Buying Guide · Stage 5: After you get the keys

Selling Property in Malaysia as a Foreigner: 30% RPGT, the 7% Retention and Getting Your Money Out

A foreigner selling property in Malaysia is taxed under Part III of Schedule 5, Real Property Gains Tax Act 1976: 30% on the gain for a disposal within five years and 10% from the sixth year onwards. Unlike a citizen or permanent resident, a non-citizen never reaches 0%. On top of that, the buyer’s solicitor must retain 7% of the price and pay it to LHDN within 60 days of the disposal. Here is how the tax is computed, which CKHT forms are due when, when state consent is needed to sell, and how the proceeds legally leave Malaysia — all as at September 2026.

30% within 5 years10% from year 6Buyer retains 7%CKHT within 60 daysRepatriate in foreign currencyVerified 2026-09-20

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Part ofForeigners buying in Malaysia Stage 5 · After you get the keys

By Louis Koh · 11 years in Malaysian propertyVerified: 2026-09-2013 min read📞 +60 10-906 6685

Short answer

A foreigner selling Malaysian property is taxed under Part III of Schedule 5, Real Property Gains Tax Act 1976: 30% of the chargeable gain on a disposal within five years and 10% from the sixth year onwards. There is no 0% band for a non-citizen, while a citizen or permanent resident pays nothing from year six. The buyer’s solicitor must retain 7% of the price under section 21B and remit it to LHDN within 60 days, and the seller files CKHT 1A through e-CKHT on MyTax within the same 60 days.

Key numbers at a glance

RPGT: non-citizen, non-PR	30% within five years, 10% from year six
RPGT: citizen or PR, for comparison	30% years 1–3, 20% year 4, 15% year 5, 0% year 6+
Statutory basis	Schedule 5 Part III, RPGT Act 1976
Buyer's retention	7% of the price (s.21B), remitted within 60 days
Seller's form	CKHT 1A, within 60 days of disposal, via e-CKHT
Buyer's form	CKHT 2A, within 60 days of acquisition
Exemption available	RM10,000 or 10% of the gain; private residence exemption not available
Repatriation	Permitted for a non-resident, but must be made in foreign currency (BNM FEP)

Key points in 30 seconds

Non-citizens who are not permanent residents, and foreign companies, are taxed under Schedule 5 Part III: 30% within five years, 10% from the sixth year. There is no 0% band for a foreign owner.
The individual exemption of RM10,000 or 10% of the gain (whichever is higher) still applies, but the once-in-a-lifetime private residence exemption is only for citizens and PRs.
The buyer — in practice the buyer’s solicitor — retains 7% of the price and remits it to LHDN within 60 days of the disposal. Anything over-retained comes back only after assessment.
The seller files CKHT 1A through e-CKHT on MyTax within 60 days of the disposal; the buyer files CKHT 2A. e-CKHT has been the only route since 1 January 2025.
Worked example: bought at RM1,000,000, sold at RM1,250,000, chargeable gain RM84,650. Tax is RM25,395 within five years or RM8,465 from year six — but RM87,500 is retained either way.
State consent depends on the title (a restriction in interest or a leasehold title needs it) and on the buyer: a foreign buyer needs their own section 433B approval and pays the state consent fee.
Sale proceeds can be repatriated, but BNM’s Foreign Exchange Policy requires a non-resident to repatriate in foreign currency.

What RPGT does a foreigner pay when selling property in Malaysia?

There are two rate tables. Citizens and permanent residents fall under Part II of Schedule 5. Foreigners — the Act’s phrase is an individual who is not a citizen and not a permanent resident — and foreign companies fall under Part III. The two tables are identical for the first three years, then they part company.

RPGT rates as at September 2026 (source: LHDN, Real Property Gains Tax rates)
Disposal (measured from SPA date)	Citizen / permanent resident	Non-citizen, non-PR individual and foreign company
Within years 1–3	30%	30%
Year 4	20%	30%
Year 5	15%	30%
Year 6 onwards	0%	10%

These rates have applied since 2019. From 2014 to 2018 Part III ran at 30% falling to 5%.
The point that matters: a foreign owner never reaches 0%. Hold for twenty years and the rate is still 10%. A citizen or PR pays nothing from year six.
Where does a permanent resident sit? With citizens. Part III only catches someone who is neither a citizen nor a PR, so a foreigner holding Malaysian PR uses the Part II table.
The holding period runs from the date of the sale and purchase agreement when you bought to the date of the agreement when you sell — not the handover date and not the date the transfer was registered. Years spent waiting for an under-construction unit still count.

