Malaysia – Property Taxes

• Property tax in Malaysia is based on the value of the property and is paid annually.
• The tax rate varies depending on the type of property, with residential properties generally having a lower tax rate than commercial properties. The tax rate ranges from 0.1% to 0.5% of the property value.

Capital Gains Tax (CGT)

• CGT is imposed on the sale of property in Malaysia and is calculated as a percentage of the sale price.
• There is no CGT on the sale of residential property that is used as the owner’s principal place of residence, however, if it is not the principal place of residence, the CGT rate is 30%.

Inheritance Tax

• Inheritance tax in Malaysia is based on the value of the property and the relationship between the deceased and the heir.
• The tax rate can vary from 0% to 20%, depending on the circumstances.

Gift Tax

• Gift tax in Malaysia is imposed on gifts of property and is calculated as a percentage of the value of the gift.
• The tax rate is 0%

Tax on Property Income

• Income earned from renting out property in Malaysia is subject to income tax.
• The tax rate can vary depending on the type of property and the income earned.

Tax Advantages

• In Malaysia, there are tax incentives available for buyers of newly constructed properties, such as exemptions from property tax.
• Additionally, properties in certain designated areas, such as the Iskandar Development Region, may also be eligible for tax incentives.
• Furthermore, Malaysia has a system of tax allowances which can be used to reduce the overall amount of taxes due on a property.