legal finance

Stamp Duty Malaysia 2026: Complete Guide to SPA Legal Fees and MOT Costs

Property Matching AI Editorial Team2026-03-152 Sources
Buying a RM 500,000 property in Malaysia in 2026 incurs approximately RM 19,450 in stamp duty and legal fees: MOT stamp duty RM 8,000, SPA legal fees ~RM 5,500, loan agreement stamp duty RM 2,250, and loan legal fees ~RM 3,700. Foreign buyers pay 8% flat MOT stamp duty from 2026.

Stamp Duty and Legal Fees in Malaysia 2026

1. Memorandum of Transfer (MOT) Stamp Duty Rates

| Property Value | Rate | Example (RM 500K) | |---|---|---| | First RM 100,000 | 1% | RM 1,000 | | RM 100,001 - RM 500,000 | 2% | RM 8,000 | | RM 500,001 - RM 1,000,000 | 3% | — | | Above RM 1,000,000 | 4% | — | | Foreign buyers | 8% flat | From Jan 2026 |

Total MOT for RM 500,000 property (Malaysian): RM 1,000 + RM 8,000 = RM 9,000

2. SPA Legal Fees (Solicitors' Remuneration Order 2023)

| Property Value | Legal Fee | |---|---| | First RM 500,000 | 1.25% | | RM 500,001 - RM 7,500,000 | 1.0% | | Minimum fee | RM 500 |

SPA legal fee for RM 500,000: RM 500,000 × 1.25% = RM 6,250

3. Loan Agreement Stamp Duty

  • Rate: 0.5% of total loan amount
  • For RM 450,000 loan (90% LTV): RM 450,000 × 0.5% = RM 2,250

4. Loan Legal Fees

| Loan Amount | Rate | |---|---| | First RM 500,000 | 0.7% | | RM 500,001 - RM 7,500,000 | 0.6% |

Loan legal fee for RM 450,000 loan: RM 450,000 × 0.7% = RM 3,150

5. Complete Cost Summary (RM 500,000 Property)

| Item | Cost | |---|---| | MOT Stamp Duty | RM 9,000 | | SPA Legal Fees | RM 6,250 | | Loan Stamp Duty | RM 2,250 | | Loan Legal Fees | RM 3,150 | | Valuation Fee | ~RM 700 | | Total | ~RM 21,350 |

6. Stamp Duty Exemptions (2026)

  • First-time homebuyers: 50% MOT and loan stamp duty exemption for properties RM 300,000-500,000 (subject to budget provisions)
  • Affordable housing (below RM 200,000): Full MOT exemption in some states
  • Spouse transfer: 50% MOT exemption for transfers between spouses

Key Takeaways

  • Total legal/stamp duty costs for RM 500,000 property: ~RM 21,350
  • Foreign buyers pay 8% flat MOT stamp duty from 2026 (up from 4%)
  • First-time buyers may get 50% stamp duty exemption for RM 300,000-500,000 properties
  • SPA legal fees governed by Solicitors' Remuneration Order 2023
  • Budget 4-5% of property price for legal and stamp duty costs

Frequently Asked Questions

How much is stamp duty for a RM 500,000 property in Malaysia?

For a RM 500,000 property purchased by a Malaysian citizen in 2026, MOT stamp duty is RM 9,000 (1% on first RM 100,000 + 2% on next RM 400,000). Total legal and stamp duty costs including SPA fees, loan stamp duty and loan legal fees are approximately RM 21,350 or about 4.3% of property value.

Do foreigners pay more stamp duty in Malaysia in 2026?

Yes. From January 2026, foreigners (non-PR) pay a flat 8% MOT stamp duty on all property purchases in Malaysia, up from the previous 4% cap. For a RM 1,000,000 property, this means RM 80,000 in MOT stamp duty alone vs RM 24,000 for Malaysian citizens. This significantly increases the total cost of purchase for foreign buyers.

Are there stamp duty exemptions for first-time homebuyers in Malaysia?

Yes. First-time homebuyers in Malaysia can receive up to 50% exemption on MOT stamp duty and loan agreement stamp duty for properties priced RM 300,000-500,000, subject to Budget 2026 provisions. For a RM 400,000 property, this saves approximately RM 3,500-4,000 in stamp duties.

Sources & References

  1. [1] Inland Revenue Board Malaysia (LHDN) — MOT stamp duty rates: 1%, 2%, 3%, 4% tiers; foreign buyer 8% flat from 2026; loan stamp duty 0.5%https://www.hasil.gov.my
  2. [2] Bar Council Malaysia — Solicitors' Remuneration Order 2023: SPA legal fees 1.25% (first RM 500K); loan legal fees 0.7% (first RM 500K)https://www.malaysianbar.org.my
Malaysia

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