Real Property Gains Tax (RPGT) in Malaysia [2026]

A gain on the sale of Malaysian property may be subject to RPGT (Real Property Gains Tax). Rates for foreign individuals without Malaysian citizenship or permanent residency differ considerably by holding period.

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Foreigners’ RPGT is generally calculated on the chargeable gain, not the sale price.
The acquisition price generally includes the amount paid for the property and certain allowable incidental purchase costs. Chargeable gains also take into account allowable selling costs, rather than simply taxing the difference between headline purchase and sale prices.

RPGT rates for foreigners [2026]

Current rates for foreign individuals without Malaysian citizenship or permanent residency are as follows.

Holding period	RPGT rates for foreign owners
Disposal within five years of acquisition	30％
Disposal in the sixth year or later	10％

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30% within five years

For short-term disposals, 30% applies to the chargeable gain.

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10% from the sixth year

For foreigners, RPGT does not fall to zero from the sixth year; the rate is 10%.

Which amount is subject to RPGT?

RPGT is not charged on the entire sale price. It generally applies the relevant rate to the chargeable gain arising from disposal.

RPGT CALCULATION

Sale price − original property price − allowable purchase and sale expenses
= chargeable gain

HASiL guidance allows consideration of purchase legal fees and stamp duty, disposal legal and agency fees, and certain value-enhancing expenditure. Deductibility depends on the expense and evidence, so keep receipts and relevant records for a future sale.

Illustration: a RM500,000 chargeable gain

Sold within five years

If the chargeable gain is RM500,000
RM500,000 × 30％＝ RM150,000

Disposal in the sixth year or later

If the chargeable gain is RM500,000
RM500,000 × 10％＝ RM50,000

This is a simplified illustration of the rates. The actual chargeable amount depends on acquisition and disposal prices, allowable costs and individual transaction conditions.

When does the holding period start?

Because the holding period directly affects the RPGT rate, acquisition and disposal dates matter. In a normal sale, those dates are determined for RPGT purposes according to the contract and transaction structure.

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For off-plan property, it is not five years from completion
The RPGT holding period for off-plan property does not start at completion. When considering a sale, check the acquisition date for RPGT using the SPA and other contracts to establish the applicable period.

RPGT filing is required when selling

Property disposal involves RPGT filing and payment procedures. A Self-Assessment System was introduced in 2025. Confirm the required steps with your lawyer or tax adviser when selling.

Do not base a sale decision on RPGT alone

Foreigners’ RPGT rate drops from 30% to 10% from the sixth year. However, sale timing should also consider property prices, rental income, exchange rates, market supply and demand and future holding costs.

If eventual resale is part of your purchase plan, keeping acquisition and holding-period documents and expense records will make later procedures easier.

🏠KL Fudousan purchase support

Look beyond the purchase to ownership and eventual sale.

KL Fudousan offers purchase support from property selection through contract, payment and handover. You can also discuss purchase expenses and future holding costs.

Discuss buying property in Malaysia

This article provides general information. Tax treatment may vary with individual circumstances and legislative changes. Consult a tax professional for specific filing or tax decisions.