Property tax guide
Property tax in Malaysia: a guide for owners and foreign buyers
Owning property in Malaysia brings taxes at four points: stamp duty when you buy, quit rent and assessment every year, income tax on any rent, and real property gains tax (RPGT) when you sell. This guide sets out each one as at October 2026, shows how the rules differ for citizens, companies and foreigners, and compares Malaysia with Singapore, Indonesia, India, China, Hong Kong and Thailand.
In depth: RPGT calculator · Rental income tax calculator · All foreign buyer guides
In short
Key points
- Stamp duty on a transfer runs from 1% to 4% for citizens; foreign individuals and foreign companies pay a flat 8% on residential homes transferred from 1 January 2026.
- Every owner pays quit rent (cukai tanah or cukai petak) to the state and assessment (cukai taksiran) to the local council each year.
- Rent is taxed at resident scale rates up to 30%, or a flat 30% of net rent for non-residents; residential lettings are outside service tax.
- RPGT is 30% on gains in the first three years for everyone; from the sixth year it is nil for citizens, 10% for companies and 10% for foreigners.
- Malaysia has double taxation agreements with all six countries compared here, and each lets Malaysia tax rent and gains from Malaysian property first.
At a glance
Which taxes apply, and when
Property taxes in Malaysia are collected by three different bodies: LHDN (the Inland Revenue Board), the state land office and the local council.
| Stage | Tax | Collected by | Who it applies to |
|---|---|---|---|
| Buying | Stamp duty on the memorandum of transfer; 0.5% on the loan agreement | LHDN | Buyer |
| Every year | Quit rent (cukai tanah) or parcel rent (cukai petak) | State land office | Registered owner |
| Every year | Assessment (cukai taksiran, cukai pintu) | Local council | Registered owner |
| Renting out | Income tax on net rent; stamp duty on the tenancy agreement | LHDN | Landlord (tax); usually the tenant (tenancy stamp duty) |
| Selling | Real property gains tax (RPGT), with a retention by the buyer | LHDN | Seller |
Sources: LHDN (hasil.gov.my); Pejabat Tanah dan Galian Johor; seen October 2026.
Buying
Stamp duty on the transfer and the loan
Stamp duty is usually the largest tax at purchase. It is charged on the higher of the price and the market value.
| Portion of price or market value | Malaysian citizen or PR | Foreign individual or foreign company (residential home) |
|---|---|---|
| First RM100,000 | 1% | 8% flat on the whole amount |
| RM100,001 to RM500,000 | 2% | 8% |
| RM500,001 to RM1,000,000 | 3% | 8% |
| Above RM1,000,000 | 4% | 8% |
Sources: Stamp Act 1949, First Schedule; MOF Budget 2026 tax measures, Appendix 14 (8% for transfers of residential homes executed from 1 January 2026); seen October 2026.
Before 2026 foreign buyers paid a flat 4%. The Budget 2026 tax measures doubled the rate to 8% for residential homes for non-citizen individuals (Malaysian permanent residents excepted) and foreign companies. Citizens buying a first home priced up to RM500,000 get a full exemption on the transfer and loan agreement for purchases from 1 January 2026 to 31 December 2027.
A loan agreement attracts a further 0.5% of the loan amount. From 1 January 2027 property transfer instruments move to LHDN’s stamp duty self-assessment system (STSDS); tenancy agreements moved on 1 January 2026. Work out the full purchase budget, including legal fees, in the buying costs calculator.
Every year
Quit rent and assessment
These are the two recurring taxes on property ownership. Neither depends on your nationality.
Quit rent (cukai tanah)
A land tax under the state’s land rules, paid once a year to the state land office. Strata units pay parcel rent (cukai petak) instead once strata titles are issued. In Johor it is payable from 1 January and becomes arrears from 1 June.
Assessment (cukai taksiran or cukai pintu)
A local-government rate set as a percentage of the annual value the council assigns to the property, usually paid in two instalments a year. Rates and due dates differ by council.
Late payment
Councils and land offices add penalties for late payment, and long arrears can lead to enforcement against the property. Owners who live abroad should set reminders or ask a property manager to pay.
Not a tax, but recurring
Strata properties also pay maintenance charges and sinking fund contributions to the management body. Budget for these alongside the two taxes.
Renting out
Tax on rental income
Rent from Malaysian property is Malaysian-source income and is taxed in Malaysia whoever owns it.
