Buying a shop through a company or as a foreigner in Malaysia

Buying a shop in your own name is simpler and cheaper to run, and a Malaysian individual pays no RPGT from the sixth year. A Sdn Bhd suits owners who plan to hold several shops, bring in partners or pass the shops on, but a company still pays 10% RPGT after year six and costs money to maintain. Foreigners can buy a whole shoplot, but only with state consent and above a minimum price, which is RM 3 million for commercial buildings in Selangor. Rules change, so confirm them with a lawyer before you pay any deposit.

This is general information, not legal or tax advice.

It depends on how long you will hold, how many shops you plan to own and who else is involved.

The RPGT figures are those in our RPGT calculator; PwC found no RPGT change in the main Budget 2027 measures. Budget 2027 also cut the small and medium business tax rate by one point, to 14% on the first RM 150,000 and 16% on RM 150,001 to RM 600,000 (PwC, 9 October 2026). Whether a company that only holds property qualifies for that rate is a question for your tax agent, so do not plan on it.

A company tends to make sense for owners with high personal income, several properties, or a family plan for succession. For a single shop held long term, personal name usually wins because of the 0% RPGT after year five.

Buyers sometimes ask to buy the shares of the company that owns a shop. Two cautions:

• RPGT still reaches it. Under the RPGT Act, a company whose real property makes up at least 75% of its total tangible assets is a "real property company", and LHDN treats a sale of its shares as a disposal of a chargeable asset. Individual sellers pay RPGT on those shares. Since 1 January 2024, companies that sell such shares fall under the new capital gains tax rules instead (LHDN; PwC).
• The buyer takes the company's history. Old debts, tax positions and contracts go with the shares, so share buyers ask for deeper checks and usually a lower price.

If you might sell this way later, discuss it with a tax agent before you buy.

• The company's name, not yours, goes on the title, the loan and the tenancy agreements
• Board resolution and company seal requirements for signing
• Who holds the shares: if foreigners hold the majority, the company may be treated as a foreign company and need state consent
• Title restrictions: a Bumi lot or Malay Reserve land limits who can own it; see Malay Reserve and Bumi lots
• Stamp duty and legal fees, which follow the price; see legal fees and stamp duty
• The bank's view on lending to a newly formed company with no accounts yet

Yes, a foreigner or foreign company can buy an en bloc commercial building, with conditions.

• State consent. Under section 433B of the National Land Code, a non-citizen or foreign company needs state consent to acquire land, whatever the price (law firm guides and AmCham, 2024). A purchase without it is void, so the consent should be a condition in the sale agreement.
• A minimum price. The federal guideline on property acquisitions, now run by the Ministry of Economy, bars foreign purchases below RM 1 million per unit (Malaysian Bar circular, 2024). States set their own floors. In Selangor, a State Assembly written answer gives RM 3 million for commercial buildings in Zones 1, 2 and 3, under the state's 2014 circular. In Kuala Lumpur, consent goes through the Federal Territory land office; ask your lawyer for the current floor before you make an offer.
• Federal approval for large deals. Ministry approval mainly applies to direct purchases above RM 20 million that dilute Bumiputera interest (AmCham, 2024).
• Excluded land. Malay Reserve land and units allocated to Bumiputera are off limits.
• Stamp duty. Budget 2026 raised stamp duty on transfers to foreigners to 8% for residential homes only; shop lots were not included (MOF Budget 2026 tax measures).
• Financing. Some banks accept foreign applicants for commercial property loans; Alliance Bank, for example, lists foreigners aged 21 and above as eligible. Expect stricter terms and confirm the margin in writing. See how much you can borrow.

A whole shoplot is one title with several floors, so the checks are wider than for a single unit: tenure and remaining lease, every existing tenancy on every floor, building approvals and the certificate of completion, roof and structure, and whether the land use on the title matches the trade you want. Allow time: state consent can take months, and the sale agreement should give it a realistic deadline. Our buyers page and whole shoplot guide explain how MCE shortlists units.

Written by Tok Ginstee (REN 37505), CID Realtors Sdn Bhd (E (1) 1855). Updated November 2026.