Authored by the expert who managed and guided the team behind the Malaysia Property Pack
Yes, the analysis of Johor's property market is included in our pack
Property buyers in Johor face multiple taxes and fees that can add 10-13% to their purchase price. Foreign buyers pay higher stamp duty rates and additional levies compared to Malaysian citizens.
Understanding these costs upfront prevents budget surprises and helps you calculate the true investment required for Johor real estate. Each fee varies based on property price, buyer nationality, and financing structure.
If you want to go deeper, you can check our pack of documents related to the real estate market in Malaysia, based on reliable facts and data, not opinions or rumors.
Property acquisition costs in Johor range from 10-13% of the purchase price for foreign buyers, with stamp duty being the largest single expense at 4% for foreigners versus tiered rates for Malaysians.
Monthly ownership costs include service charges (RM0.25-RM0.50 per sq ft for condos), annual property taxes (RM1,000-RM2,500), and potential Real Property Gains Tax of 10-30% upon sale depending on holding period.
| Cost Category | Amount (RM1.2M Property) | When Paid |
|---|---|---|
| Stamp Duty (Foreigner) | RM48,000 (4%) | Upon SPA signing |
| Legal Fees + SST | RM12,000-RM13,000 | Completion |
| Loan Stamp Duty | RM4,500 (0.5% of loan) | Loan signing |
| Foreign Buyer Levy | RM24,000 (2%) | State consent process |
| Registration Fees | RM5,500 | Title transfer |
| Valuation & Processing | RM2,000-RM4,000 | Loan application |
| Total Acquisition Cost | RM96,000-RM101,000 | Various stages |
What information do I need to calculate my exact property costs in Johor?
You need six key pieces of information to calculate precise property costs in Johor.
The purchase price determines your stamp duty bracket, with rates varying significantly between Malaysian citizens, permanent residents, and foreigners. Property type matters because landed properties have different registration fees compared to strata units like condominiums.
Your buyer status is crucial since foreigners pay a flat 4% stamp duty versus tiered rates for Malaysians, plus additional foreign buyer levies of up to 2%. The specific Johor local council affects annual assessment tax rates, which vary between areas like Johor Bahru City Council, Iskandar Puteri City Council, and smaller municipal councils.
Your planned loan amount determines loan agreement stamp duty at 0.5%, plus mortgage insurance premiums that typically range from 2-5% of the loan value. Location within Johor also affects minimum price thresholds for foreign buyers, with some developments having higher restrictions than the standard RM1 million minimum.
How much is stamp duty on property transfer in Johor?
Stamp duty rates in Johor follow Malaysia's tiered structure for citizens and PR holders, but foreigners pay a flat 4% rate.
Malaysian citizens and permanent residents benefit from progressive rates: 1% on the first RM100,000, 2% on the next RM400,000 (up to RM500,000), 3% on the next RM500,000 (up to RM1 million), and 4% on amounts above RM1 million.
| Property Price Range | Malaysian/PR Rate | Foreigner Rate |
|---|---|---|
| First RM100,000 | 1% | 4% |
| RM100,001 - RM500,000 | 2% | 4% |
| RM500,001 - RM1,000,000 | 3% | 4% |
| Above RM1,000,000 | 4% | 4% |
| Total for RM1.2M (Malaysian) | RM32,000 | - |
| Total for RM1.2M (Foreigner) | - | RM48,000 |
Foreign buyers pay RM16,000 more in stamp duty on a RM1.2 million property compared to Malaysian buyers.
What is the loan agreement stamp duty rate in Johor?
Loan agreement stamp duty in Johor is fixed at 0.5% of your approved loan amount.
This applies to all buyers regardless of nationality and covers the mortgage documentation between you and the bank. For a typical 70% loan-to-value ratio on a RM1.2 million property, you would borrow RM840,000, resulting in stamp duty of RM4,200.
Higher loan amounts increase this cost proportionally - a RM900,000 loan incurs RM4,500 in stamp duty. Some banks may absorb this cost as part of promotional packages, but budget for it as a standard expense when calculating total acquisition costs.
This stamp duty is separate from the property transfer stamp duty and must be paid when signing your loan agreement documents.
How much are legal fees for buying property in Johor?
Legal fees in Johor follow Malaysia's standard tariff structure, typically totaling RM12,000-RM15,000 for properties above RM1 million.
The base legal fee structure charges 1% on the first RM500,000, 0.8% on the next RM500,000, and 0.7% on amounts above RM1 million. For a RM1.2 million property, this equals RM10,400 in base fees.
