Singaporean investors have been crossing the Causeway for Malaysian property for years. The value proposition is obvious: a RM 1.5 million KL condo costs roughly SGD 441,000 — less than a resale HDB in many estates. But what most buyers underestimate is the tax stack. Not the existence of taxes — everyone knows there are taxes — but the cumulative weight of stamp duty, rental income tax, RPGT, and transaction fees layered on top of each other.
This guide covers every tax and levy a Singaporean (non-citizen, non-resident) pays when buying, holding, and selling Malaysian property in 2026. All figures use the current SGD/MYR exchange rate of approximately 3.4.
The 2026 Stamp Duty — 8% for Foreign Buyers
Malaysia's stamp duty on property transfers follows a tiered structure under the Stamp Act 1949. The base rates apply to everyone. But effective 2026, foreign buyers pay an additional levy that brings the effective rate to approximately 8% of the purchase price — up from the previous 4% additional levy.
Base stamp duty rates (Schedule 1, Stamp Act 1949):
| Property Value (RM) | Rate |
|---|---|
| First 100,000 | 1% |
| 100,001 – 500,000 | 2% |
| 500,001 – 1,000,000 | 3% |
| Above 1,000,000 | 4% |
Worked example on an RM 1.5M property (SGD 441K):
| Tranche | Value (RM) | Rate | Duty (RM) |
|---|---|---|---|
| First 100K | 100,000 | 1% | 1,000 |
| Next 400K | 400,000 | 2% | 8,000 |
| Next 500K | 500,000 | 3% | 15,000 |
| Remaining 500K | 500,000 | 4% | 20,000 |
| Base stamp duty | 44,000 | ||
| Foreign buyer additional levy (4%) | 1,500,000 | 4% | 60,000 |
| Total stamp duty | 104,000 |
Total stamp duty: RM 104,000 (SGD 30,588). That's an effective rate of approximately 6.93% on the purchase price.
For context, Singapore's Additional Buyer's Stamp Duty (ABSD) sits at 20% for a Singaporean citizen buying a second property, and 60% for foreigners buying any residential property. The Malaysian levy is significantly lower in absolute terms — but it's still a material upfront cost that directly reduces your return on invested capital.
One important nuance: the foreign buyer levy is set at the federal level, but individual states may impose additional conditions or charges for foreign ownership approval. Johor and Penang, for example, have their own foreign acquisition committee processes that can add RM 10,000–20,000 in consent fees.
Rental Income Tax — 30% Flat Rate
This is the single most impactful tax for Singaporean landlords. Non-residents (anyone who spends fewer than 182 days per year in Malaysia) pay a flat 30% tax on rental income under Section 109B of the Income Tax Act 1967.
The critical distinction: non-residents are taxed on net rental income, not gross. This was clarified by LHDN (Lembaga Hasil Dalam Negeri, Malaysia's tax authority) — non-resident landlords can deduct allowable expenses before applying the 30% rate.
Allowable deductions include:
- Interest on property loan
- Maintenance fees and sinking fund
- Quit rent and assessment tax
- Fire insurance premiums
- Repairs and maintenance (not capital improvements)
- Property management fees
- Legal fees for tenancy agreements
What you cannot deduct: mortgage principal repayments, capital expenditure on renovations, travel costs to visit the property, or furnishing costs (though furniture depreciation under capital allowance rules may apply in some cases).
Worked example — RM 3,500/month rental (SGD 1,029/month):
| Item | Monthly (RM) |
|---|---|
| Gross rental income | 3,500 |
| Less: Loan interest (est. on RM 1.05M at 4.0%) | −3,500 |
| Less: Maintenance fee | −350 |
| Less: Sinking fund | −35 |
| Less: Assessment tax | −100 |
| Less: Quit rent | −10 |
| Less: Insurance | −45 |
| Less: Property management | −350 |
| Net taxable rental income | −890 |
Wait — negative? In early years when loan interest is high relative to rent, your allowable deductions can exceed your rental income, resulting in zero tax payable. This is common in the first 5–8 years of a high-LTV loan.
But let's model a more realistic mid-tenure scenario where the loan has been running for several years and interest has reduced:
| Item | Monthly (RM) |
|---|---|
| Gross rental income | 3,500 |
| Less: Loan interest (reduced, mid-tenure) | −1,100 |
| Less: Maintenance + sinking fund | −385 |
| Less: Assessment + quit rent | −110 |
| Less: Insurance | −45 |
| Net taxable rental income | 1,860 |
| Tax at 30% | 558 |
Tax payable: RM 558/month (SGD 164/month). That's 15.9% of gross rental income in effective terms — painful, but substantially less than the 30% headline rate once deductions are applied.
