Selling Property in Malaysia: RPGT Rates 2026, Seller Costs and Step-by-Step Process
Selling property in Malaysia means paying Real Property Gains Tax (RPGT, or Cukai Keuntungan Harta Tanah) according to how long you have held it: for citizens and permanent residents it is 30% within 3 years, 20% in year 4, 15% in year 5 and 0% from year 6; foreigners pay 30% for five years and 10% after. On top of RPGT come agent’s commission, legal fees and settling your loan. Here are the rules as at September 2026, a full worked example and the process I walk sellers through.
Short answer
Real Property Gains Tax on a Malaysian property sale depends on the holding period: citizens and permanent residents pay 30% within three years, 20% in year 4, 15% in year 5 and 0% from year 6; non-citizens pay 30% for five years, then 10%. The buyer retains 3% of the price, or 7% from a foreign seller, and you file CKHT 1A within 60 days of the SPA.
Key numbers at a glance
| RPGT, citizens and PRs | 30% in years 1-3, 20% year 4, 15% year 5, 0% from year 6 |
|---|---|
| RPGT, non-citizens | 30% for the first 5 years, 10% from year 6 |
| Chargeable gain | Sale less selling costs, purchase price, costs and improvements |
| Individual exemption | The higher of RM10,000 or 10% of the chargeable gain |
| Buyer's retention | 3% of the price; 7% if the seller is not a citizen or PR |
| Filing | CKHT 1A via e-CKHT on MyTax within 60 days of disposal |
| Self-assessment | RPGT has been self-assessed since 1 January 2025 |
| Agent and legal fees | Commission up to 3%; SRO 2023: 1.25% on the first RM500,000 |
Key points in 30 seconds
- RPGT for citizens and PRs is 30% within 3 years, 20% in year 4, 15% in year 5 and 0% from year 6; non-citizens pay 30% for the first 5 years and 10% after that.
- The chargeable gain is the sale price less selling costs, minus the purchase price, purchase costs and enhancement works; individuals then deduct RM10,000 or 10% of the gain, whichever is higher.
- The buyer must retain 3% of the price (7% if the seller is neither a citizen nor a PR) and pay it to LHDN within 60 days; any excess can be refunded.
- RPGT has been self-assessed since 1 January 2025: the seller computes the tax and submits CKHT 1A through e-CKHT on MyTax within 60 days.
- Buying at RM400,000 and selling at RM600,000 in year 5 produces RPGT of about RM17,594.55 in my example; a citizen selling in year 6 pays nothing.
- Agent’s commission is capped at 3% of the price (plus 8% SST if the firm is registered), and seller’s legal fees follow SRO 2023: 1.25% on the first RM500,000 and 1% after.
The process of selling property in Malaysia, from pricing to handover
A subsale looks the same from both sides of the table. As the seller, what matters is when money reaches you and which step can stall.
- Set the priceUse recent transacted prices nearby, not asking prices; the bank’s valuation decides how much your buyer can borrow. See property valuation and transacted prices.
- Appoint an agent, or sell yourselfCheck the agent is a registered REA firm or a REN under one, and agree the commission in writing. See REN vs REA and who pays commission.
- Accept an offerThe buyer signs an offer to purchase and usually pays a 2–3% earnest deposit, held by the agent or a lawyer as stakeholder. See making an offer and the earnest deposit.
- Sign the SPATypically within about 14 days, with the buyer topping up to a 10% deposit. The SPA date is your disposal date for RPGT. See the subsale SPA and 3+1 month completion.
- State consent and redemptionLeasehold titles, or titles with a restriction in interest, need state consent first. Your lawyer obtains a redemption statement from your bank; once the buyer’s bank issues its undertaking, it pays off your loan directly.
- RPGT retention and filingThe buyer’s lawyer retains 3% (or 7%) of the price for LHDN, and you submit CKHT 1A within 60 days.
- Completion and handoverUsually within 3 months of the SPA, extendable by 1 month with late interest. The balance is released, quit rent, assessment and maintenance charges are apportioned to the completion date, and you hand over vacant possession. Detail: the subsale transfer process.
