Real estate investments are highly popular all over the world, and for numerous reasons. For starters, investing in property is seen by man as the safest way of accumulating wealth. Generally speaking, property prices increase around the world as the years go by. Not only that, but you have the option to rent out a property that you own, making constant income from it. With that in mind, finding the right places to invest in real estate is a top priority. Instead of focusing on properties in your local area, you may wish to expand your horizons to different countries.
Speaking of which, Malaysia has grown into a country that some of the keenest property investors are looking into. It presents many benefits – such as a thriving economy and plentiful property developments. However, before considering your Malaysian property investments, you need to think about one thing: Real Property Gains Tax. This is an act that was brought into action in 1976, effectively charging property owners a rate of tax on the sale of their properties. One of Malaysia’s top real estate companies, Property Guru, has compiled an infographic that explains the Real Property Gains Tax (RPGT) Act in more detail.
In short, you will have to pay tax on the profits earned from the sale of your property. The exact rate you pay is determined by a few factors – how long you’ve owned the property, whether you’re a company or not, and where you come from. For more information, check out the details below:
Infographic designed by: PropertyGuru No.1 Property Website in Malaysia