Foreign nationals and permanent residents selling property in Malaysia face different RPGT rates than Malaysian citizens. While citizens enjoy 0% RPGT after 5 years, foreigners pay 10% regardless of how long they hold. Here is the complete guide for non-citizen sellers.
RPGT Rates for Foreigners in Malaysia 2026
| Holding Period | Non-Citizen / Foreigner | Note |
|---|---|---|
| Within 3 years | 30% | Same as citizens |
| Year 4 | 30% | Higher than citizens (20%) |
| Year 5 | 30% | Higher than citizens (15%) |
| After 5 years | 10% | Citizens pay 0% |
Allowable Exemptions for Foreigners
Foreigners are not entitled to the once-in-lifetime residential exemption (Malaysian citizens only). They do receive: The RM10,000 or 10% automatic exemption, deduction for all allowable acquisition and disposal expenses, and any government-specific exemptions that apply to all owners.
Permanent Residents (PR) and RPGT
Malaysian Permanent Residents are treated the same as foreigners for RPGT purposes โ they do NOT get the 0% rate after 5 years. Only Malaysian citizens get the 0% after-5-year rate. PRs pay 10% after 5 years.
RPGT Filing for Foreign Sellers
Foreign sellers must file CKHT 1A within 60 days of disposal. If the seller is abroad, a local tax agent or solicitor typically handles this. Failure to file results in penalties of RM200โ2,000 plus interest on unpaid tax. Retain LHDN-issued clearance letter before remitting proceeds overseas.
Our editorial team specialises in Malaysian personal finance โ covering loans, taxation, insurance, EPF, and Islamic finance. Every article is fact-checked against Bank Negara Malaysia (BNM), LHDN, and major Malaysian bank publications. We reference our calculators (which use industry-standard formulas) to ensure consistency between our written content and tools. Learn more about our methodology โ