The rapid progress of the Johor Bahru-Singapore Rapid Transit System (RTS Link) and the formation of the Johor-Singapore Special Economic Zone (JSSEZ) have triggered unprecedented property demand across Johor. From high-rise developments near Bukit Chagar to industrial park expansions in Pasir Gudang, Johor is undergoing a real estate renaissance driven by connectivity and bilateral investment policy alignment.
JOHOR BAHRU: As part of efforts to strengthen land administration and support ongoing system upgrades, Menteri Besar Datuk Onn Hafiz Ghazi announced that the Johor State Government has implemented a new levy and tax framework effective 1 July 2025. This marks the first proposed revision to the levy since its last introduction in 2014 .
This article outlines the legal and tax implications for foreign individuals and entities seeking to acquire property in Johor.
Johor Latest Property Tax & Levy Framework (Effective 1 July 2025)
Foreign Acquisition Levy (State Consent Fee)
The following levies apply to all acquisitions by non-citizens and foreign-controlled entities under Section 433B of the National Land Code:
Notably, the RM50,000 minimum applies specifically to serviced residences priced below RM1 million.
Grandfathering Clause: Sale and Purchase Agreements (SPAs) signed and stamped before 1 July 2025, and complete documents including applications for consent to transfer with the stamped instrument of transfer submitted to the Land Office by 29 August 2025, will continue to be governed by the previous levy rates (2% for residential/commercial and 4% for industrial).
Foreigner Stamp Duty and Real Property Gains Tax (RPGT)
Legal and Tax Planning Checklist for Investors
Foreign investors should consider the following before proceeding with property acquisition in Johor:
• Consider timing of disposal to reduce RPGT (e.g. hold >5 years) • Ensure SPA is signed and stamped before 1 July 2025 (submit by 29 August) to enjoy old levy rates • Factor in RM50,000 minimum levy for serviced apartments below RM1 million
Conclusion
The Johor property boom presents extraordinary opportunities and at the same time, new legal and tax complexities. Investors must navigate layered regulatory approvals, new levies, and evolving land policies to make informed decisions. With careful legal structuring and early advisory, investors can optimise their entry into Malaysia’s most dynamic growth corridor.
If you’re considering residential, commercial, or industrial real estate investments in Johor, Halim Hong & Quek offers legal guidance tailored to your needs. Our team is equipped to help you navigate regulatory frameworks, tax structuring, and land approval processes.
About the authors
Andrew Chua Chi Hong Senior Associate Corporate Halim Hong & Quek [email protected]
Johor Property Boom & The New Property Legal & Tax Framework for Foreign Acquisitions
The rapid progress of the Johor Bahru-Singapore Rapid Transit System (RTS Link) and the formation of the Johor-Singapore Special Economic Zone (JSSEZ) have triggered unprecedented property demand across Johor. From high-rise developments near Bukit Chagar to industrial park expansions in Pasir Gudang, Johor is undergoing a real estate renaissance driven by connectivity and bilateral investment policy alignment.
JOHOR BAHRU: As part of efforts to strengthen land administration and support ongoing system upgrades, Menteri Besar Datuk Onn Hafiz Ghazi announced that the Johor State Government has implemented a new levy and tax framework effective 1 July 2025. This marks the first proposed revision to the levy since its last introduction in 2014 .
This article outlines the legal and tax implications for foreign individuals and entities seeking to acquire property in Johor.
Johor Latest Property Tax & Levy Framework (Effective 1 July 2025)
Foreign Acquisition Levy (State Consent Fee)
The following levies apply to all acquisitions by non-citizens and foreign-controlled entities under Section 433B of the National Land Code:
Notably, the RM50,000 minimum applies specifically to serviced residences priced below RM1 million.
Grandfathering Clause: Sale and Purchase Agreements (SPAs) signed and stamped before 1 July 2025, and complete documents including applications for consent to transfer with the stamped instrument of transfer submitted to the Land Office by 29 August 2025, will continue to be governed by the previous levy rates (2% for residential/commercial and 4% for industrial).
Foreigner Stamp Duty and Real Property Gains Tax (RPGT)
Legal and Tax Planning Checklist for Investors
Foreign investors should consider the following before proceeding with property acquisition in Johor:
• Consider timing of disposal to reduce RPGT (e.g. hold >5 years)
• Ensure SPA is signed and stamped before 1 July 2025 (submit by 29 August) to enjoy old levy rates
• Factor in RM50,000 minimum levy for serviced apartments below RM1 million
Conclusion
The Johor property boom presents extraordinary opportunities and at the same time, new legal and tax complexities. Investors must navigate layered regulatory approvals, new levies, and evolving land policies to make informed decisions. With careful legal structuring and early advisory, investors can optimise their entry into Malaysia’s most dynamic growth corridor.
If you’re considering residential, commercial, or industrial real estate investments in Johor, Halim Hong & Quek offers legal guidance tailored to your needs. Our team is equipped to help you navigate regulatory frameworks, tax structuring, and land approval processes.
About the authors
Andrew Chua Chi Hong
Senior Associate
Corporate
Halim Hong & Quek
[email protected]
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