MOT and loan agreement rates, worked examples and exemptions — for homes, shop lots, factories and warehouses — updated for the 2026 rules.
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This guide to stamp duty Malaysia buyers pay shows what you will owe before signing. Stamp duty is charged on two documents: the Memorandum of Transfer (MOT) and your loan agreement. Both must be paid before the property can move into your name.
The rules changed on 1 January 2026. Foreign buyers of homes now pay a flat 8%, and the first-home exemption runs until the end of 2027. Most guides stop at houses, so we also show how the numbers work for factories and warehouses in Penang.
MOT Stamp Duty Rates in Malaysia (2026)
MOT stamp duty is tiered. Each slice of the price is taxed at its own rate, like income tax. Only the part above RM1 million is charged 4%, not the whole price.
| Property value slice | Rate | Max duty on slice |
|---|---|---|
| First RM100,000 | 1% | RM1,000 |
| RM100,001 – RM500,000 | 2% | RM8,000 |
| RM500,001 – RM1,000,000 | 3% | RM15,000 |
| Above RM1,000,000 | 4% | No cap |
These rates apply to Malaysians buying any property, and to everyone buying commercial or industrial property. Foreigners buying a home are the exception — see what changed in 2026.
How to Calculate Stamp Duty: 3 Worked Examples
Here is how to calculate stamp duty in Malaysia step by step. Work through each slice, then add them up.
2% × RM400,000 = RM8,000
MOT: RM9,000
First-time buyer? RM0.
3% × RM250,000 = RM7,500
MOT: RM16,500
Foreign buyer: 8% = RM60,000
4% × RM2.5M = RM100,000
MOT: RM124,000
+ loan duty (80%): RM14,000
Notice the jump. The factory costs seven times more than the house, but its stamp duty is almost 14 times higher. On industrial deals, the 4% slice does most of the damage.
Loan Agreement Stamp Duty: The Second Bill
If you take a bank loan, the loan agreement is stamped at a flat 0.5% of the loan amount. A RM450,000 home loan means RM2,250 in duty. A RM2.8 million factory loan means RM14,000.
Many buyers forget this second bill. Some banks let you add legal fees to the loan, but stamp duty is usually paid in cash. Read our home loan Malaysia guide to plan your financing, or check your monthly instalment with our property loan calculator.
Stamp Duty Malaysia 2026: What Changed
For the official rules, see LHDN’s stamp duty Malaysia page.
5 Stamp Duty Exemptions That Can Save You Money
- First-time home buyer (i-MILIKI). Malaysian citizens buying a first home up to RM500,000 pay no MOT or loan duty. The SPA must be signed by 31 December 2027.
- Husband and wife. A voluntary transfer between spouses is fully exempt. You pay only nominal stamping.
- Parents, children and grandparents. The first RM1 million is fully exempt. Anything above that gets a 50% discount. The receiver must be a Malaysian citizen.
- Associated companies. Section 15 and 15A of the Stamp Act give relief for transfers between related companies and reconstructions. Factory owners moving a property into a new holding company should ask about this first.
- The SPA itself. The Sale and Purchase Agreement carries only a fixed RM10 duty. The big bills are the MOT and loan agreement.
📌 Note: Every exemption has conditions. Your lawyer applies for it when the documents are stamped, so raise it early.
Stamp Duty for Commercial Property in Malaysia: Factories & Warehouses
Factories, warehouses, shop lots and industrial land use the same tiered MOT rates. There is no first-buyer relief, and no 8% foreigner rate. A foreign manufacturer buying a factory in Penang pays exactly what a local company pays.
Because most factories sell above RM1 million, the bill is large. Plan for these costs together:
For the full picture, read our factory for sale Penang buyer’s guide and the Batu Kawan industrial property cost guide. Ready to look? Browse factories and warehouses for sale.
Who Pays Stamp Duty, When, and Late Penalties
The buyer pays both the MOT and loan duty. Your lawyer submits the documents to LHDN and collects the money from you. Documents must be stamped within 30 days of signing.
| Stamped late by | Penalty |
|---|---|
| Up to 3 months | RM50 or 10% of the duty, whichever is higher |
| More than 3 months | RM100 or 20% of the duty, whichever is higher |
Renting instead? Tenancy agreements are stamped too — use our tenancy agreement stamp duty calculator. Selling? The seller pays no stamp duty but may owe Real Property Gains Tax. Always get a lawyer to confirm your final figure.
Stamp Duty Malaysia FAQ
How much is stamp duty on a RM500,000 house in Malaysia?
MOT stamp duty is RM9,000. A 90% loan adds RM2,250 for the loan agreement. Malaysian first-time buyers pay nothing on either.
What is the stamp duty for foreigners in Malaysia in 2026?
From 1 January 2026, foreigners and foreign-owned companies pay a flat 8% on residential property. Commercial and industrial property still uses the normal 1% to 4% tiers.
Is stamp duty for commercial property in Malaysia different?
The rates are the same tiers. The difference is that no first-home relief applies, and the 8% foreigner rate does not apply either.
Who pays stamp duty, the buyer or the seller?
The buyer pays the MOT and loan agreement duty. The seller deals with Real Property Gains Tax instead.
Is stamp duty based on the price or the market value?
LHDN uses whichever is higher. If the valuation comes in above your price, you may get a bill for the difference.
Can I add stamp duty to my housing loan?
Usually not. Some banks finance legal fees, but stamp duty is normally paid in cash before the transfer.
How long do I have to pay stamp duty?
Documents must be stamped within 30 days of signing. After that, a penalty of at least 10% of the duty applies.
Get a full cost breakdown — stamp duty, consent fees and legal fees — before you make an offer.
📞 Call 019-4499725 💬 WhatsApp YC TangRegistered Real Estate Negotiator · REN 12101 YC Tang · Penang Industrial Property — Factory, Warehouse & Land