See the stamp duty on a property purchase

Stamp duty (property)

Calculate Malaysia's stamp duty (duti setem) on a property's Memorandum of Transfer and loan agreement.

Formula

MOT duty = 1%/2%/3%/4% tiered on property price (or a flat 8% for non-citizens buying residential property) · loan agreement duty = 0.5% of the loan amount

Assumptions

• MOT tiers: 1% on the first RM100,000, 2% on the next RM400,000, 3% on the next RM500,000, and 4% above RM1,000,000.
• The flat 8% rate for non-citizens applies to residential property only (house, condominium, apartment, flat, service apartment, or SOHO used solely as a dwelling) and also covers companies not incorporated in Malaysia. Commercial and industrial purchases stay on the tiered scale for everyone.
• First-time buyer exemption covers both the MOT and loan agreement duty in full for homes at or below RM 500,000, and has been extended to 31 December 2027. It is limited to Malaysian citizens who have never owned any residential property, including one inherited or received as a gift.
• Excludes legal fees, disbursements, and any partial exemption tiers for higher-priced homes that have applied in some Budget years.

Frequently asked questions

What's the difference between MOT duty and loan agreement duty?
MOT (Memorandum of Transfer) duty is charged on the property's price to transfer ownership. Loan agreement duty is a separate, smaller charge (0.5%) on the loan facility itself — you only pay it if you're financing the purchase with a bank loan.

Am I eligible for the first-time buyer exemption?
Eligibility (citizenship, price ceiling, and whether it truly is your first property) and the exemption's expiry date are set by each year's Budget and can change — confirm current terms with LHDN or your conveyancing lawyer before assuming you qualify.

Why do non-citizens pay so much more?
From 1 January 2026, non-citizen buyers (excluding Malaysian permanent residents) are charged a flat 8% MOT stamp duty on the full property price, replacing the standard tiered rate — a policy change aimed at moderating foreign property purchases.

Sources

• LHDN — Schedule of Tax Rates for Resident Individuals