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Stamp duty, legal fees and RPGT calculator (Malaysia)
Quick answer
A Malaysian buyer pays stamp duty on the transfer at 1% to 4% in tiers, plus 0.5% of the loan amount on the loan agreement. Foreign buyers pay a flat 8% on residential property from 1 January 2026. First-home buyers who are Malaysian citizens pay no stamp duty on one home up to RM500,000 (SPA signed by 31 December 2027). Legal fees follow the Solicitors' Remuneration Order 2023, plus 8% SST. When you sell, RPGT is 30% in the first three years and, for citizens and PRs, nothing from the sixth year.
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1. Buying: stamp duty and legal fees
| Item | Amount | How it is worked out |
|---|
Stamp duty is charged on the price or the market value, whichever is higher. Legal fees are the full scale fees (a lawyer may reduce the standard scale by up to 25%, and nothing else) and exclude disbursements such as search and registration fees. Your loan is set by your bank, so type in your own figure.
2. Selling: real property gains tax (RPGT)
A simplified estimate. LHDN decides what counts as an allowable cost and the exact disposal date. The buyer must also hold back part of the price and pay it to LHDN within 60 days: 3% for citizens and PRs, 7% for foreigners, and for companies 5% if sold within three years, otherwise 3%.
The rules used, and where they come from
| Rule | Rate | Official source |
|---|---|---|
| Transfer stamp duty (citizens, PRs) | First RM100,000: 1%; RM100,001–500,000: 2%; RM500,001–1,000,000: 3%; above RM1,000,000: 4% | Stamp Act 1949, First Schedule item 32(a) |
| Transfer stamp duty (foreigners, foreign companies, residential) | Flat 8% from 1 January 2026 (PRs excluded) | Finance Act 2025 (Act 874); Budget 2026 |
| First-home exemption | Malaysian citizen who has never owned a home; one home up to RM500,000; transfer and loan agreement fully exempt; SPA signed 1 January 2021 to 31 December 2027 | P.U.(A) 53/2021 and 54/2021, amended by P.U.(A) 448/2025 and 449/2025 |
| First-home exemption (Budget 2027 proposal) | Up to RM500,000 fully exempt; up to RM750,000, first RM500,000 fully exempt and 50% off the balance; SPA signed 1 January 2027 to 31 December 2030; subject to the Finance Bill | Budget 2027 speech, paragraph 56 (9 October 2026) |
| Loan agreement stamp duty | RM5 for every RM1,000 or part of it (0.5%) | Stamp Act 1949, First Schedule item 27(a)(iii) |
| Legal fees (standard scale, Table A) | First RM500,000: 1.25% (minimum RM500); next RM7,000,000: 1% | Solicitors' Remuneration Order 2023 (P.U.(A) 207/2023), from 15 July 2023 |
| Legal fees (developer projects, Table B) | Up to RM50,000: RM500; RM50,000–250,000: 75% of Table A; RM250,000–500,000: 70%; RM500,000–1,000,000: 65%; above RM1,000,000: 50% | Solicitors' Remuneration Order 2023; Bar Council Circular 258/2023 |
| SST on legal fees | 8% from 1 March 2024 | Royal Malaysian Customs |
| RPGT | Citizens/PRs: 30% within 3 years, 20% in year 4, 15% in year 5, 0% from year 6. Companies: 30%, 20%, 15%, then 10%. Foreigners: 30% within 5 years, 10% from year 6 | Real Property Gains Tax Act 1976, Schedule 5; LHDN |
| RPGT exemptions | Individuals: RM10,000 or 10% of the gain, whichever is greater; once-in-a-lifetime private residence exemption for citizens and PRs | LHDN |
Rules checked against official sources on 3 October 2026.
Questions
How much stamp duty do I pay when buying property in Malaysia?
Citizens and PRs pay transfer stamp duty in tiers: 1% on the first RM100,000, 2% on RM100,001–500,000, 3% on RM500,001–1,000,000 and 4% above RM1,000,000. The loan agreement is stamped at 0.5% of the loan amount.
What stamp duty do foreigners pay?
From 1 January 2026 foreigners and foreign companies pay a flat 8% transfer stamp duty on residential property (Finance Act 2025). PRs are not included and pay the citizen tiers.
Are first-home buyers exempt from stamp duty?
Yes. A Malaysian citizen who has never owned a home pays no stamp duty on the transfer or the loan agreement for one home up to RM500,000, if the SPA is signed between 1 January 2021 and 31 December 2027. Budget 2027 proposal (tabled 9 October 2026, still to be passed in the Finance Bill): for a sale and purchase agreement signed from 1 January 2027 to 31 December 2030, a first home up to RM500,000 is fully exempt on the transfer and the loan agreement; for a first home up to RM750,000, the first RM500,000 is fully exempt and the balance gets a 50% exemption.
How are legal fees worked out when buying from a developer?
Under Table B of the Solicitors' Remuneration Order 2023: 70% of the standard scale for RM250,000–500,000, 65% for RM500,000–1,000,000 and 50% above RM1,000,000, plus 8% SST.
How much RPGT do I pay when I sell?
Citizens and PRs: 30% if sold within three years, 20% in year four, 15% in year five and nothing from year six. Foreigners: 30% within five years, then 10%. Individuals first deduct RM10,000 or 10% of the gain, whichever is greater.