Stamp duty on the Memorandum of Transfer (MOT) is the single largest government cost when buying property in Malaysia — bigger than legal fees, bigger than valuation costs. Here’s exactly how it’s calculated in 2026, and where the rules changed this year.
The tiered rate for citizens and permanent residents
MOT stamp duty is calculated on a progressive scale, applied to whichever is higher — the purchase price or the market value assessed by the valuation authority:
- 1% on the first RM100,000
- 2% on the next RM400,000 (RM100,001–RM500,000)
- 3% on the next RM500,000 (RM500,001–RM1,000,000)
- 4% on anything above RM1,000,000
These tiers stack — you don’t jump to a single rate for the whole price. On a RM600,000 property, for example: 1% on the first RM100,000 (RM1,000) + 2% on the next RM400,000 (RM8,000) + 3% on the remaining RM100,000 (RM3,000) = RM12,000 total.
The separate loan agreement duty
On top of the MOT, there’s a flat 0.5% stamp duty on your loan or financing agreement. On a RM540,000 loan, that’s RM2,700 — payable regardless of citizenship status.
What changed for foreign buyers in 2026
Under Budget 2026, non-citizens (excluding Malaysian permanent residents) and foreign-owned companies now pay a flat 8% stamp duty on residential property transfers, up from the previous 4% — effective for any MOT executed on or after 1 January 2026, regardless of when the SPA was signed. On a RM1.5 million property, that’s the difference between RM120,000 for a foreign buyer versus RM44,000 for a citizen. This rate applies only to residential property; commercial and industrial transactions still use the standard tiered rates for all buyers.
The first-time buyer exemption
Malaysian citizens buying their first home priced up to RM500,000 get a full exemption on both the MOT stamp duty and the loan agreement duty, for SPAs signed between 1 January 2026 and 31 December 2027. On a RM500,000 property that’s roughly RM11,250 saved — the single biggest cost-saving lever available to a first-time buyer this year.
Work out your exact number
Rates are fixed and mechanical once you know the price bracket, but it’s easy to underestimate the total when you’re juggling multiple cost lines at once. Run your specific figures through the stamp duty calculator to get the MOT duty, loan duty, and combined total before you commit to an offer.
Don’t forget to factor it into your budget from day one
Stamp duty is due before your transfer can be registered — it’s not a cost you can defer or negotiate away. Whether you’re comparing a condo against a terrace house, build stamp duty into the comparison from the start, not as an afterthought once you’ve already picked a favourite.