Malaysia vs Thailand
Malaysian property tax for Thai residents
A Thai resident who owns a home in Malaysia pays Malaysian stamp duty, annual local charges, tax on rent and a gains tax on sale. Since 2024 Thailand also taxes residents on foreign income they bring into Thailand, so Malaysian rent and sale proceeds remitted home can be taxed again, with relief under the Malaysia–Thailand tax treaty. This page compares the two as at October 2026.
In short
Key points
- Thai citizens buy in Malaysia as foreigners and pay a flat 8% stamp duty on the transfer of a home from 1 January 2026.
- In place of Thailand’s land and building tax, Malaysia charges quit rent to the state and assessment to the local council.
- Malaysia taxes net rent at 30% for non-residents; Thailand taxes residents on foreign income earned from 2024 when it is remitted to Thailand.
- Thailand allows credit for foreign tax only where a tax treaty permits it, and Malaysia is a treaty partner.
- RPGT on sale is 30% in years 1–5 and 10% from year 6 for foreigners, and the buyer retains 7% of the price.
At a glance
Malaysia and Thailand side by side
| Stage | Malaysia (you as a foreign owner) | Thailand (home rules) |
|---|---|---|
| Buying | Stamp duty on transfer: flat 8% for foreigners on residential homes from 1 January 2026; 0.5% on a loan agreement | Transfer registration fee and stamp duty, or specific business tax when the seller sells within the holding period |
| Owning | Quit rent to the state; assessment to the local council | Land and building tax: statutory maximum 0.15%–3% by use; actual rates set by royal decree; payable by 30 April |
| Renting | Non-resident individuals: flat 30% of net rent | Personal income tax at progressive rates from 0% to 35% |
| Selling | RPGT for non-citizens: 30% in years 1–5, 10% from year 6; buyer retains 7% | Specific business tax 3% plus 10% municipal tax on qualifying sales; income tax withheld on transfer |
| Foreign income | Malaysian-source rent and gains taxed in Malaysia | Residents taxed on foreign income earned from 1 January 2024 when remitted to Thailand; credit only under a tax treaty |
Sources: LHDN; MOF Budget 2026 tax measures; PwC Worldwide Tax Summaries Thailand (reviewed August 2026); seen October 2026.
Buying
Buying: stamp duty and state rules
Malaysian citizens pay stamp duty on a 1%–4% sliding scale. Foreign individuals (other than Malaysian PRs) and foreign companies pay a flat rate, which the Budget 2026 tax measures raised from 4% to 8% for residential homes on transfers executed from 1 January 2026. A Malaysian loan agreement adds 0.5%.
States set the foreign-buyer rules: minimum prices (generally RM1 million or more in Kuala Lumpur and Johor), state consent and, in Johor, a consent levy of 3% of the price or RM30,000, whichever is higher, since 1 July 2025. Penang, close to southern Thailand, has its own thresholds; see Penang property and property by state. Total the costs in the buying costs calculator.
Your Thai bank will apply Bank of Thailand foreign-exchange rules to the outward transfer and ask for the sale and purchase agreement as supporting evidence.
Owning
Annual charges: quit rent and assessment
Quit rent (cukai tanah)
A yearly land tax to the state land office; strata units pay parcel rent (cukai petak). In Johor it is due from 1 January and in arrears from 1 June.
Assessment (cukai taksiran)
Paid to the local council, usually twice a year, based on the annual value the council sets. It is the closest equivalent to Thailand’s land and building tax.
Strata charges
Maintenance and sinking fund for condominiums, paid monthly to the management body, similar to Thai condominium common fees.
Renting
Rent: Malaysia, then Thailand if remitted
- Malaysia: if you spend fewer than about 182 days a year in Malaysia, you are non-resident and pay a flat 30% on net rent, filed on Form M. Assessment, quit rent, loan interest, fire insurance, repairs and collection commission are generally deductible.
- Thailand: a Thai tax resident (in Thailand 180 days or more in a tax year) is taxed on foreign income earned from 1 January 2024 if it is brought into Thailand in the same or a later year.
- Credit: Thailand allows foreign tax as a credit only where a double tax treaty permits it. Malaysia is a treaty partner, so Malaysian tax on rent remitted to Thailand can be credited, within treaty limits.
- Keep it traceable: keep Malaysian rent in an identifiable account and record what is remitted and when; this helps show which money is taxable foreign income and which is capital.
Residential lettings are outside Malaysia’s service tax on rental and leasing. See renting out property in Johor and the rental yield calculator.
Selling
Selling: RPGT, then the remittance question
| Disposal | Malaysia: RPGT (non-citizen individual) | Thailand: resident who remits the gain |
|---|---|---|
| Years 1–5 | 30% of the gain | Remitted gain may be taxable at progressive rates, with treaty credit |
| Year 6 onwards | 10% of the gain | Remitted gain may be taxable at progressive rates, with treaty credit |
Sources: LHDN RPGT rates (Part III); PwC Worldwide Tax Summaries Thailand (reviewed August 2026); seen October 2026.
The buyer retains 7% of the price and pays it to LHDN within 60 days; any excess over your final RPGT is refunded. Under the Malaysia–Thailand treaty, gains on immovable property may be taxed where the property is. How a remitted sale gain is computed in Thailand, and whether RPGT is creditable, should be checked with a Thai tax adviser before you transfer proceeds home. See selling property in Johor.
Practical steps
Checklist for Thai buyers
- Confirm the state threshold and budget for 8% stamp duty and state levies.
- Choose personal or company ownership; see ownership structures.
- Register with LHDN if letting, and keep receipts and Form M filings.
- Track rent and sale proceeds you remit to Thailand, year by year.
- Make a Malaysian will; see will writing in Malaysia.
Straight answers
Frequently asked questions
Is Malaysian rental income taxable in Thailand?
For Thai tax residents, foreign income earned from 1 January 2024 is taxable when it is remitted to Thailand. Rent kept in Malaysia is not taxed in Thailand until it is brought in. Malaysia taxes the rent either way.
Can I claim credit in Thailand for Malaysian tax?
Thailand gives foreign tax credit only where a double tax treaty allows it. Malaysia and Thailand have a treaty, so Malaysian tax on the same income can be credited within its limits.
What stamp duty do Thais pay on Malaysian property?
A flat 8% on the transfer of a residential home from 1 January 2026, as for other foreign buyers, plus 0.5% on any Malaysian loan agreement.
What is RPGT for a Thai seller in Malaysia?
30% of the gain if sold within five years and 10% from the sixth year. The buyer withholds 7% of the price for LHDN.
Do I pay annual property tax in Malaysia?
Yes: quit rent or parcel rent to the state and assessment to the local council each year, plus maintenance fees for strata units.
Compare
Property tax: Malaysia and other countries
Other guides
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