In Johor, the minimum price for foreign buyers is generally RM1 million, applied to the purchase price of residential property for both new and subsale purchases. Serviced apartments below RM1 million can go to foreigners only with special state approval. Above the threshold, the Johor levy is 3% of the stamped price, minimum RM30,000; for state-approved serviced apartments under RM1 million the minimum is RM50,000. Add 8% federal stamp duty. On a RM1.2 million unit, the levy is RM36,000 and the stamp duty RM96,000.
“What is the Johor minimum price for foreigners?” sounds like a question with a single number for an answer. In practice the RM1 million threshold works alongside a percentage levy, minimum amounts, an approval route for serviced apartments and a separate federal stamp duty, so the real cost depends on where your unit sits relative to those lines. This guide explains how the threshold and levy work and then runs the numbers at four illustrative price points.
For the general framework of who can buy and what is prohibited, see can foreigners buy property in Johor Bahru. For HDB, CPF and funding questions, see our guide for Singaporeans buying in JB.
What is the Johor minimum price for foreign buyers?
The Johor minimum price for foreign buyers is RM1 million for residential property. Malaysian law firm Legal That Works, citing official Johor PTG material as at August 2026, gives it as “RM1 million and above for residential property”, applying to both developer purchases and subsales. In April 2026 the New Straits Times reported the same position and noted that Johor has historically resisted lowering the floor in the secondary market.
Two exceptions matter for buyers:
- Serviced apartments under RM1 million. These can be sold to foreigners where the developer has obtained special state approval, and the levy minimum then rises to RM50,000 (NST; L & Co Accountants, citing PTG Circular 03/2025).
- Designated zones. Designated areas such as Medini in Iskandar Puteri are exempt from the minimum price thresholds (NST, April 2026).
Johor did lower the threshold to RM600,000 once before, for completed strata units with a CCC for more than nine months, but only from 1 January to 30 September 2020. After that it returned to RM1 million (The Sun). Some older articles still quote the RM600,000 figure. It is not the current rule.
How the RM1 million threshold is measured
The threshold compares the purchase price with RM1 million. Units priced at or above RM1 million are open to foreign buyers. Units below it are open only through the state-approved serviced apartment route. Johor’s levy for developer purchases is calculated on the stamped SPA price. For subsales, it uses the JPPH (Valuation and Property Services Department) valuation or the stamped agreement price (L & Co Accountants). Ask your lawyer to confirm which figure the Land Office will use for your file before you sign.
Some practical points follow from this:
- The SPA price is the reference. When comparing units, use the developer’s SPA price list. WhatsApp us for the latest SPA price list for Causewayz Square, The Asteriaz and The Celestz.
- Larger layouts cross the line first. In any development, bigger units and higher floors are the most likely to be at or above RM1 million, which keeps them open to foreign buyers on both purchase and resale.
- The threshold matters again on resale. The NST reported that foreign owners of units below RM1 million can resell only to Malaysians, while units at RM1 million and above remain open to foreign buyers.
How the Johor foreign acquisition levy is calculated
The Johor levy is a percentage of the property price, with a minimum amount: you pay whichever is higher. Since 1 July 2025 the rate has been 3% (previously 2%), under Johor PTG Circular 03/2025, issued on 13 June 2025 (Y Kong, Wong & Partners). HHQ describes it as the Foreign Acquisition Levy, or State Consent Fee, under section 433B of the National Land Code.
| Transaction | Rate | Base | Minimum |
|---|---|---|---|
| Residential or commercial, from developer | 3% | Stamped SPA price | RM30,000 |
| Serviced apartment under RM1m (state approval) | 3% | Stamped SPA price | RM50,000 |
| Subsale | 3% | JPPH valuation or stamped agreement price | RM30,000 |
| Lease | 3% | Stamped lease value | RM30,000 |
| Transfer between immediate family | 2% | JPPH valuation | RM20,000 |
| Industrial | 4% | SPA price / valuation | No minimum stated |
Source: L & Co Accountants and Y Kong, Wong & Partners, summarising PTG Johor Circular 03/2025.
The formula is simple: levy = the higher of (3% × price) or the minimum. Because 3% of RM1 million is exactly RM30,000, the RM30,000 minimum never adds extra cost for a unit at or above RM1 million. The RM50,000 minimum is different. For a state-approved serviced apartment priced at RM850,000, 3% is RM25,500, but you pay RM50,000. That works out to an effective rate of about 5.9%.
Transitional rule
The old 2% rate applied only where the SPA was signed and stamped before 1 July 2025 and the complete documents reached the Johor Land Office by 29 August 2025. Everything after that is on the new rates (Y Kong, Wong & Partners; L & Co Accountants).
