How to Sell a House in Malaysia 2026: Steps, Costs and Taxes
Property Lab editorial teamPublished 11 min read
Key points
- In Malaysia, citizens and PRs who sell a home pay RPGT of 30% within three years, 20% in the fourth year, 15% in the fifth and 0% from the sixth year, per LHDN in 2026.
- When a home in Malaysia is sold, the buyer must withhold 3% of the price (7% for a foreign seller) for LHDN within 60 days, and the seller files Form CKHT 1A on e-CKHT.
- Under section 22C of Act 242, owners in Malaysia may sell their own house without an agent, but only registered estate agents may act for a fee (sale fee ceiling: 3%).
Contents
- How do you sell a house in Malaysia step by step?
- Can you sell a house in Malaysia without an agent?
- How much RPGT do you pay when you sell a house in Malaysia?
- What is the 3% RPGT retention, and when must forms be filed?
- What other costs does a seller pay?
- Worked example: what does a seller keep?
- How long does selling a house take in Malaysia?
- Can you sell a house that is still under loan or has tenants?
- What documents does a seller need?
- Frequently Asked Questions
- References
To sell a house in Malaysia, you agree a price, take an earnest deposit, sign the sale and purchase agreement (SPA), let the lawyers clear your loan and register the transfer, then hand over the keys. A plain subsale takes about three to six months, and you pay Real Property Gains Tax (RPGT) if you sell within five years (at any time if you are a foreigner), plus legal fees and any agent commission.
You can sell your own house without an agent, but only a registered estate agent may act for you for a fee. Citizens pay RPGT of 30%, 20% or 15% on the gain when they sell within five years, and 0% from the sixth year. The buyer holds back 3% of the price (7% for a foreign seller) and pays it to LHDN.
Key numbers (as at October 2026)
- RPGT, years 1-330%
- RPGT, year 6+ (citizen)0%
- Buyer's retention3%
- RPGT filing deadline60 days
- Agent fee ceiling3%
- Typical subsale time3-6 months
Also called: jual rumah (selling a house), subsale, Cukai Keuntungan Harta Tanah or CKHT (RPGT), Perjanjian Jual Beli (SPA), Form 14A (memorandum of transfer), BOVAEP or LPPEH (the estate agents' board).
How do you sell a house in Malaysia step by step?
Selling a house in Malaysia as a subsale follows nine steps in 2026, and each one has a deadline set by the offer letter or the SPA.
- Set the price. Compare what similar homes nearby actually sold for, not asking prices; NAPIC has sold its transaction e-data to the public since 1 February 2026, The Edge reported.
- List the house. Sell it yourself or appoint a registered agent, and get a redemption statement from your bank.
- Accept an offer. The buyer signs a letter of offer and pays an earnest deposit, often 2% to 3%, held by the agent or a lawyer as stakeholder.
- Sign the SPA. The buyer tops the deposit up to 10% of the price, and you usually sign the transfer form (Form 14A) at the same time.
- Get consent if needed. Leasehold land, restricted titles and foreign buyers often need state consent; a home without its own title needs the developer's.
- Redeem your loan. The buyer's bank pays your bank first, and your bank releases the title and the discharge of charge.
- File RPGT forms. You file Form CKHT 1A, or CKHT 3 for an exemption, and the buyer files CKHT 2A, all within 60 days of the SPA date.
- Complete. The buyer pays the balance, usually within three months, and the transfer is registered.
- Hand over. Bills are apportioned to the completion date and you give vacant possession: the keys and access cards.
Our subsale vs new project guide shows the buyer's side.
Can you sell a house in Malaysia without an agent?
Yes: section 22C of the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242) lets an owner in Malaysia sell his own land and building, but nobody may work as an estate agent unless registered.
Section 22C(1) of Act 242 bars unregistered people from working or advertising as estate agents or suing for a commission, and section 30 makes a breach an offence. Negotiators (REN) must work under the direction of a registered estate agent, according to the board that registers them (BOVAEP).
