Buyer's Guide · FOREIGNER

Can You Get the Money Out? What Happens to the Property When You Die? The Two Questions Foreign Owners Ask Last

Q: Can a foreigner repatriate the proceeds of selling Malaysian property?

Yes. Bank Negara's Foreign Exchange Policy expressly permits a non-resident to repatriate divestment proceeds, profits, dividends or any income arising from investments in Malaysia, with no cap and no prior approval required; the rule is that repatriation must be made in foreign currency. What actually reduces the amount you receive is tax and retention — the buyer must retain 7% of the price for RPGT.

Q: Is there inheritance or estate tax in Malaysia?

No. The Estate Duty Enactment 1941 and the other estate duty enactments, including those of Sabah and Sarawak, were repealed by sections 45 to 46 of the Finance Act 1992 with effect from 1 November 1991. No death, estate or inheritance tax has been introduced since. But no tax does not mean no process — transferring to heirs still requires a grant and State Authority consent.

Q: Does a foreign heir need state consent to inherit Malaysian property?

Yes. Section 433B(1)(e) of the National Land Code provides that the Registrar may endorse a memorial of transmission in favour of a non-citizen or foreign company only after prior State Authority approval. The federal guideline does exempt transfers by will or court order from Ministry of Economy approval, but that removes the federal layer only — the state layer remains.

Q: If I die abroad, is my foreign grant of probate valid in Malaysia?

If it is a grant from a Commonwealth court, it can be resealed in the Malaysian High Court under section 52 of the Probate and Administration Act 1959, after which the executor may deal with the Malaysian land. Without such a grant, a fresh Malaysian grant of probate or letters of administration is needed; small estates have their own route under the Small Estates (Distribution) Act 1955. Resealing is commonly quoted at three to six months, but that is a practitioner estimate, not a published standard.

Q: Which states are strictest about foreign inheritance?

Perak is the strictest — since September 2023 non-citizens and foreign companies cannot acquire, own, hold or inherit freehold property. Melaka makes inheritance by a non-citizen under hukum faraid, the Small Estates (Distribution) Act 1955 or the Probate and Administration Act 1959 subject to the State Authority's discretion. More accommodating are Johor (transfers under the Distribution Act or a court order are unrestricted and levy-free, except Malay Reserved Land) and Penang (inheritance is permitted and the minimum price controls do not apply to estate and court orders).

Good news: Malaysia does not restrict repatriating your sale proceeds, and there is no inheritance tax. Bad news: passing the property to a foreign heir still needs State Authority consent — and Perak will not let a non-citizen inherit freehold at all.

By the PropertySifu Editorial · Updated August 2026 · 9 min read read

Read this first

Getting the money out is not a problem. Bank Negara's Foreign Exchange Policy expressly permits a non-resident to repatriate divestment proceeds, profits, dividends or any income arising from investments in Malaysia. There is no cap and no prior-approval requirement. The one rule is that repatriation must be made in foreign currency.

There is no inheritance tax either. The Estate Duty Enactment 1941 and the other estate duty enactments, including those of Sabah and Sarawak, were repealed with effect from 1 November 1991, and no death, estate or inheritance tax has been introduced since.

🔴 The real friction is in the transfer itself: a non-citizen inheriting Malaysian land still requires State Authority consent before the memorial of transmission can be registered, under section 433B(1)(e) of the National Land Code. And since September 2023 Perak bars non-citizens from inheriting freehold property at all.

You sold — now how does the money leave Malaysia

This is the thing foreign buyers worry about most and need to worry about least. Bank Negara's Foreign Exchange Policy states that a non-resident may:

Repatriate divestment proceeds, profits, dividends or any income arising from the investments in Malaysia. Repatriation shall be made in FC.

Three points:

No cap and no prior approval. This is not "applications are usually granted" — the policy simply does not impose that gate.
It must be repatriated in foreign currency. Ringgit is converted and then remitted; that is an execution rule, not a restriction.
The same policy permits a non-resident to borrow in ringgit in Malaysia to buy Malaysian property. Which is why any limit on foreigner margin of finance comes from bank credit policy, not exchange control — see the loan guide.

What actually reduces what you receive is tax and retention, not exchange control: on sale, the buyer's solicitor must retain 7% of the price as your RPGT retention, and a non-citizen non-PR pays 30% for the first five years and 10% from year six. See what a foreigner pays to sell.

The owner dies — what happens to the Malaysian property

The good news first: Malaysia has no inheritance tax. The Estate Duty Enactment 1941 and the other estate duty enactments, including Sabah's and Sarawak's, were repealed by sections 45 to 46 of the Finance Act 1992 with effect from 1 November 1991, and nothing has replaced them. So the problem is not tax. It is process.

Gate one: a Malaysian-recognised grant

Malaysian land can only be transmitted on a Malaysian grant. Where the deceased died abroad holding a grant from a Commonwealth court, that grant can be resealed in the Malaysian High Court under section 52 of the Probate and Administration Act 1959. Without such a grant, a fresh Malaysian grant of probate or letters of administration is needed; small estates go through the Small Estates (Distribution) Act 1955.

Note: resealing is commonly quoted at three to six months, but that is a practitioner estimate rather than a published service standard. Go by the timeline your appointed solicitor gives you.

Gate two: if the heir is a foreigner, state consent still applies

This is the part most owners do not know. Section 433B(1)(e) of the National Land Code provides that the Registrar may endorse a memorial of transmission in favour of a non-citizen or foreign company only after prior State Authority approval.

