Glossary
Stamp Duty
Stamp duty is a tax levied by the Malaysian government on property transfer documents (Memorandum of Transfer) and loan agreements. For foreigners, a flat 8% stamp duty applies on all property transfers as of January 2026.
In Detail
Malaysia's stamp duty on property transfers is calculated on the higher of the purchase price or market value. For Malaysian citizens and permanent residents, a tiered rate applies (1–4% depending on value brackets). However, as of January 2026, foreign buyers pay a flat 8% stamp duty — doubled from the previous 4% rate. This is one of the largest upfront costs for international buyers and must be factored into your total acquisition budget. Stamp duty on loan agreements is a separate charge at 0.5% of the loan amount. Some developers offer stamp duty rebates or absorb legal fees as part of their launch packages — always ask about available incentives.
Investment Impact
The 8% foreign buyer stamp duty adds a significant premium to acquisition costs. On a RM 1 million property, that’s RM 80,000 in stamp duty alone. This cost must be factored into yield calculations — it typically adds 1–2 years to the breakeven timeline compared to local buyers paying tiered rates.
