa validity ranges from 5 years (Silver tier) to 20 years (Platinum tier), all renewable. This matters if you want to live in Malaysia, not just invest. You can stay as long as you want without border runs.
Slightly lower thresholds in some states. A handful of states have historically offered MM2H holders a lower minimum purchase price. However, this is not universal and changes periodically. As of 2026, the gap has narrowed considerably. KL, Johor, and most states apply the same threshold regardless of MM2H status.
Banking access. With MM2H, you can open a local bank account more easily, which simplifies mortgage payments, rental collection, and property management. Without MM2H, you can still open accounts at selected banks — HSBC Malaysia, Standard Chartered, and OCBC are commonly used by non-resident foreign property owners.
Multiple property purchases. Technically, there is no legal limit on how many properties a foreigner can buy (with or without MM2H). But having MM2H and a local banking relationship makes the logistics of managing multiple properties smoother.
Tax residency pathway. If you spend 182+ days in Malaysia in a calendar year, you qualify as a tax resident under LHDN rules. This drops your rental income tax rate from 30% (non-resident rate) to progressive rates starting at 0% up to 30%. MM2H makes extended stays practical. Without it, tourist visas limit you to 90 days per entry.
When MM2H is Worth It
MM2H makes sense if you plan to live in Malaysia part-time or full-time and want to simplify banking, insurance, and daily life. It also helps if you want to build a tax residency case. But if your only goal is to buy one or two investment properties and manage them remotely, MM2H adds cost and complexity you do not need.
The MM2H programme costs vary by category:
| MM2H Tier | Fixed Deposit (USD) | Monthly Offshore Income | Visa Validity |
|---|---|---|---|
| Silver | 150,000 (~RM700K) | USD 10,000/month | 5 years (renewable) |
| Gold | 500,000 (~RM2.25M) | USD 10,000/month | 15 years (renewable) |
| Platinum | 1,000,000 (~RM4.5M) | USD 10,000/month | 20 years (renewable) |
There is also a SEZ/SFZ tier for those residing in designated Special Economic Zones with lower requirements (USD 65,000 FD for under 50, USD 32,000 for 50+). That fixed deposit is capital locked in a Malaysian bank earning modest interest. For a property investor, that capital might generate far better returns deployed as a larger down payment or into a second property.
The State Consent Process (Without MM2H)
Every foreign property purchase — MM2H or not — requires state authority consent. Here is the step-by-step process:
Step 1: Sign the Sale and Purchase Agreement (SPA). The SPA is typically executed with a condition that the sale is subject to state consent. If consent is denied, the deposit is refundable (ensure this clause is in your SPA).
Step 2: Submit the consent application. Your lawyer submits the application to the state EPU or equivalent body. Required documents include:
- Passport copy (certified)
- SPA copy
- Property details and land title search
- Purpose of purchase declaration
- Bank reference letter (some states)
- Application fee payment
Step 3: Wait. Processing times vary significantly:
| State | Typical Timeline | Notes |
|---|---|---|
| Kuala Lumpur | 3-4 months | Federal territory, relatively efficient |
| Selangor | 4-6 months | High volume of applications |
| Penang | 4-6 months | Can be longer for mainland properties |
| Johor | 3-5 months | Iskandar applications may be faster |
| Sabah | 6-12 months | Additional state-level approval layer |
| Sarawak | 6-12 months | LCDA involvement adds time |
| Other states | 3-6 months | Lower volume, can be quicker |
Step 4: Receive consent. If approved, the state issues a consent letter. Your lawyer then proceeds with the transfer of title (Memorandum of Transfer) and stamp duty payment.
Consent fees range from RM10,000 to RM30,000 depending on the state. Sabah and Sarawak tend to be more expensive due to additional state-level approvals. KL and Johor are typically at the lower end.
Want the full data? The PropCashflow Ebook includes cashflow-positive property listings with side-by-side conventional and Islamic financing analysis. Get Instant Access — SGD 999 →
What Foreigners Cannot Buy (With or Without MM2H)
These restrictions apply regardless of visa status:
Malay Reserve Land. Gazetted under the Malay Reservations Enactment. Check the land title for "Tanah Rizab Melayu" or "Malay Reservation." No foreigner — including MM2H holders — can buy these properties.
Bumiputera lots. Developer quota units reserved for Bumiputera purchasers. Typically 30-50% of units in a new development. These are clearly marked in the developer's layout plan.
Properties below state threshold. If the property is priced below the state minimum, state consent will be denied. There is no workaround.
