Stamp Duty for Foreign Buyers in Malaysia: The Flat 8% MOT Explained

The biggest tax line when you buy Malaysian property is the stamp duty on the Memorandum of Transfer (MOT) — the instrument that moves the title into your name. Who you are determines how it is charged: Malaysians and Permanent Residents pay marginal tiers of 1–4%, while foreign buyers now pay a flat 8% on the whole price.

The tiered rates (citizens, PRs and Malaysian companies)

MOT duty is charged on the higher of the purchase price or the market value (as adjudicated by LHDN, with valuation by JPPH). The tiers, in force since 1 July 2019 under the Stamp Act 1949:

• 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)
• 4% on amounts above RM1,000,000

Worked example: an RM1,000,000 condo. Duty = RM1,000 + RM8,000 + RM15,000 = RM24,000.

The flat 8% rate for foreign buyers

The Finance Act 2025 (Budget 2026) replaced the tiers for foreign buyers with a flat 8% of the price/market value, effective 1 January 2026. It applies to:

• Non-citizen, non-PR individuals — including MM2H visa holders (an MM2H pass is a long-stay visa, not Permanent Residency)
• Foreign companies

Malaysian Permanent Residents pay the normal tiers, not the flat rate. Before this change, foreign buyers paid a flat 4% (in force 2024–2025) — double-check any older article or agent quote still citing 4%.

Price	Citizen / PR (tiers)	Foreigner (flat 8%)	Difference
RM500,000	RM9,000	RM40,000	RM31,000
RM1,000,000	RM24,000	RM80,000	RM56,000
RM2,000,000	RM64,000	RM160,000	RM96,000

Unlike Singapore's ABSD, there is no count-based surcharge — your second or third Malaysian property is stamped exactly like your first.

Loan agreement duty: 0.5%

If you finance the purchase, the loan/facility agreement attracts its own stamp duty of 0.5% of the loan amount. A foreign buyer borrowing RM700,000 (a typical 70% margin on RM1M) pays RM3,500 on the loan documents, on top of the RM80,000 MOT duty.

First-time buyer exemption (citizens only)

Budget 2026 also introduced a 100% exemption of both MOT and loan-agreement duty for first-time Malaysian-citizen buyers of homes priced RM500,000 and below, for sale and purchase agreements signed 1 January 2026 – 31 December 2027. This does not extend to foreigners or PRs — it is listed here so you can read local marketing material correctly.

Legal fees on top

Conveyancing fees follow the Solicitors' Remuneration Order 2023 scale: 1.25% on the first RM500,000 (minimum RM500) and 1% on the next RM7 million (negotiable above RM7.5M). On an RM1M purchase the scale fee is RM11,250, plus disbursements and service tax. A separate scale applies to the loan documentation.

Timing

Instruments executed in Malaysia must be stamped within 30 days of execution (longer windows apply to documents signed abroad). Your lawyer submits the MOT for adjudication via LHDN's STAMPS system; penalties apply to late stamping.

What to do next

1. Run your numbers through our stamp duty calculator — it applies the tiers, the flat 8% foreign rate and the 0.5% loan duty with the current effective dates.
2. If you hold an MM2H pass, budget the 8% rate — MM2H does not confer PR treatment for stamp duty.
3. Remember duty is charged on the higher of price or JPPH market value — a "below-market bargain" can still be stamped at market value.