Explore answers with confidence.

Foreigners in Johor are generally allowed to purchase various types of properties, subject to certain conditions and minimum price thresholds. These typically include: High-rise residential units: Condominiums, apartments, and serviced apartments. Landed properties: Bungalows, semi-detached homes, and terrace houses, but usually only in designated "international zones" or with a landed strata title (e.g., within gated communities). Commercial properties: Subject to proper approvals. Industrial land: Subject to certain conditions, minimum purchase values, and state government approval. Properties generally NOT allowed for foreign purchase in Johor include: - Properties valued below the state-imposed minimum threshold (see Q2). - Low and medium-cost residential units. - Properties on Malay Reserved Land. - Properties allocated to Bumiputera interest in any development project. - Agricultural land (exceptions may apply for development purposes with state approval). - Auction properties. - One-storey or one and a half-storey terrace houses.

The minimum purchase price for foreigners in Johor varies depending on the property type and location. As of 2025: Landed property in international zones: Minimum RM 1 million. Strata title (e.g., high-rise residential) and landed properties in non-international zones: Minimum RM1 million. Medini area: This is a special economic zone and currently has no minimum price threshold for foreign buyers, making it an attractive entry point. Industrial Land/Development Land / Commercial Land: Generally, a minimum of RM1 million, but this can vary by state and specific zoning. Note: These thresholds are subject to change by the state government.

Effective from July 1, 2025, Johor has increased the approval fees for foreign property purchases. The new rates are as follows: Residential Properties (including Serviced Apartments priced RM1 million and above): Purchase from Developer: 3% of the purchase price or a minimum of RM30,000, whichever is higher. Subsale (Secondary Market): 3% of the JPPH (Valuation and Property Services Department) valuation or the purchase price (whichever is higher) or a minimum of RM30,000, whichever is higher. Lease (Pajakan): 3% of the lease value or a minimum of RM30,000, whichever is higher. Serviced Apartments priced below RM1,000,000: Minimum fee of RM50,000, subject to State Government approval. Commercial Properties: 3% of the purchase price/valuation or a minimum of RM30,000, whichever is higher. Industrial Category: 4% of the purchase price/valuation.

Key rules and regulations include: State Authority Consent: It is mandatory for all foreign individuals and foreign companies to obtain prior written approval from the Johor State Authority for any property acquisition. This consent is required before the property can be legally transferred. Minimum Price Threshold: Adherence to the minimum purchase prices as outlined in Q2. Restricted Properties: Foreigners cannot purchase properties listed as "Not allowed" in Q1. Stamp Duty: For the Sale and Purchase Agreement (SPA): RM10. For the Memorandum of Transfer (MOT) or Deed of Assignment (DOA): A flat rate of 8% (Flat Rate) of the property value (effective from January, 2026 for non- citizens and foreign-owned companies, excluding Malaysian permanent residents). For the Loan Agreement: A flat rate of 0.5% of the total loan amount. Legal Fees: Regulated by the Solicitors' Remuneration Order 2023. Generally, 1.25% for the first RM500,000 of the property price, and 1% for the next RM7,000,000, with further negotiation for higher amounts. Real Property Gains Tax (RPGT): This tax is levied on the profit earned when selling a property. For foreigners: If sold within the first five years of ownership: 30% on the chargeable gain. If sold from the sixth year onwards: 10% on the chargeable gain. Proof of Funds: You will need to demonstrate your ability to complete the purchase through proper banking channels. Power of Attorney: It's common to grant power of attorney to a local representative for signing documents on your behalf, especially for remote buyers.

The overall duration can vary, but here's an estimated timeline for key steps: Initial Booking: 1-2 days (requires passport copy, booking form). Signing Sale and Purchase Agreement (SPA): 1-2 weeks (after initial booking, usually within 14 days). State Consent Application: This is the most significant part and typically takes 3 months. However, with ongoing system upgrades, the Johor Land and Mines Office (PTG) is aiming to reduce processing times for foreign interest applications to 21 days, down from the previous 70 days, with completion targeted by July 31, 2025. Loan Application (if needed): 1-2 months. Loan-to-value ratios for foreigners generally range from 60-80%, with some banks offering up to 90% for Singaporean and Bruneian buyers. Full Completion & Vacant Possession: For new developments, developers typically deliver vacant possession within 36 months from the SPA date. For subsale properties, it's as per the SPA terms. Important Considerations: Malaysia My Second Home (MM2H) Program: While not mandatory for property purchase, the MM2H program offers a long-term visa (10-year renewable for MM2H, 20-year for Premium Visa Program - PVIP) and various benefits, including higher loan margins (up to 80% for MM2H holders). Professional Advice: It is highly recommended to engage a local lawyer and real estate agent experienced in foreign p