Stamp Duty and Legal Fees for Malaysian Home Buyers in 2026

Most buyers budget for the down payment and forget the rest. On a RM1.2 million home, stamp duty and legal fees add up to roughly RM65,000 — money the bank will not lend you. This guide shows where each ringgit goes, so there are no surprises when your lawyer sends the bill.

1. Stamp duty on the transfer (MOT)

The Memorandum of Transfer is stamped on a tiered scale for Malaysian citizens and permanent residents:

Foreign buyers pay a flat 8% instead — see our guide for foreign buyers.

2. Stamp duty on the loan agreement

If you take a housing loan, the loan agreement is stamped at 0.5% of the loan amount. On a RM900,000 loan that is RM4,500.

3. Legal fees (Solicitors' Remuneration Order 2023)

Lawyers' fees for the sale and purchase agreement (SPA) and for the loan documents each follow the same scale:

• 1.25% on the first RM500,000 (minimum RM500)
• 1% on the next RM7,000,000

Add 8% SST on the fee, plus disbursements such as searches, registration and courier costs. Your lawyer's quotation will list these separately.

Worked examples

Assuming a 90% loan:

The first-home exemption (up to RM500,000)

Malaysian citizens buying their first home priced at RM500,000 or less get a full stamp duty exemption on both the transfer and the loan agreement. Budget 2026 extended this to SPAs signed up to 31 December 2027.

On a RM500,000 first home with a 90% loan, that saves about RM11,250 (RM9,000 on the MOT and RM2,250 on the loan agreement). Legal fees still apply.

What does Budget 2027 change?

Budget 2027, tabled on 9 October 2026, proposes a wider first-home exemption for SPAs signed from 1 January 2027 to 31 December 2030: homes up to RM500,000 stay fully exempt, and for homes up to RM750,000 the first RM500,000 is fully exempt and the balance gets a 50% exemption, on both the transfer and the loan agreement (as of October 2026, Bernama).

On a RM750,000 first home, the full MOT duty would be RM16,500. If the 50% is applied to the duty on the portion above RM500,000 as announced, the buyer pays about RM3,750 on the MOT instead (RM9,000 exempt in full, half of the remaining RM7,500 exempt). This is a proposal until the Finance Bill is passed, and SPAs signed in 2026 still follow the RM500,000 rule. Our calculator uses the current rules for now.

How to keep the costs down

1. Ask about developer-paid fees on new launches. Many projects absorb SPA legal fees — sometimes loan legal fees too. Get it in writing.
2. Compare lawyer quotations for disbursements, since the scale fee itself is fixed.
3. Check your first-home eligibility early — it depends on the SPA date, not the booking date.

Planning a purchase in Mont Kiara, Damansara Heights or Ara Damansara? WhatsApp us and we will estimate your full entry cost for a specific unit.