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The Complete Guide

Living in Penang

Everything a foreign buyer or MM2H relocator needs to know — property buying costs, day-to-day cost of living, Penang's economic story, and the MM2H visa criteria — in one place.

Last updated August 2026. Stamp duty and MM2H rules change often — please verify time-sensitive figures with a licensed agent or conveyancing lawyer before relying on them for a transaction.

Buying Property in Penang

Cost of Buying Property in Penang, Malaysia

Foreign Ownership Minimum Price Thresholds [1]

Penang Island — Strata / Condo

RM1,000,000

minimum

Penang Island — Landed

RM3,000,000

minimum

Penang Mainland (Seberang Perai) — Strata

RM500,000

minimum

Penang Mainland (Seberang Perai) — Landed

RM1,000,000

minimum

  • For comparison: KL & Selangor RM1M (strata), Selangor landed RM2M, Johor RM1M.
  • Malay Reserve Land is off-limits to foreign buyers.

Stamp Duty (Memorandum of Transfer) [2]

  • Effective 1 January 2026: a flat 8% stamp duty applies to all foreign buyers.
  • Example: a RM1,000,000 property incurs RM80,000 in stamp duty.
  • A separate 0.5% loan agreement stamp duty applies if financing locally.
  • The 8% MOT stamp duty is only payable upon vacant possession — not at signing.

Other Transaction Costs

  • Legal fees: approx. 1–1.5% of purchase price (sliding scale under the Solicitors' Remuneration Order 2023). [3]
  • State consent fee: RM10,000–20,000, plus an additional ~3% island consent levy, both due upon signing the SPA (confirm the current rate with a conveyancing lawyer). [1]

Rule of Thumb

Budget roughly 9–11% on top of the purchase price for a foreign buyer's total entry cost — stamp duty, legal fees, consent, and registration combined. This isn't all due at once: State Consent and the 3% State Levy fall due at SPA signing, while the 8% MOT stamp duty isn't due until vacant possession. [2][3]

Good to Know [4]

  • No ABSD-style heavy foreign buyer tax like Singapore — Malaysia remains comparatively low-cost to enter.
  • Foreigners are generally restricted to strata-titled (condo/apartment) properties; landed property is restricted in most states outside MM2H/special exemptions.
  • RPGT (Real Property Gains Tax) applies on exit — the rate depends on holding period.

Sources

  1. [1] Malaysia4u — Penang Property Guide 2026: Prices by Area
  2. [2] PropCashflow — 8% Stamp Duty for Foreigners Malaysia 2026: What You'll Actually Pay
  3. [3] PropCashflow — Lawyer Fees for Property in Malaysia 2026: SRO Scale + Calculator
  4. [4] Bratu Capital — MM2H Property Purchase Rules for Foreigners in 2026: What You Can Buy

Questions about buying costs for a specific area or budget?

Ask About Buying Costs