Additional costs include 6% Service and Sales Tax (SST) on legal fees, plus disbursements for searches, courier services, and administrative expenses typically ranging RM800-RM1,500. Your total legal cost covers both the Sale & Purchase Agreement and loan documentation.
Some law firms offer package deals, but expect to pay around RM12,000-RM15,000 total for legal services on properties in the RM1-1.5 million range. This includes both conveyancing and loan documentation handling.
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What bank fees and mortgage insurance costs should I budget for?
Bank-related costs in Johor typically add RM15,000-RM30,000 to your property purchase, depending on loan size and coverage choices.
Valuation fees range from 0.1% to 0.3% of property price, though many banks absorb this cost for good customers. Bank processing fees typically range RM500-RM1,500, covering application processing and documentation.
Mortgage Reducing Term Assurance (MRTA) or Mortgage Level Term Assurance (MLTA) premiums represent the largest insurance cost, typically 2-5% of your loan amount. Age, health status, and coverage type affect premiums significantly.
| Fee Type | Typical Range | RM900K Loan Example |
|---|---|---|
| Property Valuation | 0.1%-0.3% of price | RM1,200-RM3,600 |
| Bank Processing | RM500-RM1,500 | RM1,000 |
| MRTA/MLTA Premium | 2%-5% of loan | RM18,000-RM45,000 |
| Fire Insurance | RM200-RM500 | RM350 |
| Total Bank Costs | Variable | RM20,550-RM49,950 |
Shop around for insurance quotes as premiums vary significantly between providers and coverage options.
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What additional costs do foreign buyers face in Johor?
Foreign buyers in Johor encounter several additional costs that Malaysian buyers avoid, potentially adding RM30,000-RM50,000 to acquisition expenses.
The minimum purchase threshold for foreigners is RM1 million in most areas, though some developments set higher limits or restrict foreign ownership entirely. State consent is mandatory for all foreign purchases, with processing fees typically RM10,000-RM20,000.
Johor imposes a foreign buyer levy of up to 2% of the property price, adding RM24,000 on a RM1.2 million purchase. Some local councils may impose additional charges or restrictions on foreign ownership in certain areas.
Processing times for foreign buyer approvals can extend 3-6 months, potentially affecting financing arrangements and completion timelines. Legal fees may also be higher due to additional documentation requirements for state consent applications.
Certain types of properties, particularly some landed developments, may be entirely off-limits to foreign buyers regardless of price.
How much are Land Office registration and title transfer fees?
Land Office registration fees in Johor follow a tiered structure that took effect in July 2025, with costs ranging RM4,500-RM8,000 for most properties.
The base registration fee is RM4,500 for properties up to RM1 million, with an additional RM250 charged for every RM50,000 above the RM1 million threshold. This applies to Memorandum of Transfer (MOT) for individual titles or Deed of Assignment (DOA) for strata properties.
For a RM1.2 million property, the calculation is RM4,500 base fee plus RM250 Ă— 4 (for the four RM50,000 increments above RM1 million), totaling RM5,500. Properties over RM2 million can see registration fees exceed RM10,000.
Additional charges may apply for expedited processing or special circumstances, such as title splitting or consolidation. These fees are paid directly to the Land Office during the title transfer process.
What developer and handover fees can I expect?
Developer and handover fees in Johor typically range RM3,000-RM8,000, varying by project type and developer policies.
Key collection fees usually range RM1,000-RM3,000, covering administrative costs for unit handover and initial inspections. Defect liability deposits may be required, typically RM2,000-RM5,000, refundable after the defect liability period expires.
Some developers charge connection fees for clubhouse facilities, security systems, or building management systems. Fire insurance deposits and temporary electricity connection fees during renovation may add another RM1,000-RM2,000.
Legal completion fees separate from your lawyer's charges may apply, particularly for strata developments requiring additional documentation. Always review your Sale & Purchase Agreement carefully as these fees should be clearly itemized.
Luxury developments and integrated townships often have higher handover fees due to premium facilities and services included in the development.
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How much do utility connections and deposits cost in Johor?
Utility connections and deposits in Johor typically cost RM1,500-RM3,000 total, depending on property type and service requirements.
Tenaga Nasional Berhad (TNB) electricity deposits range RM500-RM1,500 based on expected consumption and property size. Single-phase connections for apartments cost less than three-phase connections required for larger landed properties.
