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Question: What are the general rules and regulations for foreign real estate buyers in Johor?
Foreign Real Estate Buyers in Johor, Malaysia (Year 2025)
Answer: 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.