What Is Stamp Duty on Property?
Stamp duty is a tax on legal documents (the law calls them instruments), charged under the Stamp Act 1949 and collected by the Inland Revenue Board (LHDN). When you buy a home, two documents carry duty:
- The memorandum of transfer (MOT), which moves ownership to you. This is the big one.
- The loan agreement, if you're borrowing: 0.5% of the loan amount.
A document that isn't stamped can't be used as evidence in a Malaysian court, and the land office won't register the transfer without it.
How Much Stamp Duty Do Malaysians Pay?
Malaysian buyers pay on a sliding scale, charged on the higher of the price and the market value:
| Part of the property value | Rate |
|---|---|
| First RM100,000 | 1% |
| RM100,001 to RM500,000 | 2% |
| RM500,001 to RM1,000,000 | 3% |
| Above RM1,000,000 | 4% |
For example, on a RM2.3 million condo a Malaysian buyer pays RM1,000 + RM8,000 + RM15,000 + RM52,000 = RM76,000.
How Much Stamp Duty Do Foreigners Pay?
Since 1 January 2026, foreign buyers pay a flat 8% on the whole value, whatever the price. It was 4% before. On the same RM2.3 million condo, that's RM184,000, about 2.4 times what a Malaysian pays.
On a new launch, this duty is due when the unit is handed over and transferred to you, which can be a few years after signing. On a subsale, it's paid at the sale. Our guide to how much cash a foreigner needs puts it together with the other costs.
When Must a Document Be Stamped?
Within 30 days of signing. If you sign abroad, the 30 days start when the document arrives in Malaysia. Your lawyer normally handles the stamping for you.
Late stamping costs extra. Since 2025, the penalty is generally the greater of RM50 or 10% of the duty if you're up to three months late, and the greater of RM100 or 20% after that.
Are There Exemptions?
- First home, RM500,000 or less: Malaysian citizens buying their first home can be fully exempt on both the transfer and the loan agreement, for agreements up to 31 December 2027. A statutory declaration is needed.
- Transfers within the family: a transfer between husband and wife is generally fully exempt; between parent and child, or grandparent and grandchild, the first RM1 million is generally exempt with 50% off the rest. The person receiving the property must be a Malaysian citizen.
- Company restructuring: relief may be available under sections 15 and 15A of the Stamp Act, by application.
There's no general exemption for foreign buyers.
How Is Stamp Duty Filed in 2026?
LHDN is moving stamp duty to self-assessment, in phases, through its e-Duti Setem system on the MyTax portal:
| From | Documents |
|---|---|
| 1 January 2026 | Tenancies and leases, general stamping, and securities |
| 1 January 2027 | Property transfers |
| 1 January 2028 | All other documents |
So for a property purchase in 2026, your lawyer submits the transfer for stamping as before. Under self-assessment, an incorrect return can be penalised, so it's worth having your lawyer handle the filing.
Do Tenancy Agreements Need Stamping?
Yes. From 2026, the old exemption for low rents is gone. The duty is generally RM1 for every RM250 of annual rent for a lease of a year or less, and RM3 per RM250 for one to three years. Tenancies are among the first documents under self-assessment, so the landlord or tenant (as agreed) files and pays through MyTax.
FAQ
A flat 8% of the property value, whatever the price, since 1 January 2026 (it was 4% before). It's charged on the higher of the price and the market value. There's also 0.5% of the loan amount on the loan agreement.
On a sliding scale: 1% on the first RM100,000, 2% on the next RM400,000, 3% from RM500,001 to RM1 million, and 4% above RM1 million. A RM2.3 million property comes to RM76,000.
The 8% duty on the transfer is due when the unit is handed over and transferred, which can be years after signing. On a subsale, it's paid at the time of the sale.
30 days from signing, or 30 days from the document's arrival in Malaysia if signed abroad. Late stamping generally costs the greater of RM50 or 10% of the duty within three months, and the greater of RM100 or 20% after that.
Yes, for Malaysian citizens buying their first home at RM500,000 or less, covering both the transfer and the loan agreement, for agreements up to 31 December 2027.
Only for some documents. Self-assessment started on 1 January 2026 for tenancies, general stamping and securities. Property transfers move to self-assessment on 1 January 2027.
Updated September 2026. Rules, bank policies and fees change, and every purchase is different. This article is general information, not legal or tax advice, so please check the details with your lawyer and bank before you sign.