The Malaysian government has announced that, starting 1 January 2026, the stamp duty for foreign property purchases will increase from 4% to 8%. This change does not apply to Permanent Residents (PR). The move is part of the government’s effort to cool down the property market, and the timeline of ownership transfer has become critical for foreign buyers.
Who Will Be Affected
（a）Foreign individuals and foreign-owned companies：8% stamp duty applies.
（b）MM2H holders：Still considered foreign buyers; 8% applies.
（c）Permanent residents：Unaffected; 4% remains.
2. How Stamp Duty Is Calculated
Stamp duty is based on the date of the Sale & Transfer documentnot the Sale and Purchase Agreement (SPA).
（a）If SPA is signed before 31 December 2025 but transfer happens after 1 January2026，the 8% rateapplies.
（b）If transfer is completed before 31 December 2025 ， the 4% rate remains.
3. Lawyer’s Insight: Timeline Matters
According to property lawyers, this adjustment affects not only tax rates but alsotransaction costs and timingTheir advice:
（a）Complete the title transfer early：To avoid paying double tax.
（b）Check all document dates carefullywith your lawyer and developer.
（c）Avoid delaysthat could causedouble stamp dutyor complex resale issues.
Lawyers emphasize that legal fees and other government costs remain unchanged; only the stamp duty increases to 8%.
4. Practical Tips for Buyers
（a）Check your transfer progressto ensure completion before the end of 2025.
（b）Engage your lawyer earlyto avoid year-end bottlenecks.
（c）Review your financial planand prepare for possible tax implications.
5. Background
The increase aims to curb speculative investment and ensure a more sustainable housing market for Malaysia.
Conclusion:
For foreign buyers, the 2026 stamp duty hike means higher costs and tighter timelines. Acting early — by completing the title transfer before the end of 2025 — is the best way to avoid paying double and ensure a smooth transaction.
