Property buyers in Malaysia face two sets of regulated costs that are non-negotiable: stamp duty and legal fees. Both follow fixed schedules. Neither can be discounted. Together, they form the bulk of your upfront acquisition cost — and yet most buyers only budget for one of them properly. The result is a last-minute scramble to find an extra RM10,000-RM30,000 that they did not plan for.
This guide puts both cost schedules in one place. Stamp duty rates and legal fees side by side, with worked examples at six price points from RM300,000 to RM2,000,000. You will know exactly how much cash you need before signing anything.
Stamp Duty Rates (2026)
MOT Stamp Duty (Memorandum of Transfer)
Charged on the transfer of property ownership. Based on the property price or market value, whichever is higher. The rates are tiered — each bracket is taxed at its own rate, not the full amount at the highest rate.
| Property Value Tranche | Rate |
|---|---|
| First RM100,000 | 1% |
| RM100,001 – RM500,000 | 2% |
| RM500,001 – RM1,000,000 | 3% |
| Above RM1,000,000 | 4% |
Loan Agreement Stamp Duty
Flat rate on the total loan/financing amount.
| Type | Rate |
|---|---|
| Conventional loan or Islamic financing | 0.5% |
This is straightforward. No tiers. 0.5% of whatever you borrow.
Legal Fee Schedule (Solicitors' Remuneration Order 2023)
Legal fees are calculated on the same tiered basis for all three documents: SPA, loan agreement, and MOT. The base amount differs (property price for SPA/MOT, loan amount for financing agreement).
| Value Bracket | Fee Rate |
|---|---|
| First RM500,000 | 1.25% |
| RM500,001 – RM7,500,000 | 1.00% |
| Above RM7,500,000 | Negotiable (up to 1%) |
A minimum fee of RM500 applies per document.
Plus 6% SST (Service Tax) on all professional fees.
Legal fees are charged on three documents:
- SPA — based on property purchase price
- Loan Agreement — based on loan/financing amount
- MOT — based on property purchase price
Worked Example 1: RM300,000 Property
Assume: 90% LTV (loan = RM270,000).
Stamp Duty
| Type | Calculation | Amount (RM) |
|---|---|---|
| MOT — First RM100K | RM100,000 x 1% | 1,000 |
| MOT — Next RM200K | RM200,000 x 2% | 4,000 |
| MOT Total | 5,000 | |
| Loan stamp duty | RM270,000 x 0.5% | 1,350 |
| Total Stamp Duty | 6,350 |
Legal Fees
| Document | Base Amount | Fee (RM) |
|---|---|---|
| SPA | RM300,000 x 1.25% | 3,750 |
| Loan Agreement | RM270,000 x 1.25% | 3,375 |
| MOT | RM300,000 x 1.25% | 3,750 |
| Subtotal | 10,875 | |
| SST (6%) | 653 | |
| Total Legal Fees | 11,528 |
Total Entry Cost
| Category | Amount (RM) |
|---|---|
| Stamp duty | 6,350 |
| Legal fees (incl. SST) | 11,528 |
| Disbursements (est.) | 500 |
| Total | 18,378 |
| As % of property price | 6.1% |
Worked Example 2: RM500,000 Property
Assume: 90% LTV (loan = RM450,000).
Stamp Duty
| Type | Calculation | Amount (RM) |
|---|---|---|
| MOT — First RM100K | RM100,000 x 1% | 1,000 |
| MOT — Next RM400K | RM400,000 x 2% | 8,000 |
| MOT Total | 9,000 | |
| Loan stamp duty | RM450,000 x 0.5% | 2,250 |
| Total Stamp Duty | 11,250 |
Legal Fees
| Document | Base Amount | Fee (RM) |
|---|---|---|
| SPA | RM500,000 x 1.25% | 6,250 |
| Loan Agreement | RM450,000 x 1.25% | 5,625 |
| MOT | RM500,000 x 1.25% | 6,250 |
| Subtotal | 18,125 | |
| SST (6%) | 1,088 | |
| Total Legal Fees | 19,213 |
Total Entry Cost
| Category | Amount (RM) |
|---|---|
| Stamp duty | 11,250 |
| Legal fees (incl. SST) | 19,213 |
| Disbursements (est.) | 500 |
| Total | 30,963 |
| As % of property price | 6.2% |
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Worked Example 3: RM800,000 Property
Assume: 90% LTV (loan = RM720,000).