How the 8% foreigner stamp duty is calculated
The foreigner stamp duty is a flat 8% of the purchase price or the market value of the property, whichever is higher. It is charged on the instrument of transfer for residential property bought by non-citizens who are not Malaysian PRs and by foreign companies, from 1 January 2026 (RSM; Skrine). The rate is RM8 for every RM100 or part of RM100, under item 32(ab) of the Stamp Act 1949.
Unlike the Malaysian citizens’ scale of 1%, 2%, 3% and 4% bands, there are no tiers. Every ringgit is charged at 8%. The previous foreigner rate was a flat 4% (KPMG). The Act’s definition of residential property includes serviced apartments and SOHOs used solely as a dwelling (Skrine), so plan on 8% for a serviced apartment you will live in or rent out as a home. If you finance the purchase with a Malaysian bank, the loan agreement carries a separate 0.5% stamp duty.
New launch vs subsale: what changes in the calculation?
The RM1 million threshold is the same for both, but the base for the levy is not. For a developer purchase, the levy is calculated on the stamped SPA price. For a subsale, it uses the JPPH valuation or the stamped agreement price (L & Co Accountants). Stamp duty in both cases uses the higher of the price or the market value (RSM). If the valuation comes in above your agreed price, you may pay on the higher figure, so get a sense of market value before you make an offer on a subsale.
Who pays and when:
- Consent application and levy: borne by the foreign buyer (MahWengKwai & Associates) and paid when consent is granted.
- Stamp duty on transfer: paid by the buyer when the transfer is stamped.
- Legal fees and registration fee: paid during conveyancing and at registration.
These costs normally come out of your own cash rather than the bank loan. Ask your lawyer for a payment timeline.
Johor MOT registration fee tiers
Since 1 July 2025, Johor has charged a fixed registration fee for the transfer (MOT), set by price band (Y Kong, Wong & Partners):
| Property value | Registration fee |
|---|---|
| RM500,000 – RM600,000 | RM2,500 |
| RM600,000 – RM700,000 | RM3,000 |
| RM700,000 – RM800,000 | RM3,500 |
| RM800,000 – RM900,000 | RM4,000 |
| RM900,000 – RM1,000,000 | RM4,500 |
| Above RM1,000,000 | RM4,500 + RM250 per additional RM50,000 |
Worked examples: total foreigner costs at four price points
The examples below use illustrative round prices, not the price of any particular project. Legal fees follow the Solicitors’ Remuneration Order 2023 scale (1.25% on the first RM500,000, then 1%) for the SPA only. Loan legal fees, the 0.5% loan stamp duty and disbursements are excluded.
| Item | RM850,000 (state-approved serviced apt) | RM1,000,000 | RM1,200,000 | RM1,500,000 |
|---|---|---|---|---|
| Johor levy | RM50,000 (minimum applies) | RM30,000 | RM36,000 | RM45,000 |
| Stamp duty on transfer (8%) | RM68,000 | RM80,000 | RM96,000 | RM120,000 |
| MOT registration fee | RM4,000 | RM4,500 | RM5,500 | RM7,000 |
| SPA legal fee (SRO 2023) | RM9,750 | RM11,250 | RM13,250 | RM16,250 |
| Total on top of price | RM131,750 | RM125,750 | RM150,750 | RM188,250 |
| As % of price | about 15.5% | about 12.6% | about 12.6% | about 12.6% |
What the numbers show:
- Above RM1 million, costs scale smoothly. From RM1 million upwards, the levy, stamp duty and fees add about 12.5–13% to the price, before loan costs and disbursements.
- Below RM1 million, the RM50,000 minimum dominates. At RM850,000 the total additional cost (RM131,750) is higher than at RM1 million (RM125,750). That is why many foreign buyers look at units at or just above the threshold, which also keeps resale open to other foreigners.
- Stamp duty is the biggest item. At 8%, it is more than twice the levy at every price point above the threshold.
MOT fee note: RM1.2 million is RM200,000 above RM1 million, which is four steps of RM50,000, so RM4,500 + 4 × RM250 = RM5,500. RM1.5 million is ten steps, so RM4,500 + RM2,500 = RM7,000.
How much does buyer status change the cost?
The same unit can carry very different costs depending on whether a Malaysian citizen, a Malaysian PR or a foreigner buys it. Two items make the difference: whether stamp duty is tiered or a flat 8%, and whether the Johor foreign acquisition levy applies.
