Malaysia vs Hong Kong
Malaysian property tax for Hong Kong residents
Hong Kong taxes property on a territorial basis and has no capital gains tax, so for most Hong Kong residents the Malaysian taxes on a Malaysian home are the only taxes that apply to it. Those Malaysian taxes are not small: an 8% stamp duty for foreign buyers of homes, a gains tax on sale and 30% on net rent for non-residents. This page compares the two systems as at October 2026.
In short
Key points
- A Hong Kong resident buys in Malaysia as a foreigner and pays a flat 8% stamp duty on the transfer of a home from 1 January 2026.
- Hong Kong property tax and rates apply only to Hong Kong property; in Malaysia you pay quit rent and assessment instead.
- Malaysia taxes the rent at 30% of net income for non-residents; Hong Kong does not tax rent from property outside Hong Kong.
- Unlike Hong Kong, Malaysia taxes gains on sale: RPGT for foreigners is 30% in years 1–5 and 10% from year 6, and the buyer retains 7% of the price.
- Hong Kong and Malaysia have a comprehensive double taxation agreement, though double tax on property rarely arises in practice.
At a glance
Malaysia and Hong Kong side by side
| Stage | Malaysia (you as a foreign owner) | Hong Kong (home rules) |
|---|---|---|
| Buying | Stamp duty on transfer: flat 8% for foreigners on residential homes from 1 January 2026; 0.5% on a loan agreement | Ad valorem stamp duty: HKD 100 up to HKD 4 million, rising to 6.5% for residential property above HKD 100 million (from 26 February 2026); BSD and NRSD at 0% since 28 February 2024 |
| Owning | Quit rent to the state; assessment to the local council | Rates (5% on the first HKD 550,000 of rateable value for domestic property, then 8% and 12%) and government rent of 3% of rateable value |
| Renting | Non-resident individuals: flat 30% of net rent | Property tax 15% of net assessable value (rent less rates paid and a 20% repairs allowance), on Hong Kong property only |
| Selling | RPGT for non-citizens: 30% in years 1–5, 10% from year 6; buyer retains 7% | No capital gains tax; Special Stamp Duty at 0% since 28 February 2024 |
| Treaty | Comprehensive double taxation agreement with Hong Kong | Foreign tax credit available where the same income is taxed in both places under a CDTA |
Sources: LHDN; MOF Budget 2026 tax measures; PwC Worldwide Tax Summaries Hong Kong SAR (reviewed July 2026); seen October 2026.
Buying
Buying: stamp duty for foreigners
Hong Kong removed its extra duties on buyers in 2024. Malaysia has moved the other way for foreign buyers.
Malaysian citizens pay stamp duty on a 1%–4% scale. Non-citizen individuals (other than Malaysian PRs) and foreign companies pay a flat rate, which the Budget 2026 tax measures doubled from 4% to 8% for residential homes on transfers from 1 January 2026. A Malaysian loan agreement adds 0.5%.
States set minimum prices for foreign buyers and require consent: generally RM1 million or more in Kuala Lumpur and Johor, and Johor charges a consent levy of 3% of the price or RM30,000, whichever is higher, since 1 July 2025. Penang and Selangor have their own thresholds; see Malaysian property by state and test a unit on can a foreigner buy it?.
Owning
Annual charges compared
Malaysia: quit rent
A yearly land tax to the state land office (parcel rent for strata units). In Johor it is due from 1 January and in arrears from 1 June.
Malaysia: assessment
Paid to the local council, usually twice a year, on the annual value the council sets. It is the nearest equivalent to Hong Kong rates.
Hong Kong: rates and government rent
Charged on rateable value of Hong Kong property only. They do not reach a Malaysian unit.
Renting
Rent: taxed once, in Malaysia
- Malaysian residence: you are normally non-resident in Malaysia unless you spend about 182 days or more there in a calendar year.
- Rate: non-resident individuals pay a flat 30% on net rent, without personal reliefs, and file Form M.
- Deductions: assessment, quit rent, interest on a loan for the property, fire insurance, repairs and rent-collection commission are generally allowed. Purchase legal fees and stamp duty are not.
- Hong Kong: property tax is charged on land and buildings in Hong Kong, so rent from a Malaysian unit falls outside it.
- Service tax: residential lettings are outside Malaysia’s service tax on rental and leasing.
Because Malaysia uses a flat 30% on net income, keeping deductible records matters more than it would under Hong Kong’s flat 20% repairs allowance. Run the numbers in the rental yield calculator.
Selling
Selling: a gains tax Hong Kong owners are not used to
| Disposal | Malaysia: RPGT (non-citizen individual) | Hong Kong |
|---|---|---|
| Years 1–5 | 30% of the gain | No tax on gains |
| Year 6 onwards | 10% of the gain | No tax on gains |
Sources: LHDN RPGT rates (Part III, from 1 January 2019); PwC Worldwide Tax Summaries Hong Kong SAR; seen October 2026.
When you sell, the buyer retains 7% of the price and pays it to LHDN within 60 days; any excess over your final RPGT is refunded after assessment. The chargeable gain is the sale price less the purchase price and allowable costs such as legal fees and stamp duty. Hong Kong does not tax the gain, so there is nothing to credit at home. See selling property in Johor.
Practical steps
Checklist for Hong Kong buyers
- Budget the 8% stamp duty, any state levy and legal fees in the buying costs calculator.
- If borrowing in Malaysia, see home loans for foreigners.
- Decide on personal or company ownership; company RPGT rates differ. See ownership structures.
- If letting, register with LHDN and keep every receipt.
- Keep the sale and purchase agreement, stamp duty receipts and legal invoices for the RPGT computation.
- Make a Malaysian will; see will writing in Malaysia.
Straight answers
Frequently asked questions
Does Hong Kong have a tax treaty with Malaysia?
Yes. Hong Kong and Malaysia have a comprehensive double taxation agreement. It allows Malaysia to tax rent and gains from Malaysian property; because Hong Kong does not tax those, double tax rarely arises.
Is rental income from Malaysia taxable in Hong Kong?
Hong Kong property tax applies only to land and buildings in Hong Kong, so rent from a Malaysian unit is not charged to it. Malaysia taxes the rent at 30% of net income if you are non-resident there.
Do Hong Kong buyers pay extra stamp duty in Malaysia?
Foreign buyers pay a flat 8% on the transfer of a residential home from 1 January 2026, against a 1%–4% scale for citizens. Some states also charge consent fees or levies.
Is there capital gains tax on Malaysian property for Hong Kong residents?
Yes, Malaysia’s real property gains tax. For individuals who are not Malaysian citizens or PRs it is 30% of the gain in the first five years and 10% from the sixth year.
What annual taxes do I pay on a Malaysian condo?
Quit rent or parcel rent to the state and assessment to the local council, plus monthly maintenance and sinking fund charges to the management body.
Compare
Property tax: Malaysia and other countries
Other guides
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