What I tell clients: the gap between year five and year six is the largest single number in this article — the same gain taxed at 30% or at 10%. The most common mistake I see among foreign sellers is counting from the day they collected the keys. Dig out the SPA you signed and look at the date on page one. One month can triple the bill.

How is the chargeable gain computed, and what is deductible?

The formula: chargeable gain = (disposal price − costs of disposal) − (acquisition price + costs of acquisition + enhancement costs) − the individual exemption. The rate applies to that final figure, not to the sale price.

Costs of disposal you deduct from the sale price

Agent’s commission — capped at 3% of the price, plus 8% SST if the agency is registered for it.
Your own solicitor’s fee — under the Solicitors’ Remuneration Order 2023: 1.25% on the first RM500,000 and 1% on the next RM7 million, plus 8% SST and disbursements.
Advertising and professional costs incurred to make the disposal happen.

Costs you add to the purchase price

The MOT stamp duty, buyer’s legal fees and valuation fee you paid when you bought.
The state consent fee or foreign-buyer levy you paid at the time — in Johor, 3% of the price or RM30,000, whichever is higher, since 1 July 2025. That is an acquisition cost, so keep the receipt.
Enhancement costs: work that changed or added to the value of the property — an extension, a kitchen rebuild, fitted joinery. You need invoices.

What is not deductible

Routine repairs and maintenance, repainting, servicing the air-conditioning.
Mortgage interest, maintenance charges, assessment tax (cukai taksiran) and quit rent (cukai tanah) — these are holding costs, not acquisition costs.
Exchange-rate losses. RPGT is computed in ringgit; what your own currency did in the meantime is not part of the calculation.

Which exemptions are open to a foreign seller? Almost none

Available: the individual exemption of RM10,000 or 10% of the chargeable gain, whichever is higher (Schedule 4, paragraph 2). It is an individual relief, so a foreign individual gets it; a foreign company does not.
Not available: the once-in-a-lifetime private residence exemption (Schedule 3, paragraph 9) requires the disposer to be a citizen or a permanent resident. A foreign owner cannot elect it.
Not available: the no-gain-no-loss transfers between spouses, parent and child, or grandparent and grandchild also turn on citizenship or PR status.

What I tell clients: the most valuable thing a foreign seller owns, after the property itself, is the folder of receipts from the year they bought — the consent fee receipt, the stamp duty certificate, the renovation invoices. I have seen owners throw those away in a move and lose tens of thousands of ringgit of acquisition cost they could not prove. Start the folder on the day you buy.

What getting the date wrong actually costs

On this article’s RM1.25 million example, with a chargeable gain of RM84,650, signing the sale agreement inside five years costs RM25,395 in RPGT; signing once year six has begun costs RM8,465. That is RM16,930 decided by a few weeks. The second cost people underestimate is liquidity: RM62,105 of the price is retained and unavailable until assessment. Lost renovation invoices turn straight into extra tax too.

Ask Louis directly
Send me the date and price on the SPA from when you bought, plus a list of the receipts you still have, and I will work out whether you are in the 30% band or the 10% band and how much the solicitor will retain.

WhatsApp Louis 📞 +60 10-906 6685

Send me the SPA date, the purchase price and your renovation invoices and I will put together a free written estimate: RPGT, the 7% retention, agent and legal fees, and roughly what is left to repatriate after the loan is redeemed.

A worked example: RM1.25 million sale, how much tax and how much is retained?

Take an owner who is neither a citizen nor a PR, who signed an SPA in September 2021 to buy a Kuala Lumpur condominium at RM1,000,000 and is now selling it to a Malaysian citizen at RM1,250,000. Every figure below has been re-checked in python. Acquisition costs should be taken from your own receipts — this example assumes RM60,000 of consent fee, stamp duty, legal and valuation costs, and RM40,000 of invoiced renovation.

Chargeable gain (RM). The acquisition-cost lines are assumptions — replace them with your own receipts
Item	Amount (RM)
Disposal price	1,250,000.00
Less: agent’s commission 3% + 8% SST	(40,500.00)
Less: seller’s legal fee RM13,750 + 8% SST (SRO 2023)	(14,850.00)
Net disposal price	1,194,650.00
Acquisition price	1,000,000.00
Add: consent fee, MOT stamp duty, legal and valuation fees paid on purchase (assumed)	60,000.00
Add: enhancement works with invoices	40,000.00
Total acquisition cost	1,100,000.00
Gain	94,650.00
Less: individual exemption (RM10,000 or 10%, whichever is higher)	(10,000.00)
Chargeable gain	84,650.00

