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How Foreigners Sell Property in Malaysia: Buyers, Tax, Remittance

Home Living Abroad
Aerial view of boats anchored in a turquoise lagoon beside a green island, illustrating How Foreigners Sell Property in Malaysia: Buyers, Tax, Remittance

Image: Zagdim

October 9, 2026
in Living Abroad, Malaysia, Property
Reading Time: 14 mins read
Tags: Buying Property

This article is part of Zagdim’s wiki series on Malaysia property. It sets out the rules a foreign owner runs into when selling property in Malaysia, written for owners who are not Malaysian citizens or permanent residents, who hold an apartment or a landed home in Kuala Lumpur, Selangor, Penang, or Johor, and who are considering a sale.

The short answer: a foreign owner can sell property in Malaysia, and the buyer can be either a Malaysian citizen or another foreigner. The state government consent that a foreign purchase requires is applied for by the buyer; the seller’s role is simply to provide the documents the application needs. The tax the seller pays is the Real Property Gains Tax (Cukai Keuntungan Harta Tanah, RPGT): 30% if the property was held for less than 5 years, and 10% from the 6th year onward. At payment, the buyer withholds 7% of the sale price upfront to cover this tax; any amount withheld in excess is refunded later. Sale proceeds can be remitted abroad in foreign currency under Malaysia’s exchange control rules. If you are not in Malaysia, you can also appoint someone to act for you under a power of attorney.

Can Foreigners Sell Property in Malaysia, and to Whom?

Yes. What each Malaysian state regulates is the *acquisition* side: every individual foreign buyer must apply for, and obtain, State Authority consent on their own — this is the buyer’s application. A foreign seller does not need to apply for separate consent to sell just because of their foreign status.

What does limit the pool of buyers is the minimum price each state sets for foreign purchasers. Based on the eligibility table attached to Malaysian Bar Circular No. 444/2024, with data current to October 2024, the thresholds for existing (subsale) residential property are broadly as follows:

Region Stratified Housing (Apartments) Landed Housing Other Conditions
Kuala Lumpur RM1,000,000 RM1,000,000 General exclusions under federal guidelines
Selangor Zone 1 & 2 (Petaling, Gombak, Hulu Langat, Sepang, Klang, Kuala Selangor, Kuala Langat) RM2,000,000 RM2,000,000, landed strata title only Landed property under individual title, and auctioned property, not permitted
Selangor Zone 3 RM1,000,000 RM1,000,000, landed strata title only Same as above
Penang Island RM1,000,000 RM3,000,000 An additional levy applies when state approval is granted
Seberang Perai RM500,000 RM1,000,000 Same as above
Johor RM1,000,000 RM1,000,000 Single-storey and 1.5-storey terrace houses not permitted

For a seller, this table has one practical meaning: if the sale price falls below your state’s foreign-buyer threshold, the property can only be sold to a Malaysian citizen. Separately, the definition of “foreign interest” includes permanent residents, so a buyer who holds permanent residency also needs State Authority consent.

A seller may also need State Authority consent, but for a reason unrelated to nationality: if the title carries a restriction in interest (sekatan kepentingan), any transfer — regardless of who the buyer is — first requires written state approval. Leasehold titles always carry this requirement, and some freehold titles do too. In these cases, the sale and purchase agreement is typically drafted as a conditional contract, with the seller making the application and usually bearing the application fee, subject to what the contract specifies.

For the conditions on selling to a Malaysian citizen versus a foreign buyer, and how the buyer’s 8% stamp duty affects negotiation, see “Selling to a Malaysian Citizen vs. a Foreign Buyer: State Thresholds, State Consent, and the Buyer’s 8% Stamp Duty.”

What Are the Steps From Finding a Buyer to Handover?

Industry sources set out the subsale process as follows:

  1. Prepare documents before listing: title type and any transfer restrictions, the date of the original sale and purchase agreement, outstanding mortgage balance, land tax and assessment (quit rent and cukai taksiran), and whether maintenance fees are fully paid.
  2. List the property and arrange viewings.
  3. The buyer makes an offer and pays earnest money: typically around 2–3% of the price, deposited into the agency’s client account, not handed to the individual agent.
  4. Sign the Sale and Purchase Agreement (SPA): the deposit is topped up to 10%. This date is also the “disposal date” used to calculate the RPGT holding period.
  5. Conditions precedent: State Authority consent for a foreign buyer, consent for any restriction-in-interest on the title, and similar matters.
  6. Tax filing and withholding: the seller must file the RPGT return within 60 days of the signing date; the buyer must withhold and remit the retention sum within the same period.
  7. Stamp duty and transfer: where an individual title has already been issued, the transfer is executed on Form 14A (Borang 14A); where the strata title has not yet been issued, a Deed of Assignment is used instead.
  8. Completion, mortgage redemption, and handover.
  9. Remit the sale proceeds out of Malaysia.

