Real Property Gains Tax in Malaysia 2026: rates for foreigners and residents, and how to calculate it

The short answer. Real Property Gains Tax (RPGT, Cukai Keuntungan Harta Tanah) is paid by the seller on the gain from selling property in Malaysia. For a foreign individual (someone who is neither a citizen nor a permanent resident), the rate is 30% if the property is sold in the first five years and 10% from the sixth year. A citizen or permanent resident pays 30%, 30%, 30%, 20% and 15% in years one to five, and 0% from the sixth year (HASiL, RPGT rates, updated 23 June 2026). The tax follows the seller’s status, not how long they live in Malaysia: HASiL’s test is whether the seller is a citizen or a permanent resident.

RPGT is a different tax from the stamp duty you paid when you bought. For the buying side, see our stamp duty and legal fees guide and calculator. This page covers what happens when you sell.

Who pays RPGT, and on what

RPGT is charged on the gain from disposing of a “chargeable asset” in Malaysia: houses, shops and other buildings, farms and vacant land, including any interest or right over them. A disposal means to sell, transfer, assign or otherwise alienate the asset, whether by agreement or by force of law. The seller owes the tax in the year of assessment (the calendar year) in which the disposal takes place. A seller is taxed whether resident in Malaysia or not (HASiL, introduction and basis of taxation).

A foreigner is therefore free to sell, and the sale is taxed in Malaysia. Which land a foreigner may buy in the first place, and at what minimum price, is a separate question; see Can foreigners buy property in Malaysia?.

One limit of this guide. Since 1 January 2024, gains by companies, limited liability partnerships, trust bodies and cooperatives on unlisted shares in a real property company fall under capital gains tax, not RPGT; their sales of real property itself stay under RPGT (HASiL). We do not cover those share sales.

The three seller categories

The law (Schedule 5 of the Real Property Gains Tax Act 1976) sorts sellers into three parts. Which one you are in sets your rates.

Part	Seller	Examples
Part I	Anyone not in Part II or III	Malaysian citizens, permanent residents, partnerships
Part II	Malaysian-incorporated entities	A company incorporated in Malaysia, a trustee of a trust, a body registered under Malaysian law
Part III	Foreign sellers	An individual who is not a citizen and not a permanent resident; the executor of such a person’s estate; a company not incorporated in Malaysia

Source: HASiL, RPGT rates.

Two points follow. A foreign-owned company incorporated in Malaysia is in Part II, not Part III. And a foreigner who holds a Malaysian property through a company incorporated abroad is in Part III.

RPGT rates in 2026 by holding period

The rate depends on how long the seller held the property. These are the rates for disposals from 1 January 2022 (Part I) and from 1 January 2019 (Parts II and III), the rates in force in 2026.

Disposal	Citizens and PRs (Part I)	Malaysian companies and trusts (Part II)	Foreign individuals and foreign companies (Part III)
Within 2 years	30%	30%	30%
3rd year	30%	30%	30%
4th year	20%	20%	30%
5th year	15%	15%	30%
6th year onwards	0%	10%	10%

The gap is wide in the middle years. A citizen who sells in the fourth year pays 20%; a foreigner pays 30% on the same gain. From the sixth year a citizen pays nothing, while a foreigner still pays 10%.

The rates have moved over time. Between 2019 and 2021 citizens paid a minimum of 5% after year five; since 1 January 2022 they pay none. The foreign rates have not changed since 2019 (HASiL).

How the gain is calculated

HASiL starts from two prices (HASiL, disposal price and acquisition price):

• Disposal price = what you receive (in money or money’s worth) minus allowable expenses: spending to enhance or preserve the property’s value that is still reflected at the time of sale, spending to establish, preserve or defend your title, and the incidental costs of the sale (for example agent and lawyer fees).
• Acquisition price = what you paid, plus the costs of buying. Under the Act, the costs of transfer, including stamp duty, count (Real Property Gains Tax Act 1976, Schedule 2, paragraph 6).

The steps:

1. Chargeable gain before relief = disposal price − acquisition price.
2. If you are an individual, deduct the exemption: RM10,000 or 10% of the gain, whichever is greater (HASiL, exemptions). HASiL describes this relief as available to individuals only. Companies do not get it. HASiL’s wording sets no citizenship condition, so it appears open to a foreign individual; confirm with your tax adviser.
3. Apply the rate for the holding period and the seller’s part.

