What taxes do foreign buyers pay on property in Malaysia?
Checked 20 October 2026 by Seann Siow, REN 34312. Sources are listed at the end of this page.
Short answer: A foreign buyer pays tax at three stages. When buying: stamp duty of 8% of the price or market value, whichever is higher, plus the state's approval fee. While owning: yearly assessment tax and quit rent. When selling: Real Property Gains Tax of 30% on the gain in the first five years, or 10% from the sixth year. Malaysia has no inheritance tax.
Every tax and fee, stage by stage
| Stage | Tax or fee | Rate for a foreign individual | Who it's paid to |
|---|---|---|---|
| Buying | Stamp duty on the transfer | 8% of the price or market value, whichever is higher (homes, from 1 January 2026) | HASiL (Inland Revenue) |
| Buying | State approval fee or levy | Johor 3% or RM30,000 (higher) · Penang 3% (1.5% for Island strata RM1m–RM1.5m) · Melaka 3%, minimum RM30,000 — plus an application fee | State land office |
| Owning | Assessment tax (cukai taksiran) | Set by the local council; shown on the yearly bill | Local council |
| Owning | Quit rent (cukai tanah) | Set by the state; shown on the yearly bill | State land office |
| Selling | Real Property Gains Tax (RPGT) | 30% of the gain within five years; 10% from the sixth year | HASiL |
| On death | Estate duty | None for deaths on or after 1 November 1991 | — |
Approval fees checked against each state's published schedule, 18 October 2026. Kuala Lumpur, Selangor and other states' fees are not shown here.
Stamp duty: the biggest cost when you buy
Under Malaysia's Finance Act 2025, from 1 January 2026 the stamp duty on transferring a home to a person who is neither a Malaysian citizen nor a permanent resident, or to a foreign company, is 8% of the price or the market value, whichever is higher. The Act defines a home as a house, condominium, apartment, flat, serviced apartment or SOHO used solely as a dwelling.
On a RM1,000,000 (≈ US$250,000) apartment, that is RM80,000 (≈ US$20,000). The state approval fee is paid separately, on top.
Signed before 2026, transferring after? Ask your lawyer which rate applies to your transfer.
Yearly costs while you own
- Assessment tax (cukai taksiran) is charged by the local council.
- Quit rent (cukai tanah) is the yearly land tax charged by the state.
- Maintenance fee and sinking fund are not taxes, but every strata owner pays them monthly to the building's management.
- Rental income: if you rent the property out, ask a tax adviser how the rent is taxed in Malaysia and in your home country.
Real Property Gains Tax when you sell
| When you sell | Non-citizen (not a permanent resident) | Malaysian citizen, for comparison |
|---|---|---|
| Within the first three years | 30% | 30% |
| In the fourth year | 30% | 20% |
| In the fifth year | 30% | 15% |
| Sixth year and after | 10% | Nil |
HASiL's published rates: non-citizens from 1 January 2019, citizens from 1 January 2022.
From 1 January 2025, the seller submits the RPGT return and pays within the prescribed period, according to HASiL. Read the full guide to selling →
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Frequently asked questions
How much stamp duty does a foreigner pay in Malaysia?
8% of the price or the market value, whichever is higher, for a home transferred on or after 1 January 2026, under Malaysia's Finance Act 2025. It applies to people who are neither Malaysian citizens nor permanent residents, and to foreign companies.
Do foreigners pay RPGT in Malaysia?
Yes. HASiL's rates for non-citizens who are not permanent residents are 30% of the gain if the property is sold within five years, and 10% from the sixth year.
Is there inheritance tax on property in Malaysia?
No. Malaysia repealed estate duty with effect from 1 November 1991 (Finance Act 1992, sections 45 and 46).
What yearly taxes does a property owner pay?
Assessment tax to the local council and quit rent to the state. The amounts are set locally and appear on the yearly bills.
Is the state approval fee a tax?
It is a fee charged by the state land office when it approves a foreign purchase, paid on top of stamp duty. Johor, for example, charges 3% of the value or RM30,000, whichever is higher, plus RM2,000 per title.
Keep reading
- What a RM1 million condo really costs
- Selling property in Malaysia: RPGT
- State approval for foreign buyers
- Can foreigners inherit property in Malaysia?
About the author
Seann Siow is a registered estate negotiator in Kuala Lumpur (REN 34312) with more than 10 years in property. He helps foreign buyers and relocating families buy new condominiums in Kuala Lumpur.
Sources
Checked 20 October 2026.
- Finance Act 2025 (Act 874), sections 25, 26 and 29(b), amending the Stamp Act 1949 from 1 January 2026.
- State approval fees: Pejabat Tanah dan Galian Johor ("Maklumat Bayaran"), Pulau Pinang (guideline updated 1 August 2024, paragraphs 4 and 5) and Melaka (Dasar Pemilikan Hartanah oleh Warganegara Asing).
- Lembaga Hasil Dalam Negeri (HASiL), Real Property Gains Tax rates, Part I (citizens) and Part III (non-citizens and non-permanent residents) — hasil.gov.my.
- HASiL, Real Property Gains Tax page: from 1 January 2025 the disposer submits the RPGT return and pays within the prescribed period — hasil.gov.my.
- Finance Act 1992 (Act 476), sections 45 and 46 (repeal of estate duty, with effect from 1 November 1991).
- US dollars: converted at RM4 = US$1 and rounded, a rough guide only.
General information, checked on the date shown, not legal, tax or financial advice. Rules and fees change; confirm them for your purchase with the state land office, a lawyer or a tax adviser. Seann Siow, REN 34312.