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RPGT Exemptions: How to Legally Reduce Your Property Gains Tax (2026)

Updated 20 July 2026 · KiraDuit.my

Real Property Gains Tax (RPGT) is charged on the profit you make when you sell a property in Malaysia. The good news: several exemptions and allowable deductions can legally shrink that bill — sometimes to zero. Here are the reliefs every Malaysian seller should know before disposing of a property.

1. The once-in-a-lifetime private residence exemption

A Malaysian citizen or permanent resident can claim a full RPGT exemption on the disposal of one private residence, once in their lifetime. If you are selling the home you actually live in and you have never used this exemption before, the entire gain can be exempt. You elect this in writing to LHDN, and once used it cannot be claimed again.

2. The RM10,000 or 10% exemption (individuals)

For individuals, each disposal enjoys an exemption of the greater of RM10,000 or 10% of the chargeable gain. On smaller gains this can wipe out a meaningful chunk of the taxable amount automatically — you do not need to apply for it.

3. Transfers between family members

Certain transfers "by way of love and affection" are treated as no gain, no loss, meaning no RPGT is payable at the point of transfer:

• Between husband and wife
• Between parent and child
• Between grandparent and grandchild

Note that transfers between siblings do not automatically qualify. The recipient inherits the original acquisition price for any future sale.

4. Hold longer — the rate drops to zero

RPGT is tapered by how long you hold the property. For Malaysian citizens and permanent residents (individuals), the rate falls to 0% from the 6th year of ownership onwards. Simply holding a property longer is the simplest, most reliable way to reduce RPGT:

Companies and foreigners are taxed at higher rates and do not reach 0% — see our full RPGT Calculator for those bands.

5. Deduct your allowable costs

RPGT is charged on the net gain, so you reduce the taxable amount by deducting the costs of buying, enhancing and selling the property:

• Legal fees and stamp duty paid when you bought
• Real estate agent's commission on the sale
• Advertising and marketing costs to find a buyer
• Renovation and improvement costs that enhanced the property's value (keep the receipts)

Frequently asked questions

Can I use the once-in-a-lifetime exemption more than once?

No. It applies to one private residence, once per individual. Choose the disposal with the largest gain to get the most benefit.

Do I pay RPGT if I make a loss?

No RPGT is due if there is no chargeable gain, but you must still file the disposal with LHDN within 60 days. A loss can be carried forward against future gains in some cases.

Does the 0% rate apply to companies?

No. Companies pay 30% within the first three years, tapering to 10% from the 6th year onwards — they never reach 0%. Foreigners face 30% for the first five years and 10% thereafter.

This article is general information only, not tax or legal advice. RPGT rules and exemptions change with each Budget — always confirm current rates and your eligibility with LHDN or a licensed tax agent. See our full Disclaimer.