How much is the Stamp Duty payable when purchasing a property?
Non-Malaysians pay a flat 8% stamp duty on residential property transfers, while Malaysians pay a tiered 1% to 4% rate. First-time Malaysian buyers can get exemptions for homes up to RM500,000 until the end of 2027. Loan agreements for all buyers incur a 0.5% stamp duty.
Stamp Duty for Non-Malaysians/Foreigners (Residential)
- Rate: 8% flat rate on the instrument of transfer (Memo of Transfer – MOT).
- Applicability: Applies to all non-citizen individuals (except Permanent Residents) and foreign-owned companies from 1 January 2026.
- Minimum Thresholds: Foreigners must adhere to minimum purchase prices (e.g., RM1 million in many areas).
Stamp Duty for Malaysians (Progressive Rate)
Malaysian citizens and permanent residents pay on a progressive scale:
- First RM100,000: 1%
- RM100,001 – RM500,000: 2%
- RM500,001 – RM1,000,000: 3%
- Above RM1,000,000: 4%