10/09/2026
Non-Malaysian citizens and non-permanent residents pay a Real Property Gains Tax (RPGT) of 30% on profits if they sell a Malaysian property within the first 5 years, and 10% for any sales in the 6th year and beyond.
RPGT Rates for Foreigners
- Year 1 to Year 5: 30% on the net chargeable gain.
- Year 6 and above: 10% permanent floor rate on the net chargeable gain (unlike citizens who drop to 0% after 5 years).
Key Rules and Requirements
- No 0% Rate: Foreigners never reach a 0% RPGT rate, regardless of how many years they hold the property.
- No Private Residence Exemption: Foreigners do not qualify for the once-in-a-lifetime private residence exemption available to Malaysians.
- Automatic Exemption: Foreign individuals can still claim an automatic exemption of RM10,000 or 10% of the chargeable gain, whichever is higher.
- 7% Retention Sum: When a foreigner sells a property, the lawyer handles a 7% retention mechanism by withholding 7% of the total disposal price to remit to the Inland Revenue Board of Malaysia (HASiL).
- Filing Deadline: CKHT forms (such as CKHT 1A and CKHT 2A) must be filed within 60 days of the disposal date.
