What are all the property taxes and fees in Malaysia?

Authored by the expert who managed and guided the team behind the Malaysia Property Pack

Everything you need to know before buying real estate is included in our Malaysia Property Pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Malaysia. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Malaysian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Kuala Lumpur, Penang, and Johor Bahru. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What property details affect my tax rates in Malaysia?

Your property tax rates in Malaysia depend on five key factors that determine which fees and exemptions apply to your purchase.

Property price directly impacts stamp duty calculations, with different tiers applying to different price ranges. Malaysian citizens and permanent residents benefit from tiered rates starting at 1% on the first RM100,000, while foreigners pay a flat 4% on the entire purchase price regardless of value.

Property type matters significantly for ongoing costs. Landed properties (freehold or leasehold) incur quit rent charges that vary by state, while strata properties like condominiums have service charges and sinking fund contributions typically ranging from RM2-5 per square foot monthly.

Your residency status determines not only stamp duty rates but also minimum purchase thresholds. Most states require foreigners to purchase properties worth at least RM1-2 million, with some areas having higher thresholds or additional foreign buyer levies of 1-3%.

State location influences consent fees, foreign buyer minimums, and specific levies. For example, Penang has different foreign buyer requirements compared to Selangor or Kuala Lumpur.

How much is stamp duty on property transfers in Malaysia?

Stamp duty on property transfers in Malaysia follows a tiered system for citizens and permanent residents, but foreigners pay a flat rate regardless of property value.

Property Value Range	Malaysian/PR Rate	Foreigner Rate
First RM100,000	1%	4% (flat rate)
Next RM400,000 (RM100,001-500,000)	2%	4% (flat rate)
Next RM500,000 (RM500,001-1,000,000)	3%	4% (flat rate)
Above RM1,000,000	4%	4% (flat rate)
RM500,000 Example (Malaysian/PR)	RM9,000 total	RM20,000 total
RM1,000,000 Example (Malaysian/PR)	RM24,000 total	RM40,000 total

What are the loan agreement stamp duty costs?

Loan agreement stamp duty in Malaysia is calculated at 0.5% of the total loan amount for conventional financing, with Islamic financing options having different structures.

For a typical 90% loan-to-value mortgage on a RM500,000 property, your loan amount would be RM450,000, resulting in stamp duty of RM2,250. On a RM1,000,000 property with the same LTV ratio, the RM900,000 loan would incur RM4,500 in stamp duty.

Shariah-compliant hire-purchase agreements have a fixed stamp duty of just RM10, making them significantly cheaper from a stamping perspective. However, the overall financing structure and rates may vary, so compare total costs rather than just stamp duties.

It's something we develop in our Malaysia property pack.

The stamp duty is payable within 30 days of signing the loan agreement, and late payment incurs penalties of up to 10 times the original amount.

How much do solicitor fees cost for property purchases?

Solicitor fees in Malaysia follow official scales set by the government, with separate fees for the Sale and Purchase Agreement and loan documentation.

SPA legal fees are calculated at 1.25% of the property value with a minimum charge of RM500. For a RM500,000 property, you'll pay RM6,250, while a RM1,000,000 property costs RM11,250 in legal fees for the purchase agreement.

Loan agreement legal fees are charged at 1% of the loan amount. Using the same 90% LTV examples, a RM450,000 loan costs RM5,000 in legal fees, while a RM900,000 loan costs RM9,000.

Add 6% Service and Sales Tax (SST) to all legal fees. For the RM500,000 property example, SST adds RM675 for SPA fees and RM300 for loan fees. Disbursements including searches, registration, and courier services typically add another RM1,000-2,000 to your total legal costs.

Developer purchases sometimes include legal fee rebates or waivers as promotional incentives, potentially saving thousands in upfront costs.

What do bank valuation fees cost?

Bank valuation fees in Malaysia are typically charged at 0.25% of the property value plus 6% SST and additional disbursements.

For a RM500,000 property, the base valuation fee is approximately RM1,250, plus RM75 SST and around RM125 in disbursements, totaling roughly RM1,450. A RM1,000,000 property would cost approximately RM2,500 plus RM150 SST and RM125 disbursements, totaling around RM2,775.

Banks typically require professional valuations for all loan applications, and you cannot use your own valuer. The valuation must be conducted by a bank-approved firm, and costs are borne by the borrower regardless of whether the loan is ultimately approved.

Some banks may absorb valuation costs as part of promotional packages, particularly for high-value properties or preferred customers with substantial banking relationships.

Are there state-specific fees I need to pay?

State-specific fees in Malaysia vary significantly depending on location, property type, and your residency status, with some states imposing additional levies on foreign buyers.

Foreign buyer minimum thresholds range from RM1-2 million in most states, with some premium areas requiring higher minimums. Consent fees for leasehold properties or bumiputera lot releases typically range from RM300-1,000, though bumiputera release fees can reach RM5,000-10,000 depending on the specific lot and state requirements.

Several states impose foreign buyer levies ranging from 1-3% of the property value in addition to standard stamp duties. These levies are typically non-refundable and payable upon completion of the purchase.

Processing times for consent applications can extend your purchase timeline by 2-4 months, particularly for foreign buyers or properties requiring bumiputera lot releases. Factor these delays into your planning and financing arrangements.

It's something we develop in our Malaysia property pack.

How do new development and resale property costs differ?

New development and resale properties have different fee structures and timing requirements that can significantly impact your total costs.

Developer units often include legal fee rebates or complete waivers as sales incentives, potentially saving RM5,000-15,000 on a typical purchase. However, you may face progressive payment schedules tied to construction milestones rather than immediate full payment.