Filing is mandatory. Non-residents must file Form M (not Form BE) with LHDN annually, declaring all Malaysian-sourced rental income. The tax year follows the calendar year, with filing due by 30 June of the following year.
Despite the tax drag, the yield gap between Malaysia and Singapore makes the math work at 6%+ gross yield.
RPGT — When You Sell
Real Property Gains Tax (RPGT) is Malaysia's equivalent of capital gains tax on property disposals. For non-citizens and non-permanent residents, the rates are significantly steeper than for Malaysians.
2026 RPGT rates for non-citizens:
| Holding Period | RPGT Rate |
|---|---|
| Within 1 year | 30% |
| Within 2 years | 30% |
| Within 3 years | 30% |
| Within 4 years | 20% |
| Within 5 years | 15% |
| 6 years and above | 10% |
Compare this to Malaysian citizens, who pay 0% RPGT after 5 years. Non-citizens never reach 0% — the floor is 10%, no matter how long you hold.
Also compare to Singapore, which has no capital gains tax on property. Seller's Stamp Duty (SSD) applies only within the first 3 years in Singapore, but after that, all gains are tax-free. Malaysia's perpetual 10% minimum for foreigners is a permanent drag on exit returns.
Worked example — sell after 5 years:
| Item | Amount (RM) | Amount (SGD) |
|---|---|---|
| Purchase price | 1,500,000 | 441,176 |
| Allowable costs (stamp duty, legal, renovation) | 130,000 | 38,235 |
| Adjusted acquisition cost | 1,630,000 | 479,412 |
| Sale price | 1,800,000 | 529,412 |
| Chargeable gain | 170,000 | 50,000 |
| RPGT at 15% (year 5 disposal) | 25,500 | 7,500 |
Note: if you sell in year 6 or later, the rate drops to 10%, making the tax RM 17,000 (SGD 5,000) on the same gain. Holding for that sixth year saves RM 8,500 — a decision worth planning for.
Allowable acquisition costs that reduce your chargeable gain include: stamp duty paid on purchase, legal fees for the SPA, real estate agent commission on the original purchase, and renovation costs (with receipts). Keep every receipt. RPGT audits are not uncommon for non-resident disposals.
Legal Fees, Valuation, and Other Transaction Costs
Beyond stamp duty and taxes, the buy-side transaction involves several fee layers that Singaporean buyers often underestimate.
Buy-side costs breakdown:
| Cost Item | Typical Amount | On RM 1.5M Property |
|---|---|---|
| SPA legal fees | ~1% of price (tiered) | ~RM 17,500 |
| Loan agreement legal fees | ~0.5% of loan | ~RM 5,250 |
| Stamp duty on loan agreement | 0.5% of loan | ~RM 5,250 |
| Valuation fee | RM 500–3,000 | ~RM 2,500 |
| State consent for foreign purchase | Varies by state | RM 10,000–20,000 |
| Real estate agent fee (buy-side) | Usually nil | RM 0 |
| Total buy-side transaction costs | ~RM 40,500–50,500 |
Add the RM 104,000 stamp duty from earlier, and total upfront costs on an RM 1.5M purchase reach approximately RM 144,500–154,500 (SGD 42,500–45,441). That's roughly 9.6–10.3% of the purchase price in non-recoverable entry costs alone.
Sell-side costs:
| Cost Item | Typical Amount | On RM 1.8M Sale |
|---|---|---|
| Real estate agent commission | 2–3% | RM 36,000–54,000 |
| SPA legal fees (seller) | ~0.5% | ~RM 9,000 |
| RPGT (covered above) | 10–30% of gain | Variable |
Agent commission on sale is the largest sell-side cost after RPGT. Budget 2% minimum; 3% is common for properties marketed to foreign buyers or requiring bilingual agents.
Worked Example — RM 1.5M KL Condo, Singaporean Buyer
Let's put everything together. This models a Singaporean purchasing a condominium in KL, holding for 5 years with rental income, then selling.