- Selling yourself: you save the commission but run viewings and terms yourself; let your lawyer review the offer letter and hold the deposit.
- Using an agent: the board's fee scale sets a maximum sale fee of 3% of the price (minimum RM1,000); it is a ceiling, not a fixed rate. Agent firms registered for service tax add 8%, so ask whether the quote includes it. Our agent fee guide explains the full scale.
How much RPGT do you pay when you sell a house in Malaysia?
RPGT in Malaysia is a tax on the gain from selling property, at a rate that falls the longer you hold it, counted from the date you acquired the home to the date of your sale agreement.
| Year of sale | Citizen or PR | Malaysian company | Foreigner |
|---|---|---|---|
| Within 3 years | 30% | 30% | 30% |
| 4th year | 20% | 20% | 30% |
| 5th year | 15% | 15% | 30% |
| 6th year onwards | 0% | 10% | 10% |
From LHDN's RPGT rate page, for disposals from 1 January 2022 (individuals) and 1 January 2019 (companies and non-citizens). LHDN lists the first two years and the third year separately; both are 30%.
- Deductible: lawyer, valuer and agent fees on buying and selling, and spending that enhances the home (LHDN's example is a kitchen renovation).
- Not deductible: loan interest, and the fee for preparing the RPGT return.
- Exemptions: individuals deduct RM10,000 or 10% of the gain, whichever is greater. A citizen or PR can also elect, once in a lifetime on Form CKHT 3, to exempt one private residence.
Our RPGT guide has more examples.
What is the 3% RPGT retention, and when must forms be filed?
When a Malaysian home is sold for cash, the buyer must withhold 3% of the price (7% for a foreign seller, 5% for a Malaysian company within three years), or all the cash if less, and pay it to LHDN within 60 days.
LHDN's retention page adds an option from Year of Assessment 2026: if you tell the buyer your self-assessed tax before he remits, he may withhold that lower amount instead. Under self-assessment, for disposals since 1 January 2025, Form CKHT 1A is filed online only, on e-CKHT in MyTax. Tax above the amount withheld is due within 90 days, records are kept for seven years, and not filing can cost up to three times the tax.
What other costs does a seller pay?
Besides RPGT, a home seller in Malaysia usually pays a lawyer, any agent, loan exit costs and bills up to completion.
- Legal fee: Table A of the Solicitors' Remuneration Order 2023 (Peninsular Malaysia) sets 1.25% on the first RM500,000 (minimum RM500) and 1% on the next RM7 million. Up to 25% discount is allowed, and 8% service tax is added.
- Filing fees: the same order sets RM500 for Form CKHT 1A and RM500 for a state consent application on a price from RM100,001 to RM1 million.
- Loan exit: RHB charges RM50 per redemption statement, and a lock-in penalty may apply (iMoney's UOB listing: three years, up to 2%). Our refinancing guide explains lock-ins.
- Bills: outgoings such as quit rent, assessment and maintenance charges are usually apportioned to completion (our quit rent vs assessment tax guide explains both bills).
Worked example: what does a seller keep?
In this illustrative Malaysian example, a citizen sells a house for RM650,000 in the fourth year of ownership and keeps about RM231,439 after the loan, fees and RPGT.
Assumptions: bought for RM500,000 in September 2023 with RM9,000 stamp duty and a RM6,250 legal fee plus 6% service tax (the rate then); RM20,000 kitchen; sale SPA in November 2026; RM380,000 loan, out of lock-in; agent 2%; lawyer at full scale plus 8% tax.
| Item | Amount (RM) |
|---|---|
| Sale price | 650,000 |
| Disposal price after costs | 628,630 |
| Acquisition price with costs | 535,625 |
| Chargeable gain | 93,005 |
| Less exemption | 10,000 |
| RPGT at 20% | 16,601 |
| Loan redemption sum | 380,000 |
| Agent fee (2%) | 13,000 |
| Seller's legal fee with tax | 8,370 |
| CKHT 1A fee with tax | 540 |
| Redemption statement fee | 50 |
| Cash kept by the seller | 231,439 |
Illustrative only, our calculation. The seller is assumed to notify the buyer, who then withholds RM16,601 rather than RM19,500 (3%). Disbursements, bills and any tax on the commission are left out. A 2% lock-in penalty would cost RM7,600 more.
