MOT Stamp Duty (Title Transfer)
The Memorandum of Transfer (MOT) is the document that formally transfers property ownership to you. Stamp duty on the MOT is the largest single transaction cost for most buyers.
| Buyer type | Rate | On RM1M property |
|---|---|---|
| Non-citizen (incl. Singapore buyers) | 8% flat (from 2026) | RM80,000 |
| Malaysian citizen | Tiered (see below) | RM24,000 |
| Malaysian PR holder | Same tiered rates as citizens | RM24,000 |
Malaysian citizen tiered rate: 1% on first RM100k + 2% on RM100k–RM500k + 3% on RM500k–RM1M = RM1,000 + RM8,000 + RM15,000 = RM24,000 on a RM1M property.
Note: Singapore permanent residents holding a Singapore PR card are not the same as Malaysian permanent residents. Singapore PRs are treated as non-citizens and pay the 8% flat rate.
Johor State Foreign Buyer Levy
Johor charges a state levy on property purchased directly from developers by foreign buyers. This is separate from the federal MOT stamp duty. The levy structure contains an important threshold effect:
| Purchase price | Levy amount | Total levy + MOT |
|---|---|---|
| RM500,000 | RM53,000 (fixed) | RM93,000 |
| RM800,000 | RM53,000 (fixed) | RM117,000 |
| RM999,999 | RM53,000 (fixed) | RM133,000 |
| RM1,000,000 | RM30,000 (3%) | RM110,000 |
| RM1,200,000 | RM36,000 (3%) | RM132,000 |
| RM1,500,000 | RM45,000 (3%) | RM165,000 |
The RM1,000,000 threshold matters. Buying at exactly RM1,000,000 results in a total levy + MOT of RM110,000. Buying at RM999,999 results in RM133,000. A buyer who negotiates a price just below RM1M actually pays more in combined levy + stamp duty. This is a counterintuitive aspect of the cost structure — factor it into negotiations.
Legal Fees (Solicitor's Fees)
You need a Malaysian-licensed solicitor for the SPA, state consent application and title transfer. Fees are governed by the Solicitors Remuneration Order (scale fees):
| Purchase price band | Scale fee rate |
|---|---|
| First RM500,000 | 1.0% |
| RM500,001 – RM1,000,000 | 0.8% |
| RM1,000,001 – RM3,000,000 | 0.7% |
| Above RM3,000,000 | 0.6% |
Example on a RM1,000,000 property: (RM500,000 × 1%) + (RM500,000 × 0.8%) = RM5,000 + RM4,000 = RM9,000. Plus SPA stamp duty (~RM10), disbursements and GST where applicable.
If you are financing with a Malaysian bank loan, there are separate legal fees for the loan agreement (also on a scale), plus stamp duty on the loan agreement at 0.5% of the loan amount.
Full Cost Summary: RM1,000,000 Purchase (Non-Citizen, With Loan)
| Cost item | Amount (approx.) |
|---|---|
| MOT stamp duty (8% non-citizen) | RM80,000 |
| Johor state levy (3% at RM1M) | RM30,000 |
| SPA legal fees (~scale) | ~RM9,000 |
| Loan agreement legal fees (~scale, on 80% LTV) | ~RM6,000 |
| Loan agreement stamp duty (0.5% of RM800k) | RM4,000 |
| Miscellaneous (disbursements, search fees) | ~RM1,000–2,000 |
| TOTAL on top of purchase price (approx.) | ~RM130,000 |
RPGT: What You Pay When You Sell
Real Property Gains Tax (RPGT) is not paid at purchase — it is paid on any profit you make when you eventually sell. The rate depends on how long you held the property:
| Holding period | Non-citizen rate | Malaysian citizen rate |
|---|---|---|
| Year 1–3 | 30% | 30% |
| Year 4 | 30% | 20% |
| Year 5 | 30% | 15% |
| Year 6+ | 10% | 0% |
RPGT is charged on profit (sale price minus purchase price minus allowable costs including fees paid at purchase). If you sell at a loss, no RPGT is payable. Unlike Malaysian citizens, foreign sellers never benefit from a 0% rate — the minimum is 10% from year 6 onwards.
Frequently Asked Questions
What stamp duty do non-citizens pay when buying property in Malaysia in 2026?
From 1 January 2026, non-citizens (including Singapore citizens and Singapore PRs) pay a flat 8% stamp duty on the Memorandum of Transfer (MOT) — the document that transfers the property title. On a RM1,000,000 purchase, this is RM80,000. Malaysian permanent residents are exempt from the 8% rate and pay the standard tiered rates instead.
What stamp duty do Malaysian citizens pay?
Malaysian citizens pay tiered MOT stamp duty: 1% on the first RM100,000, 2% on the next RM400,000 (RM100,001–RM500,000), 3% on the next RM500,000 (RM500,001–RM1,000,000), and 4% on the amount above RM1,000,000. On a RM1,000,000 property, a Malaysian citizen pays RM24,000 versus RM80,000 for a non-citizen — a difference of RM56,000.
What is the Johor state foreign buyer levy?
Johor charges a state levy on property purchases from developers by foreign buyers. For properties below RM1,000,000, the levy is a fixed RM53,000. For properties at RM1,000,000 and above, the levy is 3% of the purchase price. At exactly RM1,000,000 the levy is RM30,000 — lower than the RM53,000 that applies at RM999,999.
What are legal fees for buying property in Malaysia?
Legal fees for the Sale and Purchase Agreement (SPA) are set by scale under the Solicitors Remuneration Order: 1% on the first RM500,000, 0.8% on the next RM500,000 (RM500,001–RM1,000,000), and lower rates above RM1,000,000. On a RM1,000,000 property, SPA legal fees are approximately RM9,000. You also pay stamp duty on the SPA itself (RM10 on the first instrument, RM5 on each copy) and separate legal fees for the loan agreement if financing.
What is RPGT and when does it apply?
Real Property Gains Tax (RPGT) is paid on the profit when you sell a Malaysian property. For foreign sellers: 30% on gains from sales within the first 5 years, 10% on gains from year 6 onwards. For Malaysian citizens: rates reduce to 5% in year 6 and 0% from year 6 for citizens (not foreigners). RPGT is on profit, not sale price — if you sell at a loss, no RPGT is payable.
Related Guides
Singapore Buyer's Guide to JB Property
Full eligibility, process and cost overview
Minimum Price for Singapore Buyers
Thresholds and the levy break at RM1M
Getting a Property Loan in Malaysia
LTV, eligibility and the application process
How to Buy Property in JB
Step-by-step purchase process
Independent Marketing Negotiator Disclosure
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