Malaysia real estate agent fees: a 3% cap, plus 8% service tax.
// Short answer
Malaysia's estate-agent board caps the fee for selling or buying land and buildings at 3% of the price, with a minimum of RM1,000 per property. Registered estate agents also charge 8% service tax. The scale does not cover developer project sales, which are by agreement, or Malaysian property sold abroad.
Where agent commission is capped, who pays it and the VAT, in twenty-one countries side by side: real estate agent fees by country.
Rules and rates as of October 2026.
On this page
How much can a Malaysian real estate agent charge?
At most 3% of the price for the sale or purchase of land and buildings, with a minimum of RM1,000 per property, under the Board's scale of fees (the Seventh Schedule).
Worked on an RM1,000,000 condo: up to RM30,000, plus 8% service tax of RM2,400. Every other cost at transfer: Malaysia property buying costs.
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Who pays the agent fee in Malaysia, buyer or seller?
The client who appoints the agent. The scale refers only to the agent's client and does not say whether that is the buyer or the seller, so the appointment letter decides.
Two exceptions to the 3% cap: project sales by registered agents (new launches) are by agreement, and the scale does not apply to the sale of foreign properties in Malaysia or of Malaysian properties in other countries, for example at an overseas property fair.
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Is service tax charged on agent fees in Malaysia?
Yes. Services of licensed or registered estate agents are taxable, and agents registered for service tax add 8% (from 1 March 2024).
Registration applies above the service-tax threshold (RM500,000 of taxable services in 12 months under the 2018 regulations), so a small agency may not charge it. Taxes once you own: Malaysia property tax for foreigners.
Malaysia agent guide
Choosing an agent in Malaysia? The questions to ask first
Fees are capped at 3% and unregistered agency is a crime. Registered agent or negotiator, the 12 questions, the earnest deposit, new launches outside the cap, a first-call script and a worksheet in ringgit.
How do I check a Malaysian estate agent is registered?
The Board (LPEPH, formerly LPPEH) runs a public members search. Check the agent's name and registration number there before you sign an appointment letter.
What a foreigner can buy and the state minimums: Malaysia minimum purchase price by state.
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Frequently Asked Questions
What is the maximum agent commission in Malaysia?
Is there service tax on real estate agent fees in Malaysia?
Does the 3% cap apply to new developer projects?
How do I verify a real estate agent in Malaysia?
Header photo: CEphoto, Uwe Aranas, CC BY-SA 3.0, via Wikimedia Commons. All credits: image credits.