Only properties still under a master title, with the strata title not yet issued, are handled by Deed of Assignment; the buyer separately registers a private caveat to protect their interest.

Before engaging an agent, a few points worth knowing: for subsale property, the agent’s fee is paid by the seller; under the Seventh Schedule of the Valuers, Appraisers and Estate Agents Rules 1986, the fee for brokering land and building sales is capped at 3% of the transaction price, with a minimum of RM1,000 per transaction; and where the agreement is conditional, the fee only becomes due once the last condition is met. A 2018 news report also noted that marketing Malaysian property overseas is not bound by the 3% cap, with the fee instead agreed between the parties. Before engaging an agent, put the fee rate and the condition that triggers payment in writing in the engagement letter.

On legal fees: for transfers in Peninsular Malaysia, charges follow the Solicitors’ Remuneration Order 2023 (effective 15 July 2023): 1.25% on the first RM500,000 (minimum RM500), and 1% on the next RM7,000,000.

What Taxes Are Due When Selling, and Who Pays?

The only tax the seller pays is RPGT; stamp duty on the transfer is borne by the buyer.

The rate depends on your status and how long you held the property. An individual who is neither a Malaysian citizen nor a permanent resident falls under Part III of Schedule 5 of the RPGT Act:

Holding Period Foreign Individual (Part III) Malaysian Citizen (Part I, for comparison)
Year 1 to Year 5 30% A separate rate schedule applies
Year 6 onward 10% Not chargeable

This rate structure has applied since 1 January 2019. The rate is charged on the “chargeable gain,” not on the sale price: the disposal price can be reduced by agent fees, legal fees, valuation fees, and expenses that enhanced the property’s value; the acquisition price can be increased by the original legal fees and stamp duty; mortgage interest is not deductible. There is also a personal relief: RM10,000, or 10% of the chargeable gain, whichever is higher. The source states this relief officially applies to “individuals” without a citizenship qualifier, but whether a foreign individual can actually claim it when e-filing is not yet confirmed. The once-in-a-lifetime owner-occupier relief under Section 8 is available only to citizens and permanent residents.

The holding period runs between two contract dates. Where there is a written agreement, the disposal date is the date of the sale and purchase agreement, not the date of handover or registration of transfer. The date of your original purchase agreement, measured against this sale’s agreement date, determines whether the 30% or 10% rate applies.

This comes down to the dates on your own two agreements, and whether you hold permanent residency.

Filing and payment are subject to statutory deadlines. From 1 January 2025, RPGT moved to self-assessment: the seller must file Form CKHT 1A online within 60 days of the disposal date, through the e-CKHT system on the Inland Revenue Board’s (Lembaga Hasil Dalam Negeri, LHDN) MyTax portal, and must settle the tax, or any balance due, within 90 days of the disposal date; paper filing is no longer accepted. A seller without a Malaysian tax reference number can apply for one via e-Daftar. Unpaid tax attracts a 10% surcharge and can lead to a travel restriction.

The buyer’s 7% is a withholding, not the tax rate itself. Where the seller is a foreign individual, the buyer must withhold 7% of the sale price and remit it to the Inland Revenue Board within 60 days of the disposal date, to be credited against your RPGT. From 1 January 2026, a seller can formally notify the buyer of their self-calculated tax amount before the buyer remits, so the buyer instead withholds this lower figure; where there is no chargeable gain, the seller files Form CKHT 3 and the buyer can be exempted from withholding altogether. Any amount withheld in excess is refunded to the seller through the standard refund process.

As a worked example, for a Kuala Lumpur apartment unit (assuming purchase in August 2022 at RM1.2 million and sale in October 2026 at RM1.45 million), the estimated RPGT comes to roughly RM39,285, against a default withholding of RM101,500 by the buyer. If the sale were instead signed in year 6, the tax would drop to roughly RM13,095. For the full calculation and its assumptions, see “How Much Tax Do You Pay When Selling Property in Malaysia? RPGT 30%/10%, the Buyer’s 7% Withholding, and a Worked Example.”

Malaysia’s 2027 Budget was tabled in Parliament on the afternoon of 9 October 2026. Coverage following the reading (also 9 October 2026) shows property measures focused on stamp duty relief for citizens’ first home purchases (extended to 2030) and relief for abandoned housing projects; no change to the RPGT rate, the 7% withholding, or the foreign-buyer stamp duty has been reported. The provisions remain subject to passage of the Finance Bill and gazettement.

Can Sale Proceeds Be Remitted Out of Malaysia? What’s Needed?

Yes. Under Bank Negara Malaysia’s foreign exchange policy, a non-resident may freely repatriate divestment proceeds from an investment in Malaysia, and the remittance must be made in foreign currency; a non-resident can also convert ringgit into foreign currency through a resident bank for any purpose. As of 9 October 2026, the foreign exchange rules checked for this article set no cap on sale proceeds and do not require prior approval from the central bank.

