Seller guide · Labuan
Selling your property in Labuan
What you receive depends on the agent fee, legal fee, Real Property Gains Tax and what is still owed to the bank. This guide sets out each cost, the usual timeline and the recorded prices in Labuan, so you can price with evidence.
Seller costs
What comes off the sale price
| Cost | Typical amount | Notes |
|---|---|---|
| Agent fee | Up to 3% plus 8% SST | Maximum allowed by the Board of Valuers, Appraisers, Estate Agents and Property Managers; agreed in writing. |
| Your lawyer’s fee | 1.25% of the first RM500,000, 1% of the next RM7 million, plus SST | Solicitors’ Remuneration Order 2023; minimum RM500. |
| RPGT | 0% to 30% of the gain | Depends on how long you have owned it; see below. |
| Loan redemption | Outstanding loan plus any early settlement fee | Check your loan’s lock-in period. |
| Outstanding bills | Maintenance, sinking fund, quit rent, assessment | Settled or apportioned to completion. |
Tax
RPGT: how long you have owned it matters
| Year of disposal | Citizen or PR | Malaysian company | Foreigner |
|---|---|---|---|
| Within 3 years | 30% | 30% | 30% |
| 4th year | 20% | 20% | 30% |
| 5th year | 15% | 15% | 30% |
| 6th year onwards | 0% | 10% | 10% |
Real Property Gains Tax on the chargeable gain. Individuals also get an exemption of RM10,000 or 10% of the gain, whichever is higher.
At the SPA the buyer’s lawyer holds back 3% of the price (7% if the seller is not a Malaysian citizen or PR) and pays it to LHDN towards your RPGT. You file the RPGT return within 60 days of the SPA; any balance is refunded.
Labuan rules
What applies to foreign buyers and sellers in Labuan
State rules as summarised on the Labuan property page; confirm the current position with your lawyer before you sign.
Minimum price: RM1 million
iProperty (Feb 2026), PropertyGuru (May 2026), HousingWatch (2026) and Low & Partners all give RM1 million for both strata and landed homes in Labuan, the same as the other Federal Territories.
Consent is required
Every purchase by a foreigner needs consent from the land authority before the transfer. Labuan is a Federal Territory, not a state; confirm with a Labuan lawyer which office handles the application and what fee it charges.
8% stamp duty on homes from 1 January 2026
Federal rule: transfers of residential property to non-citizens and foreign companies (not permanent residents) pay a flat 8% stamp duty, up from 4%.
Check for Bumiputera lots
Listings at Labuan Times Square and Taman Mutiara describe non-Bumi lots. Ask your lawyer to confirm the title has no Bumiputera or other restriction.
Few homes qualify
Almost all completed homes listed in Labuan in 2026 ask well under RM1 million, so the foreign-buyer market is limited to a few large units and houses.
Price evidence
What units sell for in Labuan
Recorded transactions for projects on this site, as cited on each project page. A price set on evidence sells faster than one set on portal asking prices.
Recorded figures for Labuan are on each project page; ask Jason for the latest deals in your building.
Timeline
Steps to sell
- Valuation and pricing (1–3 days): recorded prices, an asking price and the agent fee agreed in writing.
- Marketing and viewings (typically 1–3 months, depending on price and condition).
- Offer and earnest deposit (2–3%) from a buyer whose loan eligibility has been checked.
- SPA signed within about 14 days; the buyer pays the balance of the 10% deposit and the RPGT retention is held.
- Completion usually 3 months from the SPA or state consent, plus a 1-month extension if needed; your loan is redeemed and the balance released.
Straight answers
Frequently asked questions
How much RPGT do I pay if I sell in Labuan?
RPGT is a federal tax and the same in every state: 30% of the gain within three years, then 20%, 15% and 0% for Malaysian individuals from the sixth year. Foreigners pay 30% within five years and 10% after.
How long does it take to sell a property in Labuan?
Marketing usually takes one to three months for a well-priced unit, then about three months from the SPA to completion, longer if the buyer needs state consent.
Can a foreign owner sell to another foreigner?
Yes, if the buyer meets the Labuan rules for foreign buyers (Minimum price: RM1 million) and obtains state consent; check any minimum holding period in the state rules above.
Should I sell or rent out?
It depends on your loan, the rent the unit can achieve, how long you have owned it (RPGT) and whether you need the cash. Jason can compare both for your unit.
General information by a registered agent, not legal or tax advice. Rates as published for 2026; your lawyer and LHDN have the final figure. Checked October 2026.
What is your Labuan property worth?
Send the project and unit size. I reply with recorded prices for similar units, a realistic asking price and what you would receive after costs.