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RPGT Explained: Tax When Selling Property in Malaysia (2026)
When you sell a Malaysian property for more than you paid, the profit may be taxed under Real Property Gains Tax (RPGT). How much you pay depends on two things: how long you held the property, and whether you are an individual, a company or a foreigner. Here is how it works in 2026, with the main exemptions and a worked example.
What RPGT is charged on
RPGT is charged on your chargeable gain — broadly the disposal price minus the acquisition price, minus allowable costs such as legal fees, agent commission and renovation that adds value. It is a tax on the profit, not on the full sale price.
2026 RPGT rates by holding period
The longer you hold a property before selling, the lower the rate — a deliberate design to discourage short-term flipping.
| Holding period | Citizen / PR (individual) | Company | Foreigner |
|---|---|---|---|
| Up to 3 years | 30% | 30% | 30% |
| In the 4th year | 20% | 20% | 30% |
| In the 5th year | 15% | 15% | 30% |
| 6th year onwards | 0% | 10% | 10% |
Notice the big advantage for Malaysian individuals: sell in the 6th year or later and the RPGT rate is 0%. Companies still pay 10% no matter how long they hold, and foreigners pay a flat 30% for the first five years.
The main exemptions
- RM10,000 or 10% of the gain, whichever is higher — a standard exemption for individuals on every disposal.
- Once-in-a-lifetime exemption — an individual who is a citizen or PR can claim a full exemption on the gain from disposing of one private residence, once.
- Transfers between family — gifts between spouses, parent and child, or grandparent and grandchild may be exempt in certain conditions.
A worked ringgit example
A Malaysian citizen bought a home for RM400,000 and sells it in the 4th year for RM520,000, with RM20,000 of allowable costs:
| Chargeable gain | RM520,000 − RM400,000 − RM20,000 = RM100,000 |
| Less exemption (10% of gain) | − RM10,000 |
| Taxable gain | RM90,000 |
| RPGT at 20% (4th year, individual) | RM18,000 |
Had the same person waited until the 6th year, the individual rate would drop to 0% and the RPGT would be nil. Timing matters enormously. Get your own estimate with the RPGT Calculator, which applies the correct band and exemptions for your dates and seller type.
Frequently asked questions
Who pays RPGT — the buyer or the seller?
The seller (the disposer) pays RPGT on their gain. The buyer's solicitor usually retains a portion of the sale proceeds and remits it to LHDN on the seller's behalf.
Do I pay RPGT if I sell at a loss?
No. RPGT applies only to a gain. If you sell for less than your acquisition price plus allowable costs, there is no chargeable gain and no RPGT — though you still need to file the disposal.
Can I use the once-in-a-lifetime exemption more than once?
No — as the name says, it can be claimed only once in your lifetime, and only on a private residence. Use it wisely on a disposal with a large gain.
Try the RPGT Calculator →This article is general information only, not financial or tax advice. Figures are estimates and rates change — always confirm with LHDN or a tax professional. See our full Disclaimer.