SPA Signed in 2025, Transfer in 2026: Does a Foreigner Pay 4% or 8% Stamp Duty?
Since 1 January 2026, a non-citizen who is not a permanent resident, or a foreign company, pays a flat 8% transfer stamp duty on residential property (Finance Act 2025, Act 874, inserting Item 32(ab) into the First Schedule of the Stamp Act 1949). Before that it was 4%. On a RM1,000,000 unit that is RM80,000 instead of RM40,000; on RM2,000,000, RM160,000 instead of RM80,000.
The rate is fixed by the date of the document that carries the duty, not by when you shook hands. On a new launch where the strata or individual title has not been issued, the duty sits on the sale and purchase agreement itself (Stamp Act s.21(1)) — so a SPA signed in 2025 was stamped at 4% in 2025, and the transfer signed later costs RM10. On a titled property the duty sits on the Form 14A transfer, so a 14A executed in 2026 is on its face an 8% instrument, even if the SPA was signed in 2025.
That last case is the one that is open. As at 1 November 2026, LHDN has published no guidance on SPAs signed in 2025 with the transfer executed in 2026, and the Bar Council's 2026 circulars do not address it. Skrine flagged the gap in November 2025 and asked for clarification. Budget 8% and get your lawyer's position in writing.
The law in one paragraph
Section 29(b) of the Finance Act 2025 (Act 874; Royal Assent 27 December 2025, gazetted 31 December 2025) inserts a new Item 32(ab) into the First Schedule of the Stamp Act 1949: "On sale of any residential property from 1 January 2026 to a foreign company or a person who is not a citizen and not a permanent resident — RM8.00 for every RM100.00 or fractional part of RM100.00". Section 25 brings the chapter into operation on 1 January 2026. The same section amends Item 32(aa), the 4% rate introduced on 1 January 2024, so that it now applies to foreign purchases of property other than residential property.
Three things follow from the text. Permanent residents are excluded — a PR pays the ordinary tiers (1% on the first RM100,000, 2% to RM500,000, 3% to RM1,000,000, 4% above). "Residential property" is defined to include serviced apartments and SOHO units, so a serviced apartment on commercial land does not escape the 8%. And the duty is charged on the consideration or the market value, whichever is higher, as for every transfer.
There is no MM2H exemption in the Act and none on LHDN's exemption pages. The only way out of the 8% is citizenship or permanent residence.
Which document carries the duty, and which date decides the rate
Malaysian stamp duty is charged on an instrument, and the Stamp Act decides which one. That single fact answers most of the "2025 or 2026" questions.
| Your purchase | Document that carries the ad valorem duty | Date that fixes the rate | SPA 2025, completion 2026 |
|---|---|---|---|
| New launch, no title issued yet (the usual case for under-construction condos) | The sale and purchase agreement itself. Stamp Act s.21(1) charges an agreement for sale with the same ad valorem duty "as if it were an actual conveyance on sale"; the later Deed of Assignment or Form 14A is stamped RM10 under Item 32(i) because the duty has already been paid (LHDN First Schedule guideline, C.2.2). | The date the SPA was executed. | 4%, already paid in 2025. The 2026 transfer costs RM10. |
| Subsale or completed unit with a strata or individual title | The Form 14A memorandum of transfer. The SPA is stamped RM10 as the subsidiary instrument (s.4(3)). | The date the Form 14A was executed. | 8% on its face. A 14A dated 2026 falls under Item 32(ab). Whether LHDN will treat a pre-2026 SPA as the operative date is unresolved — no ruling as at 1 November 2026. |
| New launch where the title is issued before completion and the developer transfers by Form 14A | Ask your lawyer which instrument was stamped ad valorem — if the SPA was stamped ad valorem under s.21(1), the 14A is RM10. | Follows the instrument stamped ad valorem. | Depends on the answer above. |
| Permanent resident | Same as above. | Irrelevant to the rate. | Ordinary 1%–4% tiers, 2025 or 2026. |
| Company incorporated in Malaysia, foreign-owned | Same as above. | Same as above. | The Stamp Act does not define "foreign company". The National Land Code treats a Malaysian company with 50% or more foreign ownership as foreign for consent purposes; whether LHDN applies the 8% is a question for your lawyer. We do not decide it for you. |
Worked numbers, residential, non-citizen, non-PR:
| Price | Citizen / PR (tiers) | Foreigner, 2024–2025 (4%) | Foreigner, from 2026 (8%) |
|---|---|---|---|
| RM600,000 | RM12,000 | RM24,000 | RM48,000 |
| RM1,000,000 | RM24,000 | RM40,000 | RM80,000 |
| RM1,500,000 | RM44,000 | RM60,000 | RM120,000 |
| RM2,000,000 | RM64,000 | RM80,000 | RM160,000 |
Use the foreign buyer cost calculator for your own price, with the loan stamp duty, legal fees and state levy added.
- The undated Form 14A. On a titled subsale the transfer is often signed at the same time as the SPA but left undated, and dated only at completion when the balance is paid. If completion fell in 2026, the instrument is a 2026 instrument. The signing date you remember is not the execution date LHDN sees.
- Late stamping does not move the date back. An instrument must be stamped within 30 days of execution (s.47). Stamping late adds a penalty — RM50 or 10% of the deficient duty, rising to RM100 or 20% (s.47A) — but the rate is still the rate on the execution date. There is no way to "stamp into 2025" from 2026.
