Stamp Duty Malaysia 2026: Foreign Buyers Now Pay 8% — A 100% Increase
Stamp duty is probably something you have heard about but may not have paid much attention to. For foreign buyers, however, the calculation has become much more important.
From 1 January 2026, the stamp duty on the transfer of residential property purchased by non-Malaysian citizens has increased from 4% to 8%, that is a 100% increase in the stamp duty rate.
But what does this actually mean in Ringgit?
And does it affect every foreign buyer and every type of property?
Let’s break it down.
- What is stamp duty?
Stamp duty is a tax imposed for a property purchase under the Stamp Act 1949. This is commonly the Memorandum of Transfer (MOT), or Form 14A. And the calculation of the stamp duty is based on a percentage of the property price or market value, whichever is higher.
- Different Rates of Stamp duty for Malaysian & Foreigners
For Malaysian the rate is on progressing tier, whereas for foreigners is flat rate of 8%.
| Property value | Stamp duty rate | Stamp duty rate
| Residential | Local Msian | Foreigners |
|---|---|---|
| First RM100,000 | 1% | 8% |
| Next RM400,000 | 2% | 8% |
| Next RM500,000 | 3% | 8% |
| Above RM1 million | 4% | 8% |
So, for example, a RM1 million residential property, the stamp duty rate applicable for both:
- Malaysian: 24,000
- Foreigner: 80,000
Before 2026, foreign individuals were generally subject to a flat 4% rate for the purchase of residential property. That means a foreign buyer purchasing a RM1 million previously only pays RM40,000 as oppose to a 100% increase to RM80,000 now.
- Is every property bought by a foreigner subject to 8%?
Commercial, industrial and other non-residential property generally remain subject to the applicable 4% rate. So if a foreign investor is purchasing a commercial property, you should not automatically assume that the 8% residential rate applies.
- What about Malaysia My Second Home (MM2H)?
Malaysia My Second Home programme is attracting foreign individuals to live, invest and spend in Malaysia, stimulating sectors including tourism, property, education and healthcare. According to figures announced by the Tourism, Arts and Culture Minister, 3,172 MM2H applications were approved in 2025 with the programme generating approximately RM1.51 billion from residential property purchases.
- Will the 8% stamp duty stop foreigners from buying Malaysian property?
Probably not, but it could influence what they buy, as a foreign purchaser is looking at an additional RM160,000 on property transfer stamp duty for a RM2 million property now.
That is not a small amount. For some buyers, the additional cost may cause them to:
- reduce their property budget;
- look at lower-priced properties;
- negotiate harder with developers or sellers;
- consider different locations;
- delay their purchase; or
- compare Malaysia against other countries before making a decision.
This could be particularly relevant to the higher-end residential market, where foreign purchasers tend to have a greater presence. NAPIC’s 2026 outlook also noted that the increase from 4% to 8% may result in some moderation in foreign transaction activity, particularly in the luxury residential segment.
For foreigners considering Malaysia, the higher stamp duty does not necessarily mean Malaysia is no longer attractive. And for anyone looking to buy, the best time to understand the numbers is before signing on the dotted line.
Hafiz Noor
