Malaysian citizens buying their first home will get a full stamp duty exemption on the first RM500,000 of the property price, and a 50% exemption on the portion from RM500,001 to RM750,000, under Budget 2027 measures summarised by KPMG. The exemption is proposed for purchases from 2027 to 2030.
Stamp duty is charged on the instrument of transfer when a property changes hands, so the exemption reduces the upfront cost that buyers pay on top of the deposit and legal fees.
Self-assessment for property transfers
From 1 January 2027, stamp duty on property transfers will move to a self-assessment system, according to KPMG, which notes that the government projects stamp duty collections of RM12.4 billion in 2027.
Other stamp duty changes
- Opening a savings or current account will be fully exempt from stamp duty from 1 January 2027.
- Duty above RM10 on CAKNA II and peer-to-peer loans for MSMEs will be remitted for agreements made from 1 January 2027 to 31 December 2030.
Before you sign
The exemption remains a Budget proposal until the relevant law is passed. Buyers should check the conditions, such as the first-home criteria and price limits, with their lawyer or the Inland Revenue Board before signing a sale and purchase agreement.