How Much Cash Do Foreigners Need? About 30% of the Price
About 30% of the price, if your bank lends 80%. Foreign buyers in Malaysia should plan on having about 30% of the property price in cash across the whole purchase. That's more than the 20% most people expect, because stamp duty and fees sit on top of the down payment.
| Cost | How much | When it's paid |
|---|---|---|
| Down payment | 20% (the bank lends up to 80%) | New launch: 10% at signing, then in stages. Subsale: at signing and completion. |
| Stamp duty on the transfer (MOT) | A flat 8% for foreign buyers | New launch: at handover. Subsale: around completion, when the transfer is stamped. |
| Legal fees and other charges | About 2% | New launch: most developers cover these. Subsale: you pay. |
| Stamp duty on the loan agreement | 0.5% of the loan (about 0.4% of the price) | When the loan is signed. |
| Total cash | About 30% (a little less on a new launch if the developer covers legal fees) | Spread over the whole purchase, not all at once. |
The good news for new-launch buyers: that 30% isn't all needed at signing. Most developers cover the legal fees, and the 8% stamp duty isn't due until handover, which can be a few years later. The cash you need upfront is mainly the down payment.
Worked Example: an RM1 Million Condo
To make the percentages concrete, here's the maths on RM1 million, which is Kuala Lumpur's minimum price for foreign buyers. It's an example, not the price of any particular project.
| Cost | On RM1 million |
|---|---|
| Down payment (20%) | RM200,000 |
| Stamp duty on the transfer (8%) | RM80,000 |
| Legal fees and other charges (about 2%) | About RM20,000 |
| Stamp duty on the loan (0.5% of an RM800,000 loan) | RM4,000 |
| Total cash | About RM304,000 |
On a new launch, most developers cover the legal fees, and the RM80,000 stamp duty isn't due until handover. If the bank lends less than 80%, your cash goes up: at 70%, the down payment becomes RM300,000, the loan stamp duty drops to RM3,500, and the total is about RM404,000, or roughly 40% of the price.
1. The Down Payment: 20%
Foreign buyers can usually borrow up to 80% of the price, depending on the bank and your income documents. You pay the other 20% yourself.
Please don't treat 80% as guaranteed. Banks review foreign applicants individually and may approve less, so it's wise to keep a buffer and to get a loan pre-approval before you sign anything.
2. Stamp Duty on the Transfer: a Flat 8%
This is the biggest cost after the down payment, and the one people most often forget. Since the 2026 budget, foreign buyers pay a flat 8% stamp duty on the memorandum of transfer (MOT), whatever the property's value. It's charged on the higher of the price and the market value. Malaysians, by comparison, pay progressive rates of up to 4%.
On a new launch, this duty is only due when the unit is handed over and transferred into your name, which may be several years after you sign. On a subsale (a resale home), it's paid at the time of the sale. Our stamp duty guide covers the details.
3. Legal Fees and Other Charges: About 2%
Lawyers' fees follow a government scale (the Solicitors' Remuneration Order), where the percentage falls as the price rises. The sale agreement and the loan agreement are charged separately, and service tax (SST) is added. Together with the smaller charges, about 2% of the price is a sensible estimate.
- State consent application fee: the foreign-buyer application fee differs by state, and your lawyer handles it.
- Valuation fee: the bank values the property before lending; on a subsale, you usually pay this.
- New launches: most developers cover the buyer's legal fees. Ask exactly what's included before you sign.
4. Stamp Duty on the Loan: 0.5% of the Loan
The loan agreement carries its own stamp duty of 0.5% of the loan amount. With an 80% loan, that works out to about 0.4% of the property price.
When Do You Pay Each Cost?
New launch: you usually pay 10% at signing (including the booking fee), then the rest in stages as construction progresses. With an 80% loan, you pay your own 20% first, and the bank releases its share stage by stage after that.
Subsale: you usually pay a 10% deposit at signing, and the balance within about three months, with a possible one-month extension (usually with late-payment interest). For foreign buyers, the three months usually runs from the date the state approves the purchase.
What Documents Will the Bank Ask For?
- Passport
- Payslips or proof of income for the last 3–6 months
- Bank statements for the last 6 months
- Your latest tax return
- Proof of employment, or your company's documents
- An MM2H pass or work pass, if you have one
Each bank's list differs, and documents from overseas may need to be notarised. Buying from abroad? See which steps you can do remotely.
What Does It Cost Each Year After You Buy?
Owning a condo comes with a few regular bills. Here's an estimate for an RM1 million condo in Kuala Lumpur:
| Cost | Paid to | Estimate |
|---|---|---|
| Maintenance fee and sinking fund | The building's management body (Joint Management Body or Management Corporation), monthly or quarterly | Varies by building |
| Assessment tax | Kuala Lumpur City Hall (DBKL), in two instalments a year | About RM1,000–2,000 a year |
| Quit rent (parcel rent for condos) | The land office, yearly | About RM50–200 a year |
| Building insurance | Usually arranged by the management body and shared among owners | Usually included in your maintenance charges |
These are estimates. Assessment tax depends on each unit's annual rental value, size and location, so every unit's bill is different. Our property tax guide explains how both taxes work.
FAQ
No. About 30% is the total across the whole purchase. On a new launch, you usually pay 10% at signing and the rest of your 20% down payment in stages; most developers cover the legal fees, and the 8% stamp duty is only due at handover. On a subsale, you pay a 10% deposit at signing, then the balance, stamp duty and fees within about three months of the state's approval.
A flat 8% on the transfer document (the MOT), charged on the higher of the price and the market value, under the 2026 budget. There's also 0.5% of the loan amount on the loan agreement.
Most developers cover the buyer's legal fees on new launches, but it varies, so ask exactly what's included before you sign. On a subsale, you pay your own legal fees, which with other charges come to about 2% of the price.
Usually up to 80% of the price, depending on the bank and your income documents. The bank may approve less, so keep some cash in reserve and get a pre-approval first.
The maintenance fee and sinking fund, assessment tax (roughly RM1,000 to RM2,000 a year for an RM1 million condo) and quit rent (roughly RM50 to RM200 a year). These are estimates; every unit's bills differ.
Updated September 2026. Rules, bank policies and fees change, and every purchase is different. This article is general information, not legal or tax advice, so please check the details with your lawyer and bank before you sign.