Stamp-duty scope and timing checked on 24 September 2026. This update uses LHDN’s current guidance. The cost examples are illustrations, not an assessment of a particular transaction.
The asking price is only one part of your buying budget.
For non-citizens who are not Malaysian permanent residents, and for foreign companies, residential purchases under the 2026 rule attract 8% transfer duty. Other real-property purchases in these categories generally attract 4%. Malaysian citizens and permanent residents generally use the tiered scale. Duty is based on the purchase consideration or market value, whichever is higher, with each RM100 or part counted. At an assessed value of RM1.5 million, the 8% duty is RM120,000.
Before comparing projects, work out which duty applies to you and how much cash the purchase needs.
What changed
Check your SPA date. LHDN’s current clarification says the new 8% residential rate applies to sale and purchase agreements signed from 1 January 2026. In its example, a SPA signed on 20 December 2025 does not attract the new rate merely because the MOT is signed on 5 January 2026. Ask your lawyer to confirm the treatment using your signed documents and any duty already paid.
What it costs, in ringgit
For an assessed property value of RM1.5m, the arithmetic is:
| Illustrative duty rate | Stamp duty on RM1.5m |
|---|---|
| 8% qualifying residential rate | RM120,000 (8% flat) |
| 4% rate, where applicable | RM60,000 (4%) |
Allow for the duty in your cash budget. Your lawyer should confirm when payment is due and whether earlier documents have already been stamped.
The difference between these two examples is RM60,000. Check which rule applies before treating that difference as part of your own purchase cost.
Who it hits
- Non-citizen individuals who are not Malaysian permanent residents, and foreign companies: the residential 8% rule applies to qualifying purchases under SPAs signed from 1 January 2026.
- MM2H holders: the pass alone does not make someone a Malaysian permanent resident. Check the buyer category, property and SPA date in the same way.
- Permanent residents (PR), not affected. PRs are assessed on the standard tiered scale.
A serviced apartment or SOHO used solely as a home can fall within the residential definition. Joint buyers with different citizenship or PR status need the treatment checked for each ownership share.
Compare the full purchase cost
If you are comparing countries or cities, ask for a written cost estimate for each actual property and buyer profile. Headline percentages alone can leave out important costs or exemptions.
| Budget item | What to check |
|---|---|
| Transfer duty | Buyer category, property use, SPA date and assessed value |
| Financing | Bank approval, loan documentation costs and repayment estimate |
| Legal and state charges | An itemised quote for the selected property |
| Holding costs | Service charges, sinking fund, taxes, insurance and upkeep |
| Exit costs | Selling costs and the tax treatment when you dispose of the property |
Use the same assumptions in each comparison: your ownership structure, intended use, financing and expected holding period.
A lower headline buying tax does not establish that one property is a better purchase. The final price, legal eligibility and ongoing costs still need to work for you.
For a comparison outside Malaysia, get current local advice on that market’s rules before making a decision.
And then there’s the property itself
Once the buying costs are clear, check whether the unit fits your plans.
For the same RM1.5m assessed value, moving from a 4% to an 8% duty means an extra RM60,000. Compare that with your full cash budget and expected holding costs. A KLCC or TRX address does not guarantee that you will recover the duty through rent or a later sale.
For a home, look at the layout, daily travel and how long you expect to stay. For an investment, test the numbers with realistic rent, vacancies, costs and an exit price you can support with evidence.
Use the stamp duty and RPGT calculators for initial estimates, then complete the budget with your lawyer’s and bank’s figures. The Foreign Buyer guide lists the other items to check.
Check your buyer category and signed documents before putting a tax figure into your property budget.
Send me your target price and intended use. I can help you put together the questions and cost items for your shortlist. Message me on WhatsApp →
This is general commentary, not a tax assessment or investment advice. The stamp-duty scope and timing were checked on 24 September 2026. Confirm your documents, applicable reliefs and final duty with your lawyer or LHDN. No return is promised.
Official sources checked on 24 September 2026: LHDN guideline, 30 June 2026, Part C pp. 10–11; LHDN Budget 2026 responses, section 2.7 pp. 23–24.
See this in real projects
Live listings where this applies: