📅 Last verified: June 2026. Rates marked † change. Confirm with LHDN (the tax authority) or a licensed professional before acting.
The short version
- Buying with a loan means two stamp duties: one on the property transfer (the MOT, or Memorandum of Transfer), one on the loan agreement (0.5%).
- The transfer duty normally runs on a tiered scale (1–4%).
- As an international buyer, you pay a flat 8% on the full price of residential property, from 1 Jan 2026. †
- It’s charged on the transfer date, not the day you signed. Estimate yours in seconds → calculator.
What stamp duty is, in plain terms
Stamp duty is the tax for legally stamping your property documents. Buy with a loan and you pay it on two documents: the transfer of ownership (the MOT) and the loan agreement.
1) Transfer (MOT) stamp duty, the big one
Charged on the purchase price or market value, whichever is higher.
The tiered scale, used for most residential transfers:
| Portion of price | Rate |
|---|---|
| First RM100,000 | 1% |
| RM100,001 – 500,000 | 2% |
| RM500,001 – 1,000,000 | 3% |
| Above RM1,000,000 | 4% |
International buyers are on a flat rate. From 1 January 2026, you pay a flat 8% on the full price of residential property. † On an RM1.5m home, that’s RM120,000.
💡 Timing matters. The 8% is triggered by the date the transfer (MOT) is executed, not the SPA (Sale and Purchase Agreement) signing date. Sign in 2025, complete in 2026 → you pay 8%.
8% sounds steep — until you compare it abroad: Singapore charges overseas buyers 60%, Australia adds 7–9% on top of base duty. In that company, Malaysia stays one of the lowest-cost open markets. → The Hidden 8%
Bottom line: as an international buyer, budget 8% of the price for transfer duty.
2) Loan agreement stamp duty
If you finance the purchase, the loan agreement is stamped at a flat 0.5% of the loan amount. Borrow RM1m → RM5,000.
Reliefs and exemptions
Various exemptions and reliefs exist, for example, for certain first-time buyers and selected affordable-housing schemes, and they’re adjusted from year to year. † Check the current list with LHDN or your lawyer before counting on one.
Don’t forget legal fees
Separate from stamp duty, your lawyer’s fee for the SPA and loan runs on the SRO 2023 scale (SRO 2023, the official scale for lawyers’ fees). Roughly 1–1.25% on the first RM500k, easing above that. †
→ Estimate your full entry cost on the stamp duty calculator, and see the complete buyer cost breakdown in the Foreign Buyer guide.
Stamp duty is the one cost you can know to the ringgit before you commit. Run the number first — then decide.
Run the number first — then decide.
Message me a unit price and I’ll work your real stamp-duty bill before you commit. Message me on WhatsApp →
General information, not tax or legal advice. Rates are current as of June 2026; figures marked † change. Confirm with LHDN or a licensed professional before acting. Author: Jacky Yong, licensed real estate negotiator (REN 77674), Vivahomes Realty Sdn Bhd (E(1)1670).
See this in real projects
Live listings where this applies: