Practical orientation only. Confirm figures with LHDN, your tax agent or solicitor before you dispose or buy. Rates and exemptions can change by Finance Bill and gazette.
In one line: Budget 2027 (tabled 9 Oct 2026) did not change RPGT. Malaysian citizen/PR individuals still drop to 0% from year 6; Malaysian companies stay at 10% from year 6. Stamp duty is the bigger “cash out” item when you buy.
What Budget 2027 left alone (and what it moved)
MOF’s tax annex and the Budget speech left RPGT, the 8% foreign-buyer stamp duty and rental service tax where they were. What did move for housing is mainly first-home stamp duty relief (proposed up to RM 750,000 for SPAs from 1 Jan 2027 to 31 Dec 2030) and a mid-band income tax trim. Full Budget context: Budget 2027 property impact.
RPGT rates by disposer (current / 2027)
Real Property Gains Tax (RPGT / CKHT) is charged on gains from disposing of Malaysian real property (and, for some persons, certain real-property company interests). Rate depends on who disposes and how long they held the asset. Figures below match LHDN Schedule 5 practice as published for disposals from 1 Jan 2022 (individuals Part I) and from 1 Jan 2019 (companies / non-citizens), and are the rates Budget 2027 left standing.
| Holding period | Citizen / PR individual | MY-incorporated company / trustee / body of persons | Non-citizen / non-PR / foreign company |
|---|---|---|---|
| Within 3 years | 30% | 30% | 30% |
| In the 4th year | 20% | 20% | 30% |
| In the 5th year | 15% | 15% | 30% |
| 6th year and after | 0% | 10% | 10% |
That year-6 gap matters for portfolio structure: a door held personally by a Malaysian citizen/PR can leave the RPGT net after five completed years; the same door held in a Malaysian company generally still faces 10% on the chargeable gain.
RPC shares: From 1 Jan 2024, many disposals of shares in a real property company by companies, LLPs, trust bodies and cooperatives fall under capital gains tax (CGT) instead of RPGT. Individuals disposing of RPC shares may still sit under RPGT. Treat share deals as a separate workstream with your tax agent.
How holding period is counted
- Count from the date of acquisition to the date of disposal under the RPGT Act (often SPA dates, with special rules for conditional contracts, gifts and certain transfers).
- “Within 3 years” means the disposal falls before the third anniversary; “in the 4th year” is after three full years have passed, and so on.
- Acquirer and disposer each have filing duties (commonly within 60 days of disposal). Withholding by the acquirer can apply. Missed filings create avoidable friction.
Common RPGT reliefs (high level)
- Individual once-in-a-lifetime exemption on a private residence (conditions apply; confirm eligibility before you rely on it).
- Schedule 4-style exemption for individuals: often cited as the higher of RM 10,000 or 10% of the chargeable gain (confirm the Schedule in force for your disposal year).
- Transfers between spouses, certain gifts and specific gazette exemptions exist; they are fact-specific.
Exemptions reduce or remove tax on qualifying facts. They do not rewrite the headline rate table above.
Stamp duty when you buy (MOT, loan, foreign buyer)
Stamp duty is usually the large cash cost at purchase. Model it with our legal fee & stamp duty calculator.
MOT (transfer) stamp duty - Stamp Act 1949
| Portion of consideration / market value | Rate |
|---|---|
| First RM 100,000 | 1% |
| RM 100,001 to RM 500,000 | 2% |
| RM 500,001 to RM 1,000,000 | 3% |
| Above RM 1,000,000 | 4% |
Duty is generally charged on the higher of purchase price and market value as accepted for stamping.
Loan agreement stamp duty
Flat 0.5% of the loan amount. No first-home exemption. Always budget for it separately from MOT.
First-home relief (Budget 2027 proposal)
For Malaysian citizens buying a first home, Budget 2027 proposes (SPAs 1 Jan 2027 to 31 Dec 2030, subject to Finance Bill / gazette):
- 100% MOT and loan-agreement stamp duty exemption on the portion up to RM 500,000
- 50% exemption on the balance from RM 500,000 to RM 750,000
Until gazetted, treat this as a proposal. The older full exemption path for first homes up to RM 500,000 (through end-2027 SPA windows in prior rules) is what many buyers still use today. Confirm with your solicitor for the SPA date in front of you.
Foreign-buyer stamp duty
Non-citizens, non-PRs and foreign companies: typically 8% on residential transfers (from 1 Jan 2024), unchanged by Budget 2027. Non-residential instruments for those buyers are commonly at 4%. State foreign-ownership thresholds and MM2H rules are separate from stamp duty.
Planning notes for investors
- Exit clock: If you are a citizen/PR individual, year 6 at 0% RPGT is a real portfolio lever. Companies do not get that zero rate.
- Entry cost: Stamp duty and legal fees hit cash on day one. Run the calculator before you stretch LTV.
- Ops trail: Clean tenancy files and filed rental income help the next loan; they also keep disposal paperwork boring. See BE Form for property investors.
- Leasehold: Short remaining tenure can hurt both bankability and exit price. See leasehold extension & freehold.
Common questions
Did Budget 2027 change Malaysia RPGT rates?
No. Budget 2027 (tabled 9 Oct 2026) left Real Property Gains Tax rates unchanged. Citizens and permanent residents still face 30% within 3 years, 20% in year 4, 15% in year 5, and 0% from year 6 onward. Malaysian-incorporated companies keep a 10% rate from year 6 onward. The housing tax story in Budget 2027 is mainly first-home stamp duty relief and income-tax band tweaks.
Individual vs company: who pays less RPGT after five years?
A Malaysian citizen/PR individual is generally at 0% from year 6. A Malaysian-incorporated company (and certain trustees / bodies of persons) is generally at 10% from year 6. Structure choice is about more than RPGT — liability, financing, estate. Get advice before you move title into a company just for tax optics.
Is RPGT the same as stamp duty?
No. Stamp duty is usually paid when you buy (and on the loan). RPGT is charged on a gain when you dispose. You can owe stamp duty with no RPGT, and the reverse.
How is MOT stamp duty calculated in Malaysia?
Memorandum of Transfer stamp duty under the Stamp Act 1949 is tiered: 1% on the first RM100,000, 2% on the next RM400,000 (up to RM500,000), 3% on the next RM500,000 (up to RM1 million), and 4% above RM1 million. Loan agreement stamp duty is a separate flat 0.5% of the loan amount. Use the legal fee & stamp duty calculator for MOT + loan stamp + legal fees together.
What stamp duty do foreign buyers pay in 2027?
Non-citizens, non-PRs and foreign companies generally pay 8% stamp duty on residential transfers (in force since 1 Jan 2024, unchanged by Budget 2027). Non-residential transfers for those buyers are typically at 4%. Always confirm instrument category with your solicitor.
Buying, holding or exiting a door? Free portfolio review on WhatsApp. We will not file your RPGT return for you, but we will help you see cash, tenure and bankability clearly.
As of Oct 2026: RPGT rates above reflect LHDN Schedule 5 practice left unchanged by Budget 2027 (tabled 9 Oct 2026). First-home stamp duty relief to RM 750,000 is a Budget proposal for SPAs from 2027–2030 and needs Finance Bill / gazette. Confirm live rules before you sign.