How long does selling a house take in Malaysia?
A straightforward subsale in Malaysia usually completes three to four months after the SPA, longer when state or developer consent is needed.
| Stage | Typical time |
|---|---|
| Offer letter to SPA | 14-21 days |
| SPA to completion | 3 months (+1 month) |
| State consent | Adds 1-6 months |
| Transfer registration | 2-4 weeks |
| Freehold, own title | 3-4 months total |
| Leasehold, own title | 4-6 months total |
| Leasehold, master title | 6-12 months total |
Market practice, not law: PropCashflow (February 2026), Donovan & Ho and a 2006 column by a Bar Council conveyancing committee member. Your SPA sets the real dates.
Can you sell a house that is still under loan or has tenants?
Yes, a house in Malaysia can be sold while it is still under loan or let to a tenant, but both cases need extra terms in the SPA.
- Under loan: the buyer's loan usually pays your redemption sum first, then the balance to you. If you owe more than the price, the SPA must say how you cover the gap.
- No title yet: your bank signs a deed of receipt and reassignment, one reason these sales take longer.
- Tenanted: the buyer may take over the tenancy (legal possession instead of keys), with rent and deposits passed on. An unendorsed tenancy of up to three years does not bind the buyer under section 213(3) of the National Land Code, so agree in writing whether the tenant stays; see our tenancy agreement guide.
Three dates can cost a seller real money: an SPA signed just before your fifth or sixth year of ownership begins, the 60-day RPGT filing, and the end of your loan's lock-in. Check all three before you accept an offer.
What documents does a seller need?
A seller in Malaysia should gather identity, title, loan and bill documents before the SPA, because the lawyers ask for them at signing.
- IC or passport copy and income tax number (TIN); register on e-Daftar in MyTax if you have none.
- Title copy, or for a home without title, every earlier SPA, loan agreement and assignment.
- This year's quit rent and assessment receipts.
- Bank redemption statement and your loan offer letter.
- Maintenance statement from the JMB or management body, and recent utility bills.
- Your purchase SPA, fee receipts and renovation invoices, for RPGT.
- Tenancy agreement and deposit records, if let.
Frequently Asked Questions
Can I sell my house in Malaysia without an agent?
Yes. Owners may sell their own property under Act 242; the law targets unregistered people who charge for agency work.
How long does it take to sell a house in Malaysia?
Allow three to six months for a titled home, and up to a year where leasehold, master title or foreign-buyer consents are involved.
Can I sell a house that still has a bank loan?
Yes. At completion the buyer's financier pays off your bank directly, and you get what remains.
Who pays RPGT, the buyer or the seller?
RPGT is the seller's tax. The buyer only withholds part of the price for LHDN, and you settle any shortfall within 90 days.
Do I pay RPGT if I sell after five years?
Citizens and PRs pay 0% from the sixth year but still file a return. Foreigners and companies pay 10%.
What happens if I back out after signing the offer letter?
It depends on the offer letter. PropCashflow says a seller who withdraws must refund the earnest deposit and often pays the same sum again as compensation.
References
- LHDN (HASiL): Real Property Gains Tax (RPGT) Rates (updated 23 June 2026)Used for the rate tables by disposer category and holding period.
- LHDN (HASiL): Retention and Remittance by Acquirer (updated 25 May 2026)Used for the 3%, 5% and 7% retention, the deemed-tax option from YA 2026 and the 60-day remittance.
- LHDN (HASiL): Responsibility of Disposer and Acquirer (updated 26 June 2026)Used for Forms CKHT 1A, 2A and 3, e-CKHT filing, the 90-day balance and seven-year records.