The specific documents required are set by the handling bank. In practice, you may be asked to prepare: the sale and purchase agreement and transfer documents, the lawyer’s settlement statement and mortgage redemption statement, proof of funds received, the e-CKHT filing confirmation and tax payment receipt, the original purchase agreement and remittance record from when you bought the property, and your overseas receiving account details.

One point to flag: the buyer’s 7% withholding sits with the tax authority, not in your account, and any amount withheld in excess has to go through the refund process first. For details, see “How Do You Remit Sale Proceeds Out of Malaysia? Forex Rules, Bank Documents, and the 7% Refund.”

Can Someone Sell on My Behalf If I’m Not in Malaysia?

Yes. Under the Powers of Attorney Act 1949, a power of attorney signed outside Peninsular Malaysia must be certified by a notary public, commissioner for oaths, judge, magistrate, or a Malaysian consular officer, among other eligible certifiers. A genuine copy of the power of attorney generally also has to be deposited with the High Court; a power of attorney used only for registering a transfer at the Land Office is exempt from this deposit requirement once properly witnessed.

Whether a power of attorney notarized abroad also needs additional certification from a Malaysian consular or trade office in the signer’s home country, by Malaysian lawyers or the Land Office, and what that would cost, is not clearly stated in the sources checked for this article — confirm with your handling lawyer before submission. For the steps and documents involved, see “Selling a Malaysia Property From Abroad: Power of Attorney, Notarization, and Consular Certification.”

Can a Property Bought Under MM2H Be Sold?

Start with the 10-year restriction. Official guidelines for the Malaysia My Second Home (MM2H) program state that participants must purchase and hold a residential property after approval, and may not sell it within 10 years, except when upgrading to a higher-value residence. Exactly when the 10-year period begins, how to apply for an upgrade, and the consequences of breaching the restriction are not spelled out in official materials checked for this article — get written confirmation from the MM2H Centre before signing any agreement.

MM2H status does not change your tax status: a holder without permanent residency remains under Part III for RPGT purposes.

What Documents Should I Prepare Before Engaging an Agent?

Having these ready in advance makes the later steps go more smoothly:

  • Title document: strata title, individual title, or only a master title (transferred via Deed of Assignment); check whether it is freehold or leasehold, and whether any transfer restriction is noted.
  • Original sale and purchase agreement: its date determines the tax rate, and the price plus the legal fee and stamp duty receipts determine the acquisition price.
  • Renovation and improvement receipts: these may count as deductible expenses.
  • Current-year land tax and assessment receipts: a foreign buyer applying for State Authority consent will also need these two receipts, along with a copy of the seller’s passport (this is specifically listed in Johor’s requirements).
  • Maintenance fee statement: apartment buyers will check for unpaid maintenance fees.
  • Mortgage redemption letter: apply to your bank if you have an outstanding mortgage.
  • Malaysian tax reference number and filing arrangements: engage a lawyer or tax agent to file the return within the 60-day window.

For the full checklist and notes specific to MM2H holders, see “Documents Checklist Before Selling in Malaysia: Title, Tax Bills, Maintenance Fees, and Notes for MM2H Holders.”

FAQ: Selling Property in Malaysia as a Foreigner

As a foreigner selling property in Malaysia, do I need to apply for State Authority consent myself?

Not for separate consent tied to your own foreign status. Consent for a foreign purchase is applied for by the foreign buyer. The seller only needs to apply for transfer consent if the title itself carries a restriction in interest, and that requirement has nothing to do with the buyer’s nationality.

If a foreigner has held the property for more than 5 years, what is the RPGT rate?

10% applies from the 6th year onward; 30% applies in years 1 through 5. The holding period is calculated from the dates of the two sale and purchase agreements.

Is the 7% the buyer withholds the same as my actual tax?

No. The 7% is an amount the buyer withholds on your behalf in advance; your actual tax liability is determined by your own filing. Any excess withheld is refunded, and any shortfall must be paid by you. From 2026, you can also notify the buyer of your calculated tax amount beforehand so a lower amount is withheld instead.

If I’m not in Malaysia, can the sale proceeds be remitted back to my home country?

You can apply to remit the proceeds, and the remittance must be made in foreign currency. The bank will look at documents such as the sale and purchase agreement, the lawyer’s settlement statement, and tax records; exact requirements are set by the handling bank.

My apartment’s price is below the foreign-buyer threshold. Can it still be sold?

Yes, to a Malaysian citizen. If the transaction price is below your state’s minimum price for foreign buyers, a foreign buyer cannot obtain State Authority consent.

