FAQ

Frequently Asked Questions.

How much is the Agency Fee payable when renting a property?

The standard agency fee for renting a property is typically 1.25 month’s rent and is subjected to 8% SST. This fee is generally paid by the landlord, not the tenant.

Key details regarding agency fees:
  • Duration-Based Rates: Fees are regulated based on the length of the tenancy:
    • Up to 3 years: 1.25 months of gross rental.
    • 3–4 years: 1.50 months of gross rental.
    • 4–5 years: 1.75 months of gross rental.
    • Exceeding 5 years: 1.75 months of gross rental.

How much is the Real Property Gains Tax (RPGT) when selling a property?

Real Property Gains Tax (RPGT) in Malaysia is a tax on the profit from selling property, with rates for citizens ranging from 30% (within 3 years) to 0% (6+ years). Foreigners pay a flat 30% for the first 5 years and 10% thereafter. The tax is calculated on the net gain after allowable expenses.
RPGT Rates for Individuals 
Disposal Period Malaysian Citizens/PR Foreigners
Within 3 years 30% 30%
4th Year 20% 30%
5th Year 15% 30%
6th Year & Beyond 0% 10%
Key Details
  • Exemptions: Malaysians/PRs are entitled to a once-in-a-lifetime exemption on the chargeable gain for the disposal of a private residential property.
  • Calculation: The tax is imposed on the net chargeable gain (Selling Price – Purchase Price – Allowable Costs).
  • Deadlines: The disposal form must be submitted within 60 days of the sale.
  • Companies: Companies pay 30% (years 1-3), 20% (year 4), 15% (year 5), and 10% (year 6+).

How much is the Agency Fee payable when selling a property?

The seller pays a maximum of 3% of the purchase price as Agency Fee.  Agency fee is subject to 8% SST. Agency fee is payable upon sigining of SPA and payment of 10% deposit.

The agency fee is borne by the seller.

How much is the Stamp Duty payable when purchasing a property?

Non-Malaysians pay a flat 8% stamp duty on residential property transfers, while Malaysians pay a tiered 1% to 4% rate. First-time Malaysian buyers can get exemptions for homes up to RM500,000 until the end of 2027. Loan agreements for all buyers incur a 0.5% stamp duty.

Stamp Duty for Non-Malaysians/Foreigners (Residential)

  • Rate: 8% flat rate on the instrument of transfer (Memo of Transfer – MOT).
  • Applicability: Applies to all non-citizen individuals (except Permanent Residents) and foreign-owned companies from 1 January 2026.
  • Minimum Thresholds: Foreigners must adhere to minimum purchase prices (e.g., RM1 million in many areas).

Stamp Duty for Malaysians (Progressive Rate)
Malaysian citizens and permanent residents pay on a progressive scale:

  • First RM100,000: 1%
  • RM100,001 – RM500,000: 2%
  • RM500,001 – RM1,000,000: 3%
  • Above RM1,000,000: 4%

Are there any rules for Non-Malaysians buying a property in Malaysia?

Non-Malaysians can buy property, but must adhere to state-specific minimum price thresholds (usually RM1 million+), obtain state authority approval, and avoid restricted property types like Malay Reserved Land, low-cost units, or Bumiputera-allocated lots. Key rules include minimum price thresholds (e.g., RM2M in Selangor, RM1M in KL) and potential state levies.

1. Minimum Purchase Price & Location
  • Price Thresholds: Most states require a minimum purchase price of RM1 million for residential properties, though this varies by state.
  • Location Specifics:
    • Selangor: Minimum of RM2 million for landed properties; foreigners are generally restricted to strata-titled properties.
    • Kuala Lumpur: Minimum of RM1 million.
2. Restricted Property Types
Foreigners cannot purchase:
  • Malay Reserved Land: Property built on land designated for indigenous Malays.
  • Low/Medium-Cost Units: Defined by state authorities.
  • Bumiputera Lots: Properties allocated to Bumiputera interest in development projects.
3. Regulatory Approvals & Costs
  • State Authority Approval: Consent from the state authority is required for foreign ownership.
  • Foreigner Levy: Some states (e.g., Johor, Penang, Melaka) charge a levy on top of stamp duty, which can range from 2% to 3% of the property price.
  • Real Property Gains Tax (RPGT): Foreigners are taxed at 25% on capital gains for properties sold within the first 5 years.
4. Property Types Available to Foreigners
Foreigners can generally buy:
  • Residential condominiums and landed houses
  • Commercial properties
  • Industrial land

 

 

How much is the Stamp Duty payable when renting a property?

The exemption from stamp duty for annual rentals not exceeding RM2,400 has been removed for tenancy agreements effective from January 1, 2025. Therefore, this RM2,400 exemption is no longer a factor in stamp duty calculations for new agreements from that date onwards.

Stamp Duty Computation for 1 year tenancy:  (monthly rent x 12) / 250

For example if the monthly rental is RM8,000: (8000 x 12) / 250 = RM384.00

 

Stamp Duty Computation for 2 years tenancy: stamp duty fee for the corresponding lease term x (monthly rent x 12) / 250

For example if the monthly rental is RM 8,000: 3 x (8000 x 12)/250 = RM 1,152.00

RM10 for each additional copy

The tenancy agreements are legally required to be prepared by a practicing lawyer, as drafting them is considered legal work. Legal fees are  borne by the tenant while, the Landlord bears the Agency fees.

 

How much is the Legal Fees Payable when Buying a Property?

The legal fees payable to a lawyer acting for you when you buy a property is calculated based on the purchase price as follows:

  • For the first RM150,000, the legal fees payable is 1%
  • For the next RM850,000, the legal fees payable is 0.7%
  • For the next RM2,000,000, the legal fees payable is 0.6%
  • For the next RM2,000,000, the legal fees payable is 0.5%
  • For the next RM2,500,000, the legal fees payable is 0.4%
  • For the remaining, if any, negotiable

For instance, if the purchase price is RM1,000,000. The calculation is as follows:

Total legal fees payable: (RM150,000 X 1%) + (RM850,000 X 0.7%) = RM 7,450.00