The Johor state levy for foreigners is 3% of the stamped SPA price (developer purchase) or of the JPPH valuation or stamped price (subsale), with a minimum of RM30,000. Serviced apartments under RM1 million sold to foreigners with state approval carry a RM50,000 minimum. The foreign buyer pays it, plus a RM2,000 application fee per title, when Johor state consent is approved. It is a state charge, separate from the federal 8% stamp duty.
“State levy Johor” is one of the first costs a Singaporean or other foreign buyer runs into, and one of the most often misquoted. The current rates come from Johor Land and Mines Office (PTG Johor) Circular No. 3 of 2025, dated 13 June 2025, which took effect on 1 July 2025 and replaced the 2% rate in force since 2014. This page gives the direct answer: the rate, the base it is charged on, who pays it, when, and how it differs from stamp duty, with a worked example. For the RM1 million threshold and four full price scenarios, see our Johor foreigner minimum price guide.
What is the Johor state levy for foreigners?
The Johor state levy is a one-off approval fee that a foreign buyer pays to the Johor state government in return for state consent to acquire land or a strata unit. Law firm HHQ describes it as the Foreign Acquisition Levy, or State Consent Fee, imposed under section 433B of the National Land Code. Malaysian citizens do not pay it.
In practice it works like this: a non-citizen or foreign company cannot register a transfer in Johor without the State Authority’s consent. Your lawyer applies for that consent, the state approves it, and the approval letter states the levy you must pay. Only after the levy is settled can the transfer go forward to registration.
The levy is set by each state, so Johor’s figures are not the same as Kuala Lumpur’s or Penang’s. A figure you read for another state does not apply to a JB property.
Johor state levy rates in 2026
For residential and commercial buildings, the rate is 3% of the relevant value, subject to a minimum; you pay whichever is higher. These rates are unchanged as at November 2026; we found no newer PTG circular replacing them.
| Transaction (residential or commercial building) | Rate | Charged on | Minimum |
|---|---|---|---|
| Purchase from developer | 3% | Sale price in the stamped SPA | RM30,000 |
| Serviced apartment under RM1 million (with State Authority approval) | 3% | Sale price in the stamped SPA | RM50,000 |
| Subsale | 3% | JPPH valuation or stamped SPA price | RM30,000 |
| Lease | 3% | Value in the stamped lease agreement | RM30,000 |
| Gift to close family | 2% | JPPH valuation | RM20,000 |
| Inheritance / transfer to beneficiary | No levy | ||
Source: PTG Johor Circular No. 3/2025, section 4.2.2. Industrial land is charged at 4% with no minimum stated.
The same circular sets fixed administrative fees for foreign-interest applications, payable in addition to the levy:
- Application fee: RM2,000 per title.
- Extension of approval validity: RM2,000 per title.
- Late payment penalty on the approval fee: RM2,000 per title.
- Appeal: RM3,000.
Deals signed and stamped before 1 July 2025 could stay on the old 2% / RM20,000 rate only if the complete application reached the Land Office by 29 August 2025. Any purchase you make today is on the new rates.
Who pays the levy, and when?
The foreign buyer pays the levy, after state consent is approved and before the transfer is registered. It is normally paid in cash from the buyer’s own funds rather than from the bank loan.
- Sign the SPA and pay the deposit. The SPA price, once stamped, becomes the base for a developer purchase.
- Your lawyer applies for state consent, paying the RM2,000 application fee per title.
- The state approves and issues an approval letter stating the levy amount.
- You pay the levy within the period stated. Paying late triggers the RM2,000 penalty; an extension also costs RM2,000.
- The transfer is stamped and registered at the Land Office, with the registration fee paid at that point (see our Johor transfer and registration fees guide).
On a new launch, your lawyer will tell you when in the project timeline the consent application is made. Ask for the expected timing in writing when you sign, so you can keep the cash ready.
