Real estate agents’ fees in Malaysia
Real estate agent’s fees are regulated by the Board of Valuers, Appraisers and Estate Agents Malaysia (LLPEH). A maximum commission of up to 3% is paid either by buyer or seller, subject to a minimum fee of RM1,000 per case.
Real Property Gains Tax
Real property gains tax (RGPT) is charged on chargeable gains arising from the disposal of real property as well as shares in the real property companies based on following guidelines:
[*Individual of non-citizen includes all expatriates working in Malaysia and MM2H visa holders]
The 2014 Budget introduced significant changes to the Real Property Gains Tax schedule, aimed largely towards discouraging “flipping” properties in a bid to curb soaring property prices. As such, there are a few exemptions of Real Property Gains Tax:
i. Gains derived from disposal of property between parents and children, husband and wife, grandparents and grandchildren;
ii. Exemption of up to RM10,000 or 10% of the net gains, whichever is higher, is given to an individual.
The chargeable gain is only applicable on net gains, after deducting all related costs such as renovation costs, commission and incidental cost such as legal fees and exemption.
Minimum Foreign Investment Value (MFIV) for Residential Property
Is rental income of foreigners subject to tax in Malaysia?
All rental incomes derived from Malaysia are subject to tax. While a lot of foreigners find Malaysian properties attractive, it is very important to know the tax rate to avoid any unpleasant moment when the Inland Revenue slams you with a hefty tax bill to pay.
Tax on rental income for foreigners charged by Malaysia Inland Revenue differs by the status of resident or non-resident in Malaysia. Resident status is for someone who stayed in Malaysia for more than 182 days (about six months) in a calendar year. Currently, Malaysia Taxation on rental income under the personal name will be as follows:
• Resident status for foreigners: 0 to 25%
• Non-resident status for foreigners: flat at 25%
Malaysia tax rate on rental income for foreigners does not take account of the type of visa pass. There is no special advantage for a holder of MM2H visa compared to the Expatriate Work Visa group.
"ExpatGo welcomes and encourages comments, input, and divergent opinions. However, we kindly request that you use suitable language in your comments, and refrain from any sort of personal attack, hate speech, or disparaging rhetoric. Comments not in line with this are subject to removal from the site. "
0Careers and Employment
How Can Expats Avoid Career Remorse?
Maximum career fulfilment and achievement can be yours when you are in an industry that you truly enjoy on an emotional level....
Hair Today, Grown Tomorrow: Community Gardening with a Twist
You may have heard of Nateskin, Malaysia’s home-grown company featuring innovative grooming solutions for men, but now they’re getting into the sustainability...
0Travel News & Updates
New Visa-Free Initiative and Digital Arrival Card Requirements for Malaysia
The new initiatives have created some confusion, but authorities are hopeful that the ultimate result will be an increase in tourism visits...
Seamless City Exploration: The KL TravelPass Advantage
You’ve landed in Kuala Lumpur, a bustling metropolis brimming with cultural treasures and exciting adventures. The only thing standing between you and...
The Art House Gallery Museum Of Ethnic Arts – Magical Portal To The Past
What is heritage? Does it lie in the past? If truth be told, we live in a society that will readily espouse...
Small Changes, Big Results? Huge UK Study Shows How to Add 10 Years to Your Life
The findings of this massive study in the UK take ‘return on investment’ to an entirely new level… up to an extra...
Malaysia’s Universal Fuel Subsidy to End in 2024. How Will That Look?
The government subsidy on RON 95 petrol has allowed all motorists in Malaysia to enjoy some of the cheapest gasoline in Asia,...
0Asia Pacific News
China to Offer Visa-Free 15-Day Visits to Malaysians
The move should also trigger a reciprocal arrangement from Malaysia to Chinese nationals. For Malaysians who have dreamed of visiting China, but...
Kuching: Nine Lives and Beyond
The popular Sarawak capital city is a wealth of travel treasures just waiting to be discovered. On the open road ahead of...
0Food & Drink
Michelin Guide Announces Its Awards for Kuala Lumpur and Penang
The Michelin Guide gives Malaysia its first two-star restaurant, and a total of five eateries in Kuala Lumpur and Penang were awarded...