What Taxes & Fees Do You Pay When Buying a Home?
Beyond the price and the deposit, a purchase carries stamp duties, legal fees and a handful of smaller line items. Here is the full 2026 checklist so you know your true cash-to-close.
The biggest shock for first-time buyers is the gap between the price and the real cash they need at the table. Once you list every item, it stops being a mystery. Here is the full rundown I give my clients before they commit.
The costs at a glance
- Transfer (MOT) stamp duty — the biggest tax item.
- Loan agreement stamp duty — 0.5% of the loan, if you finance.
- Legal fees — on the SPA and, separately, on the loan agreement.
- Disbursements and SST — searches, registration, printing, and tax on the fees.
Stamp duty — the main tax
The transfer duty is tiered for citizens and PRs: 1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1,000,000 and 4% above. Foreigners pay a flat 8% from 2026. If you borrow, add 0.5% of the loan for the loan agreement duty. On a RM700,000 citizen purchase with a RM630,000 loan, that is about RM15,000 transfer duty plus RM3,150 loan duty.
Legal fees — charged on the SRO scale
Your lawyer charges on the Solicitors’ Remuneration Order 2023 scale: 1.25% on the first RM500,000, 1.0% on the next RM500,000, then 0.8%, 0.7% and 0.5% on higher bands. The scale applies to the purchase agreement and again to the loan agreement, so financing means two legal bills. The same RM700,000 purchase comes to roughly RM8,250 on the SPA and RM7,550 on the loan.
The smaller line items
Round out your budget with these:
- Disbursements — land and bankruptcy searches, registration and title fees, printing and travelling.
- SST on the professional fees, where applicable.
- Bank-side costs if financing — valuation, loan processing, and optional mortgage insurance such as MRTA or MLTA.
Don’t forget the first-time buyer relief
If you are a Malaysian citizen buying your first home up to RM500,000, you can have both the transfer and loan stamp duties fully waived until 31 December 2027. That alone removes the single largest tax line for many first homes — so check your eligibility before you assume you owe it.
Want your true cash-to-close in one figure?
Give me the price and your loan amount and I will total every tax and fee so you know exactly what to prepare. I am Louis Koh, over a decade in Johor Bahru property.
Frequently asked questions
What taxes do you pay when buying a home in Malaysia?
Mainly stamp duties — the tiered transfer (MOT) duty and the 0.5% loan agreement duty — on top of legal fees, disbursements and SST.
How much should I budget on top of the price?
Enough for the transfer and loan stamp duties, legal fees on both the SPA and loan, and disbursements. For a RM700,000 citizen purchase that is roughly RM18,000 stamp duty plus around RM16,000 in legal fees before extras — confirm your own figures.
Can first-time buyers pay less?
Yes. A Malaysian citizen buying a first home up to RM500,000 can have both stamp duties fully exempted until 31 December 2027.
Want to see actual projects?
From Johor Bahru to Kuala Lumpur, I keep a documented list of what is selling now — including projects open to foreign buyers.