Stamp Duty
| Type | Calculation | Amount (RM) |
|---|---|---|
| MOT — First RM100K | RM100,000 x 1% | 1,000 |
| MOT — Next RM400K | RM400,000 x 2% | 8,000 |
| MOT — Next RM300K | RM300,000 x 3% | 9,000 |
| MOT Total | 18,000 | |
| Loan stamp duty | RM720,000 x 0.5% | 3,600 |
| Total Stamp Duty | 21,600 |
Legal Fees
| Document | Calculation | Fee (RM) |
|---|---|---|
| SPA | First RM500K x 1.25% + Next RM300K x 1% | 9,250 |
| Loan Agreement | First RM500K x 1.25% + Next RM220K x 1% | 8,450 |
| MOT | First RM500K x 1.25% + Next RM300K x 1% | 9,250 |
| Subtotal | 26,950 | |
| SST (6%) | 1,617 | |
| Total Legal Fees | 28,567 |
Total Entry Cost
| Category | Amount (RM) |
|---|---|
| Stamp duty | 21,600 |
| Legal fees (incl. SST) | 28,567 |
| Disbursements (est.) | 600 |
| Total | 50,767 |
| As % of property price | 6.3% |
Worked Example 4: RM1,000,000 Property
Assume: 90% LTV (loan = RM900,000).
Stamp Duty
| Type | Calculation | Amount (RM) |
|---|---|---|
| MOT — First RM100K | RM100,000 x 1% | 1,000 |
| MOT — Next RM400K | RM400,000 x 2% | 8,000 |
| MOT — Next RM500K | RM500,000 x 3% | 15,000 |
| MOT Total | 24,000 | |
| Loan stamp duty | RM900,000 x 0.5% | 4,500 |
| Total Stamp Duty | 28,500 |
Legal Fees
| Document | Calculation | Fee (RM) |
|---|---|---|
| SPA | First RM500K x 1.25% + Next RM500K x 1% | 11,250 |
| Loan Agreement | First RM500K x 1.25% + Next RM400K x 1% | 10,250 |
| MOT | First RM500K x 1.25% + Next RM500K x 1% | 11,250 |
| Subtotal | 32,750 | |
| SST (6%) | 1,965 | |
| Total Legal Fees | 34,715 |
Total Entry Cost
| Category | Amount (RM) |
|---|---|
| Stamp duty | 28,500 |
| Legal fees (incl. SST) | 34,715 |
| Disbursements (est.) | 600 |
| Total | 63,815 |
| As % of property price | 6.4% |
Worked Example 5: RM1,500,000 Property
Assume: 90% LTV (loan = RM1,350,000).
Stamp Duty
| Type | Calculation | Amount (RM) |
|---|---|---|
| MOT — First RM100K | RM100,000 x 1% | 1,000 |
| MOT — Next RM400K | RM400,000 x 2% | 8,000 |
| MOT — Next RM500K | RM500,000 x 3% | 15,000 |
| MOT — Next RM500K | RM500,000 x 4% | 20,000 |
| MOT Total | 44,000 | |
| Loan stamp duty | RM1,350,000 x 0.5% | 6,750 |
| Total Stamp Duty | 50,750 |
Legal Fees
| Document | Calculation | Fee (RM) |
|---|---|---|
| SPA | First RM500K x 1.25% + Next RM1M x 1% | 16,250 |
| Loan Agreement | First RM500K x 1.25% + Next RM850K x 1% | 14,750 |
| MOT | First RM500K x 1.25% + Next RM1M x 1% | 16,250 |
| Subtotal | 47,250 | |
| SST (6%) | 2,835 | |
| Total Legal Fees | 50,085 |
Total Entry Cost
| Category | Amount (RM) |
|---|---|
| Stamp duty | 50,750 |
| Legal fees (incl. SST) | 50,085 |
| Disbursements (est.) | 700 |
| Total | 101,535 |
| As % of property price | 6.8% |
Worked Example 6: RM2,000,000 Property
Assume: 90% LTV (loan = RM1,800,000).
