Heard agents or bankers mention RPGT and got a bit blur? Don’t worry — here’s the simple breakdown you can digest over your Tuesday coffee.

What is RPGT?

RPGT = Real Property Gains Tax.
It’s a tax you pay when you sell your property and make a profit. Basically, if you buy low and sell high, the government wants a small slice of that pie. g

How Much is RPGT?

It depends on how long you’ve owned the property:

• Sold within 3 years → 30% tax
   
• 4th year → 20%
   
• 5th year → 15%
   
• 6th year onwards → 0% (for Malaysians)
   

Example:

• Buy at RM400k, sell at RM500k = RM100k profit
   
• Sell within 2 years = pay 30% = RM30k tax

Who Needs to Pay?

• Malaysian citizens & PR → rates above apply
   
• Companies & foreigners → different rates (generally higher, 10% even after 6 years)

Why Does RPGT Exist?

The government wants to control speculation — flipping houses too fast drives prices up for everyone.

 Quick Tip

• If you’re selling in less than 5 years → factor RPGT into your profit calculation.
   
• If possible, hold beyond 5 years → you can avoid paying RPGT (if you’re Malaysian).
   
• First-time sellers may be eligible for an exemption — always check with your lawyer/tax agent.

Knowledge like this helps you plan smarter. Don’t let RPGT eat into your hard-earned gains!