Malaysia stamp duty: what a property buyer may pay

You may already have a purchase price in mind. Then the quotation arrives with a separate line for transfer duty, and another if you are taking a loan. Why are they separate? Stamp duty is charged on legal instruments. The transfer and the loan documents are different instruments, and the buyer’s status can change the rate too.

Putting a stamp-duty budget together? Send Jacky 1) your buyer status (citizen, PR, non-citizen/non-PR or company) and 2) the indicative property value. He can help you list the costs to discuss; your lawyer confirms the duty. Get a cost checklist →

Which costs belong in the comparison?

If you are a citizen or PR, how is transfer duty worked out?

For example, if the assessed value is RM1.5 million and the ordinary citizen/PR scale applies, the progressive duty is RM44,000: RM1,000 + RM8,000 + RM15,000 + RM20,000. For a qualifying residential transfer subject to 8%, RM1.5 million × 8% is RM120,000. The chargeable value is generally the consideration or market value, whichever is higher; the Collector determines the assessment.

When does the foreign-buyer 8% rule apply?

The 8% rule is not a flat rate for every buyer or every real-property transfer. The relevant category excludes Malaysian permanent residents. Property classification, ownership shares, and whether the buyer is an individual or a foreign company can also matter. LHDN’s later clarification says the new residential rate applies to SPAs signed from 1 January 2026. Its example says a 20 December 2025 SPA followed by an MOT signed on 5 January 2026 remains outside the new rate. An earlier LHDN seminar FAQ described the transition differently; this guide follows the later clarification. Ask your lawyer to confirm the assessment for your signed documents. The main materials are the Finance Act 2025 (Act 874) and LHDN’s later clarification.

Does the property label or a joint buyer change the calculation?

A listing label is only a starting point, not the legal classification. The residential use, transfer instrument, ownership shares and each co-owner’s status may matter. Ask your solicitor to classify the actual unit and show the calculation for each buyer’s share. MM2H status is not the same as permanent residence and does not by itself create a stamp-duty exemption.

Could a relief apply to your purchase?

First-home and approved housing reliefs may come with eligibility, value limits and date conditions. Before you include one in your budget, read the current LHDN stamp-duty guidance. Legal fees, state consent charges, valuation, registration, disbursements and maintenance sit outside stamp duty. See the legal-fees guide and request an itemised written quote.

Before you settle the budget, what should your lawyer confirm?

• Give your lawyer the draft SPA, buyer names and citizenship/PR details.
• Ask which duty rate and value basis apply, and request the calculation for the transfer and any financing documents separately.
• Check the stamping deadline and payment arrangements with the solicitor.
• Use an online calculator only as a planning estimate; it cannot decide the legal classification or assessment.

General information, checked 23 October 2026. The duty depends on current law, the instrument and the facts. The cited LHDN guidance has contained differing answers on the 2026 transition, so ask your appointed lawyer to confirm the actual assessment before acting.