Renting out property in Malaysia: landlord guide

Costs of buying

• Stamp duty on the transfer (memorandum of transfer) for Malaysian buyers is tiered: 1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1 million and 4% above that.
• Foreign buyers pay a flat rate on the whole price instead of the tiers: 8% for residential property on transfers from 1 January 2026, and 4% for non-residential property.
• A home loan adds 0.5% stamp duty on the loan agreement.
• Legal fees for the sale agreement and the loan agreement follow a fixed scale (the Solicitors' Remuneration Order); budget roughly 1–1.5% of the price for each.

Buying as a foreigner

• Foreigners need consent from the state authority, and each state sets a minimum price. RM1 million is common, and some states and areas set it higher.
• Foreigners cannot buy Malay reserve land, Bumiputera-lot units or low- and medium-cost housing.
• Real property gains tax (RPGT) when you sell: foreigners pay 30% on the gain within five years of buying and 10% after that. Citizens and permanent residents pay 30%, 20% and 15% in years 1–3, 4 and 5, and nothing from year 6.

Official guidance: Ministry of Economy: guideline on property acquisition by foreign interests · LHDN: Real property gains tax (CKHT)

How rental income is taxed

• Rental income is taxed in the year it is received, together with your other income, at resident rates from 0% to 30%.
• Non-residents pay a flat 30% on Malaysian rental income.
• Letting a property is normally non-business income: residents without a business file Form BE, due 30 April (15 May for e-filing). If you also have business income you file Form B, due 30 June.

Expenses claimable against rental income

• Interest on the loan used to buy the property.
• Quit rent (cukai tanah) and assessment tax (cukai pintu).
• Fire insurance premiums.
• Repairs and maintenance that restore the property (not improvements or renovation).
• Maintenance fees and sinking fund contributions, and fees for collecting rent.
• Agent fees and stamp duty for renewing a tenancy. The costs of finding the very first tenant are not claimable.

Tenancy rules and customs

• The usual deposit is "2+1": two months' rent as a security deposit and one month for utilities, plus the first month's rent in advance.
• Tenancy agreements must be stamped. Since 1 January 2026 the duty is self-assessed and paid through e-Duti Setem on MyTax; the rates rose and the old RM2,400 annual-rent threshold was removed on 1 January 2025. The tenant usually pays.
• There is no national rent control: rent and increases follow the tenancy agreement.

Key dates

• End of February and end of August: Assessment tax (cukai pintu), paid in two halves to the local council
• 30 April (15 May e-filing): Form BE for residents without business income, including rental income
• 31 May: Quit rent (cukai tanah) to the state land office
• 30 June (15 July e-filing): Form B if you have business income
• Within 30 days of signing: Stamp the tenancy agreement

Questions landlords ask

What is a good rental yield in Malaysia?

Gross yields on condos in the Klang Valley are commonly around 4–5% of the price; after maintenance fees, quit rent, assessment and empty months the net yield is usually 1–1.5 points lower. Use the rental yield calculator for Malaysia to check a specific unit with the loan included.

Can foreigners buy property in Malaysia?

Yes, with state consent and above the state's minimum price, which is often RM1 million and higher in some areas. Malay reserve land, Bumiputera lots and low- and medium-cost homes are not open to foreigners. Foreign buyers pay a flat 8% stamp duty on homes transferred from 1 January 2026.

Which expenses can I claim against rental income in Malaysia?

Loan interest, quit rent, assessment tax, fire insurance, repairs and maintenance, maintenance fees and sinking fund, rent collection fees, and the costs of renewing a tenancy. Renovation and the costs of finding your first tenant are not claimable.

Do I pay tax on Malaysian rental income if I live abroad?

Yes. Non-residents pay a flat 30% on rental income from Malaysian property, and you may also have to report it in the country where you live. Keep records of rent and claimable expenses in both currencies.

Who pays stamp duty on a tenancy agreement in Malaysia?

Usually the tenant, unless the agreement says otherwise. Since 2026 the duty is self-assessed and paid online through MyTax.

Official sources

• LHDN (Inland Revenue Board of Malaysia)
• LHDN: Real property gains tax (CKHT)
• MyTax (e-filing and e-Duti Setem)