Commercial Property Stamp Duty and RPGT in Malaysia: 2026 Cost Guide

The price you agree for a commercial property is rarely the price you pay. Stamp duty on the transfer, stamp duty on the loan, and, when you sell, real property gains tax can add a material layer on both ends of a deal. This guide sets out the 2026 numbers as published by the Lembaga Hasil Dalam Negeri (LHDN), so you can underwrite a commercial purchase with the real all-in cost rather than a guess.

These rates are current as published by LHDN. Tax is fact-sensitive and changes with each Budget, so confirm against LHDN and take professional advice before you transact.

Stamp duty on the transfer (MOT)

The Memorandum of Transfer (MOT) is the instrument that moves legal title, and the stamp duty on it is the largest single transaction tax on a purchase. It is charged on the purchase price or the market value, whichever is higher, on a tiered scale:

1% on the first RM100,000
2% on the next RM100,001 to RM500,000
3% on the next RM500,001 to RM1,000,000
4% on everything above RM1,000,000

The tiers are marginal, so each band applies only to the value that falls inside it. A worked example for a RM2,000,000 commercial unit: RM1,000 on the first RM100,000, plus RM8,000 on the next RM400,000, plus RM15,000 on the next RM500,000, plus RM40,000 on the final RM1,000,000. That totals RM64,000 in transfer duty alone. Our stamp duty calculator runs the bands for any value.

Two points commercial buyers should hold in mind. The widely-publicised first-time-buyer stamp duty exemptions are residential measures aimed at homes at or below set price thresholds, and do not apply to commercial assets. And a foreign-buyer surcharge applies to residential property; commercial transactions follow the standard tiered scale above. Always confirm the treatment for your specific asset class and buyer status with LHDN.

Stamp duty on the loan

If you finance the purchase, the loan or facility agreement attracts its own stamp duty at 0.5% of the loan amount. On a RM1,500,000 facility that is RM7,500. It is easy to forget because it sits inside the financing paperwork, but it is real cash at completion and belongs in your acquisition budget alongside the MOT duty and legal fees.

Stamp duty on a tenancy or lease

For occupiers and landlords, the tenancy or lease agreement is stamped on the total annual rent, with the rate rising as the term lengthens. The duty is charged for every RM250 (or part of it) of annual rent:

Term up to 1 year: RM1 per RM250 of annual rent
Term exceeding 1 year and up to 3 years: RM2 per RM250
Term exceeding 3 years and up to 5 years (or longer): higher RM-per-RM250 bands apply

A change occupiers should note: the previous exemption on the first RM2,400 of annual rent was removed under the Finance Act 2024, so from 2025 onward stamp duty is charged from the first ringgit of annual rent. A worked example for a commercial tenancy at RM10,000 a month, RM120,000 a year, on a 2-year term: RM120,000 divided by RM250 is 480 units, at RM2 per unit, giving RM960 in tenancy stamp duty. Our tenancy stamp duty calculator handles the bands and the per-RM250 rounding.

A practical note: from 2026 LHDN has moved stamp duty toward a self-assessment model, and documents must generally be stamped within the statutory window after execution (commonly cited as 30 days). Late stamping attracts penalties, so do not let it drift.

RPGT: the tax on the way out

Real Property Gains Tax (RPGT) is charged on the gain when you dispose of a property, under the Real Property Gains Tax Act 1976 and administered by LHDN. The rate depends on how long you held the asset and on who is selling. Per the LHDN schedule:

Malaysian citizens and permanent residents (individuals):

Disposal within 3 years: 30%
In the 4th year: 20%
In the 5th year: 15%
In the 6th year and beyond: 0% (exempt)

Companies incorporated in Malaysia:

Disposal within 3 years: 30%
In the 4th year: 20%
In the 5th year: 15%
In the 6th year and beyond: 10%

Non-citizens and foreign companies:

Disposal within 5 years: 30%
In the 6th year and beyond: 10%

The structure tells you how to plan. For an individual citizen, the tax falls steeply with each year held and reaches zero after five full years, which strongly rewards patience. For a company, the floor never drops below 10%, so the entity you buy through changes your eventual exit tax materially. And a short-hold flip inside three years is taxed at 30% for everyone, which is the point of the rule: it dampens speculation.

The gain itself is the disposal price less the acquisition price and allowable costs. Acquisition costs include the stamp duty and legal fees you paid going in, which is one reason to keep clean records from day one; they reduce the taxable gain on the way out. An individual also has a statutory exemption of RM10,000 or 10% of the chargeable gain, whichever is greater. Our RPGT calculator applies the right rate for your holding period and entity.

A timing point that catches sellers out: RPGT is reckoned from the date of the sale and purchase agreement, not completion, and the return is due within the statutory filing window after disposal. Diarise it the day you sign.

Putting the full cost together

A commercial deal carries tax at both ends. On the way in: MOT stamp duty on the tiered scale, plus 0.5% on any loan, plus your legal and valuation fees. On the way out: RPGT at the rate set by your holding period and entity. Underwrite both before you commit, because a yield that looks attractive on the purchase price can look very different once entry duty and an eventual exit tax are layered in.

For the income side of the analysis, pair this with our guide on how to value commercial property in Malaysia, and run the transaction taxes through the stamp duty, tenancy stamp duty and RPGT calculators before you sign anything. The numbers here are current LHDN rates; the discipline is to confirm them against LHDN for your specific transaction, because tax is the one line in a deal you cannot negotiate.