The purchase price is only part of what you'll pay to actually own a property in Malaysia. Here's what typically sits on top of it.
Stamp duty on the Memorandum of Transfer (MOT)
This is calculated on a tiered scale against the property price (or market value, whichever is higher):
| Price tier | Rate |
|---|---|
| First RM100,000 | 1% |
| RM100,001 – RM500,000 | 2% |
| RM500,001 – RM1,000,000 | 3% |
| Above RM1,000,000 | 4% |
First-time buyers may qualify for a partial or full exemption on this depending on the current government scheme — see our first-time buyer benefits guide.
Legal fees
Lawyers charge on a similarly tiered scale (the Solicitors' Remuneration Order), roughly:
| Price tier | Rate |
|---|---|
| First RM500,000 | 1.0% |
| RM500,001 – RM7,500,000 | 0.8% |
| Above RM7,500,000 | Negotiable |
This covers the Sale and Purchase Agreement (SPA). If you're taking a loan, you'll typically pay a similar scale again for the separate loan agreement, plus 0.5% stamp duty on the loan amount.
Other costs to budget for
- Valuation fee — charged by the bank's panel valuer, usually a few hundred to low thousands of ringgit depending on property value
- Disbursements — land search, bankruptcy search, registration fees and similar administrative charges, typically a few hundred ringgit total
- Fire insurance / MRTA-MLTA — often bundled into the loan, covering the property and/or the loan itself
- Real Property Gains Tax (RPGT) — not a buying cost, but worth knowing about upfront since it applies when you eventually sell within the first few years of ownership
Worked example: RM600,000 purchase, first-time buyer, no exemption
Common questions
Can these costs be financed into my loan?
Some banks offer a small additional facility to cover part of these costs, but most buyers pay them in cash on top of the down payment. Ask your bank specifically what's included.
Do I pay stamp duty and legal fees for a new launch too?
Yes, the same structure applies to new launches. Some developers run promotions that absorb part of the legal fees or stamp duty as an incentive — worth asking about when comparing new launch offers.
Is RPGT a buying cost?
No, Real Property Gains Tax applies when you sell, not when you buy. It's worth understanding upfront though, since it affects your exit costs if you sell within the first few years of ownership.