Stamp duty and legal fees in Malaysia in 2026: a first-time buyer's guide
Stamp duty on a property transfer in Malaysia is charged in tiers, from 1% on the first RM100,000 up to 4% on the part of the price above RM1m, according to LHDN's guideline dated 30 Jun 2026. On a RM1.2m new launch, that tier structure alone comes to RM32,000 before you add the loan duty and your lawyers' fees.
Stamp duty Malaysia 2026 rules also include a first-home exemption for Malaysian citizens, and Budget 2027 proposes to widen it to homes up to RM750,000. Homes priced above RM750k get no exemption under the proposal.
This guide lists every upfront cost when you buy from a developer, shows how each one is calculated, and works through two examples: a RM500,000 first home and a RM1.2m unit.
Quick answer: For a new launch, budget for stamp duty on the memorandum of transfer (1% to 4% tiers), 0.5% stamp duty on the loan agreement, and legal fees for the SPA and the loan under the Solicitors' Remuneration Order 2023. On a RM1.2m unit with a 90% loan, these come to RM50,050 before service tax and disbursements. Malaysian citizens buying a first home up to RM500,000 pay no stamp duty on either document for SPAs signed by 31 Dec 2027.
Work out your stamp duty and legal fees
Every upfront cost when you buy from a developer
When you buy a new launch, four costs sit on top of the price and your downpayment. Two are taxes collected by LHDN (the Inland Revenue Board, hasil.gov.my) and two are fees paid to lawyers. Disbursements, the out-of-pocket costs your lawyer pays for searches, registration and copies, come on top of the legal fees and vary by firm.
| Cost | What it is charged on | Rate or scale | Paid to |
|---|---|---|---|
| Stamp duty on the memorandum of transfer (MOT) | Price or market value, whichever is higher | 1%, 2%, 3% and 4% tiers | LHDN |
| Stamp duty on the loan agreement | Loan amount | 0.5% (RM5 per RM1,000) | LHDN |
| Legal fee for the sale and purchase agreement (SPA) | Price | SRO 2023, First Schedule | Your SPA lawyer |
| Legal fee for the loan agreement | Loan amount | SRO 2023, Third Schedule | The loan lawyer |
| Supporting documents in the same deal | Per document | RM10 each | LHDN |
Source: LHDN stamp duty guideline (as of 30 Jun 2026)
Service tax at 8% is charged on legal fees, the rate for professional services since 1 March 2024. It should appear as a separate line on your lawyer's bill.
How stamp duty on the MOT is calculated
The memorandum of transfer (MOT) is the document that moves the title from the developer to you. LHDN charges it under item 32(a) of the First Schedule to the Stamp Act 1949, on the price or the market value, whichever is higher. The duty is worked out per RM100 or part of RM100, band by band.
| Slice of the price or market value | Duty per RM100 | Rate |
|---|---|---|
| First RM100,000 | RM1 | 1% |
| RM100,001 to RM500,000 | RM2 | 2% |
| RM500,001 to RM1,000,000 | RM3 | 3% |
| Above RM1,000,000 | RM4 | 4% |
Source: LHDN, guideline on the First Schedule to the Stamp Act 1949 (as of 30 Jun 2026)
The tiers stack, so the 4% rate applies only to the part of the price above RM1m. LHDN's own worked example uses a RM500,000 house: RM1,000 on the first RM100,000 plus RM8,000 on the next RM400,000, for RM9,000 in total. By law the buyer, as the transferee, pays the duty.
Buyers who are not Malaysian citizens or permanent residents are charged differently. Under the same guideline, a sale of residential property to a foreign company or a non-citizen, non-permanent resident from 1 Jan 2026 is charged a flat RM8 per RM100 instead of the tiers.
Stamp duty on the loan agreement
If you take a home loan, the loan agreement is stamped too. LHDN charges RM5 for every RM1,000 or part of RM1,000 of the loan, which is 0.5% of the amount you borrow, not of the price. The borrower pays it.
A home loan usually involves more than one document: the facility agreement, a charge or a deed of assignment. Under section 4(3) of the Stamp Act, only the principal instrument carries the full duty, and each supporting document pays RM10. Your lawyer decides which document is the principal one.
Example: You borrow RM1,080,000 (a 90% loan on a RM1.2m unit). Stamp duty on the loan agreement: RM1,080,000 ÷ 1,000 × RM5 = RM5,400.
The loan size is your bank's decision, so treat the 90% figure as an assumption and use the amount in your letter of offer.