- LHDN (HASiL): Exemption (updated 22 June 2026)Used for the RM10,000 or 10% exemption and the once-in-a-lifetime private residence election.
- LHDN (HASiL): Disposal Price and Acquisition Price (updated 22 June 2026)Used for allowable and non-allowable costs.
- LHDN (HASiL): Disposal Date and Acquisition Date (updated 18 May 2026)Used for the disposal date being the date of the written agreement.
- LHDN (HASiL): Imposition of Penalties and Increases of Tax (updated 22 June 2026)Used for the penalty of up to three times the tax.
- LHDN (HASiL): Procedures for Submission of RPGT Form (updated 22 June 2026)Used for mandatory e-CKHT filing and e-Daftar for a TIN.
- Low & Partners: Valuers, Appraisers and Estate Agents Act 1981 (Act 242) textUsed for section 22C (owners may sell; fees restricted to registered agents) and section 30 offences.
- BOVAEP: Scale of fees (checked 26 October 2026)Used for the 3% maximum sale fee and the RM1,000 minimum.
- BOVAEP: Role of estate agents and negotiatorsUsed for negotiators working under a registered estate agent.
- Conventus Law: The Solicitors' Remuneration Order 2023Used for the Table A scale and the CKHT 1A and state consent fees.
- PropCashflow: Solicitors' Remuneration Order 2023, legal fees in 2026 (26 July 2026)Used for the 25% discount allowed on Table A.
- New Straits Times: SST 2 pct hike, here's what you need to know (February 2024)Used for service tax on legal (professional) services rising from 6% to 8% on 1 March 2024.
- PropCashflow: Sub-sale property Malaysia, step-by-step buying process (February 2026)Used for the earnest deposit, consent time, registration time, total timelines and a withdrawing seller's refund.
- Donovan & Ho: Cash flow and timing of a sub-sale property purchaseUsed for the 2-3% earnest deposit, 14-21 days to the SPA, 3-4 months to complete and the two-part loan release.
- Donovan & Ho: Auction property vs secondary market property (August 2021)Used for vacant possession, apportioned outgoings and legal possession of a tenanted home.
- HBA: Understanding an SPA, Part 1 (Cheong Yoke Ping, The Sun, December 2006)Used for the three-month completion period, extensions and a redemption sum above the price.
- HBA: Understanding an SPA, Part 2 (Cheong Yoke Ping, The Sun, December 2006)Used for Form 14A, developer consent, seller's documents, the bank's undertaking and reassignment.
- National Land Code, section 213 (via LawPlayer)Used for short tenancies not binding a later transferee unless endorsed.
- The Edge Malaysia: Napic's e-data to be available to public starting Feb 1 (January 2026)Used for public access to NAPIC transaction data.
- RHB: My1 Home Loan product disclosure sheet (PDF)Used for the RM50 redemption statement fee.
- iMoney: UOB iNTELLIGENT Home Loan listingUsed for the example three-year lock-in and penalty of up to 2%.
The Act 242 text on Low & Partners is an older reprint and the HBA columns date from 2006, so check lom.agc.gov.my and your lawyer for current wording and practice. Check LHDN's RPGT pages for the latest rules before you file.
General information only, not legal, tax or financial advice. Speak to a lawyer, your bank and a tax adviser before you accept an offer or sign an SPA.
Sources
- Real Property Gains Tax (RPGT) Rates — Inland Revenue Board of Malaysia (LHDN/HASiL)
- Retention and Remittance by Acquirer — Inland Revenue Board of Malaysia (LHDN/HASiL)
- Responsibility of Disposer and Acquirer — Inland Revenue Board of Malaysia (LHDN/HASiL)
- Valuers, Appraisers and Estate Agents Act 1981 (Act 242), section 22C — Low & Partners
- Scale of fees — Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP)
- The Solicitors' Remuneration Order 2023 — Conventus Law
General information only, not legal, tax or investment advice. Rules and rates change; check the official source linked below before you act.
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