Who counts as “foreign”? Non-citizens and foreign companies pay. Malaysian permanent residents fall within “foreign interest” under section 433A of the National Land Code and still need consent, although they are outside the 8% foreigner stamp duty. Ask your lawyer how your own status is treated.
State levy vs stamp duty: what is the difference?
The levy is a Johor state approval fee; stamp duty is a federal tax on the transfer document. A foreign buyer pays both, on different bases, to different authorities.
| Johor state levy | Stamp duty on transfer (MOT) | |
|---|---|---|
| Imposed by | Johor state government (PTG Johor) | Federal government (Stamp Act 1949, LHDN Stamp Office) |
| Who pays | Foreign buyers only | All buyers |
| Rate for foreigners | 3%, minimum RM30,000 or RM50,000 | Flat 8% from 1 January 2026 |
| Base | Stamped SPA price, or JPPH valuation for subsales | Higher of price and market value |
| Purpose | Price of state consent to acquire | Tax on the instrument of transfer |
| Paid when | After consent is approved | When the transfer is stamped |
Because stamp duty for foreigners is 8%, it is the larger of the two items at every price. Our stamp duty guide covers the rates for Malaysians and foreigners and the loan agreement duty.
Worked example: what does a foreign buyer pay?
Take an illustrative unit with a stamped SPA price of RM1,100,000, bought from the developer by a foreign individual. This is a round number for the calculation, not the price of any particular project.
| Item | Calculation | Amount |
|---|---|---|
| Johor state levy | Higher of 3% × RM1,100,000 = RM33,000, or RM30,000 | RM33,000 |
| Consent application fee | Fixed, one title | RM2,000 |
| Stamp duty on transfer | 8% × RM1,100,000 | RM88,000 |
| Transfer registration fee | RM4,500 + 2 × RM250 (two RM50,000 steps above RM1m) | RM5,000 |
| Total of these four items | RM128,000 |
Legal fees, loan costs and disbursements come on top. Now compare a state-approved serviced apartment at RM850,000: 3% would be RM25,500, but the RM50,000 minimum applies, so the levy is RM50,000, an effective rate of about 5.9%. That is why many foreign buyers focus on layouts at or above RM1 million, where the effective levy is a clean 3% and resale stays open to other foreign buyers.
Planning tips for foreign buyers in JB
The levy is predictable once you know the rule, so it is easy to plan for.
- Build it into your cash plan from day one, together with the 8% stamp duty; both are usually paid from your own funds.
- Use the SPA price list to check the threshold. Larger layouts such as 3-bedroom and dual-key units are the ones most likely to sit at or above RM1 million.
- Ask about timing. Your lawyer can tell you when consent will be applied for on a new launch, and the payment window after approval.
- Think about resale. Units at RM1 million and above remain open to both local and foreign buyers later.
In JB city centre, freehold Causewayz Square offers 3-bedroom and dual-key layouts about 800 m from the Bukit Chagar RTS station, which is targeted to start passenger service in February 2027. You can compare EXSIM’s three JB projects on our comparison page. If you are new to the terms in this article, our JB property glossary explains them in plain English. WhatsApp us for the latest SPA price list and a unit-by-unit estimate of levy, stamp duty and fees.
Sources
- PTG Johor: Pekeliling PTG Bil. 3 Tahun 2025 (13 June 2025)
- HHQ: Johor’s new legal and tax framework for foreign acquisitions (Oct 2025)
- L & Co Accountants: Johor foreign approval fee table
- Y Kong, Wong & Partners: Johor property transfers, new rates from July 2025
- The Star (18 June 2025): Johor to raise levy on property bought by foreign interests
- New Straits Times (Apr 2026): Foreigners hit Johor property resale wall
- KPMG Malaysia: Budget 2026 stamp duty (8% for foreigners)
This guide is general information, not financial or legal advice. Rules are as at November 2026; confirm the current position with your lawyer before signing.