What are the new stamp duty rates for foreign property buyers in Malaysia from 2026?

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New Stamp Duty Rate for Foreign Property Buyers in Malaysia from 2026

Effective January 1, 2026, foreign purchasers of residential property in Malaysia will be subject to a new stamp duty rate of 8% on property transfers. This represents an increase from the previous fixed rate of 4%. However, a separate stamp duty remission continues to be available within the Forest City Special Financial Zone (SFZ), provided specific eligibility criteria are met.
Stamp Duty on Property Transfers

The general stamp duty rate for foreign buyers acquiring residential property in Malaysia will be a flat 8% starting from January 1, 2026. This change supersedes the prior 4% rate that was in place. This new rate applies broadly to property transfers for foreign purchasers across the country.
Forest City SFZ Stamp Duty Remission

Within the designated Forest City Special Financial Zone (SFZ), eligible individual purchasers who acquire completed residential or commercial units directly from the developer can benefit from a 50% stamp duty remission. This remission applies to both the instrument of transfer and the loan or financing agreement. The conditions for this remission include that the sale and purchase agreement must be executed between September 1, 2024, and December 31, 2034, and the construction must have been completed before September 1, 2024.
Comparison of Stamp Duty Treatment

The stamp duty treatment for foreign buyers differs significantly between the general rules and the Forest City SFZ remission. Under the standard rules from January 1, 2026, foreign buyers face an 8% stamp duty on transfers and the standard 0.5% on loan agreements. In contrast, within the Forest City SFZ, eligible buyers can achieve a 50% reduction on both transfer and loan stamp duties, subject to the specified conditions and purchase timeline.
Eligibility for Forest City SFZ Remission

The 50% stamp duty remission within the Forest City SFZ is specifically for individual purchasers buying directly from the developer. Sub-sale and resale transactions are not eligible for this particular remission. Corporate purchasers must assess their eligibility for any applicable SFZ treatment separately, potentially requiring professional tax advice. The remission window for the sale and purchase agreement execution is set until December 31, 2034, indicating a defined period for prospective buyers to take advantage of this incentive.

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What are the new stamp duty rates for foreign property buyers in Malaysia from 2026?

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