Stamp Duty Exemptions for Residential Properties in Malaysia

Stamp duty is a tax levied on legal documents relating to property transactions in Malaysia. However, to encourage homeownership, the Malaysian government offers stamp duty exemptions for certain categories of buyers and properties.

1. First-Time Homebuyers

100% exemption: First-time homebuyers purchasing residential properties valued at RM500,000.00 and below are eligible for a full stamp duty exemption on both the instrument of transfer and loan agreement. This exemption is valid until 31/12/2025. Buyers should note that this exemption is only applicable to first-time homebuyers who have not owned any residential property which was obtained by way of inheritance or gift which was held either individually or jointly. 

2. Properties Transferred to Family Members

Variable Exemption: Instrument of transfer for any immovable property operating as a voluntary disposition inter vivos from the donor specified in column A to column B below. However, the exemption is only applicable for the first RM1million of the property value. The amount in excess of RM1million will be subject to 50% on the chargeable ad valorem stamp duty.

No.	(A) Donor	(B) Recipient
1	Mother or father; or  Mother and Father	Child
2	Child	Mother or father; or   Mother and Father
3	Grandfather or grandmother; or  Grandfather and grandmother	Grandchild
4	Grandchild	Grandfather or grandmother; or Grandfather and grandmother

Important Note: The 75% stamp duty exemption for first-time homebuyers purchasing properties between RM500,001 and RM1 million ended on December 31, 2023.

3. Additional Considerations

Foreigners: A flat rate of 4% stamp duty is applicable for foreigners (non-citizens and foreign-owned companies) purchasing residential properties in Malaysia, effective from January 1, 2024.

Disclaimer: This article is for educational purposes only and should not be construed as legal advice. The information is considered true and accurate as at the date of publication. Consult with a qualified professional for specific guidance on legal matters.