Memorandum of Transfer (MOT) stamp duty timing differs between new and resale properties. For new developments, MOT may be payable later when the individual title is issued, while resale properties require immediate stamp duty payment upon signing.

Utility deposits and connection fees are typically borne by buyers of new units, with costs varying from RM200-1,000 depending on unit size and developer arrangements. Resale properties usually have existing connections that transfer with minimal fees.

Developer promotional packages may include furnishing allowances, legal fee absorptions, or stamp duty rebates that can offset thousands in costs, making new units financially competitive despite higher base prices.

What are the Land Office registration and title fees?

Land Office registration and title issuance fees in Malaysia are relatively modest compared to other transaction costs, but vary by property type and state.

Basic transfer and registration fees typically range from RM100-250 per transaction, regardless of property value. These cover the administrative costs of updating land records and issuing new ownership documents.

Strata title properties incur additional issuance and transfer fees ranging from RM300-600, covering the subdivision and individual unit title creation process. These fees apply whether you're buying from a developer upon completion or purchasing a resale strata unit.

Processing times can vary significantly by state and Land Office workload, with some registrations completed within weeks while others may take several months. Budget for potential holding costs if registration delays affect your occupancy or rental plans.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Malaysia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are the annual recurring property costs?

Annual recurring property costs in Malaysia include several mandatory charges that vary based on property type, location, and local council assessments.

Quit rent (cukai tanah) applies to all properties and typically ranges from RM50-300 per year for landed properties, with amounts varying by state and lot size. Strata properties may have lower quit rent charges as they're calculated per unit rather than land area.

Assessment tax (cukai pintu) is levied by local councils at approximately 6-10% of the annual rental value as determined by council assessments. If your property has an assessed annual rental value of RM24,000, your assessment tax would range from RM1,440-2,400 per year.

Cost Type	Landed Property	1,000 sq ft Condo
Quit Rent	RM50-300/year	RM30-150/year
Assessment Tax	RM800-2,500/year	RM600-2,000/year
Service Charge	N/A	RM2,000-5,000/year
Sinking Fund	N/A	RM600-1,200/year
Total Annual Costs	RM850-2,800	RM3,230-8,350

How much do rental agreement stamping fees cost?

Tenancy agreement stamping fees in Malaysia are calculated based on annual rental value and lease duration, with specific rates set by stamp duty regulations.

For tenancies of one year or less, stamp duty is charged at RM1 for every RM250 of annual rent. A property renting for RM2,000 per month (RM24,000 annually) would incur stamp duty of RM96, calculated as 24,000 ÷ 250 = 96 units × RM1.

Tenancies exceeding one year but not exceeding three years are charged RM3 for every RM250 of annual rent. The same RM2,000 monthly rental would cost RM288 in stamp duty for a longer lease term.

Add RM10 for duplicate copies of the stamped agreement, bringing total stamping costs to RM106 for a one-year lease or RM298 for longer terms. Late stamping incurs penalties, so complete this within 30 days of signing.

Real estate agent fees typically add one month's rent plus 6% SST to your rental costs, so factor in approximately RM2,120 in agent fees for a RM2,000 monthly rental property.

What Real Property Gains Tax will I pay when selling?

Real Property Gains Tax (RPGT) in Malaysia is calculated based on your residency status and how long you hold the property before selling.

Holding Period	Malaysian/PR Rate	Foreigner/Company Rate
3 years or less	30%	30%
4-5 years	20%	30%
More than 5 years	10%	10%
RM100,000 gain after 3 years	RM30,000 tax	RM30,000 tax
RM100,000 gain after 6 years	RM10,000 tax	RM10,000 tax

RPGT is calculated on the gain (selling price minus purchase price and qualifying expenses), not the total selling price. Qualifying expenses include legal fees, stamp duties, renovation costs, and agent commissions.

It's something we develop in our Malaysia property pack.

Which exemptions and incentives can reduce my costs?

Several exemptions and incentives in Malaysia can significantly reduce your property purchase costs, particularly for first-time buyers and during promotional periods.

First-time homebuyer exemptions provide complete stamp duty relief on both property transfers and loan agreements for properties valued at RM500,000 and below, valid until end-2025. This exemption can save up to RM9,000 in transfer stamp duty plus RM2,250 in loan stamp duty.

Home Ownership Campaign (HOC) periods offer additional incentives when active, including developer rebates, partial stamp duty exemptions, and legal fee waivers. These campaigns typically run for 6-12 month periods and can provide substantial savings.

1. First-time buyer stamp duty exemption (properties ≤RM500,000)2. HOC campaign rebates and incentives (when active)3. Developer promotional packages (legal fee waivers, stamp duty rebates)4. RPGT exemptions for Malaysian citizens on gains from disposal of one residential property5. State-specific incentives for certain property types or locations

Previous stamp duty remission programs, such as the 75% reduction on transfers for properties valued RM500,001-1 million, expired in December 2023. Stay updated on new government initiatives as property incentive programs change regularly.

Developer incentives can include furnished unit packages, utility connection absorptions, and progressive payment schemes that effectively reduce your total acquisition costs while improving cash flow during the purchase process.

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.

Sources

1. Jenny Wong - Stamp Duty Malaysia 2025
2. Prestige Realty - Legal Fees Guide
3. PwC Malaysia - Stamp Duty Guide
4. InvestMalaysia - Budget 2025 Tax Measures
5. Mah Weng Kwai - Legal Fees Calculator
6. Richard Wee Chambers - Solicitors Remuneration Order
7. Malaysia Housing Loan - Legal Fees Guide
8. Apricity Group - Stamp Duty Increase 2025