Short answer: a Singaporean buying a Johor Bahru condo for Airbnb can legally do it, but usually only for units priced at RM1 million or more, with 8% stamp duty, 30% tax on net rental income and a resale rule that limits who can buy it back. Buy it as a homestay only if the numbers still work after all four.
We manage more than 100 homestay units in Johor Bahru and Desaru, and some of the owners who ask us about management live in Singapore. The questions are always the same, so here is the whole picture in one place: what you can buy, what it costs to get in, how the income is taxed, what a management company can and cannot do while you are across the Causeway, and a worked example. Nothing here is legal or tax advice; rules change, so confirm with a Malaysian lawyer and tax agent before you sign.
Can a Singaporean buy a condo in Johor Bahru and run it as an Airbnb?
Yes. Owning the unit and running it as a short-stay is allowed for foreigners, subject to the same building and licensing rules that apply to Malaysians. The catch is which units you are allowed to buy:
| Rule | What it means for a Singaporean buyer |
|---|---|
| Johor minimum price for foreigners | Residential property priced at RM1 million and above |
| Developer special approval | Developers can get approval to sell unsold sub-RM1 million units to foreigners |
| Reselling a sub-RM1 million unit | While its value stays under RM1 million, it can only be sold to Malaysians |
| Medini (Iskandar Puteri) | Designated zone where the minimum price does not apply |
| MM2H Silver tier | Can buy from RM600,000, with a 10-year holding period |
These points are from the New Straits Times report of 20 April 2026. Thresholds change, so check the current rule for your exact unit before paying a booking fee.
Owning is the first gate. The second is whether the building lets you run short stays at all. Some JMBs restrict them by AGM vote, and Malaysia's homestay licensing is still moving; see what happens when a condo bans short-term rental and what licence a JB homestay needs.
How much more does a foreigner pay to buy a RM1 million unit?
The biggest line is stamp duty. From 1 January 2026, non-citizens (permanent residents excluded) pay a flat 8% on the transfer of residential property, charged on the price or the market value, whichever is higher. It used to be 4%. Malaysian citizens stay on the tiered scale.
| On a RM1,000,000 unit | Foreign buyer | Malaysian citizen |
|---|---|---|
| Stamp duty on transfer | 8% flat = RM80,000 | 1% / 2% / 3% tiers = RM24,000 |
| State consent | Needed per purchase | Not needed |
| State levy on foreign purchase | Yes; ask your lawyer for the current rate | No |
The RM24,000 is simple arithmetic on the tiered scale (1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1 million), shown only for comparison. Lawyer's fees, loan costs and furnishing come on top for both. On the levy, the one figure we could confirm from a news source is that since 1 July 2025 Johor charges foreigners a minimum RM50,000 on serviced apartments priced below RM1 million (the developer-approved case). For other cases, get the current figure in writing from your lawyer.
So before the unit earns a single night, a foreign buyer of a RM1 million condo has paid roughly RM56,000 more in stamp duty alone than a Malaysian buying the same unit.
Why is a sub-RM1 million unit called a resale trap?
Because getting in can be easier than getting out. If a developer sold you a RM650,000 unit under special approval, you can only resell it to Malaysians while it is worth under RM1 million. The NST piece quotes a Singaporean owner who bought at RM650,000 and found exactly this when he tried to sell, and a property consultant describing foreign owners as caught in "a liquidity trap". The same article notes that Malaysians in Johor spending above RM500,000 tend to prefer landed homes, which makes high-rise resale demand weaker.
For a homestay owner this matters more than for a long-term landlord, because short-stay income can stop for reasons you do not control: an AGM ban, a licensing change, a new supply wave near you. When that happens you want a wide pool of buyers. A unit you can only sell to locals, priced for foreigners, is the opposite. If you are also weighing what buyers look at when a homestay unit is sold, read selling a homestay unit with bookings or empty.
How is homestay income taxed if you live in Singapore?
If you spend fewer than 182 days a year in Malaysia you are usually a non-resident for Malaysian tax. Non-resident individuals pay a flat 30% on net rental income, with no personal reliefs. You still have to declare it to LHDN even if the money never leaves a Malaysian bank account, and many foreign owners appoint a Malaysian tax agent to file each year.
| Item | Non-resident owner |
|---|---|
| Rate on net rental income | 30% flat |
| Personal reliefs | None |
| Typical deductible costs | Loan interest, repairs, assessment, quit rent, management fee and commission |
| RPGT when you sell, years 1–5 | 30% |
| RPGT when you sell, year 6 onward | 10% (citizens pay 0%) |
Whether your homestay income is treated as rental or business income depends on how it is run; we explain the difference in how homestay income is taxed. Singapore taxes you separately on your own side; ask your adviser. This section is general information, not tax advice.
What can a management company do while you are in Singapore, and what stays with you?
Most of the day-to-day can be handed over. Some things legally or practically stay with the owner.
| Handled by the manager | Stays with you |
|---|---|
| Listings, pricing, guest messages, check-in | Signing the purchase and the management agreement |
| Cleaning, laundry, small repairs | Your Malaysian tax filing (or your tax agent) |
| Monthly statement and payout | JMB matters and voting at the AGM |
| Damage claims on platforms | Insurance on the unit |
Two questions are worth asking every manager, including us: which bank account and currency the payout goes to and who pays the transfer charge, and how utilities in your name (electricity, water) get paid while you are away. Read the contract checklist and the statement checklist before you sign.
Does buying a RM1 million JB condo for homestay make sense?
Here is an example, not a forecast. Say a RM1,000,000 unit takes home RM40,000 a year for the owner after management and running costs (an illustration only).
- Before tax that is a 4% return on the price.
- At 30% non-resident tax on that amount, it is RM28,000, or 2.8%.
- The RM80,000 stamp duty alone equals about two years of that after-tax income.
For a sense of what real units earn, one of our owners with 10 units received RM5,031 per unit in December 2025, a peak month; the same units brought in RM2,388–3,182 each in November 2025, February 2026 and May 2026. Those are ordinary city condos, far below RM1 million. A unit twice the price does not usually earn twice per night, because guests pay for location and size, not for the purchase price. That last point is our judgment, not a statistic.
Our honest conclusion: buying a RM1 million unit as a foreigner purely to run it as a homestay usually gives thin numbers. It works better when you already own the unit, when you bought it for your own use or long-term holding and want it to pay its way between visits, or when you buy as a Malaysian. If long-term rental fits you better, compare the two in homestay vs long-term rental.
What should a Singaporean owner do next?
- Confirm the minimum price and levy for your exact unit with a Malaysian lawyer.
- Check the building's house rules and the latest AGM minutes for short-stay restrictions.
- Run your own numbers with 8% stamp duty and 30% tax, not the brochure yield.
- Ask any manager where and in what currency the payout goes, and get a sample monthly statement.
- Appoint a Malaysian tax agent before the first year ends.
If you already own a unit in Johor Bahru or Desaru, or are deciding on one, send us the details through owner enquiry and we will tell you plainly what it could earn.