Real Property Gains Tax (RPGT) is charged on the gain when you sell property in Malaysia. The rate depends on who is selling and how long they have held the property. A foreign owner, including a Singaporean, pays 30% on a sale within the first five years and 10% from the sixth year onward.
| Sold | Foreign owner (not a citizen or PR) | Malaysian citizen or PR | Malaysian company |
|---|---|---|---|
| Within 2 years | 30% | 30% | 30% |
| In year 3 | 30% | 30% | 30% |
| In year 4 | 30% | 20% | 20% |
| In year 5 | 30% | 15% | 15% |
| Year 6 onward | 10% | 0% | 10% |
Rates for foreign owners and companies have applied since 1 January 2019; rates for citizens and PRs since 1 January 2022. The tax measures in Malaysia's 2024, 2025 and 2026 Budgets did not change RPGT rates. A company incorporated outside Malaysia is taxed at the foreign-owner rates.
Gain = disposal price − acquisition price, with costs allowed on both sides:
An individual seller, foreign or local, can then deduct RM10,000 or 10% of the gain, whichever is greater.
Illustrative figures only.
| Bought at RM500,000 + RM20,000 legal fees and stamp duty | Acquisition price RM520,000 |
| Sold at RM650,000 − RM20,000 commission and legal fees | Disposal price RM630,000 |
| Gain | RM110,000 |
| Individual exemption: greater of RM10,000 and 10% (RM11,000) | − RM11,000 |
| Chargeable gain | RM99,000 |
| Foreign owner, sold in year 4 (30%) | RM29,700 |
| Foreign owner, sold in year 6 or later (10%) | RM9,900 |
| Citizen, sold in year 4 (20%) | RM19,800 |
| Citizen, sold in year 6 or later (0%) | RM0 |
When you sell, the buyer must hold back part of the price and pay it to the Inland Revenue Board (LHDN) within 60 days:
| Seller | Buyer withholds |
|---|---|
| Foreign owner | 7% of the price |
| Malaysian citizen or PR | 3% |
| Malaysian company, held up to 3 years | 5% |
| Malaysian company, year 4 onward | 3% |
A buyer who pays late is charged an extra 10% of the unpaid amount. For sales from 2026, if the seller tells the buyer the tax amount already worked out, the buyer may withhold that amount instead.
Since 1 January 2025 RPGT forms must be filed online through LHDN's e-CKHT. Paper forms are not accepted.
Only the one above: every individual seller, foreign or local, deducts RM10,000 or 10% of the gain. Malaysian citizens and permanent residents can also claim a once-in-a-lifetime exemption on the sale of a private residence, using Form CKHT 3. The election is irrevocable. A separate exemption for up to three homes per citizen applied only to sales between 1 June 2020 and 31 December 2021 and has ended. Foreign owners are not eligible for either.
Planning to sell? Send me your purchase date and price and I'll lay out the RPGT, the buyer's withholding and what you're likely to receive.
Your lawyer or tax agent files the forms, and LHDN's assessment is final.
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