Stamp duty on buying property in Malaysia (Memorandum of Transfer)
Figures checked against official sources on
Stamp duty on the transfer of property (the Memorandum of Transfer, or MOT) is charged on the price or market value, whichever is higher: 1% on the first RM100,000, 2% on the next RM400,000, 3% on the next RM500,000 and 4% on anything above RM1 million. On a RM500,000 home that comes to RM9,000, and on a RM1 million home RM24,000. Foreign buyers pay a flat 8% on residential property under a sale and purchase agreement signed from 1 January 2026.[1],[3]
Stamp duty rates on the transfer (MOT)
The duty is set by item 32(a) of the First Schedule to the Stamp Act 1949. It is charged on the consideration (the price) or the market value of the property, whichever is higher, at so many ringgit for every RM100 or part of RM100.[1],[2]
| Part of the value | Duty per RM100 | Rate |
|---|---|---|
| First RM100,000 | RM1 | 1% |
| RM100,001 to RM500,000 | RM2 | 2% |
| RM500,001 to RM1,000,000 | RM3 | 3% |
| Above RM1,000,000 | RM4 | 4% |
Each rate applies only to the slice of the value inside its band, so a RM600,000 property pays 1% on the first RM100,000, 2% on the next RM400,000 and 3% on the last RM100,000 — not 3% on the whole price.[1]
Worked examples
- RM100,000 at 1% (RM0–RM100,000)
- RM1,000
- RM200,000 at 2% (RM100,000–RM300,000)
- RM4,000
- Stamp duty on the MOT
- RM5,000
- RM100,000 at 1% (RM0–RM100,000)
- RM1,000
- RM400,000 at 2% (RM100,000–RM500,000)
- RM8,000
- Stamp duty on the MOT
- RM9,000
- RM100,000 at 1% (RM0–RM100,000)
- RM1,000
- RM400,000 at 2% (RM100,000–RM500,000)
- RM8,000
- RM250,000 at 3% (RM500,000–RM750,000)
- RM7,500
- Stamp duty on the MOT
- RM16,500
- RM100,000 at 1% (RM0–RM100,000)
- RM1,000
- RM400,000 at 2% (RM100,000–RM500,000)
- RM8,000
- RM500,000 at 3% (RM500,000–RM1,000,000)
- RM15,000
- RM200,000 at 4% (RM1,000,000–RM1,200,000)
- RM8,000
- Stamp duty on the MOT
- RM32,000
Who pays the stamp duty
The buyer (the transferee) pays the stamp duty on the transfer. The housing loan agreement is stamped separately, at 0.5% of the loan — see stamp duty on loan agreements.[1],[2]
Foreign buyers: 8% on homes, 4% on other property
A person who is neither a Malaysian citizen nor a permanent resident, or a foreign company, pays a flat rate instead of the bands. For residential property sold under a sale and purchase agreement signed from 1 January 2026, the rate is 8% (item 32(ab), added by the Finance Act 2025). For other property it stays at 4% (item 32(aa)). The SPA date decides: LHDN has confirmed that a home bought under an SPA signed before 1 January 2026 is charged 4%, even if the transfer is signed or stamped later. On a RM1 million home, a foreign buyer pays RM80,000 against RM24,000 for a Malaysian.[1],[3],[4]
Residential property here means a house, condominium, apartment, flat, service apartment or small office home office used solely as a dwelling house. Where a foreigner and a Malaysian own a home jointly, LHDN charges each owner’s share at that owner’s rate.[3],[4]
First-home exemption
A Malaysian citizen buying a first residential home priced up to RM500,000 pays no stamp duty on the transfer or the loan agreement, where the sale and purchase agreement is executed between 1 January 2021 and 31 December 2027. Details in the first-home stamp duty exemption guide.[8]
Deadline and late-stamping penalty
- An instrument must be stamped within 30 days of being signed in Malaysia, or within 30 days of reaching Malaysia if signed abroad.
- Stamped late but within 3 months of the deadline: a penalty of RM50 or 10% of the unpaid duty, whichever is higher.
- Later than that: RM100 or 20% of the unpaid duty, whichever is higher.
LHDN is moving stamping to self-assessment in phases. Transfers of real property that do not involve a JPPH valuation join on 1 January 2027 (phase 2). Tenancy agreements and security instruments, which include loan agreements, joined on 1 January 2026.[7]
What Budget 2027 proposes
Budget 2027, tabled on 9 October 2026, proposes widening the first-home exemption for sale and purchase agreements executed from 1 January 2027 to 31 December 2030: 100% for homes up to RM500,000, and for homes up to RM750,000, 100% on the first RM500,000 and 50% on the rest. This is a proposal until it is enacted; the 2021–2027 exemption above is the one in force today.[8]
Frequently asked questions
How much is stamp duty on a RM500,000 house in Malaysia?
RM9,000 on the transfer for a Malaysian buyer: 1% of the first RM100,000 (RM1,000) plus 2% of the next RM400,000 (RM8,000). A citizen buying a first home at this price under an SPA signed by 31 December 2027 is exempt.[1],[8]
Is stamp duty based on the purchase price or the market value?
On whichever is higher. If the valuation is above the price you agreed, duty is charged on the valuation.[1]
What is the stamp duty rate for foreigners buying property in Malaysia?
A flat 8% on residential property under a sale and purchase agreement signed from 1 January 2026, and 4% on non-residential property. Permanent residents pay the same bands as citizens.[1],[3]
Who pays stamp duty on the MOT, the buyer or the seller?
The buyer.[1]
What happens if the MOT is stamped late?
Within 3 months after the 30-day deadline the penalty is RM50 or 10% of the unpaid duty, whichever is higher; after that it is RM100 or 20%, whichever is higher.[6]
Sources
- Garis Panduan Pengenaan Duti Setem bagi Surat Cara yang Tertakluk kepada Jadual Pertama Akta Setem 1949 (30 June 2026) — LHDN, checked
- Stamp Act 1949 (Act 378), updated text as at 1 January 2024 — Attorney General’s Chambers, hosted by LHDN, checked
- Finance Act 2025 (Act 874): 8% duty on residential property sold to foreigners, from 1 January 2026 — Laws of Malaysia, hosted by LHDN, checked
- LHDN response to the joint memorandum on Budget 2026 and the 2025 tax bills (11 December 2025) — LHDN, checked
- Finance Act 2024 (Act 862): new tenancy rates, RM10 minimum duty, late-stamping penalty, from 1 January 2025 — Laws of Malaysia, hosted by LHDN, checked
- Stamp duty penalty — LHDN, checked
- Stamp Duty Self-Assessment System (STSDS) — LHDN, checked
- Budget 2027 tax measures, 9 October 2026 (proposals until enacted) — Ministry of Finance Malaysia, checked