Property Taxes & Stamp Duties for Residential Properties in Kuala Lumpur
When buying, owning, or transferring residential property in Kuala Lumpur, there are several taxes and duties you should be aware of. Two of the key ones are stamp duty (on property transfers and loan agreements) and assessment tax (annual tax on property values as set by DBKL). Both affect the total cost of acquisition and ongoing ownership.
Stamp Duty (on Transfer & Loan Agreements)
Stamp duty is a tax levied on certain legal documents (“instruments”) related to property, especially the Sale & Purchase Agreement (SPA) / Memorandum of Transfer (MOT), and on loan agreements. It is payable to the Royal Malaysian Customs via the Stamp Assessment and Payment System. The buyer typically bears the costs. 1
Rate Structure for Stamp Duty on Property Transfer (MOT / Instrument of Transfer)
The rates are tiered based on the value of the property. As of 2025, the typical buyer’s stamp duty (for residential properties) is:
- 1% on the first RM100,000 of value
- 2% on the next RM400,000 (i.e. from RM100,001 to RM500,000)
- 3% on the next RM500,000 (i.e. from RM500,001 to RM1,000,000)
- 4% on any amount above RM1,000,0002
Stamp Duty on Loan Agreements
When you take a mortgage, the loan agreement itself is stamped too. The rate is usually 0.5% of the amount of the loan. 3
Exemptions & Reliefs
There are certain exemptions or reductions available, especially for local first-time homebuyers:
- If you are a first-time homebuyer and the residential property costs up to RM500,000, you may be granted full exemption from stamp duty on both the instrument of transfer (MOT) and the loan agreement, up until 31 December 2025. 4
- For properties between RM500,001 and RM1,000,000, there have been periods when a 75% stamp duty exemption was offered. 5
- Transfers between family members (e.g. parent to child) may have special treatment / exemptions. 6
Assessment Tax (Annual Property Tax by DBKL)
Once you own a property, there is an ongoing tax known as the assessment tax (sometimes called “property assessment” or “rate” tax), managed by DBKL (Dewan Bandaraya Kuala Lumpur). This tax is based on the Annual Value of the property. 7
How Annual Value is Determined
The Annual Value is an estimate of the rental income the property could fetch in a year if rented out. For strata or built residential units, it’s based on similar rents in the neighbourhood. 8
Assessment Tax Rate
For residential properties in Kuala Lumpur, the assessment rate currently set by DBKL is 4% of the Annual Value. 9
Discounts / Rebates
There are reliefs in certain circumstances:
- Homeowners of affordable housing schemes (e.g. Rumawip, PR1MA, PPAM, etc.) completed after 2014 are eligible for a 25% discount on their assessment tax. 10
- Other rebates exist for special categories like senior citizens, disabled, or those who occupy the property themselves (i.e. for residential use, not for investment). 11
Putting It Together: Typical Costs You May Expect
Here are approximate examples of what you might pay in stamp duty and assessment tax under common scenarios:
- Buying a RM1,000,000 condominium as a non-foreign buyer: Stamp duty ~ RM24,000 (using the tiered rates above) + loan agreement duty (~0.5% of loan). 12
- Assessment tax for a residential property whose Annual Value is RM20,000 per year: 4% of RM20,000 = RM800/year. 13
- If the same property is an affordable housing unit eligible for the 25% discount, then the annual assessment tax drops to RM600/year. 14
Things to Check and Consider
- Are you eligible for first-time buyer stamp duty exemption?
- Is the property in an affordable housing scheme that offers assessment tax discounts?
- Is the property strata titled or landed? (Strata-titled may have slightly different considerations.)
- What is the full cost (including legal fees, valuation, and other incidental taxes)? These can add non-trivial amounts beyond just stamp duty and assessment tax.
References
- PWC – Stamp Duty in Malaysia – 2024/2025 Rates
- LoanStreet Malaysia – Stamp Duty Charges
- Malaysia Homes – Buyer’s Stamp Duty Rates
- iProperty Malaysia
- KL-Property – Stamp Duty Exemptions
- DBKL – Valuation & Property Management
- iMoney – DBKL Assessment Rates News
- The Edge Malaysia – Property Taxes Insight
- StarProperty – Kuala Lumpur Property Trends
- The Property Times – Assessment Tax Discount for Affordable Housing
- Bamboo Routes – Property Tax Summaries
- Bamboo Routes – Kuala Lumpur Property Taxes & Fees
- DBKL Official – Assessment Tax Details
- The Star – Affordable Housing Assessment Tax Discount
Page Details
This page was created on 7 October 2025. Hi, my name is Timothy and created it from my research, for my own entertainment, knowledge and to satisfy my curiosity. I am providing the information to you in good faith and hope it is useful. I try to get the details as accurate as possible. I also try to update the page whenever I stumble on new details. So this and all my other pages are perpetual work in progress. If you discover any error, please politely inform me, pointing out where the error lies, and I will correct it as soon as possible. Your helpfulness will keep this page accurate, relevant and helpful to those who need the information.Articles related to Residential Properties in Kuala Lumpur
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- Find out about Property Taxes and Stamp Duties in Kuala Lumpur
- What to expect from Real Estate Agents in Kuala Lumpur
- The Sale & Purchase Agreement
- Understanding the Memorandum of Transfer (MOT)
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