Legal Fee, Stamp Duty & CKHT Calculator

How these estimates are calculated (2026 rates)

Legal fees for a property purchase or loan in Malaysia

Under the Solicitors' Remuneration (Amendment) Order 2023, legal fees for a sale and purchase agreement (SPA) and for loan documentation are both charged on the same scale: 1.25% on the first RM500,000, and 1% on the next RM7,000,000. Any portion above RM7,500,000 is negotiable but cannot exceed 1%. The minimum fee is RM500. Service tax of 8% applies on legal fees.

Example: a RM500,000 property with a RM450,000 loan — SPA legal fee RM6,250, loan legal fee RM5,625.

Stamp duty on the transfer (MOT) and the loan

Stamp duty on the memorandum of transfer for Malaysian buyers is 1% on the first RM100,000, 2% on RM100,001 to RM500,000, 3% on RM500,001 to RM1,000,000, and 4% above RM1,000,000. From 1 January 2026, foreigners (other than permanent residents) and foreign companies buying residential property pay a flat 8% on the full price; commercial property uses the normal rates. In Johor, foreigners may only buy property priced at RM1,000,000 and above, with State consent. Stamp duty on the loan agreement is 0.5% of the loan amount. Eligible first-time home buyers may be exempted — ask us to check.

Example: a RM500,000 property — MOT stamp duty RM9,000; a RM450,000 loan — loan stamp duty RM2,250.

Stamp duty on a tenancy agreement

From 2026, tenancy stamp duty is charged on the full annual rent — the old RM2,400 exemption no longer applies. The rate for every RM250 (or part of RM250) of annual rent is RM1 for 1 year or less, RM3 for more than 1 year up to 3 years, RM5 for more than 3 years up to 5 years, and RM7 for more than 5 years. Each duplicate copy is RM10. Tenancies are stamped through e-Duti Setem on MyTax within 30 days of signing.

Example: rent RM2,000 a month on a 2-year tenancy — annual rent RM24,000 ÷ 250 = 96 units × RM3 = RM288, plus RM10 for one copy.

Legal fees for a tenancy agreement

Under the Solicitors' Remuneration (Amendment) Order 2023, the legal fee for preparing a tenancy agreement of up to 3 years is 30% of one month's rent (minimum RM500) where the rent is RM10,000 or less, and between 15% and 25% where the rent is above RM10,000. For a lease of more than 3 years it is 60% of one month's rent (minimum RM1,000), or between 30% and 50% where the rent is above RM10,000. Service tax of 8% applies. Where the tenant or landlord is a company, extra documents such as a company search and board resolution are needed.

Example: rent RM2,000 a month on a 2-year tenancy — legal fee RM600 plus RM48 service tax.

Real Property Gains Tax (RPGT) / Cukai Keuntungan Harta Tanah (CKHT) rates

RPGT (known in Malay as CKHT, Cukai Keuntungan Harta Tanah) is charged on the gain when you sell a property in Malaysia. For Malaysian citizens and permanent residents: 30% if sold within 3 years, 20% in the 4th year, 15% in the 5th year, and 0% from the 6th year. For Malaysian companies: 30%, 20%, 15%, then 10%. For foreigners: 30% for the first 5 years, then 10%. Individuals get an exemption of RM10,000 or 10% of the gain, whichever is higher. The buyer must retain 3% of the price (7% if the seller is a foreigner) and pay it to LHDN. The final amount payable is subject to LHDN assessment.

Example: a Malaysian bought at RM400,000 and sells at RM600,000 in the 4th year — gain RM200,000, less RM20,000 exemption = RM180,000 × 20% = RM36,000 RPGT.

These are estimates only. For an exact quotation, contact William Florence & Partners, Johor Bahru — tel 07-226 6533 or WhatsApp 016-788 9176.