.
Q1: When purchasing property in Malaysia, is there any specific tax payable to the Malaysian Government?
A: Yes. When purchasing property in Malaysia, a buyer is required to pay stamp duty, which is a tax imposed on the instrument of transfer/ SPA.
This duty is calculated on an ad valorem basis, meaning it is charged according to the value of the transaction or the market value of the property as adjudicated by the tax authority of Malaysia, whichever is higher.
.
Q2: Is there a specific formula for calculating stamp duty?
A: Yes. In Malaysia, stamp duty on property transfers is calculated using a tiered rate system based on the property value or adjudicated market value (whichever is higher). The current rates are generally as follows:-
.
| Property Value Tier | Stamp Duty Rate |
| First RM100,000 | 1% |
| Next RM400,000 | 2% |
| Next RM500,000 | 3% |
| Remaining amount above RM1,000,000 | 4% |
.
Q3: Do the above stamp duty rates apply to both residential and commercial properties?
A: Yes. For Malaysian buyers, the tiered stamp duty rates apply regardless of whether the property is residential or commercial.
.
Q4: Do the same stamp duty rates apply to foreign buyers?
A: No. Following the recent policy announced by the Malaysian Government in 2025, effective from January 2026, foreign buyers purchasing residential properties in Malaysia are subject to a flat stamp duty rate of 8%. The duty is calculated based on the purchase price stated in the Sale and Purchase Agreement (SPA) or the market value of the property as assessed by the Inland Revenue Board of Malaysia (LHDN), whichever is higher.
.
Q5: What is the stamp duty rate chargeable on commercial property purchased by a foreign purchaser?
A: For commercial properties, foreign buyers are currently subject to a lower flat rate of 4%. However, please note that the government may adjust these rates in the future. Please pay attention to the latest official announcements by the Malaysian Government or seek advice from the local solicitors in Malaysia.
.
Q6: What about Permanent Residents (PR)? Do they follow the local or foreign rate?
A: PR holders follow the local (Malaysian citizen) calculation method.
.
Q7: Are there tax exemptions or incentives for Malaysian purchasers?
A: Yes. For individuals, under the i-Miliki initiative (extended to December 31, 2027), First-Time Home Buyers can enjoy:
- 100% Stamp Duty Exemption on the Instrument of Transfer and Loan Agreement for residential properties priced up to RM500,000.
- 75% Stamp Duty Exemption for properties priced between RM500,001 and RM1,000,000.
.
Q8: Aside from the above, what other property-related incentives are available to Malaysian Purchasers?
A: First, Transfer between Family Members:
Stamp duty exemptions apply to properties valued up to RM1,000,000 for transfers between spouses, parents and children, or grandparents and grandchildren.
.
Second, Inheritance: There is no inheritance tax in Malaysia; property transfer via inheritance only requires a nominal stamp duty of RM10.
.
Third, Disposal of Private Residence: Malaysian citizens and PRs are entitled to a one-time, lifetime exemption from tax on the sale of one private residential property.
.
Q9: How is Real Property Gains Tax (RPGT) calculated for Malaysian citizens?
A: RPGT is only charged on profitable transactions. If there is no profit or a loss, no tax is required.
Calculation: $Net Profit = Selling Price – Purchase Price – Misc. Costs$ (legal fees, agent commissions, renovations, etc.).
- Year 1–3: 30%
- Year 4: 20%
- Year 5: 15%
- Year 6 and onwards: 0% (Exempt)
.
Q10: Is the RPGT different for foreign individuals or companies?
A: Yes, the rates for foreign entities are as follows (only applicable to profitable sales):
- Year 1–5: 30%
- Year 6 and onwards: 10%
.
The above FAQs cover common questions on stamp duty and Real Property Gains Tax (RPGT) in Malaysia. If you are looking for a conveyancing lawyer in Johor Bahru or require legal assistance with property transactions, feel free to reach out to us via WhatsApp: https://wa.link/q3kmv5
.
Like & Follow our Facebook Page to get more legal information.
.
You can learn other legal information from our website：https://www.yeolaw.my/
.
#Yeolawchambers #YLC #conveyancing #propertymalaysia #stampduty #realpropertygaintax #exemption #JBlawyer #propertylawyer #杨律师事务所 #土地转让 #马来西亚产业律师 #新山律师 #印花税 #产业盈利税 #新山律师 #华人律师