Starting January 1, 2026, Malaysia introduces changes to the Memorandum of Transfer (MOT) stamp duty to support local homeownership and manage foreign investment in residential properties.
For Foreign Buyers
A flat 8% stamp duty will apply to residential property purchases by non‑citizens and foreign-owned companies.
Malaysian permanent residents are treated like citizens and follow local tiered rates.
Only residential properties are affected; commercial and industrial properties remain unchanged.
For Malaysian First-Time Homebuyers
Eligible first-time buyers will continue to enjoy full stamp duty exemption for properties priced up to RM500,000.
This exemption is now extended until December 31, 2027, providing continued support to make homeownership more affordable.
The Memorandum of Transfer (MOT) is a key legal document in property transactions, officially recording the change of ownership from seller to buyer.
Purpose: Registers the new owner on the property’s land title at the Land Office.
When used: For both new properties (developer to buyer) and subsales (seller to buyer).
Nature: Signed after the Sale & Purchase Agreement (SPA), confirming ownership transfer.
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