Malaysian (non-Bumi) buyers
First-home stamp duty exemption: RM500k free, RM750k partial
Quick answerMalaysian citizens buying their first home at RM500k or less pay no stamp duty on the transfer (MOT) or the loan agreement (SPA signed by 31 December 2027). Budget 2027 proposes that for SPAs signed from 1 January 2027 to 31 December 2030, first homes up to RM750k get the first RM500k fully exempt and 50% off the balance (subject to gazette). Not available to foreigners.
30-second summary
- Who: Malaysian citizens who have never owned a home
- Current: Fully exempt to RM500k (SPA to 31 Dec 2027)
- Budget 2027 proposal: Up to RM750k: first RM500k exempt, 50% off the balance
- Period: SPAs 1 Jan 2027 – 31 Dec 2030 (pending gazette)
- Covers: Transfer + loan agreement duty
- Foreigners: Not eligible
Normal stamp duty (Malaysian citizens)
| Portion of price | Transfer duty rate |
|---|---|
| First RM100,000 | 1% |
| RM100,001 – RM500,000 | 2% |
| RM500,001 – RM1,000,000 | 3% |
| Above RM1,000,000 | 4% |
Loan agreement duty is 0.5% of the loan. Foreign buyers of residential property pay a flat 8% (from 2026).
Worked examples
| Price (first home) | No exemption | Current (≤RM500k) | Budget 2027 proposal |
|---|---|---|---|
| RM450,000 | RM8,000 | RM0 | RM0 |
| RM600,000 | RM12,000 | Not eligible (over RM500k) | About RM1,500 (RM100k × 3% × 50%) |
| RM750,000 | RM16,500 | Not eligible | About RM3,750 |
| RM800,000 | RM18,000 | Not eligible | Not eligible (over RM750k) |
Transfer duty only; loan agreement duty is separate (also exempt if eligible). The Budget 2027 method is subject to the final gazette.
Conditions (general)
- Malaysian citizen
- Never owned any residential property (including inherited or joint)
- A residential property (new or subsale, subject to conditions)
- SPA signed within the eligible period
- Joint buyers generally all need to be first-time buyers
Notes
- Price or market value? Duty is assessed on the higher of the two; your lawyer handles this.
- Timing matters: if your price is between RM500k and RM750k, signing from 2027 may save money — but wait for the gazette.
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Frequently asked questions
How much is the first-home stamp duty exemption?
Currently a first home up to RM500k is fully exempt from transfer and loan agreement duty (SPAs to end-2027).
Is a RM600k home exempt?
Not under the current scheme (over RM500k). Budget 2027 proposes, for SPAs in 2027–2030, first homes up to RM750k get the first RM500k exempt and 50% off the balance, subject to gazette.
Can foreigners claim the first-home exemption?
No, it is for Malaysian citizens only.
Can joint buyers claim it?
Generally every buyer must be a first-time buyer; ask your lawyer to confirm.
Does it apply to subsale homes?
Yes, if the first-home, price and signing-date conditions are met.