- A price pushed up to clear a state threshold is taxed at 8% on the pushed-up figure. The duty is on the consideration or the market value, whichever is higher. If a RM950,000 unit is written up to RM1,000,000 to meet Kuala Lumpur's foreign-buyer minimum, the 8% is RM80,000, not RM76,000 — and the valuation, not the SPA price, is what the bank lends against. See the state-by-state minimum price guide.
If your SPA is from 2025 and the transfer happened, or will happen, in 2026
- Find out which document was stamped ad valoremAsk your conveyancing lawyer for the stamp certificate. If it is on the SPA (new launch, no title), you paid 4% in 2025 and the matter is closed. If the SPA shows RM10, the duty sits on the Form 14A and the next three steps apply.
- Ask for the lawyer's position in writingSpecifically: what date will the Form 14A bear, and which Item of the First Schedule will the firm submit it under. A verbal "should be fine" is not something you can show LHDN later.
- Budget the 8% nowOn a RM1,000,000 titled unit the difference is RM40,000. If the assessment comes back at 4% you have a surplus; if you budgeted 4% and it comes back at 8% you have a completion problem. We have seen the second case cost buyers their deposit timeline.
- If LHDN assesses at 8% and you believe 4% applies, ask the lawyer about objectingThe Stamp Act has an objection route against the Collector's assessment with a short deadline. Whether it is worth using on a pre-2026 SPA is a legal judgment we are not going to make for you — but it exists, and the deadline is short, so ask on the day the assessment arrives.
- Keep the 2025 SPA stamp certificate and the dated 14A togetherIf LHDN publishes transitional guidance later, those two documents are what any refund or objection will turn on.
Checked on 1 November 2026. Primary texts: Finance Act 2025 (Act 874) sections 25 and 29; Stamp Act 1949 sections 4(3), 21, 47 and 47A and First Schedule Items 32(a), 32(aa), 32(ab) and 32(i); LHDN's First Schedule guideline (C.2.1(c) and C.2.2, 30 June 2026 edition). The "open question" status of pre-2026 SPAs with 2026 transfers is from Skrine's briefing of 24 November 2025 and from the absence of any LHDN or Bar Council ruling in the circulars we read up to 1 November 2026 (Bar Council circulars 090 and 128 of 2026 deal with the first-home exemption only).
One claim we checked and could not stand up: a calculator website states that "LHDN has confirmed" 2025 SPAs keep the 4%. The page cites nothing and we found no such confirmation. We do not repeat it.
This page will be updated the day LHDN publishes transitional guidance. If you have a ruling letter from LHDN on this point, send it to us — we will cite it.
- SPA
- Sale and purchase agreement — the contract you sign with the seller or developer.
- Form 14A
- The memorandum of transfer: the land-office form that moves a titled property into your name.
- Ad valorem duty
- Stamp duty charged as a percentage of the price, as opposed to a fixed RM10.
- Instrument
- The legal document that stamp duty is charged on.
- PR
- Permanent resident of Malaysia — not a citizen, but outside the 8% rate.
- State consent
- Written approval from the state land office that every foreign buyer needs before a transfer can be registered.
- Levy
- A percentage charge some states (Johor, Penang, Melaka) add when they grant consent, on top of federal stamp duty.
- LHDN
- The Inland Revenue Board, which assesses and collects stamp duty.
Frequently asked questions
Does the 8% apply if I hold an MM2H pass?
Yes. Neither the Finance Act 2025 nor LHDN's exemption list gives MM2H holders a lower rate. MM2H is a long-term visa; it does not change your status as a non-citizen for stamp duty. Only citizens and permanent residents are outside Item 32(ab).
I am a permanent resident. Do I pay 8%?
No. Item 32(ab) applies to "a person who is not a citizen and not a permanent resident". A PR pays the ordinary tiers under Item 32(a): 1% on the first RM100,000, 2% to RM500,000, 3% to RM1,000,000, 4% above. On RM1,000,000 that is RM24,000.
My serviced apartment is on commercial title. Is it 4% or 8%?
8%. The Act defines "residential property" for Item 32(ab) to include serviced apartments and SOHO units. The 4% under Item 32(aa) now covers only property that is not residential — shops, offices, factories, land.
I signed the SPA for an under-construction condo in December 2025. Which rate?
If the title had not been issued, the SPA itself carried the ad valorem duty under s.21(1) and was stamped at 4% in 2025. The Deed of Assignment or Form 14A later is RM10. Check the stamp certificate on your SPA: if it shows an ad valorem amount, you are done.
I signed the SPA for a completed, titled unit in November 2025 and the Form 14A was executed in February 2026. Which rate?
On its face, 8%: the 14A is the dutiable instrument and it is a 2026 instrument. Whether LHDN will look through to the 2025 SPA is unresolved — no ruling has been published as at 1 November 2026. Budget 8%, get the lawyer's position in writing, and ask about the objection route if the assessment comes in at 8% and your lawyer believes 4% applies.
Does the 8% replace the state levy in Johor or Penang?
No — they stack. The 8% is federal stamp duty on the transfer. Johor's 3% (minimum RM30,000, from 1 July 2025), Penang's 3% (1.5% for island strata between RM1 million and RM1.5 million) and Melaka's 3% (minimum RM30,000) are state levies charged on State Authority consent. A foreigner buying a RM1,000,000 condo in Johor Bahru in 2026 pays RM80,000 federal duty and RM30,000 state levy, before legal fees. See the full foreign-buyer cost list.
Does the loan agreement stamp duty change too?
No. The loan agreement is still 0.5% of the loan amount (Item 27(a)(iii), RM5 per RM1,000) for everyone. The RM2,000 cap on foreign-currency loans was removed from 1 January 2024.