Selling A House in Malaysia: 5 Things That You Need To Pay For!

PropertyGuru Editorial Team
Selling A House in Malaysia: 5 Things That You Need To Pay For!
When selling a house in Malaysia, it’s not just about getting the money from the sale. If you want a successful sale, you’ll actually have to pay a bit to get it sold – plus you don’t get to keep 100% of the proceeds!
There are several costs you’ll have to take into account. Among them are things such as property agent fees, valuation fees, legal fees, and Real Property Gains Tax (RPGT).
We take a closer look at each of these costs:

1) Property agent fees

If you decide to engage the services of a property agent or real estate agent to sell your house, you’ll have to pay their fees.
A property agent’s services include pricing and advertising your property, arranging for viewing and bookings of the property, as well as negotiating with the prospective buyers on behalf of the seller.
In return for these services, the agent will charge a commission, which is usually 2-3% of the property’s selling price, and capped at 3%.
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For example, if your property is sold at RM500,000, then the maximum commission the agent can get is RM15,000.
Your property agent may also charge you for additional costs such as marketing materials and transport, but they should let you know about these charges beforehand.

2) The costs involved if you decide to DIY the sale

Deciding not to use the services of a real estate agent when selling a house in Malaysia can save you thousands of Ringgit in commission and other fees.
However, since one of the services you would’ve gotten was helping you price your house, you’ll need to do this yourself if you decide not to hire an agent.
It’s strongly advisable though that you engage a certified appraiser to give your property a professional valuation so you can price it more accurately.
There will be charges incurred for these property valuation services. Here’s how the fees are calculated:

Price of the property


Up to the first RM100,000
For the next residue up to RM2 million
For the next residue up to RM7 million
For the next residue up to RM15 million
For the next residue up to RM50 million
For the next residue up to RM200 million
For the next residue up to RM500 million
For the next residue over RM500 million
selling a house, legal fees, lawyer fees, lawyer fees for buying a house, agent commission, property agent commission, rpgt, real property gains tax
So, if your property is valued at RM900,000, you’ll be charged:
= (0.25% x RM100,000) + (0.2% x RM800,000)
= RM250 + RM1,600
= RM1,850 (total valuation fees)
Besides hiring an appraiser to get a professional valuation, you can also estimate the value of your house by looking up and comparing it with the prices of other similar properties in the same area.
Once you’ve determined the value of your house, the next step is to let people know that it’s for sale.
Advertising it online via social media, or getting your friends and family to spread the news via word-of-mouth are effective ways.

3) Renovation and repair fees

The main reason anyone would spend money on sprucing up their property before selling is so they can ask for a higher price for it.
Spending a bit extra to make your house/unit presentable (and to fix any damages!) will help bring up its value, and also get it sold faster.
selling a house, legal fees, lawyer fees, lawyer fees for buying a house, agent commission, property agent commission, rpgt, real property gains tax
Sometimes, even a fresh coat of paint is enough to give it new life. You could also consider hiring a professional cleaning service to give it a good cleanse.
You don’t need to spend a lot on renovation and repairs, but you do need to know where to spend for the best results, such as in areas where faults might appear obvious.
For example, maybe you have a few cracked tiles in the bathroom, or your kitchen countertop is chipped and stained.
You’ll also want to repair things like leaking faucets, wonky doors, or cracks in the walls.

4) Legal fees

These fees only come into the picture after you’ve already secured a buyer for your house.
After securing a buyer, you’ll need a lawyer to draft the Letter of Offer as well as the Sale and Purchase Agreement (SPA).
selling a house, legal fees, lawyer fees, lawyer fees for buying a house, agent commission, property agent commission, rpgt, real property gains tax
The lawyer’s job is not only just to draft the SPA and Letter of Offer; he/she will also handle other legal matters associated with the sale.
The legal fees, or the cost of hiring a lawyer, are charged based on the property’s selling price as follows:

Price of the property


For the first RM500,000
For the next RM500,000
For the next RM2,000,000
For the next RM2,000,000
For the next RM2,500,000
So, if your selling price was RM2,00,000, you’d be paying RM16,000 in legal fees:
  • The first RM500,000 would be 1%, for RM5,000.
  • The next RM500,000 would be 0.8%, for RM4,000.
  • The remaining RM1,000,000 would be 0.7%, for RM7,000.

