Stamp duty is a government tax levied on legal documents relating to the transfer of property ownership in Malaysia. It is administered by the Inland Revenue Board of Malaysia (LHDN) under the Stamp Act 1949. When you buy a property — whether from a developer (new launch) or from a seller in the secondary market (subsale) — you are required to pay stamp duty on both the Sale and Purchase Agreement (SPA) and your home loan agreement.
For many buyers, stamp duty represents one of the largest upfront costs outside the downpayment itself. Understanding the rates, exemptions and calculation method is therefore essential before you commit to a purchase.
Stamp duty is calculated on the higher of the transaction price or the market value as determined by LHDN. For new launches, this is typically the SPA price. For subsale properties, a government-appointed valuer's figure may be used if it exceeds the agreed purchase price.
The stamp duty on a Sale and Purchase Agreement (MoT — Memorandum of Transfer) is charged on a tiered scale based on property value:
| Purchase Price Band | Rate | Stamp Duty Payable on Band |
|---|---|---|
| First RM 100,000 | 1% | RM 1,000 |
| RM 100,001 – RM 500,000 | 2% | Up to RM 8,000 |
| RM 500,001 – RM 1,000,000 | 3% | Up to RM 15,000 |
| Above RM 1,000,000 | 4% | On the excess above RM 1M |
These rates apply to residential properties. Commercial properties are typically charged at a flat 3% on the full value.
There are two separate stamp duty charges every property buyer must budget for:
This is the main stamp duty on the transfer of title, calculated using the tiered rates above. It is payable once and is due within 30 days of the SPA execution date for new launches (or the signing date for subsale transactions).
Your home loan documentation is also subject to stamp duty at a flat rate of 0.5% of the total loan amount. If you borrow RM 450,000, your loan agreement stamp duty is RM 2,250. This is separate from and in addition to the SPA stamp duty.
For a RM 600,000 property with a 90% loan (RM 540,000 borrowed):
SPA stamp duty = RM 1,000 + RM 8,000 + RM 3,000 = RM 12,000
Loan agreement stamp duty = 0.5% × RM 540,000 = RM 2,700
Total stamp duty = RM 14,700
Malaysian citizens purchasing their first residential property valued at RM 500,000 and below are eligible for a full stamp duty exemption on the MoT under the government's Skim Perumahan Mampu Milik programme. This exemption has been a consistent feature of federal budgets and was reaffirmed in Budget 2026. The exemption applies to both the SPA stamp duty and the loan agreement stamp duty for first-time buyers in this price range.
To qualify, you must: (a) be a Malaysian citizen; (b) have never owned a residential property before; (c) be purchasing a residential (not commercial) property; and (d) obtain the loan under a conventional or Islamic home financing facility.
The Home Ownership Campaign (HOC) — which ran in 2019 and again in 2020–2021 — provided stamp duty exemptions on both MoT and loan agreements for properties priced between RM 300,000 and RM 2.5 million. As of early 2026, no active HOC campaign is in force. Buyers should monitor announcements from the Ministry of Housing (KPKT) for any reactivation.
While not technically stamp duty, buyers planning to sell within a few years should be aware that properties sold within 3 years of purchase attract RPGT at 30% for citizens. After 3–5 years it drops to 20%, and from year 6 onwards it is 0% for Malaysian citizens. Planning your exit strategy matters.
Navigating stamp duty rules, exemptions and government schemes can be confusing — especially when you're managing financing, unit selection and negotiation at the same time. SoSo Property's consultants work with experienced property lawyers and can connect you with the right professionals to ensure you pay no more stamp duty than you are legally required to.
Stamp duty on the Memorandum of Transfer is charged on a tiered scale: 1% on the first RM100,000, 2% on RM100,001–RM500,000, 3% on RM500,001–RM1,000,000 and 4% on any amount above RM1 million. Commercial properties are typically charged a flat 3% on the full value.
On a RM600,000 property with a 90% loan (RM540,000 borrowed): SPA stamp duty is RM1,000 + RM8,000 + RM3,000 = RM12,000, and loan agreement stamp duty is 0.5% × RM540,000 = RM2,700. Total stamp duty is RM14,700.
Yes. Malaysian citizens buying their first residential property valued at RM500,000 or below are eligible for a full stamp duty exemption on the Memorandum of Transfer, and the exemption also covers the loan agreement stamp duty. To qualify you must be a Malaysian citizen, have never owned a residential property before, be buying a residential (not commercial) property, and obtain the loan under a conventional or Islamic home financing facility.
They are two separate charges. The Memorandum of Transfer (SPA stamp duty) is the main duty on the transfer of title, calculated on the tiered scale and payable once, due within 30 days of the SPA execution date. The loan agreement stamp duty is a flat 0.5% of the total loan amount and is charged separately, in addition to the MoT duty.
No. The HOC ran in 2019 and again in 2020–2021, providing stamp duty exemptions on both MoT and loan agreements for properties priced between RM300,000 and RM2.5 million. As of early 2026 no active HOC campaign is in force. Buyers should monitor announcements from the Ministry of Housing (KPKT) for any reactivation.
Stamp duty is calculated on the higher of the transaction price or the market value as determined by LHDN. For new launches this is typically the SPA price. For subsale properties, a government-appointed valuer's figure may be used if it exceeds the agreed purchase price.
Real Property Gains Tax is a separate tax on gains from selling property, not a stamp duty. For Malaysian citizens, properties sold within 3 years attract RPGT at 30%, years 3–5 at 20%, and from year 6 onwards 0%. It matters when planning your exit strategy.
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