Legal fees: the scale, and who pays which
Legal fees for property follow the Solicitors' Remuneration Order 2023, made under the Legal Profession Act 1976, gazetted as P.U.(A) 207/2023 and in force since 15 Jul 2023. It sets a scale for the SPA (First Schedule) and for loan documents (Third Schedule). Both use the same base scale, called Table A.
| Amount (price for the SPA, loan for the loan agreement) | Table A scale fee |
|---|---|
| First RM500,000 | 1.25% (minimum RM500) |
| Next RM7,000,000 | 1% |
| Above RM7,500,000 | Negotiable, up to 1% of the excess |
Source: Solicitors' Remuneration Order 2023, P.U.(A) 207/2023 (in force 15 Jul 2023)
A new launch is different from a subsale. When the purchase is governed by the Housing Development (Control and Licensing) Act 1966 (HDA), the law that covers licensed developers and is administered by KPKT, the fee follows Table B. Table B is a percentage of the Table A fee, set by the size of the deal, and the same structure applies to the loan documents for that purchase.
| Price or loan amount | Table B fee (developer purchase) |
|---|---|
| RM50,000 or less | RM500 |
| RM50,001 to RM250,000 | 75% of the Table A fee (minimum RM500) |
| RM250,001 to RM500,000 | 70% of the Table A fee |
| RM500,001 to RM1,000,000 | 65% of the Table A fee |
| Above RM1,000,000 | 50% of the Table A fee |
Source: Solicitors' Remuneration Order 2023, First and Third Schedules (in force 15 Jul 2023)
The order allows a discount of up to 25% on Table A fees, but no discount on Table B fees. So on a developer purchase, the Table B figure is what the scale says you pay.
Some launches advertise that the developer will pay your SPA legal fees, which usually means the SPA alone. Check the booking form for whether loan legal fees, stamp duty and disbursements are included, and confirm the arrangement with a lawyer acting for you.
The first-home exemption: who qualifies, the cap and the SPA window
The first-home exemption is the biggest saving most first-time buyers will see. According to the Ministry of Finance's Budget 2027 tax measures, published 9 Oct 2026, the current rule gives a 100% stamp duty exemption on the loan agreement and the instrument of transfer. It covers a first residential home priced up to RM500,000, bought by Malaysian citizens, for SPAs signed from 1 Jan 2021 to 31 Dec 2027.
The window was last extended by amendment orders gazetted on 23 Dec 2025, according to a Skrine legal alert. The alert notes that the transfer exemption tests the property's market value against RM500,000, not only the price you agree.
Budget 2027 proposes a wider exemption for SPAs signed from 1 Jan 2027 to 31 Dec 2030:
| First home priced | Proposed stamp duty exemption on the MOT and loan agreement |
|---|---|
| Up to RM500,000 | 100% |
| RM500,001 to RM750,000 | 100% on the first RM500,000, 50% on the rest |
| Above RM750,000 | None |
Source: Ministry of Finance, Budget 2027 tax measures, Appendix 16 (as of 9 Oct 2026)
This is a proposal, announced in the Budget 2027 speech on 9 Oct 2026. As of 26 Oct 2026 we have not seen the gazetted order that puts it into effect. Until then, rely on the current RM500,000 rule and ask your lawyer whether the new order has been gazetted before you sign.
The date that counts is the date you sign the SPA, not the date you pay the booking fee. An exempt document still has to be submitted to LHDN, which endorses the exemption on it.
Worked examples at RM500,000 and RM1.2m
Both examples use the rates and scales above, with a 90% loan and a purchase from a licensed developer, so Table B legal fees apply. Service tax and disbursements are left out; your lawyer will quote them.
Example 1: You are a Malaysian citizen buying your first home, a RM500,000 new launch, with a RM450,000 loan. Stamp duty on the MOT: RM1,000 + RM8,000 = RM9,000. Stamp duty on the loan: RM450,000 ÷ 1,000 × RM5 = RM2,250. SPA legal fee: 1.25% × RM500,000 = RM6,250, then 70% = RM4,375. Loan legal fee: 1.25% × RM450,000 = RM5,625, then 70% = RM3,937.50. Total without the exemption: RM19,562.50. With the first-home exemption, both stamp duties fall to zero and you pay RM8,312.50 in legal fees.
Example 2: You buy a RM1.2m new launch with a RM1,080,000 loan. Stamp duty on the MOT: RM1,000 + RM8,000 + RM15,000 + RM8,000 = RM32,000. Stamp duty on the loan: RM1,080,000 ÷ 1,000 × RM5 = RM5,400. SPA legal fee: RM6,250 + 1% × RM700,000 = RM13,250, then 50% = RM6,625. Loan legal fee: RM6,250 + 1% × RM580,000 = RM12,050, then 50% = RM6,025. Total: RM50,050. No first-home exemption applies at this price, under the current rule or the Budget 2027 proposal.
