New Rate for MOT 2026

Starting from January 1, 2026, the primary changes to the Memorandum of Transfer (MOT) stamp duty in Malaysia's property sector are:

• An increase in the flat stamp duty rate for residential property purchases by non-citizens and foreign companies from 4% to 8%.
• An extension of the full stamp duty exemption for eligible Malaysian first-time homebuyers until the end of 2027. 

Key Changes to MOT Property in Malaysia (Effective 2026)
The changes, announced in the Malaysia 2026 Federal Budget, aim to promote local homeownership and moderate foreign speculation in the residential market. 
For Foreign Buyers

• Increased Stamp Duty Rate: A flat rate of 8% stamp duty will be imposed on the instrument of transfer for residential properties executed on or after January 1, 2026.
• Exclusions: This 8% rate does not apply to Malaysian permanent residents, who are treated like citizens and subject to the local tiered rates.
• Property Type: The higher rate only applies to residential property transactions; commercial and industrial properties are unaffected.

What is MOT

"MOT" most commonly refers to a Memorandum of Transfer (MOT), a crucial legal document in property transactions, especially in Malaysia, that officially transfers property ownership from seller/developer to buyer, acting like a property's "birth certificate".

In Property (Malaysia)

• Purpose: 
  To register the new owner's name on the property's land title at the Land Office. 

• When used: 
  For both new properties (developer to buyer) and subsales (seller to buyer). 

• What it is: 
  A legal document confirming ownership change, signed after the Sale & Purchase Agreement (SPA).