SAJ Holdings water connection deposits typically range RM100-RM500, with higher amounts for commercial classifications or larger properties. Installation fees may apply separately if new infrastructure is required.
Internet and telephone services require deposits of RM200-RM800 per provider, varying by package and installation complexity. Gas connections are uncommon in most Johor residential areas, but where available, deposits range RM500-RM1,000.
Most developers arrange basic utility connections during construction, but upgrades or changes may incur additional fees. Budget for reconnection deposits if utilities were disconnected during renovation periods.
What are the annual property tax obligations in Johor?
Annual property taxes in Johor consist of quit rent and assessment tax, typically totaling RM1,500-RM3,500 for residential properties above RM1 million.
Quit rent (cukai tanah) for landed properties typically ranges RM100-RM500 annually, based on land area and location within Johor. Strata properties may have lower quit rent as it's calculated per unit rather than total land area.
Assessment tax (cukai pintu) is calculated as a percentage of annual rental value, typically 0.1%-0.3% depending on the local council. For properties in prime areas like Johor Bahru or Iskandar Malaysia, this often ranges RM1,000-RM2,500 annually.
Different local councils in Johor have varying assessment rates - Johor Bahru City Council typically charges higher rates than smaller municipal councils in rural areas. Payment deadlines vary by council, with discounts often available for early payment.
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What monthly charges apply to strata properties in Johor?
Strata properties in Johor incur monthly service charges typically ranging RM0.25-RM0.50 per square foot, plus sinking fund contributions.
Service and maintenance charges cover common area upkeep, security, utilities for shared spaces, and facility management. Higher-end condominiums with extensive facilities like pools, gyms, and 24-hour security charge toward the upper end of this range.
Sinking fund contributions typically equal 10% of monthly service charges, collected separately for major repairs and replacements like lift refurbishment, roof repairs, or facility upgrades. This is mandatory under Malaysian strata law.
1. **Luxury condominiums (RM0.40-RM0.50/sq ft):** Full facilities, concierge services, premium locations2. **Mid-range developments (RM0.30-RM0.40/sq ft):** Standard facilities, good security, established areas 3. **Budget developments (RM0.25-RM0.35/sq ft):** Basic facilities, minimal services4. **Serviced residences (RM0.45-RM0.60/sq ft):** Hotel-style services, higher service levels5. **Older developments (RM0.20-RM0.30/sq ft):** Lower fees but potentially higher special assessmentsFor a typical 1,000 square foot unit at RM0.35 per square foot, expect monthly charges of RM350 plus RM35 sinking fund, totaling RM385 monthly.
How much is Real Property Gains Tax when I sell my Johor property?
Real Property Gains Tax (RPGT) in Johor varies significantly based on your holding period and buyer status, ranging from 5% to 30% of capital gains.
Foreign buyers and companies face higher RPGT rates: 30% for properties held 1-3 years, 20% in the 4th year, 15% in the 5th year, and 10% from the 6th year onward. Malaysian citizens benefit from lower rates, paying just 5% after the 5th year.
Calculation is based on the difference between sale price and acquisition cost (including improvement expenses). For a property bought at RM1.2 million and sold at RM1.8 million after 4 years, the RM600,000 gain would incur RM120,000 RPGT for foreigners (20% rate).
| Holding Period | Malaysian Rate | Foreigner/Company Rate |
|---|---|---|
| 1-3 years | 30% | 30% |
| 4th year | 20% | 20% |
| 5th year | 15% | 15% |
| 6th year onwards | 5% | 10% |
| On RM600K gain (4th year) | RM120,000 | RM120,000 |
| On RM600K gain (6th year) | RM30,000 | RM60,000 |
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Property acquisition costs in Johor can significantly impact your investment returns, particularly for foreign buyers who face additional levies and higher stamp duty rates.
Understanding these costs upfront allows for proper budgeting and helps avoid unexpected expenses that could affect your financing arrangements or investment timeline.
Sources
- YK Wong - Legal Update Johor's Property Transfers New Rates
- Jenny Wong - Stamp Duty Malaysia Increased in 2025
- PropertyGenie - Stamp Duty Exemption First Time Homebuyers
- Prestige Realty - Legal Fees
- ClearTax Malaysia - Stamp Duty Malaysia
- Malaysia Housing Loan - Lawyer Fees for Buying House
- Malaysia Housing Loan - Legal Fees for Buying House
- Landco Malaysia - Foreigner Property Tax