- Residence decides the rate. Tax residence depends on days in Malaysia, broadly 182 days or more in a calendar year, not on citizenship.
- Residents add net rent to other income and pay scale rates from 0% up to 30% on chargeable income above RM2 million, after personal reliefs.
- Non-residents pay a flat 30% of net rent and cannot claim personal reliefs. They file Form M.
- Deductible: assessment, quit rent, interest on a loan used to buy the let property, fire insurance, repairs and maintenance, and agents’ commission for collecting rent or renewing tenancies.
- Not deductible: the purchase price, renovation and other capital costs, legal fees and stamp duty on buying, and first-time advertising to find a tenant.
- Service tax: renting out homes is excluded from service tax on rental and leasing. Commercial lettings are taxable once turnover passes RM1 million in 12 months; the rate, 8% from 1 July 2025, was reported cut to 6% from 1 January 2026 under a Customs policy amendment. Confirm with the Royal Malaysian Customs Department.
- Tenancy stamp duty: the tenancy agreement must be stamped; from 1 January 2026 this is done by self-assessment on MyTax.
Test the yield after tax and costs in the rental yield calculator. For letting in practice, see renting out property in Johor.
Selling
Real property gains tax (RPGT)
RPGT is charged on the chargeable gain: the disposal price less the acquisition price and allowable costs such as legal fees, stamp duty and agent’s commission.
| Disposal | Citizen or PR (Part I) | Company (Part II) | Non-citizen individual (Part III) |
|---|---|---|---|
| Within 3 years | 30% | 30% | 30% |
| Fourth year | 20% | 20% | 30% |
| Fifth year | 15% | 15% | 30% |
| Sixth year onwards | Nil | 10% | 10% |
Source: LHDN, Real Property Gains Tax Rates (Schedule 5, RPGT Act 1976); Part I sixth-year rate nil from 1 January 2022, Parts II and III 10% from 1 January 2019; seen October 2026.
- Retention: the buyer keeps back part of the price and pays it to LHDN within 60 days of the disposal: 7% where the seller is a non-citizen individual, and 3% for most other sellers. The retention is set against the final RPGT, and any excess is refunded.
- Once-in-a-lifetime exemption: citizens and permanent residents can claim one exemption on the gain from disposing of a private residence. Foreigners cannot.
- Forest City: preferential RPGT rates apply in the Forest City Special Financial Zone from 1 September 2024 to 31 July 2034, per PwC’s summary.
- Holding period generally runs from the date of the acquisition agreement to the date of the disposal agreement. Confirm dates with your lawyer.
For the selling process, see selling property in Johor. If you are choosing between buying personally or through a company, the different RPGT columns matter; see ownership structures.
Foreign owners
Foreign owners and double taxation agreements
A foreign owner is taxed in Malaysia on Malaysian rent and gains. Whether the home country taxes them again depends on its own rules.
Malaysia has double taxation agreements with Singapore, Indonesia, India, China, Hong Kong and Thailand. Each follows the usual pattern: income from immovable property, and gains from selling it, may be taxed in the country where the property is. That gives Malaysia the first right to tax; it does not stop a home country that taxes worldwide or remitted income from taxing its residents too, with a credit for Malaysian tax.
Two practical points recur. First, the treaties list the taxes they cover, and on the Malaysian side the published texts typically name income tax and petroleum income tax, not RPGT; the India treaty is an example. Credit for RPGT at home is therefore not automatic. Second, home-country credit is usually capped at the home tax on the same income, so where Malaysian tax is higher, the excess is lost or only carried forward.
Malaysian residents with income taxed abroad receive credit for the lower of the foreign tax and the Malaysian tax where a treaty applies, and half the foreign tax where none does. For Indian owners, the treaty is explained in detail on Indian tax on Malaysian property.
Seven countries
Property tax compared: Malaysia and six Asian neighbours
Headline rules for individuals as at October 2026. Each country page explains the detail and exceptions.
