Malaysia Property Buying Guide 2026
Affordability, stamp duty, the first-home exemption, legal fees and RPGT, with worked examples at 2026 rates.
Updated
Buying a home in Malaysia costs far more than the price on the SPA. This guide walks through the upfront costs, how much you can borrow and the tax when you sell, using the same rules as our property calculators.
How much can you afford?
Banks look at your debt service ratio (DSR): all your monthly loan repayments divided by your income. Many cap it at around 60–70%, depending on your income and the bank.
Example: you earn RM8,000 a month and already pay RM1,200 a month on a car loan. At a 70% DSR you can take on up to RM4,400 a month in new repayments. At 4% over 35 years that supports a loan of about RM993,700. With a 90% margin of finance, that means a property of about RM1.1 million with a RM110,400 down payment. Try your own numbers in the Home Affordability Calculator.
Being able to borrow it is not the same as being comfortable repaying it. Leave room for maintenance, insurance and rate rises.
Upfront costs: stamp duty and legal fees
Stamp duty on the transfer (MOT)
Malaysian citizens and PRs pay tiered duty on the price (or market value, if higher):
| Portion of price | Rate |
|---|---|
| First RM100,000 | 1% |
| RM100,001 – 500,000 | 2% |
| RM500,001 – 1,000,000 | 3% |
| Above RM1,000,000 | 4% |
From 1 January 2026, foreign buyers of residential property pay a flat 8%.
Stamp duty on the loan
0.5% of the loan amount.
First-home exemption
Malaysian citizens buying their first home at RM500,000 or less pay no MOT or loan stamp duty, for SPAs signed from 1 January 2026 to 31 December 2027 (Budget 2026). Above RM500,000 there is no partial exemption in this round.
Legal fees
Lawyers' fees follow the Solicitors' Remuneration Order 2023: 1.25% on the first RM500,000 and 1% above that, separately for the SPA and the loan agreement, plus 8% service tax.
Example: RM500,000 home, RM450,000 loan (not a first home)
| Item | Amount |
|---|---|
| MOT stamp duty | RM9,000 |
| Loan stamp duty | RM2,250 |
| SPA legal fee | RM6,250 |
| Loan legal fee | RM5,625 |
| Service tax on legal fees | RM950 |
| Total | RM24,075 |
That is on top of the RM50,000 down payment. If this were your first home, the RM11,250 of stamp duty would be waived. Run your own figures in the Stamp Duty Calculator.
The monthly instalment
Home loans in Malaysia are reducing-balance loans: interest is charged only on what you still owe. A RM450,000 loan at 4% over 35 years costs about RM1,992 a month and about RM386,800 in total interest. Our Loan Guide explains how tenure and rate change that, and the Home Loan Calculator shows the full schedule.
Selling: Real Property Gains Tax (RPGT)
RPGT is charged on your gain when you sell. The rate depends on who you are and how long you held the property:
| Holding period | Citizens & PRs | Companies | Foreigners |
|---|---|---|---|
| Up to 3 years | 30% | 30% | 30% |
| Year 4 | 20% | 20% | 30% |
| Year 5 | 15% | 15% | 30% |
| Year 6 onwards | 0% | 10% | 10% |
Chargeable gain = selling price − purchase price − allowable costs (legal fees, agent fees, renovations that add value). Individuals then deduct an exemption of RM10,000 or 10% of the gain, whichever is higher.
Example: bought at RM400,000, sold in year 4 at RM550,000, with RM20,000 of allowable costs. Gain RM130,000, exemption RM13,000, taxable RM117,000 at 20% = RM23,400. Waiting until year 6 would have made it RM0. See the RPGT Calculator.
Renting it out
Rental income is taxed with your other income at your normal rates, after deducting expenses such as assessment, quit rent, insurance, repairs and loan interest. The Rental Income Tax Calculator estimates the extra tax. The Rent vs Buy Calculator compares owning with renting.
Rates verified against LHDN and Budget 2026. Exemption windows and foreign-buyer rates change at each Budget, so confirm with your lawyer before signing.