If the disposal price is below the acquisition price there is a loss, not a gain. An allowable loss can be set against gains on later disposals in the same year of assessment, and any unused part carries forward for up to nine consecutive later years (HASiL, determination of chargeable gain).

The date that starts and stops the clock is set by HASiL’s rules on acquisition and disposal dates; check them for your own sale (HASiL, disposal and acquisition date).

Three worked examples

These examples are illustrations, not quotes. The figures are invented to show the method. The same property is used in each: bought for RM1,000,000, with RM92,160 of purchase costs (stamp duty at the foreigners’ 8%, lawyer’s fee, service tax, as in our stamp duty guide), sold for RM1,300,000, with RM30,000 of selling costs (agent and lawyer).

	Foreigner, 4th year	Foreigner, 7th year	Citizen, 4th year
Sale price	RM1,300,000	RM1,300,000	RM1,300,000
Less selling costs	RM30,000	RM30,000	RM30,000
Disposal price	RM1,270,000	RM1,270,000	RM1,270,000
Acquisition price (price + purchase costs)	RM1,092,160	RM1,092,160	RM1,092,160
Gain	RM177,840	RM177,840	RM177,840
Exemption (greater of RM10,000 or 10%)	RM17,784	RM17,784	RM17,784
Chargeable gain	RM160,056	RM160,056	RM160,056
Rate	30%	10%	20%
RPGT	RM48,016.80	RM16,005.60	RM32,011.20
Held back by the buyer	7% = RM91,000	7% = RM91,000	3% = RM39,000
Refund due after assessment	RM42,983.20	RM74,994.40	RM6,988.80

Read across the first two columns: the same foreign seller, the same property and the same gain pay RM48,016.80 if they sell in the fourth year and RM16,005.60 in the seventh. The difference in this case is RM32,011.20 of tax. Whether to sell is your decision and depends on much more than this tax; the examples only show how the arithmetic works.

A citizen in the seventh year, on the same figures, would pay RM0.

What the buyer holds back

The buyer does not pay you the whole price. When the price is paid in money, the buyer (the “acquirer”) must retain a part of the price and send it to HASiL, whichever is lower of the percentage below and the money consideration (HASiL, retention and remittance by acquirer):

Seller	Retention rate
Part I (citizens, PRs)	3%
Part II, within 3 years	5%
Part II, 4th year onwards	3%
Part III (foreign sellers)	7%

The retention is a payment on account against your final tax. If it is more than the tax due, the seller can claim the excess back as overpaid tax, as the refund line of the examples shows. If it is less, the seller pays the balance within 90 days of the disposal date.

From the 2026 year of assessment, the buyer has a further choice: to hold and remit an amount equal to the deemed assessment amount instead of the percentage, if the seller has notified that amount to the buyer before the money is sent (HASiL). That can reduce the money held. It needs agreement between the two sides, and their lawyers should arrange it.

Exemptions: who pays no RPGT, or less

Several reliefs exist. Most of the best-known ones are for citizens and PRs, so a foreign seller should check each one.

Relief	Who qualifies	What it does
Individual exemption (Schedule 4, paragraph 2)	Individuals, with no citizenship condition stated	Deduct RM10,000 or 10% of the gain, whichever is greater. For a part-share, the amount is scaled by the area disposed of
Private residence (section 8)	Malaysian citizens and permanent residents only	Gain on one private residence exempt, once in a lifetime; chosen electronically on Form CKHT 3 and irrevocable
Transfer between spouses	Restricted since 1 January 2018 to a Malaysian citizen who is resident	Disposal price deemed equal to acquisition price: no gain, no loss
Inheritance	Executor or legatee under a will or intestacy	Same deemed treatment on devolution of a dead person’s assets
Transfer between former spouses	Under a court order after divorce or annulment, where the transferor is a Malaysian citizen	Same deemed treatment

Sources: HASiL, exemptions and HASiL, disposal price deemed equal to acquisition price. The HASiL page lists more cases than the table; read it for the full list.

The private residence exemption is the one most guides call “the” RPGT exemption. A foreigner cannot use it. It is one more reason a foreign seller’s bill can be higher than a citizen’s, on top of the rates.

