Stamp duty and legal fees in Malaysia: rates and worked examples
Updated 20 October 2026
Buyers always ask how much they need on top of the price. The two big items are stamp duty and legal fees. Here are the current rates from LHDN and the lawyers' scale, with worked examples you can explain on the phone.
Rates change with budgets and new rules. Use these figures to explain, not to quote a final bill. The buyer should confirm the exact amount with their lawyer.
Stamp duty on the transfer (MOT)
Stamp duty is charged on the MOT (memorandum of transfer), based on the higher of the price or the market value. The rate steps up in bands, like income tax.
| Part of the value | Rate |
|---|---|
| First RM100,000 | RM1 per RM100 (1%) |
| RM100,001 to RM500,000 | RM2 per RM100 (2%) |
| RM500,001 to RM1 million | RM3 per RM100 (3%) |
| Above RM1 million | RM4 per RM100 (4%) |
Worked examples: MOT stamp duty
| Value | How it adds up | Stamp duty |
|---|---|---|
| RM400,000 | RM1,000 on the first RM100,000, plus RM6,000 on the next RM300,000 | RM7,000 |
| RM600,000 | RM1,000, plus RM8,000 on RM100,001 to RM500,000, plus RM3,000 on the last RM100,000 | RM12,000 |
| RM1,200,000 | RM1,000, plus RM8,000, plus RM15,000 on RM500,001 to RM1 million, plus RM8,000 on the last RM200,000 | RM32,000 |
First home exemption (i-Miliki)
Under Budget 2026, a qualifying first home priced up to RM500,000 gets a full stamp duty exemption on both the transfer and the loan agreement. The exemption runs until 31 December 2027. On a RM400,000 first home, that saves the RM7,000 in the example above, plus the duty on the loan agreement. The buyer's lawyer confirms whether the buyer qualifies.
Foreign buyers
- Residential property: a flat 8% of the value from 1 January 2026. Permanent residents are excluded from this rate.
- Non residential property: a flat 4%.
- Example: a foreign buyer of a RM1,000,000 condo pays RM80,000. A Malaysian buyer of the same unit pays RM24,000 on the normal bands.
Stamp duty on the loan agreement
The loan agreement is also stamped. We could not confirm the current rate from an official LHDN source, so we do not quote one here. Ask the lawyer or the bank for the figure. First home buyers under i-Miliki are exempt, as above.
Stamp duty on tenancy agreements
A tenancy agreement must be stamped. The duty is worked out on the yearly rent, per RM250, and the rate depends on how long the tenancy runs.
| Tenancy length | Duty per RM250 of yearly rent |
|---|---|
| Up to 1 year | RM1 |
| Over 1 to 3 years | RM3 |
| Over 3 to 5 years | RM5 |
| Over 5 years | RM7 |
| Example | Yearly rent | Working | Stamp duty |
|---|---|---|---|
| RM1,500 a month, 1 year | RM18,000 | 72 units of RM250 x RM1 | RM72 |
| RM2,000 a month, 2 years | RM24,000 | 96 units of RM250 x RM3 | RM288 |
These examples use the full rent. Ask the lawyer or LHDN whether any exemption applies to a given tenancy.
Self assessment: who works out the duty
LHDN is moving stamp duty to self assessment. The person stamping the document works out the duty and pays it. The rollout is in stages:
- Tenancy agreements: from 1 January 2026.
- Property transfers without a JPPH valuation: from 1 January 2027.
- All other instruments: from 1 January 2028.
For rentals, the agent acting for the landlord often does the stamping, so the agent needs to get the sum right.
Legal fees on the SPA and the loan
Lawyers' fees for sale, transfer and loan documents follow the Solicitors' Remuneration Order 2023. This scale applies in Peninsular Malaysia from 15 July 2023.
| Part of the value | Scale fee |
|---|---|
| First RM500,000 | 1.25% (minimum RM500) |
| Next RM7 million | 1% |
| Above RM7.5 million | Negotiable, capped at 1% |
For developer sales under the housing development law, a reduced percentage of this scale applies, depending on the price. The lawyer will give the exact figure.
Worked examples: legal fees
| Document | Value | How it adds up | Scale fee |
|---|---|---|---|
| SPA | RM400,000 | 1.25% of RM400,000 | RM5,000 |
| SPA | RM600,000 | RM6,250 on the first RM500,000, plus 1% of RM100,000 | RM7,250 |
| Loan | RM540,000 | RM6,250 on the first RM500,000, plus 1% of RM40,000 | RM6,650 |
| SPA | RM1,200,000 | RM6,250 on the first RM500,000, plus 1% of RM700,000 | RM13,250 |
This is the scale fee only. The lawyer's quote shows the full bill.
Putting it together: a RM600,000 subsale
A Malaysian buyer, not a first home, buys at RM600,000 with a RM540,000 loan.
| Item | Amount |
|---|---|
| Stamp duty on the MOT | RM12,000 |
| Legal fee on the SPA (scale) | RM7,250 |
| Legal fee on the loan (scale) | RM6,650 |
| Stamp duty on the loan agreement | Ask the lawyer or bank |
Who pays what
| Item | Who |
|---|---|
| Stamp duty on the MOT | Handled by the buyer's lawyer as part of the purchase. |
| RPGT retention | The buyer's lawyer holds back 3% of the price (7% if the seller is not a citizen, 5% or 3% for companies) and pays it to LHDN within 60 days. |
| Agency fee on a sale | Usually the seller. The Board's scale caps it at 3% of the price, minimum RM1,000. |
| Agency fee on a tenancy | Usually the landlord. Capped at 1.25 months' rent for a tenancy of up to 3 years. |
| Tenancy stamp duty | Worked out by whoever stamps the agreement, often the agent for the landlord. Check the tenancy agreement for who bears the cost. |
| Legal fees on the SPA and loan | Set by the scale. Confirm with the lawyer who bears each fee in the deal. |
This guide explains the published rates. It is not legal or tax advice. Rates change with each budget, so the buyer should confirm every figure with their lawyer before signing.
Sources
- LHDN: Stamp duty guideline, First Schedule (30 Jun 2026)
- Finance Act 2025 (Act 874)
- Budget 2026 speech, para 217
- LHDN: Stamp duty self assessment (STSDS)
- Conventus Law: Solicitors' Remuneration Order 2023 (Sep 2023)
- LHDN: RPGT retention and remittance
- NST: Know your real estate practitioner (2018)
General information, not legal or financial advice. Rules and rates change; confirm with a lawyer, bank or the relevant authority.