The MOT duty is the biggest item at RM1.2m. It makes up close to two-thirds of the total, which is why buyers above RM1m feel the 4% tier most.
When each cost is due in a new-launch purchase
Each cost falls due at a different point in the purchase. Legal fees follow the documents your lawyers prepare, while stamp duty has a legal deadline once a document is signed. LHDN's stamping FAQ says a document must be submitted for stamping within 30 days of signing, and the duty paid within 14 days of the assessment notice.
Late stamping costs extra. The same FAQ sets the penalty at RM50 or 10% of the duty, whichever is higher, if you stamp within three months after the deadline, and RM100 or 20% after that.
The transfer of title is the step with the most variation on a new launch. Many projects are sold before the individual or strata title is ready, so the timing of the MOT and its duty depends on your project's title status. Ask your lawyer at the SPA stage when the MOT duty will be assessed, so the cash is ready when it is.
How to budget, and the calculator
Start with the price and the loan amount in your letter of offer, because the loan figure drives two of the four costs. Then add the MOT duty from the tier table, the 0.5% loan duty, and both legal fees under the developer-purchase scale. Ask the lawyer for a written quote that also shows service tax and disbursements.
Check three things before you sign. First, whether you meet every condition of the first-home exemption: Malaysian citizen, first residential home, value within the cap and an SPA date inside the window. Second, what any "free legal fees" offer actually covers. Third, whether the Budget 2027 proposal has been gazetted if your SPA will be signed in 2027 at a price between RM500,001 and RM750,000.
Our stamp duty and legal fees calculator runs these sums for your own price and loan, including the first-home exemption, so you can compare launches on their full upfront cost.
Frequently asked questions
How much is stamp duty on a RM1.2m property in Malaysia?
On the transfer, it is RM32,000 under the current tiers: 1% on the first RM100,000, 2% on the next RM400,000, 3% on the next RM500,000 and 4% on the last RM200,000. If you also take a RM1,080,000 loan, add RM5,400 of duty on the loan agreement.
Who qualifies for the first-home stamp duty exemption in 2026?
Malaysian citizens buying their first residential home priced up to RM500,000, with an SPA signed from 1 Jan 2021 to 31 Dec 2027. The exemption is 100% on both the transfer and the loan agreement. Confirm your eligibility with your lawyer, who files the exemption with LHDN.
Will homes up to RM750,000 be exempt from stamp duty in 2027?
Budget 2027 proposes it for SPAs signed from 1 Jan 2027 to 31 Dec 2030: full exemption on the first RM500,000 and 50% on the rest up to RM750,000. As of 26 Oct 2026 it is a proposal, so check whether the order has been gazetted before you sign.
Does the 4% stamp duty rate apply to the whole price?
No. The rates are tiered, so 4% applies only to the part of the price or market value above RM1m. The first RM1m is charged at 1%, 2% and 3% in bands.
Are legal fees cheaper when I buy from a developer?
The scale is lower. For a purchase governed by the HDA, the SRO 2023 sets the fee at a percentage of the standard scale, down to 50% of it above RM1m. Lawyers may not discount this developer-purchase fee further.
What does "free SPA legal fees" mean in a new launch?
It usually means the developer pays the legal fee for the SPA. Loan legal fees, stamp duty and disbursements are often not included, so check the booking form and confirm with your own lawyer.
When do I pay stamp duty on the loan agreement?
After you sign it. LHDN expects the document to be submitted within 30 days of signing and the duty paid within 14 days of the assessment notice, and your lawyer normally handles both.
Do foreigners pay the same stamp duty?
No. From 1 Jan 2026, a sale of residential property to a foreign company or an individual who is not a Malaysian citizen or permanent resident is charged a flat RM8 per RM100 on the transfer, according to LHDN's guideline.
Before you book
Work out the full upfront cash before you pay a booking fee: the downpayment, both stamp duties, both legal fees, service tax and disbursements. Check whether the first-home exemption applies to you, and ask your lawyer for a written quote based on the developer-purchase scale.
Work out your stamp duty and legal fees
This guide is general information, not financial, legal or tax advice. Rules and rates change; confirm the figures that apply to you with your bank, your lawyer or LHDN before you commit. PropLaunch is not a real estate agency.
Related guides
- The costs nobody mentions when you buy a new home The costs nobody mentions when you buy a new home
- Buying a new launch in Malaysia: the complete 2026 guide Buying a new launch in Malaysia: the complete 2026 guide
- Home loans in Malaysia: rates, tenure and margin of finance Home loans in Malaysia: rates, tenure and margin of finance