Malaysian citizens and PRs pay tiered stamp duty: 1% on the first RM100,000, 2% from RM100,001 to RM500,000, 3% from RM500,001 to RM1 million, and 4% above that. Skrine notes that PRs are outside the 8% rate. HHQ describes the levy as applying to non-citizens and foreign-controlled entities. Because PRs fall within “foreign interest” under section 433A, they still need consent, so ask your lawyer how the levy applies in your case.
| RM1.2 million unit | Malaysian citizen | Foreigner (non-PR) |
|---|---|---|
| Stamp duty on transfer | RM32,000 (tiered) | RM96,000 (flat 8%) |
| Johor foreign acquisition levy | Not applicable | RM36,000 |
| State consent | Not needed | Needed |
| Total of the two | RM32,000 | RM132,000 |
Tiered calculation: RM100,000 × 1% = RM1,000; RM400,000 × 2% = RM8,000; RM500,000 × 3% = RM15,000; RM200,000 × 4% = RM8,000; total RM32,000. Above the threshold, a foreign buyer pays roughly 8% of the price more than a local buyer in these two items. If you are buying jointly with a Malaysian spouse or relative, the calculation is more complex, so ask your lawyer to walk through it line by line.
Common mistakes when reading the Johor threshold
Most mistakes come from older articles or from mixing up state and federal rules. Watch for these:
- Quoting the old 2% / RM20,000 levy. That rate ended for new transactions on 1 July 2025. Today it is 3% with a minimum of RM30,000, or RM50,000 for state-approved serviced apartments under RM1 million.
- Quoting 4% stamp duty. The foreigner rate doubled to 8% from 1 January 2026.
- Using the RM600,000 figure. That was a temporary 2020 window for completed units only, not the current rule.
- Assuming Medini rules apply everywhere. The exemption covers designated zones such as Medini in Iskandar Puteri. It does not cover JB city centre or Kebun Teh.
- Treating Malaysian PRs as exempt from consent. PRs fall within “foreign interest” under section 433A of the National Land Code, so they still need state consent, but they are outside the 8% stamp duty (Skrine; MahWengKwai & Associates).
- Applying another state’s figure. Each Malaysian state sets its own floor. Johor’s figure is not the same as Kuala Lumpur’s or Penang’s, so a figure quoted for another state does not apply in JB.
How to use the threshold when shortlisting units
For foreign buyers, the threshold works as a filter at the start. Use it to sort units before you compare views, layouts or facilities.
- Step 1: Get the current SPA price list for the development you like, and sort units into “RM1 million and above” and “below RM1 million”.
- Step 2: For units below RM1 million, ask whether the state has approved the unit for foreign purchase, and budget for the RM50,000 levy minimum.
- Step 3: Add the 8% stamp duty, levy and fees to your cash plan. These are normally paid upfront, separately from the loan.
- Step 4: Think about resale. Units at RM1 million and above keep both local and foreign buyers in your future market.
In JB city centre, freehold serviced apartments near the CIQ and the RTS, such as Causewayz Square, offer larger dual-key and 3-bedroom layouts that suit this approach. In Kebun Teh, The Asteriaz and The Celestz offer 915 sq ft 3-bedroom units. Use our comparison page to see layouts side by side, and read the Causewayz Square price guide for how pricing varies by tower, floor and layout. WhatsApp us for the latest SPA price list and a unit-by-unit cost estimate.
Using the threshold to your advantage
The RM1 million line is often seen as a restriction, but it also steers foreign buyers towards larger, better-located units, which are popular for both own stay and rental. Rather than choosing a smaller unit that needs special approval and carries the higher levy minimum, many foreign buyers go straight to a larger layout, a dual-key or a higher floor at or above the threshold. The process is simpler, and resale stays open to both local and foreign buyers. WhatsApp us and we can set out the total cost of each option side by side.
Will the Johor threshold or levy change again?
Possibly. Both the threshold and the levy are set by Johor state policy, and the federal stamp duty is set by the Finance Act, so any of them can change. The NST reported in April 2026 that market participants had proposed replacing the RM1 million resale floor with a flexible levy. No such change had been announced as of November 2026. Johor briefly lowered the threshold in 2020 and raised its levy in 2025. Recheck the rules when you sign.
Sources
- Legal That Works (Aug 2026): Johor RM1m threshold and 3% levy
- L & Co Accountants: Johor foreign approval fee table (PTG Circular 03/2025)
- Y Kong, Wong & Partners: Johor levy and MOT registration fee tiers
- New Straits Times (20 Apr 2026): Foreigners hit Johor property resale wall
- RSM Malaysia: Finance Bill 2025, Stamp Act item 32(ab) at 8%
- HHQ: Johor’s new legal and tax framework for foreign acquisitions
- The Sun: Johor’s temporary RM600,000 threshold in 2020
This guide is general information, not financial advice. Figures are illustrative and the rules are as at November 2026; confirm with a Malaysian lawyer before signing.