Malaysia Stamp Duty 2026: Rates for Property Buyers and Investors
Last reviewed: June 2026
Quick Answer
Malaysia charges tiered Memorandum of Transfer stamp duty of 1% to 4% of the property price, plus 0.5% stamp duty on the loan agreement. This is one of the largest upfront costs when buying property. First home buyers may qualify for exemptions, and rates differ from Singapore's stamp duty structure.
Rates as of 2026. Verify with official sources before filing.
Malaysia charges tiered Memorandum of Transfer stamp duty of 1% to 4% of the property price, plus 0.5% stamp duty on the loan agreement. Stamp duty is a government tax on legal documents, including property transfer instruments and loan agreements. In Malaysia, it is one of the largest upfront costs in any property purchase. This guide explains the Memorandum of Transfer (MOT) rates, loan agreement duty, first home buyer exemptions, worked examples, and how Malaysia compares with Singapore. For Singapore stamp duty, see the Singapore stamp duty calculator.
What Is Stamp Duty in Malaysia?
When you buy property in Malaysia, two separate stamp duty charges apply:
- MOT (Memorandum of Transfer) stamp duty: Charged on the instrument that transfers legal ownership of the property from seller to buyer
- Loan agreement stamp duty: Charged on the facility agreement between you and the bank for your mortgage
Both are calculated on the purchase price (or market value if higher) and the loan amount respectively. They must be paid to LHDN (Lembaga Hasil Dalam Negeri) within 30 days of signing the relevant documents.
What Are the MOT Stamp Duty Rates in 2026?
Malaysia uses a tiered rate structure for MOT stamp duty. The rate applies to each band of the purchase price, not to the full price.
| Purchase Price Band (MYR) | Rate | Duty on Band |
|---|---|---|
| First 100,000 | 1% | MYR 1,000 |
| 100,001 to 500,000 | 2% | MYR 8,000 (on MYR 400,000) |
| 500,001 to 1,000,000 | 3% | MYR 15,000 (on MYR 500,000) |
| Above 1,000,000 | 4% | 4% on excess over MYR 1,000,000 |
Worked examples:
- MYR 400,000 property: MYR 1,000 (first 100k) + MYR 6,000 (next 300k at 2%) = MYR 7,000
- MYR 700,000 property: MYR 1,000 + MYR 8,000 + MYR 6,000 (200k at 3%) = MYR 15,000
- MYR 1,500,000 property: MYR 1,000 + MYR 8,000 + MYR 15,000 + MYR 20,000 (500k at 4%) = MYR 44,000
Loan Agreement Stamp Duty
A separate stamp duty applies to the loan facility agreement you sign with your bank. The rate is 0.5% of the loan amount, with no tiered structure.
- Loan of MYR 300,000: stamp duty = MYR 1,500
- Loan of MYR 600,000: stamp duty = MYR 3,000
The loan agreement duty applies to the full facility amount, not just the principal drawn down. This makes it important to factor into total upfront costs alongside the MOT stamp duty and legal fees.
Do First Home Buyers Get Exemptions?
The Malaysian government has periodically provided stamp duty exemptions for first-time residential property buyers to reduce the upfront cost of homeownership.
For residential properties priced at MYR 500,000 and below, first-time buyers have been entitled to a full exemption from MOT stamp duty. This exemption has been renewed across multiple budgets and has generally remained in force through 2026. Loan agreement stamp duty exemptions have also been made available for qualifying buyers under certain government housing programmes.
Conditions that typically apply:
- The buyer must be a Malaysian citizen
- The buyer must not have previously owned any residential property
- The property must be for own occupation, not for rental or investment
- The exemption applies only to the first property purchased
Exemptions are subject to the terms of the applicable budget announcement and must be confirmed at hasil.gov.my or with your solicitor before signing. Do not assume the exemption applies without verification, as thresholds and conditions have changed between budgets.
Planning to buy in Singapore instead? Singapore stamp duty includes both Buyer's Stamp Duty and Additional Buyer's Stamp Duty depending on your residency status and number of properties owned. Use the Singapore stamp duty calculator to see your full liability. For loan sizing, try the home loan calculator.
Malaysia vs Singapore Stamp Duty
Both Malaysia and Singapore use tiered MOT/BSD rates that reach 4% on higher-value properties. The structural difference is significant:
- Singapore levies Additional Buyer's Stamp Duty (ABSD) on second and subsequent residential properties and on all foreign buyers. Citizens buying a second property pay 20% ABSD. Foreigners pay 60% ABSD on any residential property purchase.
- Malaysia has no equivalent to ABSD. Foreign buyers pay the standard MOT rates plus, in most states, a foreign ownership levy or higher minimum purchase thresholds for foreigners (typically MYR 1,000,000 or more depending on state).
For Singaporeans or PRs considering investment in Malaysia, the total stamp duty cost is typically much lower. A Singaporean buying a SGD 1 million (roughly MYR 3.5 million) apartment in Singapore as a second property would pay SGD 24,600 BSD plus SGD 200,000 ABSD (20%). A similar-value Malaysian property would attract MOT duty of approximately MYR 114,000 (MYR 1M at rates above, then 4% on MYR 2.5M excess = MYR 100,000 on that slice) with no additional foreign duty applicable in most scenarios.
The mortgage landscape also differs. Malaysia uses floating-rate loans pegged to BNM's base lending rate. Singapore bank loans are typically SORA-based variable rates. See the home loan calculator for monthly repayment comparisons.
Frequently Asked Questions
What are the stamp duty rates for property in Malaysia 2026?
Stamp duty on the Memorandum of Transfer (MOT) is 1% on the first MYR 100,000, 2% on MYR 100,001 to 500,000, 3% on MYR 500,001 to 1,000,000, and 4% on amounts above MYR 1,000,000. Loan agreement stamp duty is charged at a flat 0.5% of the loan amount.
Do first-time home buyers get stamp duty exemptions in Malaysia?
Yes. First-time buyers purchasing residential properties priced up to MYR 500,000 are generally exempt from MOT stamp duty. Loan agreement duty exemptions may also apply under qualifying government housing schemes. Confirm current terms at hasil.gov.my or with your conveyancing solicitor before signing.
How does Malaysia stamp duty compare with Singapore?
Both use tiered rates reaching 4% at the top. The key difference is that Singapore levies Additional Buyer's Stamp Duty (ABSD) on second properties and foreign buyers, adding 20% or more on top of BSD. Malaysia has no equivalent ABSD, making repeat purchases and most foreign acquisitions significantly cheaper from a stamp duty perspective.
When must stamp duty be paid in Malaysia?
Stamp duty must be paid within 30 days of the date the Sale and Purchase Agreement is signed in Malaysia. If the agreement is signed overseas, payment is due within 30 days of the document arriving in Malaysia. Late payment incurs penalties ranging from 5% to 25% of the unpaid duty.