Property tax in Malaysia
See what Malaysia's tax rules do to your property portfolio.
What Freeholt models for property, income and retirement in Malaysia, and what it does not.
Free to start. No card. Rules reviewed 22 August 2026.
Modelled here
- Tax on rental income
- Capital gains on a sale
- Duty on purchase
- Annual property or land tax
MYR · Rates as at 22 August 2026 · Estimates, not advice
Residents pay progressive rates to 30% on net rent; NON RESIDENTS a flat 30%. RPGT on sale: foreigners 30% in years 1 to 5 then 10%; citizens reach 0% after year 5. State minimum purchase prices apply to foreign buyers (RM500k 2m).
How rental income is taxed in Malaysia
For a resident owner: Progressive rates from 6% to 30%, stacked on other income in this country. The top rate of 30% applies above MYR 2,000,000. For an owner living abroad and renting this out: A flat 30% on net rent after costs.
Interest and losses
Mortgage interest is deductible against the rent. A rental loss brings no relief: it cannot reduce other income, and it does not carry forward.
Capital gains on a sale
Gains are taxed at a flat 0%.
Annual property tax while holding
Charged on the annual rental value of the property rather than its capital value, on a progressive scale.
What it costs to buy
About 3% of the price on purchase. A foreign buyer pays a further 5% on top. Stamp duty (MOT) is tiered to 4%, but foreign buyers pay a flat 8% on residential transfers from 1 Jan 2026, plus state consent and minimum prices.
Can a foreign buyer purchase here?
A foreign buyer may only buy above a minimum price. Foreigners may buy above state minimum prices (RM500k RM2m by state; typically RM1m in KL/Penang) with state consent; no agricultural or Malay reserved land.
A territorial system
Malaysia taxes income arising here, not worldwide income, so property held in other countries is generally outside its net. That makes the country of residence a bigger lever than usual.
How Freeholt models Malaysia
Every rate above is priced from Freeholt's own table for Malaysia and runs through the whole projection: rental income, a modelled sale and the annual holding costs all use the same figures. They cannot be edited yet, so a position that differs from the defaults has to be read with that in mind. The estimate assumes an individual owner rather than a company or trust, and where a rule is not modelled it is listed below rather than quietly priced at zero.
What running this property costs
In Malaysia this covers quit rent and assessment (low), strata/maintenance fees, insurance and ~8 to 10% management.
How borrowing works here
Foreigners can borrow locally (typically 60 to 70% LTV); MM2H visa tiers pair deposits with mandatory property purchases.
What actually happened here
This country's own record, one year at a time. Nothing on this page is borrowed from another country. Move across a chart to read a year.
What Freeholt models here
- ModelledTax on rental income
- Resident and non resident rates, with interest and losses treated under the local rule.
- ModelledCapital gains on a sale
- Priced in the year of the sale under the rules of that year.
- ModelledDuty on purchase
- One off, on the way in, at the scale in force.
- ModelledAnnual property or land tax
- Charged every year the property is held.
- Not yetIncome tax beyond the rent
- Not modelled for this country yet.
- Not yetDividends, interest and share sales
- Not modelled for this country yet.
- Not yetRetirement savings
- Not modelled for this country yet.
- Not yetInheritance and what happens on death
- Not modelled for this country yet.
What Freeholt does not model here
- Inheritance and estate tax
- Treaty relief between this country and the owner's country of residence
Coverage deepens country by country. Every figure is an estimate, not advice.
Compare with another country
Each page is built from the same table the app runs on, so the figures line up side by side.
Compare Malaysia with another country — rent, gains, annual tax and duty, side by side.
Questions people ask
- Does Freeholt model Malaysia property tax?
- Yes. Rental income tax, capital gains on a sale, duty on purchase and annual property or land tax are priced from Freeholt's own rate table for Malaysia. The rates are not editable yet, so one that differs in a particular case cannot be overridden. Every figure is an estimate, not advice.
- How is rental income from Malaysia taxed if I live somewhere else?
- A flat 30% on net rent after costs. Tax may also be due in the country of residence, with credit for what was paid here. Estimates only, not advice.
- What are the Malaysia figures as at?
- The rate table for Malaysia was last reviewed on 22 August 2026. Freeholt date stamps every country rather than implying all of them were checked on the same day. Estimates only, not advice.
Model a property in Malaysia alongside everything else you own: see the year your portfolio starts paying you back.