Stamp Duty Remission for First-Time Homebuyers Malaysia 2026
For first-time home buyers in Malaysia, upfront transaction costs—specifically Stamp Duty (Duti Setem) on the Memorandum of Transfer (MOT) and Housing Loan Agreement—represent a major financial hurdle alongside the 10% downpayment.
To encourage homeownership, the Malaysian Government provides substantial Stamp Duty Remission Exemption Orders (Perintah Pengecualian Duti Setem) under Federal Government Gazettes for eligible first-time residential property buyers.
This guide applies the SuperHomes Finance & Tax Design Framework to detail 2026 stamp duty exemption tiers, MOT calculation formulas, statutory declaration requirements, and savings math for both new launch and subsale properties.
At a Glance: First-Time Homebuyer Stamp Duty Exemption Tiers (2026)
| Property Price Tier | MOT Stamp Duty Exemption | Loan Agreement Exemption | Max Savings Potential |
|---|---|---|---|
| Properties Up to RM500,000 | 100% Exemption (RM0 Duty) | 100% Exemption (RM0 Duty) | Up to RM11,500 Saved |
| Properties RM500,001 to RM1,000,000 | 75% Remission (Pay 25% Duty) | 75% Remission (Pay 25% Duty) | Up to RM20,000 Saved |
| Properties Above RM1,000,000 | Standard Tiered Rates Apply | 0.50% Flat Rate Applies | No Exemption |
1. Standard Tiered MOT Stamp Duty Rates (Before Exemption)
Without first-time buyer exemption orders, Stamp Duty on the Memorandum of Transfer (MOT) is calculated using progressive price tiers:
- First RM100,000: 1.0%
- Next RM100,001 to RM500,000: 2.0%
- Next RM500,001 to RM1,000,000: 3.0%
- Amounts Exceeding RM1,000,000: 4.0%
$$\text{Loan Agreement Stamp Duty (Standard Rate)} = \text{Total Loan Amount} \times 0.50%$$
2. Savings Math Breakdown: RM450,000 First-Time Homebuyer
Non-First-Time Buyer (Full Duty Payable)
- Property Price: RM450,000 | Housing Loan (90%): RM405,000.
- MOT Stamp Duty: $(100,000 \times 1%) + (350,000 \times 2%) = 1,000 + 7,000 = \mathbf{RM8,000}$.
- Loan Agreement Stamp Duty: $405,000 \times 0.50% = \mathbf{RM2,025}$.
- Total Stamp Duty Payable: $8,000 + 2,025 = \mathbf{RM10,025}$.
First-Time Buyer Eligible for Exemption Order (100% Free)
- MOT Stamp Duty Payable: RM0.00.
- Loan Agreement Stamp Duty Payable: RM0.00.
- Net Upfront Cash Saved: $\mathbf{RM10,025 \text{ Direct Cash Savings}}$.
3. First-Time Buyer Eligibility Criteria & Statutory Declaration
To qualify for 100% stamp duty exemption, the buyer must satisfy all four legal criteria:
- Malaysian Citizenship: Must be a Malaysian citizen at the time of SPA execution.
- First Residential Property: The buyer must never have owned or co-owned any residential property (including inherited property or property held under trust).
- Residential Title Property: Property must be a residential unit (terrace house, condo, apartment, or flat). Commercial-titled SoFo/SoVo units without HDA status do not qualify.
- Statutory Declaration (Akuan Bersumpah): The buyer must sign a sworn Statutory Declaration witnessed by a Commissioner for Oaths (Pesuruhjaya Sumpah) confirming first-time buyer status.
[!IMPORTANT] Spouse Joint Names Rules If a husband and wife purchase a property jointly and both are first-time buyers, the 100% exemption applies to the entire transaction. If one spouse previously owned property, only 50% exemption applies to the eligible spouse's share.
Frequently Asked Questions (FAQ)
1. Does the first-time buyer stamp duty exemption apply to subsale property purchases? Yes. The Federal Exemption Order applies equally to both New Launch Developer units and Subsale individual property purchases.
2. What happens if I inherited a partial share of a house previously? If your name appears on a land title deed (Geran) as a co-owner due to inheritance or gift, LHDN (Lembaga Hasil Dalam Negeri) will classify you as a prior property owner, making you ineligible for the first-time buyer exemption.
3. How is the stamp duty exemption submitted to LHDN? Your conveyancing lawyer submits the signed Statutory Declaration along with your SPA and IC copy via LHDN's online STAMPS portal when applying for the official Stamp Duty Assessment (Notis Taksiran).
Related Resources
- Subsale Costs: Read our Subsale House Legal Fees & Stamp Duty Schedule.
- First Buyer Schemes: Explore First-Time Home Buyer Schemes & Government Incentives.
- RPGT Rules: Learn about Real Property Gains Tax (RPGT) Exemptions for Sellers.
