Stamp duty is a tax on legal documents under the Stamp Act 1949. For property, the main documents are the Memorandum of Transfer (MOT), the loan agreement and the tenancy agreement.
MOT stamp duty (Memorandum of Transfer)
The MOT transfers ownership of the property to the buyer. Stamp duty is charged on the purchase price or the market value, whichever is higher, using these tiered rates for Malaysian citizens, permanent residents and Malaysian companies:
| Property value | Rate |
|---|---|
| First RM100,000 | 1% |
| RM100,001 – RM500,000 | 2% |
| RM500,001 – RM1,000,000 | 3% |
| Above RM1,000,000 | 4% |
Example: property priced at RM 600,000
First RM100,000: RM 100,000 × 1% = RM 1,000
RM100,001 – RM500,000: RM 400,000 × 2% = RM 8,000
RM500,001 – RM1,000,000: RM 100,000 × 3% = RM 3,000
Total MOT stamp duty: RM 12,000
Loan agreement stamp duty
If you take a housing loan, the loan agreement is stamped at a flat 0.5% of the loan amount. For a RM 540,000 loan, that is RM 2,700, so the total stamp duty for the example above is RM 14,700.
First-time home buyer exemption
Malaysian citizens buying their first residential home priced up to RM 500,000 get a full exemption on both the MOT and the loan agreement stamp duty, for SPAs signed by 31 December 2027. Conditions apply — for example, you must not have owned any residential property before.
Budget 2027 proposal
Budget 2027 (tabled on 9 October 2026) proposes to continue the full exemption for first homes up to RM 500,000 and to give relief for homes priced up to RM 750,000 — full relief on the first RM 500,000 and 50% on the balance — for SPAs signed from 1 January 2027 to 31 December 2030. This is a proposal until it is passed into law; your lawyer will confirm the final rules.
Foreign buyers
Non-citizens who are not permanent residents, and foreign companies, pay a flat rate instead of the tiered rates:
| Property type | MOT stamp duty |
|---|---|
| Residential | 8% flat (from 1 January 2026) |
| Non-residential (commercial, industrial) | 4% flat |
For the same RM 600,000 home, a foreign buyer would pay RM 48,000 MOT stamp duty. In Johor, foreign purchases also need state approval and must meet the state's minimum price for foreigners.
Tenancy agreement stamp duty
Tenancy agreements are stamped based on the annual rent. For every RM250 of annual rent (or part of RM250), the duty is:
| Tenancy period | Duty per RM250 of annual rent |
|---|---|
| 1 year or less | RM1 |
| More than 1 year, up to 3 years | RM3 |
| More than 3 years, up to 5 years | RM5 |
| More than 5 years | RM7 |
The minimum duty is RM10, and each duplicate copy costs RM10. The previous exemption on the first RM2,400 of annual rent no longer applies.
Example: RM1,500 monthly rent
Annual rent: RM 18,000 ÷ RM250 = 72 units
1-year tenancy: 72 × RM1 = RM 72
2-year tenancy: 72 × RM3 = RM 216
Who pays and when?
- The buyer pays MOT and loan agreement stamp duty, usually through the lawyer before the title is transferred.
- The tenant usually pays tenancy stamp duty, unless agreed otherwise.
- Documents should be stamped within 30 days of signing through LHDN's online stamping system. Late stamping attracts penalties.
- Legal fees, disbursements and valuation fees are separate from stamp duty.
Work out your own figures with the Stamp Duty Calculator or the Tenancy Stamp Duty Calculator.