Can I own property in Malaysia?

A citizen of Malaysia living abroad: Yes. A Malaysian living abroad buys like any citizen. A foreign national: Yes, with conditions. Allowed above a minimum purchase price that each state sets, with the state authority's consent to the transfer. The federal floor of RM1 million applies in Kuala Lumpur and the federal territories; Selangor's prime zone is RM2 million, Penang island's landed property RM3 million, Johor RM1 million. Consent takes weeks and carries a state fee. No residency or visa is needed.

Does the rent agreement need registering?

Registration above three years. Stamping applies to every tenancy, however short.

Who withholds tax on the rent, and how much?

No withholding at source. Yes. Rent from Malaysian property is Malaysian-source income, taxed on net rent after allowable expenses such as loan interest, quit rent, assessment, maintenance and agent fees.

How does the rent reach me in India?

A non-resident may open a ringgit external account at a Malaysian bank, usually in person with a passport, and rent is a permitted credit to it. No restriction. Bank Negara's foreign exchange policy allows a non-resident to repatriate rental income freely once converted to foreign currency, with no approval and no limit. No limit on bringing it back. Income from an LRS investment may be retained and reinvested abroad; if it is not reinvested it must be repatriated within 180 days of receipt. The bank records the purpose as income from property abroad. Ringgit moves to India by bank transfer with no Malaysian restriction; India has no inbound limit, taxes the rent at slab rates, credits the Malaysian tax through Form 67, and takes Schedule FA disclosure.

Renting out property in Malaysia while living in India

Malaysia's rules for a landlord living in India: ownership, the rent agreement, who withholds tax, and how the rent reaches you.

General information, not legal or tax advice. Rules change and your situation may differ. Check the sources on this page and confirm with a lawyer or accountant in the country before you act.

Desk research Last reviewed 1 October 2026 Report an inaccuracy

The short answers

Can I own property in Malaysia?: A citizen of Malaysia living abroad: Yes. A Malaysian living abroad buys like any citizen.; A foreign national: Yes, with conditions. Allowed above a minimum purchase price that each state sets, with the state authority's consent to the transfer. The federal floor of RM1 million applies in Kuala Lumpur and the federal territories; Selangor's prime zone is RM2 million, Penang island's landed property RM3 million, Johor RM1 million. Consent takes weeks and carries a state fee. No residency or visa is needed.
Does the rent agreement need registering?: Registration above three years. Stamping applies to every tenancy, however short.
Who withholds tax on the rent, and how much?: No withholding at source. Yes. Rent from Malaysian property is Malaysian-source income, taxed on net rent after allowable expenses such as loan interest, quit rent, assessment, maintenance and agent fees.
How does the rent reach me in India?: A non-resident may open a ringgit external account at a Malaysian bank, usually in person with a passport, and rent is a permitted credit to it.; No restriction. Bank Negara's foreign exchange policy allows a non-resident to repatriate rental income freely once converted to foreign currency, with no approval and no limit.; No limit on bringing it back. Income from an LRS investment may be retained and reinvested abroad; if it is not reinvested it must be repatriated within 180 days of receipt. The bank records the purpose as income from property abroad.; Ringgit moves to India by bank transfer with no Malaysian restriction; India has no inbound limit, taxes the rent at slab rates, credits the Malaysian tax through Form 67, and takes Schedule FA disclosure.

Renting out property in Malaysia

What applies because the property is in Malaysia, whoever owns it.

Who may own residential property

Who may own residential property, by audience
Citizens living in the country	Allowed Anywhere, subject to the Malay reserved land and Bumiputera quota rules that apply to everyone.
Residents of any nationality	With conditions A resident foreigner buys under the same price floors and state consent as any foreigner; a Malaysia My Second Home visa does not lower the floor, though some states set a lower one for its holders.
Citizens living abroad	Allowed A Malaysian living abroad buys like any citizen.
Foreign nationals living abroad	With conditions Allowed above a minimum purchase price that each state sets, with the state authority's consent to the transfer. The federal floor of RM1 million applies in Kuala Lumpur and the federal territories; Selangor's prime zone is RM2 million, Penang island's landed property RM3 million, Johor RM1 million. Consent takes weeks and carries a state fee. No residency or visa is needed.

Letting it out from abroad

May a non-resident owner let it: Yes, with no permit and no residency.
Licences, permits, landlord registration: None for a long-term let. Short-term letting is regulated by state and strata by-laws.
Local agent or representative: No. Agents licensed by the Board of Valuers are common for absent owners; nothing in law requires one.

The rent agreement

Written agreement required: In practice yes. A tenancy agreement must be stamped within thirty days of signing to be admissible in court, and stamping needs a document. A lease over three years should be registered on the title.
Mandatory standard form: None mandatory. Malaysia has no Residential Tenancy Act; the Housing Ministry has had one in drafting for years with no bill tabled as at the time of writing, so the agreement and the Contracts Act govern.
Language: English or Malay; English is the norm for tenancy agreements.
Registry: None for an ordinary tenancy. LHDN stamps the agreement; the land office registers only leases above three years.
When registration is required: Registration above three years. Stamping applies to every tenancy, however short.
Who registers: Either party, by convention the tenant, stamps the agreement online through LHDN's e-stamping service within thirty days; a landlord abroad signs and lets the agent or tenant stamp.
Registration cost: Stamp duty per RM250 of annual rent: RM1 for a term of up to a year, RM3 up to three years, RM5 up to five, RM7 above, with a minimum of RM10; the full annual rent has been chargeable since 1 January 2025.
If it is not registered: An unstamped agreement cannot be used in evidence until stamped with a penalty of up to RM100 or four times the duty.
Stamp duty: Lease duty under the Stamp Act 1949, paid online through LHDN within thirty days, usually by the tenant; see the registration cost for the rates.
Notarisation and witnesses: Not required. Witnesses are customary.
E-signature: Valid under the Electronic Commerce Act 2006, with the Digital Signature Act 1997 covering certificate-based signatures. Any reliable method works; MyDigital ID is a government login rather than a signing scheme.
The usual term: One or two years with an option to renew, which keeps the agreement under the registration threshold and the lower duty band.

Rules the agreement must respect

Deposit: No statutory cap. Two months' rent as security plus half a month for utilities is the norm, held by the landlord and returned on handover less deductions.
Rent increases: Whatever the agreement says. No rent control; increases are agreed at renewal.
Notice periods: As agreed, usually two months either side; the agreement's termination clause is what a court applies.
Disputes: The civil courts, with the Distress Act available to a landlord for unpaid rent. Self-help eviction and lock-outs are unlawful; a court order is needed.
Mandatory disclosures: Not applicable

Tax when the landlord lives abroad

Is the rent taxed here: Yes. Rent from Malaysian property is Malaysian-source income, taxed on net rent after allowable expenses such as loan interest, quit rent, assessment, maintenance and agent fees.
Withholding at source: No
Withholding rate: Not applicable
Who withholds: Not applicable
What the tenant must register: Not applicable
How to reduce it: Not applicable
Filing and tax ID: A non-resident individual files Form M by 30 June and pays a flat 30 percent on net rent with no personal reliefs; a resident pays the progressive scale instead. Selling triggers real property gains tax at the non-citizen rates.
VAT or GST on rent: None on residential rent; the sales and service tax does not reach it.
Municipal and housing fees: Quit rent to the state and assessment tax to the local council, both the owner's, plus strata maintenance and sinking fund.

Money inside the country

How tenants pay: DuitNow or bank transfer in ringgit; cheques are fading.
Currency of rent: MYR
Bank account for a non-resident owner: A non-resident may open a ringgit external account at a Malaysian bank, usually in person with a passport, and rent is a permitted credit to it.
Paying rent to an overseas account: Allowed under the foreign exchange notices; in practice rent lands in a local account and is converted.
Taking rent out of the country: No restriction. Bank Negara's foreign exchange policy allows a non-resident to repatriate rental income freely once converted to foreign currency, with no approval and no limit.

Living in India

What India asks of its residents who own and let property abroad.

Owning property abroad from here

Buying abroad: Allowed under the Liberalised Remittance Scheme: up to USD 250,000 per person per financial year, which relatives may pool for one property. Also by inheritance, by gift from a resident who owned it lawfully, or from income already held abroad.
Reporting foreign assets and accounts: Every resident reports foreign property, accounts and the income from them in Schedule FA of the annual return, with the rent itself in Schedule FSI. Leaving it out is penalised under the black money law.
Tax at home on foreign rent: Residents are taxed on worldwide income, so foreign rent is taxed in India at slab rates after the standard deduction. Tax paid abroad is credited through Form 67, filed before the return, under the treaty with that country or unilaterally where there is none.
Bringing rent home: No limit on bringing it back. Income from an LRS investment may be retained and reinvested abroad; if it is not reinvested it must be repatriated within 180 days of receipt. The bank records the purpose as income from property abroad.
Digital identity for e-signing: Aadhaar eSign signs any Indian document and a growing number of foreign platforms accept it. Where it is not accepted, a certificate-based digital signature from an Indian certifying authority, or the foreign platform's own e-signature, does the job.