The same chargeable gain of RM84,650, disposed of at different times
When it is sold	Foreign seller	Citizen or PR in the same position
Within five years	RM25,395.00 (30%)	RM25,395.00 within 3 years; RM12,697.50 in year 5 (15%)
Year 6 onwards	RM8,465.00 (10%)	RM0 (0%)

The 7% retention against the tax actually due
Item	Amount (RM)
Retained by the buyer’s solicitor: RM1,250,000 × 7%	87,500.00
RPGT if sold within five years (30%)	25,395.00
Refundable after assessment	62,105.00
RPGT if sold from year six (10%)	8,465.00
Refundable after assessment	79,035.00

What I tell clients: look at that last table. The 7% is computed on the price; the tax is computed on the gain. The two have nothing to do with each other. In this example between RM62,000 and RM79,000 sits with LHDN until the assessment is issued. If you are counting on the sale proceeds for a deposit somewhere else, treat that slice as money you do not have yet.

Why does the buyer's solicitor hold back 7%, and when is it remitted?

Under section 21B of the Real Property Gains Tax Act 1976 the acquirer — in practice the buyer’s solicitor — must retain part of the consideration and remit it to LHDN within 60 days of the disposal. It is not the solicitor being difficult; it is a statutory duty imposed on the buyer’s side.

Retention rates (source: Malaysian Bar RPGT paper; L & Co 2026 update)
Situation	Retention
Standard case	3% of the consideration
Companies and societies disposing within 3 years of acquisition (from 1 Jan 2022)	5%
Disposer is not a citizen and not a permanent resident, or is a foreign company	7%

The retention is calculated on the consideration, not on the gain. It is retained even on a loss-making sale.
The 2026 “lower of” rule: L & Co’s 2026 update says the acquirer may remit the lower of (i) the full cash consideration, (ii) the 3%/5%/7% amount, or (iii) the deemed assessed tax, with the last available only if the disposer notified the acquirer in advance. I found this in one source only, so ask your solicitor to confirm in writing that it applies to your transaction.
Remitting late attracts a 10% surcharge under section 21B(2) (L & Co). Separately, where the disposer files an incorrect return under section 13(6) and that causes the acquirer to fail to remit under section 21B(1) or (1A), LHDN’s own penalties page shows a 10% increase on the tax charged under section 14(5).
Over-retained money is not refunded automatically. It comes back after LHDN issues the assessment, so keep your Malaysian bank account open past completion or agree in advance, in writing, whose solicitor receives the refund and where it goes.

What I tell clients: there is nothing to negotiate about the 7% itself. The one thing worth negotiating into the SPA is the mechanics of the refund — which firm receives it and which account it is paid to. Sorting that out after you have left the country and closed your account is slow. See opening a Malaysian bank account and transferring funds.

Which CKHT forms are due, by when, and what are the penalties?

RPGT has been self-assessed since 1 January 2025, and e-CKHT through MyTax is the only route — paper is not accepted. Under self-assessment the seller (or the seller’s tax agent) is responsible for getting the number right.

CKHT forms and deadlines (source: LHDN, Responsibility of Disposer and Acquirer)
Form	Who files	What for	Deadline
CKHT 1A	Disposer (seller)	Disposal of real property	Within 60 days of the disposal
CKHT 1B	Disposer	Disposal of shares in a real property company	Within 60 days of the disposal
CKHT 2A	Acquirer (buyer)	Notification of acquisition	Within 60 days of the acquisition
CKHT 3	Disposer	Notification of a non-chargeable or exempt disposal	Filed together with CKHT 1A or 1B
CKHT 502	Acquirer	Remittance slip for the retention sum	With the retention payment

Some property portals name the buyer’s form as “CKHT 4A”. That number does not appear on LHDN’s own page; the buyer’s form is CKHT 2A. CKHT 3 is the non-chargeable or exempt notification, not the real-property-company share form, which is CKHT 1B.

Penalties, from LHDN's own list

Failing to submit CKHT 1A or 1B within 60 days of the disposal, or failing to declare the disposal: up to three times the tax charged, section 29(3).
Making an incorrect return or giving incorrect information on a disposal: an amount equal to the tax under-declared, up to 100%, section 30(2).
An incorrect return under section 13(6) that causes the acquirer to fail to remit: 10% of the tax charged, section 14(5).

What I tell clients: under self-assessment the consequence of getting the arithmetic wrong sits with the seller, not the solicitor. If your acquisition costs are complicated — several rounds of renovation, a consent fee from years back, a purchase funded in foreign currency — engage a Malaysian tax agent before you sign the sale agreement, not on day 55.

