In purchasing your property in Malaysia, you may incur the following costs:

  • Legal fees on Sale & Purchase Agreement (onetime payment) – borne by developer
  • Disbursement fees on Sale & Purchase Agreement (onetime payment) – borne by developer
  • Stamp duty on Sale & Purchase Agreement (onetime payment) – borne by developer
  • Legal fees on loan documentation (onetime payment) – borne by developer
  • Disbursement fees on loan documentation (onetime payment) – borne by developer provided purchaser signed Loan Agreement within 21 working days from the date of stamped SPA
  • Stamp duty on loan documentation (onetime payment) – borne by purchaser
  • Memorandum of Transfer (MOT) fees for transfer of title (onetime payment) – borne by purchaser
  • Quit rent (yearly payment) – under construction, developer will pay. After VP buyer will make payment to Management Office.
  • Assessment (Half yearly payment) – under construction, developer will pay. After VP, buyer will make payment to Malaysia Authority.

 


 

LEGAL FEES ON SALE & PURCHASE AGREEMENT/LOAN AGREEMENT

Source: First Schedule [Paragraph 2(a)] of the Solicitor Remuneration Order 2005 which came into operation on 1 January 2006
Consideration or Adjudicated Value Scale of Fees (% from purchase price) Legal Fees
For the first RM 150,000 1.0% (subject to a minimum fee of RM300) RM 300 – RM 1,500
For the next RM 850,000 0.7% RM 1,501 – RM 7,450
For the next RM 2,000,000 0.6% RM 7,451 – RM 19,450
For the next RM 2,000,000 0.5% RM 19,451 – RM 29,450
For the next RM 2,500,000 0.4% RM 29,451 – RM 39,450
Where the consideration or adjudicated value is in excess of RM 7,500,000 Negotiable on the excess (but shall not exceed 0.4% of such excess) From RM 39,450


 

STAMP DUTY OR MEMORANDUM OF TRANSFER (MOT)

Purchase Price Scale of Fees (% from purchase price) Stamp Duty
First RM 100,000 1% RM 0- RM 1,000
Next RM 100,001 – 500,000 2% RM 2,000 – RM 10,000
RM 500,001 and above 3% From RM 15,000


 

REAL PROPERTY GAINS TAX (RPGT)

With effect from 1st January 2015, RPGT is charged on gains arising from the disposal/sale of real properties

Disposal Period

RPGT Rates

Within 3 years after the date of acquisition

Companies: 30%

Individual (Citizen/PR): 30%

Individual (Non-Citizen*): 30%

In the 4th year after the date of acquisition

Companies: 20%

Individual (Citizen/PR): 20%

Individual (Non-Citizen*): 30%

In the 5th year after the date of acquisition

Companies: 15%

Individual (Citizen/PR): 15%

Individual (Non-Citizen*): 30%

In the 6th year after the date of acquisition or thereafter

Companies: 5%

Individual (Citizen/PR): 0%

Individual (Non-Citizen*): 5%

*Individual (Non-Citizen) includes all expatriates working in Malaysia & MM2H visa holders.

Exemptions to RPGT include:

  • Disposal made after 5 years from the date of acquisition of the property by persons other than companies, non-citizen/non-resident individuals
  • Transfer of assets by way of gift between:
    • Husband and wife
    • Parent and child
    • Grandparent and grandchild
  • Gains on disposal of one private residence once in a lifetime only for a Malaysian citizen or permanent resident. Election for exemption must be made by filing up the election form for tax exemption on disposal of private residence under Paragraph 9, Schedule 3 (Section 8), Real Property Gains Tax Act 1976.
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