Understanding Stamp Duty and RPGT for Property Buyers

A plain-English breakdown of stamp duty rates and Real Property Gains Tax — what you owe, when you owe it, and legal ways to reduce your liability.

Two taxes dominate the minds of Malaysian property buyers: Stamp Duty on purchase, and Real Property Gains Tax (RPGT) on sale. Here's what you need to know.

Stamp Duty on Transfer

First RM 100,000: 1%
RM 100,001–RM 500,000: 2%
RM 500,001–RM 1,000,000: 3%
Above RM 1,000,000: 4%

First-time buyers purchasing below RM 500,000 may qualify for a full or partial exemption under the Housing Ministry's incentive scheme.

Real Property Gains Tax (RPGT)

For Malaysian citizens, disposal within 3 years: 30%. Years 4–5: 20%. Year 6 onwards: 5%. For permanent residents and foreigners, rates are higher — 30% within 5 years, 10% thereafter.

Exemptions

Once-in-a-lifetime 10% exemption for citizens on residential property
Disposal between family members may qualify for waiver