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From booking to balance to repatriating the proceeds: the sequence and the timeline

1. Price it and appoint an agentWork from transacted prices, not asking prices. Check the agent is a registered REA firm or a REN under one on the LPPEH register, and put the commission and any exclusivity period in writing.
2. Accept an offer and take the earnest depositThe buyer signs an offer to purchase and typically pays 2%–3% as an earnest deposit, held by the agent or a solicitor as stakeholder — not paid into your account.
3. Sign the sale and purchase agreementUsually within 14 days, with the buyer topping the deposit up to 10%. The SPA date is the date of disposal for RPGT and starts the 60-day clock. If you are abroad you can sign by power of attorney or at a Malaysian mission — see power of attorney for property transactions.
4. Apply for state consent, if it is neededWhere the title carries a restriction in interest or is leasehold, your solicitor applies to the state land office. If the buyer is a foreigner, they separately apply under section 433B and pay the consent fee. Johor typically takes one to three months.
5. Redemption and retentionYour solicitor obtains a redemption statement from your bank. The buyer’s solicitor retains 7% of the price and remits it with CKHT 502 within 60 days of the disposal.
6. File the CKHT forms within 60 daysYou file CKHT 1A through e-CKHT on MyTax, computing the tax yourself under self-assessment; the buyer files CKHT 2A. If the tax exceeds the retention, you pay the difference.
7. Balance and vacant possessionThe buyer pays the balance within the completion period — for a subsale, typically three months from the SPA with a one-month extension and late interest. Your loan is redeemed first and the remainder goes into your solicitor’s client account. Quit rent, assessment and maintenance charges are apportioned to the completion date.
8. Assessment, refund and repatriationOnce LHDN issues the assessment, any over-retained amount is refunded. Confirm your Malaysian account is still active, then repatriate under BNM’s Foreign Exchange Policy.

How do the proceeds legally leave Malaysia?

BNM’s Foreign Exchange Policy (FEP) allows a non-resident to repatriate “divestment proceeds, profits, dividends or any income arising from the investments in Malaysia”, and states that “repatriation shall be made in FC” — in foreign currency. You convert the ringgit in Malaysia and remit the foreign currency out, not the other way round.
Who counts as a non-resident? Under the FEP definitions, a Malaysian citizen is generally a resident, except one who holds permanent residence abroad and lives outside Malaysia (HSBC Malaysia’s summary of the BNM policy). A non-Malaysian owner is a non-resident in any case.
Banks run anti-money-laundering and source-of-funds checks. Have the SPA, your solicitor’s completion statement and proof of the RPGT retention or clearance ready. The larger the sum, the more they ask.
Do not close the account until the RPGT position is settled. For the mechanics, see bank accounts and money transfers for foreigners and renting, tax and selling for foreign owners.

Typical timeline. Your own will depend on the title and on your buyer's nationality
Stage	Usual time
Offer accepted to SPA signed	About 14 days
State consent, where the title needs it or the buyer is a foreigner (Johor)	1–3 months
Retention remitted to LHDN; CKHT 1A and CKHT 2A filed	Within 60 days of the disposal
Subsale completion period	3 months, extendable by 1 month with late interest
RPGT assessment and refund of the excess retention	No published turnaround — budget for several months

What I tell clients: I leave the last row without a number because LHDN does not publish a guaranteed turnaround and I am not going to set an expectation I cannot back up. What you do control is the rows above it — get the receipts in order and file CKHT 1A early, and you join the refund queue early.

Frequently asked questions

How much RPGT does a foreigner pay when selling property in Malaysia?

Under Schedule 5 Part III, 30% on the chargeable gain for a disposal within five years and 10% from the sixth year onwards. The tax is on the gain, not the price: take the sale price less commission and legal fees, deduct the purchase price plus the stamp duty, legal fees and state consent fee you paid, plus invoiced enhancement works, then deduct RM10,000 or 10% of the gain, whichever is higher. There is no 0% band for a foreign owner.

Why does the buyer's solicitor retain 7%, and when do I get it back?

It is a statutory retention under section 21B of the RPGT Act. Where the disposer is neither a citizen nor a permanent resident, the acquirer must retain 7% of the price — the standard case is 3% — and remit it to LHDN within 60 days of the disposal. Any excess is refunded only after LHDN issues the assessment, and there is no published turnaround, so keep your Malaysian bank account open.

What is the difference between CKHT 1A and CKHT 2A, and what happens if I file late?

