The 2026 First-Time Buyer Stamp Duty Exemption
If you are a Malaysian citizen buying your first home at RM500,000 or below, you can pay zero stamp duty. Here is exactly who qualifies, how much you save, and how to claim it.
Of all the help a first-time buyer in Malaysia can actually get, this is the one that puts real money back in your pocket at the point you need it most — signing day. Let me walk you through it clearly.
Who qualifies
- You are a Malaysian citizen — permanent residents, foreigners and MM2H holders do not qualify.
- It is your first residential property; you have never owned a home before.
- The home’s market value is RM500,000 or below.
- The Sale and Purchase Agreement is executed on or before 31 December 2027.
- You sign a statutory declaration confirming your first-home status.
How much you actually save
The exemption wipes out two separate duties — the transfer (MOT) and the loan agreement. Here is what that is worth at a few price points (90% loan):
| Home price | MOT duty waived | Loan duty waived | Total saved |
|---|---|---|---|
| RM300,000 | 5,000 | 1,350 | 6,350 |
| RM400,000 | 7,000 | 1,800 | 8,800 |
| RM500,000 | 9,000 | 2,250 | 11,250 |
How to claim it — step by step
- Confirm you tick every box above (citizen, first home, value within RM500,000).
- Your conveyancing lawyer prepares the exemption application together with your SPA.
- You sign a statutory declaration stating you have never owned a residential property.
- Your lawyer submits it with the instruments for stamping — the duty is assessed at zero.
You do not file anything yourself; your lawyer handles it. Just make sure you tell them up front that this is your first home, so they apply the exemption from the start.
Three things people get wrong
- It is based on market value at or below RM500,000 — not just the figure written on the SPA.
- It is citizens only. A Singaporean spouse or a PR on the title can change the picture — check before you commit.
- The clock is real: the SPA must be signed by 31 December 2027. Some finer points were still being clarified by the profession in 2026, so have your lawyer confirm the current position for your exact case.
Not sure if you qualify? Ask Louis
First-home eligibility has a few traps — joint buyers, prior inherited property, value right on the line. Tell me your situation and I will tell you straight. I am Louis Koh, over a decade in Johor Bahru property.
Frequently asked questions
Who qualifies for the exemption?
Malaysian citizens buying their first residential property with a market value of RM500,000 or below. PRs, foreigners and MM2H holders do not qualify.
How much can I save?
Up to about RM11,250 on a RM500,000 home — RM9,000 of MOT duty plus roughly RM2,250 of loan agreement duty, both waived.
Does it cover the loan agreement too?
Yes — for a qualifying first home up to RM500,000, both the MOT and the loan agreement stamp duty are exempt.
Until when is it available?
Budget 2026 extended it to 31 December 2027; your SPA must be executed on or before that date.
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