Agricultural land under 5 acres. Most states prohibit foreign ownership of small agricultural parcels. Larger agricultural holdings may be possible through corporate structures, but this is outside the scope of individual property investment.
Low and medium-cost housing. Government-classified affordable housing (rumah kos rendah, rumah mampu milik) is restricted to Malaysian citizens.
Financing Without MM2H
This is where non-MM2H buyers face a real — but manageable — disadvantage.
Loan-to-value ratio. Most Malaysian banks offer 60-70% financing to foreign buyers, compared to 90% for citizens. Some banks cap it at 60% for non-resident foreigners and offer 70% to those with a Malaysian work permit or MM2H.
Foreigner-friendly banks. Not all banks lend to foreigners. The following have established foreign buyer programmes:
| Bank | Max LTV (Foreigner) | Notes |
|---|---|---|
| HSBC Malaysia | 60-70% | Strong track record with Singapore, HK, UK buyers |
| Standard Chartered | 60-70% | Offers cross-border packages |
| OCBC Malaysia | 60-65% | More accessible if you bank with OCBC Singapore |
| Maybank | 60% | Selective; prefers larger loan amounts |
| CIMB | 60% | Case-by-case for non-residents |
Interest rates. Foreigners pay the same base rate (currently pegged to OPR) but may receive slightly less favourable spreads. Expect effective rates of 4.5%-5.5% for conventional loans, depending on the bank and your profile.
Required documents. Without MM2H, you will need:
- Passport (certified copy)
- Income proof (3-6 months payslips, tax returns, or audited accounts)
- Bank statements (6 months)
- SPA copy
- Existing property/asset declarations
- Credit report from home country
Processing time. Bank loan approvals for foreigners typically take 2-4 weeks longer than for citizens. Factor this into your SPA timeline — ensure your SPA allows sufficient time for both loan approval and state consent.
Worked Example: Buying Without MM2H
A Singaporean investor purchases an RM1,200,000 condominium in KL without MM2H.
| Cost Item | Amount (RM) |
|---|---|
| Purchase price | 1,200,000 |
| Down payment (35%, bank offers 65% LTV) | 420,000 |
| Loan amount | 780,000 |
| MOT stamp duty (8% flat for foreigners from 2026) | 96,000 |
| Loan stamp duty (0.5%) | 3,900 |
| Legal fees (SPA + loan) | ~15,000 |
| State consent fee | ~10,000 |
| Valuation fee | ~3,000 |
| Total upfront cash needed | ~547,900 |
Monthly cost with a 30-year conventional loan at 4.8%:
| Item | Monthly (RM) |
|---|---|
| Loan instalment | ~4,090 |
| Maintenance + sinking fund | ~500 |
| Insurance | ~100 |
| Total monthly outgoing | ~4,690 |
If the unit rents at RM4,000/month (common for a well-located RM1.2M condo in KL), the monthly cashflow is negative RM690 before tax. At RM4,500/month rental, the gap narrows to negative RM190. The property becomes cashflow-positive only above approximately RM4,700/month rental.
This example illustrates why the financing margin matters so much for foreign buyers. A citizen getting 90% financing on the same property would need only RM120,000 upfront, and their monthly instalment would be ~RM5,660 — higher monthly cost but dramatically lower capital outlay.
The Bottom Line
You do not need MM2H to buy property in Malaysia. You need a property above the state minimum price, a lawyer to handle the state consent application, and enough capital for a 30-40% down payment.
MM2H helps at the margins — easier banking, potential tax residency, lifestyle convenience. But if your goal is purely investment, the programme adds six figures of locked-up capital (the fixed deposit) for benefits you may never use.
Start with the numbers. Find a property where the rental yield covers your costs at 60-70% financing. If the deal works without MM2H, buy without it. If you later decide to spend significant time in Malaysia, apply for MM2H then — you can add residency to an existing property portfolio.
Related resources:
- Complete guide for foreign buyers in Malaysia
- Stamp duty rates and calculator for 2026
- Singapore buyer costs calculator
- Stamp duty calculator
Sources
- National Land Code 1965 (Act 56) — KPTG
- Section 433B — State Consent Requirements (Mah Weng Kwai & Associates)
- Economic Planning Unit (EPU) — Foreign Acquisition Guidelines
- MM2H Programme — Immigration Department of Malaysia
- MM2H Property Purchase Thresholds by State
- Selangor Foreign Purchaser Guidelines (Zone 1/2/3)
- LHDN — Non-Resident Tax Treatment
- RPGT Rates — LHDN