The federal layer does give relief — Appendix I paragraph 1.6 of the federal guideline exempts transfers to a foreigner "by will or court order" from Ministry of Economy approval. But that removes only the federal layer. The state layer remains.

States take very different positions on inheritance

Penang: acquisition through inheritance from a deceased family member is permitted, and the minimum price controls do not apply to estate orders, court orders and love-and-affection transfers.
Johor: transfers under the Distribution Act or a court order are permitted without restriction and without levy — except on Malay Reserved Land. (For contrast, an ordinary love-and-affection transfer carries an RM10,000 levy per title.)
Melaka: inheritance by a non-citizen under hukum faraid (Muslims), the Small Estates (Distribution) Act 1955 or the Probate and Administration Act 1959 (non-Muslims) is at the discretion of the State Authority — not automatic.
Negeri Sembilan: small estates orders and court orders are listed as exceptions to the minimum price rules.
🔴 Perak: since September 2023 non-citizens and foreign companies cannot acquire, own, hold or inherit freehold property. This is the hardest rule in the country — if you hold freehold in Perak, your foreign heirs may simply be unable to take it.

Does holding through a Malaysian company make succession simpler?

In theory yes: on death what moves is the shares, not the land, so the land registry route is not triggered. But that brings a different set of problems:

The shares are still an estate asset and still go through succession — the subject matter simply changes from immovable to movable property.
A different tax regime applies. From 1 January 2024, disposals of Real Property Company (RPC) shares by companies, LLPs, co-operatives and trust bodies attract Capital Gains Tax rather than RPGT; disposals of RPC shares by individuals stay within RPGT.
The company itself has carrying costs: a foreign-owned local company needs at least RM250,000 paid-up capital, plus annual secretarial, audit and tax filing.
And it does not relieve anything else — the federal guideline treats a Malaysian company more than 50% foreign-held as a foreign interest, so the RM1 million floor, State Authority consent and the four prohibitions all still apply.

🔴 We did not verify the detailed mechanics of an SPV on death to a standard where we would state a conclusion. The point of this section is to tell you what to ask, not to choose a structure for you. Use an adviser who understands both Malaysian tax and the succession law of your own country.

Four things to do now that save a great deal later

Make a separate will for your Malaysian assets
The most common cross-border problem is wills that conflict with each other, or a home-country will that is not directly accepted here. Use a lawyer who understands both jurisdictions rather than one general will covering assets everywhere.
Confirm that your state allows foreign heirs at all
Perak expressly bars non-citizens from inheriting freehold; Melaka leaves it to the State Authority's discretion. Ask before you buy — far better than discovering it after a death.
Keep the documents somewhere your heirs can reach
Copy of the title, the SPA, the law firm's name and file reference, loan details, assessment and quit rent records. Heirs abroad most often stall at simply not being able to find the paperwork.
Tell your heirs about the state consent step
Explain that transferring the Malaysian property into their names needs State Authority approval — that it is a legal requirement, not a lawyer padding a bill. Saying so in advance prevents a predictable misunderstanding.

Already own in Malaysia? Send us the state and how you hold it

Tell us which state, whether it is held personally or through a company, and roughly when you bought. We will point out that state's position on foreign inheritance, the tax and retention on exit, and any holding-period restriction you may not have noticed. (Opens WhatsApp. No spam, no obligation.)

Review my exit and succession →

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Frequently asked questions

Can a foreigner repatriate the proceeds of selling Malaysian property?

Yes. Bank Negara's Foreign Exchange Policy expressly permits a non-resident to repatriate divestment proceeds, profits, dividends or any income arising from investments in Malaysia, with no cap and no prior approval required; the rule is that repatriation must be made in foreign currency. What actually reduces the amount you receive is tax and retention — the buyer must retain 7% of the price for RPGT.

Is there inheritance or estate tax in Malaysia?

No. The Estate Duty Enactment 1941 and the other estate duty enactments, including those of Sabah and Sarawak, were repealed by sections 45 to 46 of the Finance Act 1992 with effect from 1 November 1991. No death, estate or inheritance tax has been introduced since. But no tax does not mean no process — transferring to heirs still requires a grant and State Authority consent.

Does a foreign heir need state consent to inherit Malaysian property?

Yes. Section 433B(1)(e) of the National Land Code provides that the Registrar may endorse a memorial of transmission in favour of a non-citizen or foreign company only after prior State Authority approval. The federal guideline does exempt transfers by will or court order from Ministry of Economy approval, but that removes the federal layer only — the state layer remains.

If I die abroad, is my foreign grant of probate valid in Malaysia?

If it is a grant from a Commonwealth court, it can be resealed in the Malaysian High Court under section 52 of the Probate and Administration Act 1959, after which the executor may deal with the Malaysian land. Without such a grant, a fresh Malaysian grant of probate or letters of administration is needed; small estates have their own route under the Small Estates (Distribution) Act 1955. Resealing is commonly quoted at three to six months, but that is a practitioner estimate, not a published standard.

Which states are strictest about foreign inheritance?

Perak is the strictest — since September 2023 non-citizens and foreign companies cannot acquire, own, hold or inherit freehold property. Melaka makes inheritance by a non-citizen under hukum faraid, the Small Estates (Distribution) Act 1955 or the Probate and Administration Act 1959 subject to the State Authority's discretion. More accommodating are Johor (transfers under the Distribution Act or a court order are unrestricted and levy-free, except Malay Reserved Land) and Penang (inheritance is permitted and the minimum price controls do not apply to estate and court orders).