Reviewed 16 September 2026. This is general property and tax information, not legal, tax or investment advice.
Non-citizen buyers of Malaysian residential property have faced an 8% stamp-duty rate on the instrument of transfer since 1 January 2026. The previous rate was 4%.
Stamp duty is calculated on the transaction price or market value, whichever is higher. The effect is plain: a RM600,000 purchase attracts RM48,000; RM1 million attracts RM80,000; and RM2 million attracts RM160,000.
Who the higher rate affects
The change applies to non-citizens and foreign-incorporated companies buying residential property. Malaysian citizens, permanent residents and qualifying Malaysian-incorporated companies are not within this particular increase, but separate rules can apply to the transaction.
Stamp duty is only one cost
Buyers should price the complete commitment: legal fees, financing, valuation, maintenance charges, insurance, foreign-purchase thresholds set by the state, and the cost of selling later. Real Property Gains Tax can also apply on disposal, with rates depending on the seller and holding period.
MM2H applicants should not assume that a property requirement makes a purchase commercially attractive. Immigration eligibility and investment suitability are different decisions.
Before you sign
Ask a Malaysian property lawyer to confirm the applicable state threshold, tenure, title restrictions, stamp-duty treatment and any tax implications. Obtain written advice before paying a booking fee or signing a sale-and-purchase agreement.
Sources
- Inland Revenue Board of Malaysia
- Attorney General’s Chambers e-Federal Gazette
- Stamp Act 1949 and applicable Finance Act amendments
- Real Property Gains Tax Act 1976
Further reading: For MM2H and wider Malaysia long-stay planning, see our Malaysia guide.
LLA Editorial Team | Living Life Asia