Between India and Malaysia

What applies to this pair of countries in particular.

Tax treaty between the two countries: Yes
Withholding under the treaty: Not applicable: Malaysia withholds nothing on rent. The landlord files Form M and pays 30 percent on net rent; India credits that tax through Form 67 under the treaty.
The usual vehicle for this corridor: A property above the state's price floor bought under the Liberalised Remittance Scheme with state consent; a licensed agent; a yearly Form M return.
Banking blocks: State consent to the purchase takes weeks and carries a fee; the price floor rules out most mid-market flats.
Typical remittance route and cost: Ringgit moves to India by bank transfer with no Malaysian restriction; India has no inbound limit, taxes the rent at slab rates, credits the Malaysian tax through Form 67, and takes Schedule FA disclosure.
What most people do: Buy above the floor under LRS, get state consent, let on a one- or two-year stamped agreement through an agent, file Form M each year, and declare the rent and the account in India.

Sources

Bank Negara Malaysia: repatriation of dividends, interest, rental, fees, commissions or profits — www.bnm.gov.my
Bank Negara Malaysia: foreign exchange policy notices — www.bnm.gov.my
Inland Revenue Board of Malaysia (LHDN): individuals, including non-residents and stamp duty — www.hasil.gov.my
US Department of State: Malaysia investment climate statement (foreign ownership and exchange rules) — www.state.gov
Ministry of Finance: exemption of foreign-source income for resident taxpayers — www.mof.gov.my
MyDigital ID, the national digital identity — mydigitalid.my
Income Tax Department of India: the India–Malaysia tax treaty — www.incometaxindia.gov.in
RBI Master Direction: Acquisition and Transfer of Immovable Property under FEMA — www.rbi.org.in
Ministry of External Affairs: acquisition and transfer of immovable property in India by NRIs and OCIs — www.mea.gov.in
RBI FAQ: Accounts in India by Non-residents (NRE, NRO, current income) — www.rbi.org.in
RBI FAQ: Remittance of Assets (the USD 1 million limit) — www.rbi.org.in
RBI FAQ: Liberalised Remittance Scheme — www.rbi.org.in
RBI FAQ: Purchase of immovable property outside India — www.rbi.org.in
Income Tax Department: TDS rates, including section 195 for non-residents — www.incometaxindia.gov.in
Income Tax Department: Form 13, certificate under section 197 for a lower or nil rate — www.incometaxindia.gov.in
Income Tax Department: Form 15CA, remittance to a non-resident — www.incometaxindia.gov.in
Income Tax e-filing portal: Form 67 FAQ, foreign tax credit — www.incometax.gov.in
Income Tax e-filing portal: guide to Schedules FA, FSI and TR — www.incometax.gov.in
The Registration Act, 1908 (Delhi Revenue Department copy), section 17 on leases — revenue.delhi.gov.in
MeitY: The Information Technology Act, 2000 (sections 3, 3A and 10A) — www.meity.gov.in
UIDAI: enrolment and update, who may enrol — uidai.gov.in
UIDAI: NRI Aadhaar enrolment — uidai.gov.in
PIB: Model Tenancy Act, states that have adopted it (25 July 2022) — www.pib.gov.in
PIB: draft Model Tenancy Act, the security deposit cap (11 July 2019) — www.pib.gov.in
StockHolding e-Stamping, the Central Record Keeping Agency — www.shcilestamp.com
IGR Maharashtra: leave and licence e-registration and stamp duty — igrmaharashtra.gov.in
GST Council: Notification 12/2017-Central Tax (Rate), exemption for residential dwellings — gstcouncil.gov.in
CBIC: Notification 04/2022-Central Tax (Rate), renting to a registered person — cbic-gst.gov.in
Controller of Certifying Authorities: digital signature certificates — cca.gov.in
Delhi Police: citizen services, including tenant registration — delhipolice.gov.in