When the 8% stamp-duty rule for foreigners (non-citizens / foreign companies) takes effect in Malaysia, and under what conditions.
Effective date & application of the 8% rule The 8% flat stamp duty on instruments of transfer of residential property for non-citizens (excluding permanent residents) and foreign companies is set to apply for transfers executed on or after 1 January 2026. The proposal was announced under Budget 2026. The increase doubles the previous flat 4% rate under the existing law (for non-citizen/foreign buyers) for residential property transfers.
What type of properties & which buyers it applies to The rule applies only to residential properties - not commercial property or other asset types. It applies to individuals who are non-citizens and non-permanent residents of Malaysia, and to foreign owned companies. If a foreign buyer is a Malaysian permanent resident (PR), the increase does not apply (i.e. PRs are excluded from this higher duty).
📝 What if agreement was signed before 1 Jan 2026 but transfer executed after According to public commentary on the Budget 2026 measures: the new 8% duty applies to the instrument of transfer executed from 1 January 2026 onward, regardless of when the sale agreement (SPA) was signed. So, if a property is sold to a foreigner and the transfer (MOT) is completed on or after 1 Jan 2026, the 8% duty should apply.