Filing and payment calendar

When	Who	What
Within 60 days of the disposal date	Seller	File the disposer’s RPGT return for real property online. If there is no tax number, register first through e-Daftar on MyTax
Within 60 days of the disposal date	Buyer	File Form CKHT 2A and send the retention to HASiL
Within 90 days of the disposal date	Seller	Pay any balance of the tax. Under self-assessment, for disposals from 1 January 2025, the return you file is treated as the notice of assessment; HASiL does not issue a separate one

Sources: HASiL, types of RPGT return forms (the 60 days after the disposal date), HASiL, submission procedure (online filing), HASiL, payment procedure and HASiL, RPGT self-assessment system (the 90 days for the seller’s payment).

What changed recently:

• From 1 January 2025, filing on e-CKHT through MyTax (mytax.hasil.gov.my) is mandatory. A paper return is not accepted and counts as a failure to file unless you then file online.
• Payments use the bill number shown by the system, paid through ByrHASiL (FPX online banking) or HASiL’s collection-agent banks.

Penalties and increases apply for late filing or payment (HASiL, penalties). We do not give amounts; read the page for your case.

A practical point for foreign sellers who live abroad: the filing and the retention are both tied to the 60-day period, so the conveyancing lawyer on the sale often handles them. Ask in writing who files, and by what date.

RPGT or income tax?

RPGT applies to gains on capital assets held as investments. HASiL’s definition of “gain” excludes gains or profits that are chargeable to, or exempt from, income tax under the Income Tax Act 1967 (HASiL). A person who buys and sells property as a trade is not in the RPGT system, because the profit is business income. Where the line falls is a question of fact for each person; it is for a Malaysian tax adviser, not for this guide.

FAQ

What is the RPGT rate for foreigners in Malaysia in 2026? 30% of the chargeable gain if the property is sold in the first five years, and 10% from the sixth year onwards. The rate applies to any seller who is neither a citizen nor a permanent resident, and to companies incorporated abroad (HASiL, RPGT rates). The buyer holds back 7% of the price on account.

Who is exempt from RPGT in Malaysia? No one is exempt from the tax in general; reliefs apply to certain sellers and transactions. A citizen or permanent resident can claim a once-in-a-lifetime exemption on one private residence. Citizens and PRs pay 0% from the sixth year. A transfer to an heir, or between spouses or former spouses (under a court order) where the transferor is a Malaysian citizen, is treated as having no gain (HASiL, exemptions).

What are the RPGT exemptions for individuals in 2026? Every individual may deduct RM10,000 or 10% of the chargeable gain, whichever is greater. Citizens and PRs may also elect the private residence exemption once in their lifetime, using Form CKHT 3, and cannot undo that choice. A foreigner can use the first but not the second (HASiL, exemptions).

Can a foreigner sell property in Malaysia? Yes. A seller is taxable on a gain from property in Malaysia whether or not they live in the country (HASiL). State rules on consent for the transfer vary; your conveyancing lawyer can confirm the rule in the state concerned. Our guide Can foreigners buy property in Malaysia? sets out the purchase side.

How much can a foreigner buy property in Malaysia? There is no single limit on the number of properties. Each state sets a minimum price for a foreigner’s purchase and may restrict some types of land; those figures change, and our guide Can foreigners buy property in Malaysia? is where we keep them current.

Does a permanent resident pay the foreigners’ RPGT rate? No. HASiL puts a permanent resident in Part I with citizens, so the 0% rate from the sixth year applies. The foreign rates are for a person who is not a citizen and not a PR.

When must I file the RPGT return? Within 60 days of the disposal date, online through e-CKHT on MyTax. A paper form is not accepted (HASiL).

Is RPGT charged if I sell at a loss? No. A loss is an allowable loss. It can be set against gains on later disposals in the same year of assessment, and the unused part carries forward for up to nine consecutive years (HASiL).

Do I get the 7% back? The 7% held by the buyer is a payment on account. If it is more than the RPGT due, the seller can claim the excess back as overpaid tax. If it is less, the seller pays the balance within 90 days of the disposal date.

What we do not cover

• Sales of shares in a real property company, which have their own rules since 1 January 2024.
• Advice. We describe the published rules. We do not say whether to sell, when to sell or how to structure a sale. For your own case, ask a Malaysian lawyer or tax adviser.
• Other taxes and costs of selling, such as agent fees, outstanding financing and charges, and tax in your home country on the same gain.

Rates and procedures checked against the HASiL RPGT pages (rates updated 23 June 2026, exemptions 22 June 2026) on 10 November 2026.