Stamp duty & legal fees when buying property in Malaysia
When you buy a property in Malaysia there are two big categories of upfront cost on top of your down payment: stamp duty (a government tax, paid to LHDN) and legal fees (paid to the solicitors who prepare your documents). Each applies twice — once to the transfer of ownership and once to your loan.
1. MOT stamp duty (instrument of transfer)
Stamp duty on the Memorandum of Transfer (MOT) — the document that transfers ownership into your name — is charged on the purchase price or market value, whichever is higher. For Malaysian citizens and PRs it is tiered:
| Price band | Rate |
|---|
| First RM100,000 | 1% |
| RM100,001 – RM500,000 | 2% |
| RM500,001 – RM1,000,000 | 3% |
| Above RM1,000,000 | 4% |
From 1 January 2026, non-citizen (foreign) buyers pay a flat 8% on the whole price instead of the tiered scale (permanent residents still use the tiered scale).
2. Loan stamp duty
Stamp duty on the loan agreement is a flat 0.5% of the loan amount, for all buyers. If you pay cash there is no loan and no loan stamp duty.
3. Legal fees (Solicitors' Remuneration Order 2023)
Conveyancing legal fees are set by a government scale and charged on both the sale & purchase agreement (SPA) and the loan agreement, each on its own value:
| Value band | Rate |
|---|
| First RM500,000 | 1.25% (min RM500) |
| RM500,001 – RM7,500,000 | 1.00% |
| Above RM7,500,000 | Negotiable, max 1.00% |
A solicitor may discount conveyancing fees by up to 25%, and buyers of properties from licensed housing developers may receive up to a 50% reduction. Legal fees also attract 8% SST and disbursements, which this calculator does not add.
Worked example
A Malaysian citizen buys a RM500,000 home with a RM450,000 loan.
- MOT stamp duty = 1% × 100,000 + 2% × 400,000 = RM9,000
- Loan stamp duty = 0.5% × 450,000 = RM2,250
- SPA legal fees = 1.25% × 500,000 = RM6,250
- Loan legal fees = 1.25% × 450,000 = RM5,625
- Total upfront (excl. SST & disbursements) = RM23,125
A non-citizen buying the same home would instead pay 8% × 500,000 = RM40,000 MOT stamp duty.
How to use this calculator
- Pick Malaysian / PR or Foreigner — this sets the MOT stamp duty method.
- Enter the property price and your loan amount (leave the loan at 0 if paying cash).
- Tick the developer box if buying from a licensed housing developer to apply an indicative 50% legal-fee reduction.
- Read off the total upfront cost and open the breakdown to see each item.
Stamp duty rules & recent changes
- Foreign-buyer stamp duty doubled (effective 1 January 2026): non-citizens now pay a flat 8% MOT stamp duty on residential property, up from 4%. This is aimed at cooling foreign speculative demand. Permanent residents are treated as locals and keep the tiered 1%–4% scale.
- Solicitors' Remuneration Order 2023 (effective 15 July 2023): raised the conveyancing fee on the first RM500,000 from 1% to 1.25%, and simplified the upper bands to 1.00% up to RM7.5 million.
- First-home stamp duty exemptions have been offered in various Budgets for properties under set price caps — check whether a current exemption applies to your purchase before assuming you owe the full amount.
Official references: LHDN's Stamp Duty pages and the Malaysian Bar on the Solicitors' Remuneration Order 2023. Figures above are our own plain-language summary; confirm current rates and exemptions with LHDN or your solicitor.
Frequently asked questions
How is MOT stamp duty calculated in Malaysia?
On a tiered scale of the purchase price or market value (whichever is higher): 1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1 million, and 4% above RM1 million. Each tranche is taxed at its own rate. From 1 January 2026, non-citizen buyers instead pay a flat 8% on the whole value.
How much is loan stamp duty?
A flat 0.5% of the loan (financing) amount, for all buyers. On a RM450,000 loan that is RM2,250. There is no loan stamp duty if you buy with cash.
How much are conveyancing legal fees?
Under the Solicitors' Remuneration Order 2023: 1.25% on the first RM500,000 (minimum RM500), then 1.00% up to RM7.5 million. The scale applies separately to the SPA and the loan agreement. Solicitors may discount up to 25%, and up to 50% for purchases from licensed developers. SST and disbursements are added on top.
When must stamp duty be paid?
Instruments should be stamped within 30 days of execution (signing) to avoid penalties. In practice your solicitor handles the stamping and collects the duty from you at the relevant stage of the transaction.
Are there stamp duty exemptions for first-time buyers?
Various Budgets have offered full or partial MOT and loan stamp-duty exemptions for first homes below set price caps. These change from year to year, so check the current Budget measures — if one applies, your actual stamp duty could be far lower than the standard figure shown here.
Does this calculator include SST and disbursements?
No. It shows the core stamp duty and scale legal fees only. On top you should budget for 8% SST on the legal fees, plus disbursements (searches, registration, travelling), which typically add a few hundred to a couple of thousand ringgit.