Assumptions:
- Purchase price: RM 1,500,000 (SGD 441,176)
- Financing: 70% LTV = RM 1,050,000 loan at 4.0% Islamic profit rate, 30-year tenure
- Monthly financing payment: RM 5,012
- Monthly rent: RM 6,000 (gross yield: 4.8%)
- Maintenance + sinking: RM 550/month
- Assessment + quit rent: RM 150/month
- Insurance: RM 60/month
- Property management: RM 600/month (10% of rent)
- Sale price after 5 years: RM 1,800,000 (SGD 529,412)
- Exchange rate held constant at 3.4 (in practice, currency movement is a separate risk layer)
Upfront costs:
| Item | RM | SGD |
|---|---|---|
| Down payment (30%) | 450,000 | 132,353 |
| Stamp duty (incl. foreign levy) | 104,000 | 30,588 |
| SPA legal fees | 17,500 | 5,147 |
| Loan legal fees + stamp | 10,500 | 3,088 |
| Valuation | 2,500 | 735 |
| State consent | 15,000 | 4,412 |
| Furnishing | 40,000 | 11,765 |
| Total cash outlay | 639,500 | 188,088 |
Monthly cashflow (mid-tenure estimate, years 3–5):
| Item | Monthly (RM) | Monthly (SGD) |
|---|---|---|
| Gross rent | +6,000 | +1,765 |
| Financing payment | −5,012 | −1,474 |
| Maintenance + sinking | −550 | −162 |
| Assessment + quit rent | −150 | −44 |
| Insurance | −60 | −18 |
| Property management | −600 | −176 |
| Vacancy allowance (1 month/yr) | −500 | −147 |
| Rental income tax (30% on net ~RM 2,800) | −840 | −247 |
| Net monthly cashflow | −1,712 | −503 |
Negative cashflow of RM 1,712/month. At 4.8% gross yield on an RM 1.5M property, this is expected. The yield is below the ~6% threshold where foreign-buyer cashflow turns positive. This is a capital appreciation play, not a cashflow play — an important distinction.
5-year total return:
| Item | RM | SGD |
|---|---|---|
| Total rent collected (60 months × RM 6,000) | +360,000 | +105,882 |
| Total financing payments | −300,720 | −88,447 |
| Total operating costs (maintenance, tax, etc.) | −160,200 | −47,118 |
| Net rental income over 5 years | −100,920 | −29,682 |
| Capital gain (RM 1.8M − RM 1.5M) | +300,000 | +88,235 |
| Less: RPGT at 15% on RM 170K chargeable gain | −25,500 | −7,500 |
| Less: Agent commission on sale (2.5%) | −45,000 | −13,235 |
| Less: Seller legal fees | −9,000 | −2,647 |
| Net gain after all costs | +119,580 | +35,171 |
| Return on cash invested (RM 639,500) | 18.7% | 18.7% |
| Annualized return | ~3.5% | ~3.5% |
A 3.5% annualized return on SGD 188K invested. Not terrible, but not exceptional either — especially once you factor in currency risk, illiquidity, and the management overhead of owning property across a border. The capital gain did the heavy lifting; rental cashflow was a net drag.
For a deeper breakdown of every recurring cost line, see our full cost-stack analysis for Malaysian rental properties. And if you're earlier in the process and evaluating whether to buy at all, our guide to buying Malaysian property from Singapore covers the legal and practical steps.
Total Tax Drag on Your Cashflow
Let's quantify exactly how much the tax layer costs you as a Singaporean investor, expressed as a yield reduction.
On the RM 1.5M property above:
- Stamp duty drag: RM 104,000 upfront on a 5-year hold = RM 1,733/month amortized = 1.39% of property value per year
- Rental income tax drag: RM 840/month = RM 10,080/year = 0.67% of property value per year
- RPGT drag (amortized over hold): RM 25,500 over 5 years = RM 425/month = 0.34% of property value per year
Total tax drag: approximately 2.4% of property value per year. This is the yield penalty you pay as a foreign non-resident investor compared to a Malaysian citizen buying the same property with the same financing.
A Malaysian citizen buying the identical property would pay approximately RM 44,000 in stamp duty (no foreign levy), pay progressive rental income tax at 0–8% effective rate (far below 30%), and pay 0% RPGT after 5 years. Their total tax drag is roughly 0.5–0.8% — giving them a 1.5–2.0% yield advantage over you.
This means: if a property needs 5.5% gross yield to be cashflow-positive for a Malaysian, it needs approximately 7.0–7.5% gross yield to be cashflow-positive for a Singaporean non-resident buyer.
Properties yielding 7%+ on purchases above RM 1M do exist — but they're concentrated in specific pockets: older condos near transit in Cheras, Kepong, and Setapak; serviced apartments in Johor Bahru near the RTS link; and selected units in Penang's mainland. They require more diligence to find and validate, but the math can work.
The honest framing: Malaysian property for Singaporean investors is primarily a capital appreciation and diversification play, with rental income partially offsetting holding costs. Pure cashflow plays at the RM 1M+ price point that foreigners are restricted to require yields that are achievable but not common.
The tax stack for Singaporean buyers in Malaysia is real and cumulative — 8% stamp duty going in, 30% on rental income during the hold, and 10–30% RPGT going out. But compared to the 60% ABSD foreigners face buying in Singapore, or the sub-3% yields on most Singapore residential property, the relative value proposition still holds for investors who model the costs honestly and target the right yield band. The key is modeling honestly: run the full cost stack before you commit, not after.