Most first-time buyers budget for the deposit and the monthly instalment, then get caught by the entry costs. This is what you actually pay on top of the purchase price in 2026, what changed this year, and which of these a developer will usually absorb on a new launch.
To size the monthly commitment itself, use the mortgage calculator.
Stamp duty on the transfer (MOT)
The Memorandum of Transfer is what moves the title into your name. For Malaysian citizens the duty is tiered, and the tiers are cumulative — you do not pay one flat rate on the whole price.
| Portion of purchase price | Rate |
|---|---|
| First RM100,000 | 1% |
| RM100,001 to RM500,000 | 2% |
| RM500,001 to RM1,000,000 | 3% |
| Above RM1,000,000 | 4% |
So on a RM600,000 property the duty is RM1,000 on the first RM100,000, RM8,000 on the next RM400,000, and RM3,000 on the last RM100,000 — RM12,000 in total, not RM18,000.
What changed in 2026
Non-citizens now pay 8%
From 1 January 2026, non-citizens who are not Malaysian permanent residents pay a flat 8% stamp duty on residential property transfers, under Item 32(ab) of the Stamp Act 1949 as inserted by the Finance Act 2025. The previous rate was a flat 4%. On a RM1 million purchase that is RM80,000 instead of RM40,000 — an RM40,000 change that a 2025-dated calculator will get wrong.
Everything is now filed electronically
Stamp duty moved to the e-Duti Setem platform under the Stamp Duty Self-Assessment System. The practical effect for a buyer is that your solicitor files and pays online, and the 30-day deadline from signing the SPA is enforced with penalties. Do not let paperwork drift.
Stamp duty on the loan
A flat 0.5% of the loan amount. If you borrow RM540,000, that is RM2,700. This one is straightforward and rarely waived outside a developer package.
Legal fees
Solicitors’ fees for conveyancing follow a scale rather than a negotiation. There are two separate sets: one for the sale and purchase agreement, and one for the loan documentation. Each also carries disbursements — land searches, registration, bankruptcy searches, printing — which typically run a few hundred ringgit each rather than thousands.
Budget for both sets. Buyers frequently remember the SPA legal fee and forget that the loan agreement has its own.
What a developer usually absorbs on a new launch
This is the part that makes buying direct from a developer different from buying subsale. On most new launches the developer absorbs some combination of:
- SPA legal fees and disbursements
- Loan agreement legal fees and disbursements
- Loan stamp duty
- SPA stamp duty
What is almost never absorbed is the MOT stamp duty and MOT legal fee, because those fall due years later when the strata title issues. That bill arrives long after you have moved in and stopped thinking about entry costs, and it is the one that surprises people.
Which items are absorbed varies by project and changes between phases, so treat it as a question to ask rather than an assumption. It is listed on the project page for each development we cover — see the current listings for Kuala Lumpur, Penang and Johor.
A worked example
A Malaysian citizen buying a RM600,000 new launch with a 90% loan:
| Item | Amount | Usually absorbed on a new launch? |
|---|---|---|
| MOT stamp duty | RM12,000 | No — payable when the title issues |
| Loan stamp duty (0.5% of RM540,000) | RM2,700 | Often yes |
| SPA legal fees + disbursements | Scale-based | Often yes |
| Loan legal fees + disbursements | Scale-based | Often yes |
| Valuation fee | Varies by lender | No |
The number worth planning around is the MOT. It is the largest single line, it is rarely absorbed, and it arrives when you have stopped budgeting for the purchase.
The costs people forget entirely
- Maintenance and sinking fund from vacant possession. Charged per square foot per month, and it starts at handover whether you have moved in or not. On a facility-heavy tower this is a permanent cost, not a settling-in one.
- Commercial utility tariffs. If the title is commercial — as most serviced apartments are — assessment, water and electricity may be billed at commercial rates for as long as you own it.
- Fit-out. “Unfurnished” usually means bare. Budget for kitchen cabinetry, wardrobes, lighting and often air-conditioning.
- Insurance and quit rent, annually and modestly.
Frequently Asked Questions
How much is stamp duty on a RM500,000 property in Malaysia?
For a Malaysian citizen, RM1,000 on the first RM100,000 plus 2% on the remaining RM400,000, which is RM8,000 — RM9,000 in total for the MOT, plus 0.5% of whatever you borrow for the loan agreement.
Do foreigners pay more stamp duty in Malaysia?
Yes. From 1 January 2026 non-citizens who are not permanent residents pay a flat 8% on residential transfers, doubled from the previous 4%. Permanent residents remain on the standard citizen tiers.
When do I have to pay stamp duty?
Within 30 days of signing the instrument. Since 2026 it is filed and paid through e-Duti Setem under the self-assessment system, and late payment attracts penalties.
Does the developer really pay my legal fees?
On most new launches, some of them — commonly the SPA and loan agreement legal fees and the loan stamp duty. The MOT stamp duty is almost always yours, and it falls due years later. Ask for the absorbed list in writing before you book.
Is stamp duty payable on the SPA or on the MOT?
Both instruments can attract duty, but the tiered 1% to 4% scale is the significant one and applies on the transfer. Where a strata title already exists and you execute Form 14A after a duly stamped deed of assignment, the MOT itself may attract only a nominal RM10.
Rates stated here are current for 2026. Stamp duty is set by legislation and revised in the annual budget — confirm the figure with your solicitor before you commit.