Short answer: A non-resident individual who owns property in Malaysia is reported to pay a flat 30% income tax on net rental income, which means rent after allowable deductions, not on gross rent. You file your own return, and many overseas owners appoint a Malaysian tax agent to do it. Short-term rentals such as Airbnb are a separate matter, because building rules and local requirements vary by project, so check your building’s by-laws before you list.
Last verified: 6 October 2026. This is a planning guide, not tax or legal advice. Tax rules change, so confirm with a Malaysian tax agent or LHDN.
How is rental income taxed for a non-resident owner?
Two independent guides report the same headline rate. SPEEDHOME says a non-resident individual landlord is taxed at a flat 30% on net Malaysian rental income, with effect from Year of Assessment 2020. Global Property Guide (updated September 2026) also reports a flat 30% for non-residents on net taxable rental income. Residency status is based on how long you are physically present in Malaysia during the year, not on your passport or where the property is, so check your own status.
If the owner is a company rather than an individual, a different rate can apply. Global Property Guide reports 24% for non-resident companies earning Malaysian-source business income, so ask your adviser which applies to you.
What can I deduct?
SPEEDHOME lists the deductions allowed under LHDN Public Ruling 12/2018:
- Assessment tax and quit rent
- The interest portion of your loan (not the principal)
- Fire insurance
- Ordinary repairs
- Agent commission for renewal or subsequent tenants (commission for the first tenant is not deductible)
Global Property Guide also lists management fees among qualifying expenses. Keep receipts for everything.
How do I file as an overseas owner?
According to SPEEDHOME, a non-resident landlord files an individual return through LHDN’s MyTax portal, and non-residents may receive CP500 notices for estimated tax instalments during the year, paid in six instalments starting in March and credited against the final assessment. Appointing a Malaysian tax agent to lodge the return and receive LHDN letters is the practical way to avoid missed deadlines when you live abroad.
Long-term tenancy or short-term rental?
- Long-term tenancy (usually 12 months or more). Simpler to manage, steadier occupancy and fewer building issues. Rent is usually lower per night than short-term but with less work. See our rental yield guide for how to test a projected yield.
- Short-term rental (Airbnb style). Potentially higher income per night but more work, more vacancy risk and more rules. Airbtics, an Airbnb data site, reported in July 2025 that hosts must keep a registry of guests, including foreigners, and that income must be declared on your tax return. Airbnb has also said publicly that, in Malaysia, it supports allowing short-term rentals where owners obtain approval from the building’s management body, which shows that building-level rules are an active issue.
Short-term rental rules depend on your project’s by-laws and local requirements. Ask the management office for the written rules before you buy a unit for this purpose, because a unit that cannot be listed will not earn what the listing site says.
Checklist before you rent out
- Confirm your tax residency status and appoint a Malaysian tax agent.
- Keep a record of rent received and every deductible expense.
- Read the building’s house rules and by-laws, especially on short-term stays and renovations.
- Use a written tenancy agreement and ask your lawyer about stamping.
- Plan who handles repairs, rent collection and tenant problems while you are abroad.
- Check that your loan, if any, allows renting out the unit.
Frequently asked questions
What tax rate do foreign landlords pay in Malaysia?
Two sources report a flat 30% on net rental income for non-resident individuals. Companies may be taxed differently, so confirm with a tax adviser.
Is the 30% on the rent I receive or the profit?
On net income, meaning rent minus allowable deductions such as quit rent, assessment tax, the interest on your loan, insurance, ordinary repairs and certain agent commission.
Can I do Airbnb in a Johor condo?
It depends on the project’s rules and any local requirements. Ask the building management in writing before you buy or list.
Do I need a Malaysian tax agent?
It is not a legal requirement for everyone, but SPEEDHOME describes appointing one as the most useful protective step for overseas owners.
Does JOHOME manage rentals?
Ask us on WhatsApp what we can arrange for your unit. We will tell you plainly what we can and cannot do.
Sources
- SPEEDHOME, How is a non-resident landlord taxed on Malaysian rental income? (https://speedhome.com/blog/non-resident-rental-income-tax-malaysia)
- Global Property Guide, Malaysia taxes and costs, updated September 2026 (https://www.globalpropertyguide.com/Asia/Malaysia/Taxes-and-Costs)
- Airbtics, Airbnb rules in Johor Bahru, updated 4 July 2025 (https://airbtics.com/airbnb-rules-in-johor-bahru-malaysia)
- The Vibes, Allow short-term rentals with approval from joint management bodies: Airbnb, 20 January 2023 (https://www.thevibes.com/index.php/articles/news/83333/allow-short-term-rentals-with-approval-from-joint-management-bodies-airbnb)
