📅 Last verified: June 2026. Rates marked † change. Confirm with LHDN (the tax authority) or a licensed professional before acting.
The short version
- RPGT (Real Property Gains Tax) is the tax on your profit when you sell — not on the sale price.
- For overseas sellers: 30% if you sell within 5 years, 10% from year 6 onward.
- The longer you hold, the lower the rate. Exit timing is the lever.
- At sale, your buyer’s lawyer holds back a slice of the price and sends it to LHDN against your bill.
What RPGT is, in plain terms
When you sell a property for more than you paid, RPGT taxes the gain (the profit), not the whole price. No gain, no RPGT.
How the gain is worked out:
Sale price − purchase price − allowable costs (legal fees, agent commission, renovation) = the gain that’s taxed.
💡 Keep your receipts. Legal fees, the agent’s commission and genuine improvement costs all reduce the gain, and therefore the tax.
The rate for international sellers
| When you sell | RPGT rate |
|---|---|
| Within the first 5 years | 30% |
| Year 6 onward | 10% |
You pay 30% for the first five years, then 10% from year six. † The single biggest lever you control is how long you hold. The rate eases the longer you stay in.
So RPGT isn’t really a cost — it’s a timing decision. Sell early and you pay 30%. Hold past year five and it drops to 10%. Which is why exit timing belongs in your plan on day one, not the day you sell.
(Other seller categories are on different RPGT schedules. Your lawyer or the calculator applies the right one to your case.)
The 7% your buyer holds back
Here’s the part sellers forget. When you sell as an international owner, the buyer’s solicitor retains 7% of the sale price and pays it straight to LHDN as a deposit against your RPGT. † You receive the balance on completion, and any over-payment is refunded later, after assessment. Plan your cash-flow around it. You don’t get 100% on the day.
→ Work out your likely bill on the RPGT calculator, and see the full exit process in Selling as a Foreigner.
When RPGT doesn’t apply
Sell at a loss and there’s no RPGT. A loss can even be carried forward to offset future gains. Certain transfers, such as between spouses, may also be exempt. † Confirm your situation with a lawyer.
RPGT taxes the gain, not the sale — and the clock is the lever. The longer you hold, the less the exit costs you.
So the real question isn’t “how much is RPGT” — it’s what year you sell in.
Tell me when you’re thinking of selling and I’ll show you what the clock costs you. Message me on WhatsApp →
General information, not tax or legal advice. Rates are current as of June 2026; figures marked † change. Confirm with LHDN or a licensed professional before acting. Author: Jacky Yong, licensed real estate negotiator (REN 77674), Vivahomes Realty Sdn Bhd (E(1)1670).
See this in real projects
Live listings where this applies: