Costs of Buying Property in Malaysia

Stamp duty on the transfer

For transfers of residential property from 1 January 2026 to a person who is not a citizen and not a permanent resident (or to a foreign company), stamp duty is RM8 for every RM100 of the price or market value, whichever is greater. That is 8%. Source: Finance Act 2025 (Act 874), section 29(b), inserting item 32(ab) in the First Schedule to the Stamp Act 1949 (Royal Assent 27 December 2025), published on the Laws of Malaysia portal. Last checked 26 Sep 2026.

Citizens and permanent residents pay a different, tiered rate. See our stamp duty page. Stamp duty is charged on the document (the instrument), and the rates are set out in the First Schedule to the Stamp Act 1949. Source: Inland Revenue Board (LHDN), Overview of Stamp Duty. Last checked 26 Sep 2026.

Legal fees

In Peninsular Malaysia, lawyers’ fees for a sale and transfer follow the Solicitors’ Remuneration Order 2023, in force since 15 July 2023. The scale fee is 1.25% of the first RM500,000 (minimum RM500), 1% of the next RM7,000,000, and negotiable above RM7,500,000 but not more than 1% of the excess. Purchases governed by the Housing Development Act (buying new from a developer) have lower scale percentages. Source: Malaysian Bar, Circular No 258/2023. Last checked 26 Sep 2026.

Loan documents are charged separately, and disbursements and tax on services are added. Ask for a written quote.

Agent commission

For a sale, the Board’s published scale sets a maximum fee of 3%, with a minimum of RM1,000 per property. Who pays is agreed in writing with the agent. Source: Board of Valuers, Appraisers, Estate Agents and Property Managers, scale of fees. Last checked 26 Sep 2026.

State levy on foreign buyers

When a State Authority approves a purchase by a non-citizen, it may require payment of a levy. Source: National Land Code, section 433B(2). Last checked 26 Sep 2026. Amounts are set by each state, so ask your lawyer before you make an offer.

Costs of owning

• Quit rent and assessment. Land carries an annual rent payable to the State Authority, and the local council charges assessment.
• Strata charges. Owners of strata units pay charges and a contribution to a sinking fund. See strata vs individual title.
• Insurance, utilities and repairs, which vary by property.
• Tax on rental income, if you let the property. Take tax advice for your own situation, including in your home country.

Tax when you sell: Real Property Gains Tax (RPGT)

For a seller who is not a citizen and not a permanent resident, RPGT is 30% of the gain if the property is sold within five years of acquiring it, and 10% from the sixth year onwards. For Malaysian citizens the rate falls from 30% to nil after five years. Source: LHDN, Real Property Gains Tax (RPGT) Rates (page last updated 23 Jun 2026). Last checked 26 Sep 2026.

When a non-citizen sells, the buyer’s side retains part of the price for the tax authority; the Bar Council gives this retention as 7% of the disposal price. Source: Malaysian Bar, Circular No 444/2024. Last checked 26 Sep 2026.

A simple way to plan

1. Start with the price.
2. Add stamp duty for your buyer category, legal fees and any state levy.
3. Add loan costs if you borrow.
4. Add the first year of quit rent, assessment or strata charges, and insurance.
5. Keep a buffer for furnishing, repairs and currency movements.

Sources

• Finance Act 2025 (Act 874), section 29, on the Laws of Malaysia portal. Checked 26 Sep 2026.
• LHDN, Overview of Stamp Duty. Checked 26 Sep 2026.
• LHDN, RPGT Rates. Checked 26 Sep 2026.
• Malaysian Bar, Circular No 258/2023 (Solicitors’ Remuneration Order 2023). Checked 26 Sep 2026.
• Malaysian Bar, Circular No 444/2024. Checked 26 Sep 2026.
• Board of Valuers, Appraisers, Estate Agents and Property Managers, fees. Checked 26 Sep 2026.
• National Land Code (JKPTG reference copy). Checked 26 Sep 2026.