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. "
Malaysia to Tourists on Expired Passes: Get Out Before April 21
The quasi-announcement has thrown the lives of many foreign visitors in the country into uncertainty and upheaval. This story has been updated...
It’s Not Over.
Sixteen months in, the world’s battle with the Covid-19 pandemic is in many ways seeing fresh signs of getting worse, not better....
Finding Employment Assurance in Malaysia’s New Normal
This article was written by ExpatGo contributor Jennifer Dawson. Slowly but surely, the world is opening up again – but that isn’t without its...
Malaysia May Get Its First Official Apple Store in 2022
The Exchange TRX is set to be a brand-new retail experience with many new tenants, like Malaysia’s very own Apple Store! Various...
Malaysia Extends Movement Control Orders Again
It’s understandable if you are starting to feel that you’re stuck in a Groundhog Day-like time loop. Malaysian Senior Minister for Security...
Malaysia’s Biggest Telco: Celcom and Digi Eyeing Mega-Merger
Two of Malaysia’s biggest telecommunications service providers will be combined into one mammoth entity that will serve over 19 million customers! Parent...
The Artisans Haven Increases Allure with Physical Showcase
Even virtual shopping mall The Artisans Haven cannot resist the charm of traditional physical art bazaars, and had their very first on-ground...
Bukit Bintang: A Brief History of KL’s Beating Heart
There’s an undeniable energy that permeates Bukit Bintang, easily Kuala Lumpur’s buzziest and brashest district for entertainment, dining, and shopping. But there’s...
Glastonbury Festival to Be Livestreamed as a Global Event This Year
For anyone who has not been able to experience Glastonbury yet, here’s a chance many will be snapping up! With many award-winning...
Domestic and International Travel May Soon Be a Reality for Vaccinated Malaysians
Prime Minister Muhyiddin Yassin has announced that people who have successfully received both doses of Covid-19 vaccinations may be allowed to travel...