What does it cost to sell a house in Malaysia?
| Cost | How it is worked out | Notes |
|---|---|---|
| Agent’s commission | Up to 3% of the price | Plus 8% SST if the agency is SST-registered |
| Seller’s legal fees | SRO 2023: 1.25% on the first RM500,000 (minimum RM500), 1% on the next RM7 million | Plus 8% SST and disbursements |
| Loan redemption | The balance on the redemption statement | An early settlement penalty may apply inside the lock-in period, per your letter of offer |
| RPGT | See below | 0% for citizens after year 5, but you must still file |
| Apportioned outgoings | Quit rent, assessment, maintenance and sinking fund to the completion date | Arrears must be cleared before completion |
Stamp duty on the memorandum of transfer (MOT) is the buyer’s cost, not yours. Early settlement penalties follow your letter of offer; for what to do once the loan is settled see refinancing and fully settling your loan.
The expensive mistake is the disposal date. On the RM600,000 example in this article, signing the sale SPA in year 5 costs RM17,594.55 in RPGT; the same sale signed after the fifth anniversary costs a citizen nothing. And since RPGT became self-assessed in 2025, a wrong figure or a missed 60-day deadline is the seller’s problem, not the lawyer’s.
Ask Louis directly
Send me the date on your purchase SPA and the price you paid and I'll tell you which RPGT band you are in and what a sale would leave you with today.
Send me your purchase SPA date, the price and your renovation invoices and I'll send back a written estimate of the RPGT, agent and legal fees, and what should be left after redeeming the loan.
RPGT rates 2026: how much tax for how long you held the property
| Seller | Within 3 years | Year 4 | Year 5 | Year 6 onwards |
|---|---|---|---|---|
| Malaysian citizen or PR | 30% | 20% | 15% | 0% |
| Non-citizen | 30% | 30% | 30% | 10% |
| Malaysian company | 30% | 20% | 15% | 10% |
| Foreign company | 30% | 30% | 30% | 10% |
The holding period runs from the acquisition date to the disposal date, both normally the dates of the written agreements (SPAs), not the dates of handover or title transfer.
Reading the table: “within 3 years” means held for up to 3 years from acquisition; “year 4” means more than 3 and up to 4 years; “year 5” more than 4 and up to 5 years; “year 6 onwards” more than 5 years. For example, a property bought under an SPA dated 1 October 2021 and sold under an SPA dated 20 September 2026 has been held for about 4 years and 11 months, so it is still in year 5 and a citizen pays 15%. Sign the sale SPA after 1 October 2026 and it moves into year 6, where the citizen rate is 0%. Near a threshold, a few days can be worth tens of thousands of ringgit, so have your lawyer confirm the dates.
PwC’s tax summary also notes preferential rates, matching those for citizens, for qualifying non-citizens in the Forest City Special Financial Zone, subject to conditions. For foreign owners generally, see renting, tax and selling for foreigners.
How to calculate RPGT: a full RM600,000 example
Formula: chargeable gain = (sale price − selling costs) − (purchase price + purchase costs + enhancement costs). Individuals then deduct RM10,000 or 10% of the gain, whichever is higher, and apply the rate.
- Selling costs: agent’s commission, your legal fees, advertising.
- Purchase costs: legal fees, MOT stamp duty and valuation fees paid when you bought.
- Enhancement costs: works that change or add value, such as a kitchen extension, backed by invoices.
- Not allowed: routine repairs and maintenance, and loan interest.
| Item | RM |
|---|---|
| Sale price | 600,000.00 |
| Less: commission 3% + 8% SST | (19,440.00) |
| Less: seller’s legal fees RM7,250 + 8% SST | (7,830.00) |
| Net disposal price | 572,730.00 |
| Purchase price | 400,000.00 |
| Add: MOT stamp duty (1% × RM100k + 2% × RM300k) | 7,000.00 |
| Add: purchase legal fees RM5,000 + 8% SST | 5,400.00 |
| Add: enhancement works (invoiced) | 30,000.00 |
| Total acquisition cost | 442,400.00 |
| Gain | 130,330.00 |
| Less: exemption (higher of RM10,000 or 10%) | (13,033.00) |
| Chargeable gain | 117,297.00 |
| RPGT at 15% (year 5) | 17,594.55 |
| Disposal | Citizen or PR | Foreigner |
|---|---|---|
| Within 3 years (30%) | RM35,189.10 | RM35,189.10 |
| Year 4 | RM23,459.40 (20%) | RM35,189.10 (30%) |
| Year 5 | RM17,594.55 (15%) | RM35,189.10 (30%) |
| Year 6 onwards | RM0 (0%) | RM11,729.70 (10%) |
RPGT exemptions, including the once-in-a-lifetime exemption
| Exemption | What it does | Key points |
|---|---|---|
| Small-gain exemption | Individuals deduct RM10,000 or 10% of the chargeable gain, whichever is higher | Automatic; pro-rated when only part of a property is sold |
| Private residence, once in a lifetime | Exempts the whole gain on one private residence | Citizens and PRs only; must be elected in writing and is irrevocable |
| Family transfers | Transfers between spouses, parent and child, and grandparent and grandchild are treated as no gain, no loss | The transferor must be a citizen; stamp duty is separate |
| Inheritance | Devolution of a deceased person’s assets is no gain, no loss | See wills and property inheritance |
Special cases sellers often ask about
- You bought new from a developer: the acquisition date is normally the date of your SPA with the developer, not the date you got the keys or the title. The construction years count towards your holding period; many owners wrongly count from handover and wait years longer than they need to.
- Joint owners: RPGT is worked out on each co-owner’s share. When only part of a property is disposed of, the RM10,000 or 10% exemption is pro-rated; LHDN publishes the part-share formula.
- Selling at a loss: no gain means no RPGT, but both parties still file and the buyer still retains 3%, which you then claim back.
- Inherited property: the inheritance itself is no gain, no loss. When the heir later sells, special rules decide the acquisition date and cost, so have a lawyer or tax agent compute it before you set a price.
- Foreign sellers: the retention is 7% and RPGT stays at 10% from year 6; proceeds can be repatriated once tax is cleared.
- Company-owned property: a Malaysian company still pays 10% after year 5 and cannot use the individual RM10,000 or 10% exemption or the once-in-a-lifetime exemption.
The 3% or 7% retention and CKHT filing under self-assessment
Since 1 January 2025, RPGT is self-assessed: the seller works out the chargeable gain and tax, and the return is treated as the assessment. You must file even when the tax is zero.
- Buyer's retentionThe buyer, in practice through the buyer’s lawyer, retains 3% of the price, or 7% if the seller is neither a citizen nor a PR, and pays it to LHDN within 60 days of the disposal date. PwC, citing Budget 2026, says that from 2026 the amount retained can be the lowest of 3%/7%, the seller’s self-assessed RPGT, or the whole cash consideration. Ask your lawyer how this is being applied.
- Seller's returnThe seller submits CKHT 1A within 60 days of disposal. The buyer files an acquisition return (CKHT 2A according to LHDN and iProperty; some portals call it CKHT 4A). Both go through e-CKHT on MyTax.
- Pay any balanceIf the tax exceeds the amount retained, the seller pays the difference. PwC says within 90 days of disposal; iProperty says within 60 days. Doing everything inside 60 days covers both readings.
- Claim any excessIf the retention exceeds the tax (RM18,000 retained against RM17,594.55 of tax in the example), the RM405.45 difference can be refunded by LHDN.
Foreign sellers can repatriate proceeds once tax is cleared; see foreign-exchange rules and repatriating sale proceeds.
How much will you walk away with? Seller's checklist
| Item | RM |
|---|---|
| Sale price | 600,000.00 |
| Less: commission incl. SST | (19,440.00) |
| Less: legal fees incl. SST | (7,830.00) |
| Less: loan redemption | (300,000.00) |
| Less: RPGT | (17,594.55) |
| Net to you | 255,135.45 |
Timing matters: the 3% retention goes straight to LHDN, not to you, and a refund waits on LHDN. Disbursements, apportionments and any early settlement penalty will reduce the figure further.
- Find your purchase SPA and confirm the acquisition date and holding period.
- Gather purchase legal fee and stamp duty receipts and renovation invoices.
- Ask your bank for the lock-in end date and redemption amount.
- Check the title type and whether state consent is needed, which adds time.
- Clear assessment, quit rent and maintenance arrears.
- Agree commission and any exclusivity period in writing.
- Submit CKHT 1A and pay any RPGT balance within 60 days of the SPA.
- If a tenant is in place, decide whether the tenancy transfers or ends. See renting out property in Malaysia.
Related questions
Does the holding period start from the SPA date or from when I got the keys?
