Buying a home with MM2H: when does Malaysia’s 8% stamp duty apply?
MM2H status does not confer permanent residence. Check the buyer’s status, ownership share and sale agreement date when budgeting.
The 8% residential transfer rate applies to relevant non-citizen buyers who are not Malaysian permanent residents. MM2H does not itself exempt the buyer. The example excludes other purchase costs.
MM2H participation does not itself exempt a buyer from Malaysia’s foreign-buyer residential transfer duty. HASiL states that the programme provides no such exemption. The relevant 8% rate applies to residential buyers who are neither Malaysian citizens nor permanent residents; the seller’s nationality does not decide this treatment.[1][3]
Calculate duty on the assessed value
Property transfer duty generally uses the higher of the consideration and market value.[4] If a transaction falls within the 8% rule and its final dutiable value is RM1 million, transfer duty is RM80,000. A higher assessed market value would increase the calculation even if the agreed price remained RM1 million.
This example covers transfer duty alone. Legal fees, duty on financing documents and any applicable state approval charges need separate calculation. An MM2H minimum property price is not an all-inclusive purchase budget.
Joint buyers may receive different treatment
In its Joint Memorandum response, HASiL states that the share held by a Malaysian citizen or permanent resident falls under item 32(a), while the share held by a non-citizen who is not a permanent resident falls under item 32(ab).[2]
One spouse’s permanent residence therefore does not, by itself, determine the treatment of the whole property. The ownership proportions in the transaction documents should match those used for the assessment.
Check the sale agreement date
The later Joint Memorandum response says item 32(ab) applies to sale and purchase agreements signed from 1 January 2026. It confirms that an agreement signed on 20 December 2025 does not attract the new 8% rate merely because the transfer instrument is signed on 5 January 2026.[2]
An earlier FAQ used the date of submission for stamping.[1] For a transaction spanning the change, ask the conveyancing lawyer to reconcile the later clarification with the actual agreement and transfer documents. Payment or handover dates alone are insufficient.
Before signing, obtain a transaction-specific calculation covering buyer status, residential classification, ownership shares, agreement date and dutiable value.
Official sources
General policy information; individual circumstances and the competent authority’s requirements govern each application.