The Malaysian Government has officially announced in the 2026 National Budget (Budget 2026) that the stamp duty for foreigners (non-citizens) purchasing residential properties will be increased from the current 4% to 8%. This revision is scheduled to take effect on January 1, 2026, representing a significant change that will substantially raise the effective purchase cost for foreign buyers.
Stamp Duty Rate Comparison: Difference Before and After the Increase
| Property Price (USD) | 2025（4％） | 2026（8％） | Increase Amount (USD) |
|---|---|---|---|
|
RM 500,000 (119,229 USD） |
RM 20,000 (4,769 USD) |
RM 40,000 (9,539 USD) |
+ RM 20,000 (+ 4,769 USD) |
|
RM 1,000,000 (238,464 USD) |
RM 40,000 (9,539 USD) |
RM 80,000 (19,076 USD) |
+ RM 40,000 (+ 9,539 USD) |
|
RM 2,000,000 (476,919 USD) |
RM 80,000 (19,076 USD) |
RM 160,000 (38,150 USD) |
+ RM 80,000 (+ 19,076 USD) |
Why is the stamp duty being increased?
According to Prime Minister Anwar Ibrahim, there are three main objectives behind this revision:
1. Balancing with local homebuyers
In areas such as Kuala Lumpur, Penang, and Johor, the increase in foreign buyers has driven up property prices. This measure aims to maintain the health of the local market.
2. Strengthening housing and public infrastructure through increased revenue
The additional tax revenue will be allocated to national housing projects and infrastructure development to enhance public resources.
3. Curbing short-term speculation and promoting long-term ownership
This policy also encourages foreign investors to hold properties from a long-term perspective, reducing short-term speculative activity.
Impact on Foreign Buyers: “2025 – the Last Low-Tax Window”
With this stamp duty increase, 2025 effectively becomes the last year of low taxes.
From 2026 onwards, an 8% stamp duty will uniformly apply to all property purchases by foreigners, whether new or resale units.
Advice for Investors
1. If you are considering purchasing, “this year” is the most advantageous
For those planning to buy in popular areas such as Kuala Lumpur, Penang, and Langkawi, completing contracts within 2025 allows you to avoid the significant increase in stamp duty.
2. Check year-end promotions from developers
Year-end promotions may include “stamp duty cashback” or “tax rebate campaigns,” which are worth monitoring.
3. Consult a professional
Foreign property purchases involve minimum purchase prices (usually above RM1,000,000) and ownership transfer procedures. Consulting an experienced real estate advisor provides peace of mind.
Summary: 2025 is the “most favorable tax year”
While the stamp duty increase raises short-term costs, it supports long-term stability and credibility in the Malaysian property market.