From the date of the sale and purchase agreement. Both the acquisition and the disposal dates are normally the dates of the written agreements, not handover and not the title transfer. So if you bought off plan from a developer, the construction years count towards your holding period. Plenty of owners count from vacant possession and wait two or three years longer than they need to. Find the original SPA and check the date before you list.
Can I deduct my renovation costs from RPGT?
Enhancement works can be deducted, routine maintenance cannot. Anything that changes the property or adds value, such as a kitchen extension or an extra room, reduces the gain if you can produce the invoices. Repainting, servicing the air-conditioning and similar upkeep do not, and neither does loan interest. Purchase costs do count: the legal fees, MOT stamp duty and valuation fees you paid when you bought. Keep every receipt from the day you buy.
What happens if I sell at a loss?
No gain means no tax, but the paperwork still applies. The seller files CKHT 1A within 60 days and the buyer files the acquisition return, and the buyer’s lawyer still retains 3% of the price, or 7% from a foreign seller, and pays it to LHDN. You then claim it back as a refund. So even a loss-making sale ties that money up for a while, which matters if you are counting on it for the deposit on your next home.
Can I sell while my loan is still inside its lock-in period?
You can sell, but check the lock-in first. Settling the loan early while it is still locked in triggers the early settlement penalty written into your letter of offer, and the redemption statement itself takes time to issue. Ask your bank for the lock-in end date and the redemption figure before you accept an offer. I have seen sellers sign the SPA and only then find that waiting two months would have avoided the penalty; see settling your loan early.
Frequently asked questions
What are the RPGT rates in Malaysia in 2026?
For Malaysian citizens and permanent residents: 30% if sold within 3 years, 20% in year 4, 15% in year 5 and 0% from year 6. Non-citizens pay 30% for the first five years and 10% from year 6. Malaysian companies still pay 10% after year 5. The holding period runs between the purchase and sale SPA dates.
How do I calculate RPGT on a house sale?
Take the sale price less selling costs such as commission and legal fees, then subtract the purchase price, purchase legal fees and stamp duty, and invoiced enhancement works. Individuals deduct RM10,000 or 10% of the gain, whichever is higher, and multiply the balance by the applicable rate. Loan interest and routine repairs cannot be deducted.
Do I need to file RPGT if I sell after 5 years?
Yes. A citizen’s rate is 0% after year 5, but both seller and buyer must still file CKHT returns within 60 days, and the buyer still retains 3% of the price, which you can then claim back from LHDN. Under self-assessment from 2025, failing to file can attract penalties.
Why does the buyer withhold 3% when I sell my property?
It is the RPGT retention. The buyer must keep back 3% of the price, or 7% if the seller is neither a citizen nor a PR, and pay it to LHDN within 60 days as a prepayment of the seller’s RPGT. If the actual tax is lower or zero, the excess is refundable.
What is the RPGT once-in-a-lifetime exemption?
A Malaysian citizen or permanent resident can elect in writing to exempt the entire gain on the disposal of one private residence. It can be used only once and the election is irrevocable. Because citizens already pay 0% after year 5, it is usually best kept for an earlier sale with a real gain.
How much are agent and legal fees when selling a house in Malaysia?
Agent’s commission is capped at 3% of the price, plus 8% SST if the agency is SST-registered. The seller’s legal fees follow SRO 2023: 1.25% on the first RM500,000 (minimum RM500) and 1% after that, plus 8% SST and disbursements. On a RM600,000 sale the legal fee is RM7,250 before SST.
Sources & verification
- LHDN — RPGT exemptions
- LHDN — Real Property Gains Tax (self-assessment from 1 Jan 2025)
- PwC Malaysia Tax Booklet — Real Property Gains Tax
- PwC Worldwide Tax Summaries — Malaysia individual other taxes (RPGT rates)
- PropertyGuru — All about RPGT in Malaysia
- iProperty — RPGT Malaysia 2026 (11 Sep 2026)
- Conventus Law — The Solicitors' Remuneration Order 2023
- PropCashFlow — Malaysia property agent licence and fees
- DNH — Cash flow timing of a sub-sale purchase
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.
More in this stage
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.
Stuck on this step? Ask me directly
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.
Send me your purchase SPA date, the price and your renovation invoices and I'll send back a written estimate of the RPGT, agent and legal fees, and what should be left after redeeming the loan.
Louis Koh · 11 years in Malaysian property · +60 10-906 6685 · replies 9am–10pm MYT