5) Real Property Gains Tax (RPGT)

Last, but not least, when you’re selling a house in Malaysia, you’ll have to pay the Real Property Gains Tax (or RPGT for short).
The RPGT is a form of Capital Gains Tax levied by the Inland Revenue (LHDN). It’s basically tax you’ll have to pay to the government for any profits you receive on the sale of your house.
selling a house, legal fees, lawyer fees, lawyer fees for buying a house, agent commission, property agent commission, rpgt, real property gains tax
This tax applies to you regardless of your citizenship status, as long as you’ve profited from selling any of your properties in Malaysia.
The government does provide a tax relief if there’s no profit made, or when you make a loss from the sale.

a. When are there exemptions for RPGT?

RPGT exemptions are provided for the following:
  • A once-in-a-lifetime exemption on any chargeable gain from the disposal of a private residence for Malaysian citizens or Permanent Residents. This is capped at the first RM10,000 or 10% of the profit gained, whichever is higher.
  • When a property is transferred by way of a gift between immediate family members.

PropertyGuru Tip

A private residence is defined as a building, or part of a building owned by an individual, or occupied as a place of residence.

  • Low-cost homes valued below RM200,000 in the 6th year and after, only applicable for Malaysian citizens.
All these exemptions apply only to residential properties like houses, flats, condominiums, apartments, serviced apartments, and SoHo units.

b. Who needs to pay RPGT?

selling a house, legal fees, lawyer fees, lawyer fees for buying a house, agent commission, property agent commission, rpgt, real property gains tax
If you’re a Malaysian Citizen or a Permanent Resident:
If you sell your property within the first 5 years of acquiring it, you’ll be subject to RPGT between 30% – 15% depending on the year of disposal.
However, according to LHDN guidelines effective 1 January 2022, RPGT will no longer be applicable for Malaysian citizens and permanent residents after the 6th year. That means 0% RPGT to pay!
If you’re a Foreigner or Non-Citizen:
You’ll be charged a 10% RPGT when you sell your property 5 years or more after purchasing it.
If you’re a Company:
RPGT will be imposed on company shares that are disposed of when 75% of the company’s tangible assets are in real estate.
The RPGT rates are as follows:
Disposal in first year
Disposal in 2nd year
Disposal in 3rd year
Disposal in 4th year
Disposal in 5th year
Disposal in 6th year and beyond

c. How is RPGT calculated?

To calculate your RPGT, you’ll first need to know your chargeable gain. This is the difference between the purchase price of your property and its sale price.
You then multiply this with the relevant rate for RPGT. For example:
You, as a Malaysian citizen, purchased your property for RM500,000 3 years ago, and you sold it for RM800,000.
Your chargeable gain would then be RM300,000.
Since you are a Malaysian citizen, and you sold your property in its 3rd year, your RPGT rate would be 30%.
The RPGT you’d pay would then be: RM300,000 x 30% = RM90,000.
Fortunately, your RPGT amount can be lowered by including allowable expenses and allowable losses.
Allowable expenses include any additional fees brought on by the disposal of the property, like legal and administrative fees, repairs, and even advertising.
On the other hand, allowable loss applies when an individual makes more than one property transaction in the same assessment year. Here, a loss from one transaction can be used to offset the other to produce a chargeable gain.
As you can see, selling a house in Malaysia isn’t as straightforward as just listing it and waiting for the money from your sale to come it.
Now that you know what are the extra costs involved in selling your house in Malaysia, you can actually get to selling it!

Not sure how to go about it? We have a complete guide to selling your house in Malaysia. You’re welcome 😉

Disclaimer: The information is provided for general information only. PropertyGuru International (Malaysia) Sdn Bhd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.

Frequently Asked Questions About Selling A House In Malaysia

As the property is no longer yours, you do not need to pay. However, a gesture of goodwill is to let prospective buyers know of any critical defects beforehand.

A professional valuation takes into account aspects like the condition of the property, amenities, and value-added home improvements that cannot be seen externally. Combining this with median transaction prices will provide a more accurate property value.