| Country | Main purchase tax | Annual holding tax | Tax on rent | Tax on gains on sale | Residents’ foreign property income | Tax treaty with Malaysia |
|---|---|---|---|---|---|---|
| Malaysia | Stamp duty 1%–4% (citizens); 8% flat for foreigners on homes | Quit rent and assessment | Residents up to 30%; non-residents 30% flat | RPGT 0%–30% by holding period and owner type | Not applicable (home country) | — |
| Singapore | Buyer’s Stamp Duty up to 6%; ABSD (foreigners 60%) | Property tax on annual value: 0%–32% owner-occupied, 12%–36% other | Progressive up to 24% | No capital gains tax; SSD up to 16% within 4 years | Generally not taxed for individuals unless received through a partnership | Yes |
| Indonesia | BPHTB up to 5%; VAT on new homes | PBB-P2 up to 0.5% | Final 10% on gross rent | Final 2.5% of transfer value | Taxed worldwide; PPh Pasal 24 credit | Yes (1991) |
| India | State stamp duty and registration | Municipal property tax | Slab rates after 30% standard deduction | Long-term 12.5% after 24 months | Resident and ordinarily resident taxed worldwide; Schedule FA | Yes (2012) |
| China | Deed tax 3%–5% | None on self-used homes | 20% | 20%; individuals exempt from land appreciation tax on homes | Residents taxed worldwide; per-country credit | Yes |
| Hong Kong | Ad valorem stamp duty up to 6.5% (residential) | Rates and government rent | Property tax 15% of net assessable value | No capital gains tax | Foreign rent outside property tax | Yes (comprehensive) |
| Thailand | Transfer fee, stamp duty or specific business tax | Land and building tax (max 0.15%–3% by use) | Progressive 0%–35% | Specific business tax 3% (plus 10% municipal) on qualifying sales; income tax | Taxed when remitted (income from 2024); treaty credit only | Yes |
Sources: LHDN; MOF Budget 2026; PwC Worldwide Tax Summaries for Malaysia (June 2026), Singapore (July 2026), China (July 2026), Hong Kong SAR (July 2026) and Thailand (August 2026); DJP Indonesia; Income Tax Department India; seen October 2026.
By country
Malaysian property tax, by home country
Each page explains how your home system differs from Malaysia’s, what carries over and the practical steps.
Singapore
No ABSD in Malaysia, but 8% stamp duty for foreign buyers of homes; Singapore generally does not tax Malaysian rent. Malaysia vs Singapore.
Indonesia
Rent and gains taxed in Malaysia and declared in your SPT, with PPh Pasal 24 credit. Malaysia vs Indonesia.
India
DTAA credit for Malaysian tax, Schedule FA reporting and LRS records. Malaysia vs India.
China
China’s 20% on residents’ overseas rent and gains, with per-country credit. Malaysia vs China.
Hong Kong
Territorial at home, so Malaysian tax is usually the only tax; RPGT is new to most HK owners. Malaysia vs Hong Kong.
Thailand
Remitted foreign income taxable since 2024; credit only under the treaty. Malaysia vs Thailand.
On video
Six costs buyers forget
Rental tax, RPGT, assessment, quit rent, utilities and maintenance fees: the running costs after you buy.
Straight answers
Frequently asked questions
What is the stamp duty for foreigners buying property in Malaysia in 2026?
A flat 8% of the price or market value, whichever is higher, on the transfer of a residential home executed from 1 January 2026. It applies to non-citizen individuals (except Malaysian PRs) and foreign companies. A loan agreement adds 0.5%.
What are the RPGT rates in Malaysia?
For citizens and PRs: 30% within three years, 20% in year four, 15% in year five and nil from year six. Companies: the same until year five, then 10%. Non-citizen individuals: 30% for the first five years and 10% from year six.
What is the difference between cukai tanah and cukai pintu?
Cukai tanah (quit rent) is a state land tax paid once a year to the land office; strata units pay cukai petak. Cukai pintu (assessment, cukai taksiran) is a local council rate, usually paid twice a year.
How is rental income taxed in Malaysia?
Net rent after allowable expenses is taxed at scale rates up to 30% for residents, or a flat 30% for non-residents. Residential rent is outside service tax.
Do foreigners pay RPGT when selling Malaysian property?
Yes. A non-citizen individual pays 30% of the gain if selling within five years and 10% afterwards, and the buyer retains 7% of the price for LHDN within 60 days.
Which expenses can I deduct from rental income in Malaysia?
Assessment, quit rent, interest on a loan used to buy the let property, fire insurance, repairs and maintenance, and commission for collecting rent. Purchase costs, renovation and first-time advertising are not deductible.
Is there a first-home stamp duty exemption in Malaysia?
Yes, for Malaysian citizens buying a first residential home priced up to RM500,000: a full exemption on the transfer and loan agreement for purchases from 1 January 2026 to 31 December 2027.
Compare
Property tax: Malaysia and other countries
Other guides
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