Stamp Duty
| Type | Calculation | Amount (RM) |
|---|---|---|
| MOT — First RM100K | RM100,000 x 1% | 1,000 |
| MOT — Next RM400K | RM400,000 x 2% | 8,000 |
| MOT — Next RM500K | RM500,000 x 3% | 15,000 |
| MOT — Next RM1M | RM1,000,000 x 4% | 40,000 |
| MOT Total | 64,000 | |
| Loan stamp duty | RM1,800,000 x 0.5% | 9,000 |
| Total Stamp Duty | 73,000 |
Legal Fees
| Document | Calculation | Fee (RM) |
|---|---|---|
| SPA | First RM500K x 1.25% + Next RM1.5M x 1% | 21,250 |
| Loan Agreement | First RM500K x 1.25% + Next RM1.3M x 1% | 19,250 |
| MOT | First RM500K x 1.25% + Next RM1.5M x 1% | 21,250 |
| Subtotal | 61,750 | |
| SST (6%) | 3,705 | |
| Total Legal Fees | 65,455 |
Total Entry Cost
| Category | Amount (RM) |
|---|---|
| Stamp duty | 73,000 |
| Legal fees (incl. SST) | 65,455 |
| Disbursements (est.) | 800 |
| Total | 139,255 |
| As % of property price | 7.0% |
Summary: Total Entry Cost at a Glance
| Property Price | Down Payment (10%) | Stamp Duty | Legal Fees | Disbursements | Total Entry Cost | Entry Cost % |
|---|---|---|---|---|---|---|
| RM300,000 | RM30,000 | RM6,350 | RM11,528 | ~RM500 | RM48,378 | 16.1% |
| RM500,000 | RM50,000 | RM11,250 | RM19,213 | ~RM500 | RM80,963 | 16.2% |
| RM800,000 | RM80,000 | RM21,600 | RM28,567 | ~RM600 | RM130,767 | 16.3% |
| RM1,000,000 | RM100,000 | RM28,500 | RM34,715 | ~RM600 | RM163,815 | 16.4% |
| RM1,500,000 | RM150,000 | RM50,750 | RM50,085 | ~RM700 | RM251,535 | 16.8% |
| RM2,000,000 | RM200,000 | RM73,000 | RM65,455 | ~RM800 | RM339,255 | 17.0% |
The total cash required to complete a property purchase is not 10%. It is 16-17% of the property price. For an RM500,000 property, you need approximately RM81,000 in cash — not RM50,000. This is the number that matters for your financial planning.
First-Time Buyer Stamp Duty Exemption
First-time Malaysian home buyers purchasing properties up to RM500,000 may qualify for stamp duty exemptions. The specifics depend on the current budget announcements and may change annually.
Current Exemption (Subject to Budget 2026 Provisions)
| Condition | Exemption |
|---|---|
| Property price up to RM500,000 | Full exemption on MOT stamp duty |
| First residential property | Must be buyer's first home |
| Malaysian citizen | Foreigners do not qualify |
| SPA executed within qualifying period | Check latest LHDN guidelines for date range |
Impact on worked examples:
| Property Price | Normal MOT Stamp Duty | After First-Timer Exemption | Savings |
|---|---|---|---|
| RM300,000 | RM5,000 | RM0 | RM5,000 |
| RM500,000 | RM9,000 | RM0 | RM9,000 |
For an RM500,000 property, the first-time buyer exemption saves RM9,000 — reducing total entry cost from ~RM81,000 to ~RM72,000.
Some budget provisions also include loan agreement stamp duty exemptions for first-time buyers. Check the latest Finance Act for current eligibility.
Foreigner Additional Costs
Foreign buyers face higher costs in two areas:
Higher Minimum Purchase Price
Each Malaysian state sets a minimum property price for foreign buyers. This ranges from RM600,000 to RM2,000,000 depending on the state and zone. You cannot buy below this threshold.
Additional Stamp Duty
Some states impose additional stamp duty or levies on foreign purchases. For example:
| Additional Cost | Typical Range |
|---|---|
| State consent fee | RM10,000 - RM30,000 |
| Additional stamp duty levy | 2-3% in some states |
| Foreign buyer processing fee | RM1,000 - RM5,000 |
These are on top of the standard stamp duty and legal fees. For a foreigner buying an RM1,000,000 property, the total entry cost can be 19-21% of the property price — compared to 16-17% for a Malaysian citizen.
Entry Cost vs Rental Yield: The Payback Period
Understanding total entry cost is critical for investment analysis. Your entry cost is "dead money" — it does not generate returns. The time it takes for rental income to recover this cost determines your true break-even point.
| Property Price | Entry Cost (ex-deposit) | Monthly Rent (est. 4% yield) | Months to Recover Entry Cost |
|---|---|---|---|
| RM300,000 | RM18,378 | RM1,000 | 18 months |
| RM500,000 | RM30,963 | RM1,667 | 19 months |
| RM800,000 | RM50,767 | RM2,667 | 19 months |
| RM1,000,000 | RM63,815 | RM3,333 | 19 months |
At a 4% gross rental yield, it takes approximately 18-19 months of gross rent to recover your stamp duty, legal fees, and disbursements alone. This is before you account for the down payment, mortgage payments, maintenance fees, and vacancy. Your true break-even on a Malaysian investment property is typically 4-7 years, not the "instant cashflow" that property seminars promise.
Use the Calculator
These worked examples cover the most common price points. For any other amount, use our stamp duty calculator.
The calculator computes MOT stamp duty, loan stamp duty, and legal fees automatically based on the current rate schedules. Enter your property price and financing percentage to get the exact figures.