Key Terms

  • Real Property Gains Tax (Cukai Keuntungan Harta Tanah, RPGT): the tax charged on gains from disposing of property in Malaysia.
  • Part III: the category under Schedule 5 of the RPGT Act covering individuals who are neither citizens nor permanent residents, and foreign companies, as sellers.
  • Inland Revenue Board (Lembaga Hasil Dalam Negeri, LHDN / HASiL): Malaysia’s tax authority.
  • e-CKHT: the online RPGT filing system on the Inland Revenue Board’s MyTax portal.
  • State Authority consent: the approval a foreign buyer must obtain from the state government before acquiring property.
  • Restriction in interest (sekatan kepentingan): a restriction noted on a title requiring state approval before any transfer.
  • Sale and Purchase Agreement (SPA): the contract signed by buyer and seller; its signing date is the RPGT disposal date.
  • Form 14A (Borang 14A): the form used to register a transfer for a property that already has an issued title.
  • Deed of Assignment: the document used to transfer beneficial interest when the strata title has not yet been issued.
  • Malaysia My Second Home (MM2H): Malaysia’s long-term residence program.

Sources and Methodology

This article was compiled by Zagdim research. The statutory provisions have been checked against the primary legislation (Verified by Zagdim); market practices are flagged separately where they appear. Sources were checked as of 9 October 2026. Tax rules follow the Inland Revenue Board’s website and Operational Guideline No. 2 of 2026; the text of the Finance Act 2025 (Act 874) was accessed via a third-party site’s reproduction of the official publication; the text of the Powers of Attorney Act was accessed via a law firm’s consolidated reproduction. State foreign-buyer thresholds follow the eligibility table attached to a Malaysian Bar circular, with data current to October 2024; current conditions in each state should be confirmed with the respective State Land Office.

The following conclusions are not stated directly in the legislation and were reached by Zagdim through inference: a foreign seller does not need separate consent to sell because of their foreign status (consent is applied for by the buyer); and the foreign exchange rules checked set no cap and require no prior approval. The following points remain unconfirmed: whether a foreign individual can claim the RM10,000/10% personal relief; whether a power of attorney notarized abroad additionally requires consular certification; when the MM2H 10-year restriction begins and what the upgrade procedure involves; and the current levies in each state. The transaction process, deposit practice, agent fees, and bank documentation are drawn from industry and practitioner sources. Malaysia’s 2027 Budget was tabled in Parliament on 9 October 2026; coverage following the reading reported no related rate changes, though the bill may still change before it passes.

Related in this series:

  • Buying Malaysian Property via a Company: Consent and Financing
  • Malaysia SPV Property Purchase: Purpose, Costs, and Exit
  • Malaysia Property: Individual vs. Company Ownership Tax
  • Selling to a Citizen or a Foreign Buyer in Malaysia

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References

Inland Revenue Board of Malaysia — Real Property Gains Tax (RPGT) Rates
Inland Revenue Board of Malaysia — Responsibility of Disposer and Acquirer
Inland Revenue Board of Malaysia — Disposal Date and Acquisition Date
Inland Revenue Board of Malaysia — Disposal Price and Acquisition Price
Inland Revenue Board of Malaysia — RPGT Exemption
Inland Revenue Board of Malaysia — Introduction to the CKHT Self-Assessment System
Inland Revenue Board of Malaysia — CKHT Operational Guideline No. 2 of 2026
Inland Revenue Board of Malaysia — RPGT Payment Procedure and Refund
Malaysian law — Finance Act 2025 (Act 874)
Malaysian Bar — Circular No. 444/2024
Johor State Land and Mines Office — Perolehan Hartanah Oleh Kepentingan Asing
Mah-Kwai & Associates — Property Transactions Requiring State Consent
Bank Negara Malaysia — Non-resident: Investing in Malaysia
Bank Negara Malaysia — Non-resident: Buying and Selling of FX
Low & Partners — Powers of Attorney Act 1949
MM2H — Guidelines
OpenExamPrep — The Property Transaction Lifecycle
OpenExamPrep — Standard 4: Estate Agency Fees
New Straits Times — Know your real estate practitioner
Conventus Law — The Solicitors’ Remuneration Order 2023
National House Buyers Association — FAQ on Sale and Purchase
PropCashflow — Subsale Property Process Malaysia
The Star — Supply Bill 2027 tabled for first reading in Parliament

Disclaimer

This article is a general information summary and does not constitute individual legal, tax, or real estate transaction advice. Sources were checked as of 9 October 2026. Rules may be updated; current announcements from the relevant Malaysian authorities govern, and you should consult a qualified professional where necessary.

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All content is researched, written, or authorized for publication by the @Zagdim Overseas team. Sharing and reposting are welcome, but please make sure to credit the source and include the original article link from this website. Any plagiarism or unauthorized use may result in legal action. For article submissions, please contact us via Facebook. Thank you for your support!

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