CKHT 1A is the seller’s disposal return; CKHT 2A is the buyer’s acquisition notification. Both are due within 60 days and both go through e-CKHT on MyTax. Failing to file CKHT 1A within 60 days, or failing to declare the disposal at all, attracts up to three times the tax under section 29(3); an incorrect return attracts up to 100% of the under-declared tax under section 30(2). RPGT has been self-assessed since 1 January 2025, so the arithmetic is the seller’s responsibility.

Does a foreigner need state consent to sell a Malaysian property?

It depends on the title and on the buyer. If the title carries a restriction in interest (sekatan kepentingan, section 76 of the National Land Code) or is leasehold, written state consent is required before any transfer. If the incoming buyer is also a foreigner, they must obtain separate approval under section 433B and pay the state’s consent fee — in Johor, 3% of the price or RM30,000, whichever is higher, since 1 July 2025. Selling to a Malaysian citizen is usually quicker.

If I sell at a loss, do I still file and still get 7% withheld?

No gain means no tax, but the paperwork is unchanged. You still file CKHT 1A within 60 days, the buyer still files CKHT 2A, and the 7% is still retained, because the retention is computed on the price rather than on any profit. You then claim the whole amount back after assessment. Plan your cash flow on the basis that the money is unavailable for some months even on a loss-making sale.

Can a foreigner transfer the sale proceeds out of Malaysia?

Yes. BNM’s Foreign Exchange Policy lets a non-resident repatriate divestment proceeds and income from investments in Malaysia, but the repatriation must be made in foreign currency — the ringgit is converted in Malaysia first. Your bank will run anti-money-laundering checks, so have the SPA, the solicitor’s completion statement and evidence of the RPGT retention ready. Settle the RPGT position before you close the account.

I have held the property for more than five years. Is a foreigner still taxed?

Yes. Non-citizens who are not permanent residents, and foreign companies, pay 10% from the sixth year onwards and the rate does not fall further — it is still 10% after twenty years. Malaysian citizens and permanent residents pay 0% from year six. This is the biggest single difference between a foreign and a local owner on a long hold, and it belongs in any long-term return calculation.

Sources & verification

Verified: 2026-09-20. This guide is general information, not legal, tax or financial advice. Rules and rates change — confirm in writing with your lawyer, bank or the relevant authority before you sign.

Stage 5

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Renting Out Property in Malaysia: Tenancy Stamp Duty, Rental Income Tax and the Letting ProcessRenting out property in Malaysia: the RM2,400 tenancy stamp duty exemption ended 1 Jan 2025, self-assessment started 2026. Rates, examples, penalty waiver.Selling Property in Malaysia: RPGT Rates 2026, Seller Costs and Step-by-Step ProcessSelling property in Malaysia in 2026: RPGT is 0% for citizens after year 5, buyers retain 3% or 7%, file within 60 days. Full RM600k example and seller costs.Wills and Property Inheritance in Malaysia: Joint Ownership and What Happens Without a WillProperty inheritance in Malaysia: with no will, the Distribution Act gives spouse 1/4, children 1/2, parents 1/4. Wills, probate and joint owners explained.Non-Resident Rental Income Tax in Malaysia: the Flat 30%, the 182-Day Test and Form MNon resident rental income tax Malaysia: a flat 30% on net rent, no personal reliefs, the 182-day residence test, Form M by 30 April, and what you can deduct.When a Foreign Owner Dies: Malaysian Wills, Probate, Resealing and Consent for HeirsMalaysia abolished estate duty in 1991, but a foreign owner's property still needs probate, state consent for foreign heirs, and RPGT on the later sale.A Living Trust in Malaysia or a Will? What a Trust Does and Does Not Do for PropertyA living trust in Malaysia skips probate for assets transferred in, but moving a house into it does not avoid stamp duty or RPGT. Costs, law and the limits.

← PreviousWills and Property Inheritance in Malaysia: Joint Ownership and What Happens Without a Will Next →Rental Yield in Malaysia: Gross vs Net, and What Landlords Actually Keep

Louis Koh

11 years in Malaysian property · Johor Bahru & Kuala Lumpur · English & 中文

I help local buyers and cross-border buyers from Singapore with new and subsale property. Every figure in these guides is sourced; when a rule changes, I update the page and date it.

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Send me your situation — new or subsale, budget, state, and where you are in the process — and I will tell you what to do next and what to watch for.

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Louis Koh · 11 years in Malaysian property · +60 10-906 6685 · replies 9am–10pm MYT

Selling Property in Malaysia as a Foreigner: 30% RPGT, the 7% Retention and Getting Your Money OutBuying Guide · After you get the keys

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