SempoaDuitStamp duty rates for property (Malaysians)
| Property price (RM) | MOT stamp duty rate |
|---|---|
| First 100,000 | 1% |
| 100,001 – 500,000 | 2% |
| 500,001 – 1,000,000 | 3% |
| Above 1,000,000 | 4% |
The loan agreement is stamped at 0.5% of the loan amount. Example: a RM500,000 home with a 90% loan pays RM9,000 on the transfer and RM2,250 on the loan, or RM11,250 in total, unless the first-home exemption applies.
Legal fee scale (SRO 2023)
| Amount | Scale fee |
|---|---|
| First RM500,000 | 1.25% (minimum RM500) |
| Next RM7,000,000 | 1% |
| Above RM7,500,000 | Negotiable, up to 1% |
The SPA fee is based on the purchase price and the loan agreement fee on the loan amount. Service tax of 8% is charged on legal fees. Disbursements are billed separately.
Things to watch out for
- Exemption timing: the rules depend on when the sale and purchase agreement is signed, not the booking date. Signed in 2026: a full exemption up to RM500,000. Signed from 1 January 2027 to 31 December 2030: the Budget 2027 rules, which are proposals until the Finance Act is passed.
- Joint purchases: if one co-buyer has owned a home before, the exemption may not apply.
- Cash, not financing: stamp duty and legal fees are usually paid in cash and can't be added to your loan, so budget for them early.
Work out your monthly repayments with the home loan calculator.
Frequently asked questions
How is stamp duty on property calculated in Malaysia?
For Malaysian citizens and permanent residents, stamp duty on the Memorandum of Transfer is tiered: 1% on the first RM100,000, 2% on RM100,001 to RM500,000, 3% on RM500,001 to RM1,000,000 and 4% above RM1,000,000. The loan agreement is stamped at a flat 0.5% of the loan amount.
Who qualifies for the first-home stamp duty exemption?
Malaysian citizens buying their first residential property are exempt from stamp duty on both the transfer and the loan agreement. For agreements signed in 2026, the exemption covers homes up to RM500,000. Under Budget 2027, agreements signed from 1 January 2027 to 31 December 2030 get a full exemption up to RM500,000, and for homes up to RM750,000 the first RM500,000 is exempt and the rest gets 50% off. You must never have owned a residential property before, and for joint purchases every buyer generally needs to qualify.
How much are lawyer fees for buying a house?
Under the Solicitors' Remuneration Order 2023, the scale fee is 1.25% of the first RM500,000 (minimum RM500) and 1% of the next RM7 million. The same scale applies separately to the SPA (on the price) and the loan agreement (on the loan). Lawyers may give a discount of up to 25%, and 8% service tax is added.
Does this include every cost?
No. Disbursements such as land searches, registration fees and courier charges are extra, as are valuation fees and insurance. For new properties from developers, some projects absorb the SPA legal fees as a promotion.
Sources
- Malay Mail – Budget 2027: stamp duty exemption for first homes
- Malaysian Bar – Solicitors' Remuneration Order 2023 scale (Circular 258/2023)
- LHDN (HASiL) – official site
Figures last checked September 2026.