When you buy property in Johor, the two main costs on top of the price are stamp duty and legal fees. Stamp duty on the transfer is 1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1 million and 4% above that, plus 0.5% on the loan agreement. Foreign buyers pay a flat 8% on the transfer from 1 January 2026. Legal fees under the Solicitors’ Remuneration Order 2023 are 1.25% on the first RM500,000 and 1% after that, charged separately for the SPA and the loan. For a RM600,000 condo with a 90% loan, that adds up to roughly RM28,600 before service tax and disbursements.
Stamp duty in Malaysia for property is often the cost buyers think about last and feel most. Our step-by-step JB buying guide lists the costs you meet from booking to keys. This article goes a level deeper: exact rates, how each fee is calculated, worked examples at three price points, how the first-time buyer exemption works, what changes for foreigners, and the smaller costs that are easy to overlook. Use it to build a realistic budget for a new launch in Johor Bahru, such as Causewayz Square, The Asteriaz or The Celestz.
What costs do you pay when buying property in Johor?
Beyond the purchase price, a buyer in Johor typically pays four groups of costs: stamp duty, legal fees, loan-related costs and move-in costs. Here is the full picture.
| Cost | How it is calculated | When you pay |
|---|---|---|
| Stamp duty on transfer (MOT) | 1% / 2% / 3% / 4% bands on the property value (flat 8% for foreigners from 2026) | When the transfer instrument is stamped |
| Stamp duty on loan agreement | 0.5% of the loan amount | When the loan agreement is signed |
| Legal fee, SPA | SRO 2023 scale: 1.25% on first RM500,000, 1% on the next RM7 million | Around SPA signing |
| Legal fee, loan | Same scale, on the loan amount | Around loan signing |
| Service tax and disbursements | Service tax on legal fees, plus searches, filing and copying charges | With each lawyer’s bill |
| Valuation fee | Charged by the bank’s panel valuer; often absorbed in loan packages | During loan approval |
| Move-in costs | Advance maintenance fee and sinking fund, utility deposits, furnishing | Around vacant possession |
| Foreign buyer extras | Johor state consent (application and fees) | Before transfer |
Booking fee and the 10% deposit are part of the purchase price rather than extra costs, so they are not in this table. Progressive payments during construction are covered in our progressive payment guide.
Stamp duty on the property transfer (MOT): rates and calculation
Stamp duty on the memorandum of transfer is tiered: each slice of the property value is charged at its own rate, and you add the slices together. The rates below apply to Malaysian citizens and permanent residents.
| Slice of property value | Rate | Maximum duty for the slice |
|---|---|---|
| First RM100,000 | 1% | RM1,000 |
| RM100,001 to RM500,000 | 2% | RM8,000 |
| RM500,001 to RM1,000,000 | 3% | RM15,000 |
| Above RM1,000,000 | 4% | No cap |
So a RM600,000 property attracts RM1,000 + RM8,000 + RM3,000 = RM12,000 in transfer stamp duty. A RM1.5 million property attracts RM1,000 + RM8,000 + RM15,000 + RM20,000 = RM44,000.
Which value is used?
Duty is assessed on the higher of the price and the market value as assessed by the Stamp Office. For a new launch bought from the developer, the SPA price is usually the reference.
When it is paid on a new launch
For a completed subsale, the MOT is stamped soon after the SPA. For a new launch where strata titles are not yet issued, the timing and the instrument on which the ad valorem duty is assessed depend on the transaction structure, so ask your lawyer for the expected date and amount when you sign the SPA and budget for it from the start.
Stamp duty on the loan agreement
The loan agreement is stamped at a flat 0.5% of the loan amount. On a RM540,000 loan, that is RM2,700. This is separate from the transfer duty and is paid when the loan documents are signed, usually soon after the SPA.
Because it is based on the loan, not the price, a smaller loan means a smaller duty. A buyer with a 70% loan on a RM600,000 unit (RM420,000) pays RM2,100 instead.
Legal fees under the Solicitors’ Remuneration Order 2023
Legal fees for property in Peninsular Malaysia follow a scale set by the Solicitors’ Remuneration Order 2023, which took effect on 15 July 2023. The scale is the same for the SPA and for the loan documents, but each is charged on its own amount.
- First RM500,000: 1.25% (minimum fee RM500)
- Next RM7,000,000: 1%
- Above RM7,500,000: negotiable, capped at 1% of the excess
For purchases from a licensed housing developer, the order also provides a reduced scale (Table B) for the SPA, and loan documents have their own reduced scale for such transactions. Serviced apartments on commercial title may be treated differently, so ask your lawyer which table applies and for a written quotation.
On top of the scale fee, lawyers charge disbursements (searches, filing, courier, copies) and service tax on their professional fees. Ask for these to be itemised in the quotation so you can compare like with like.
Worked examples: total costs at RM500,000, RM600,000 and RM1 million
The table below estimates the main fees for a Malaysian buyer with a 90% loan, using the full Table A scale and no exemptions. Figures exclude service tax, disbursements and move-in costs. These are illustrations, not quotes for any project.
| Item | RM500,000 | RM600,000 | RM1,000,000 |
|---|---|---|---|
| Loan amount (90%) | RM450,000 | RM540,000 | RM900,000 |
| Stamp duty, MOT | RM9,000 | RM12,000 | RM24,000 |
| Stamp duty, loan (0.5%) | RM2,250 | RM2,700 | RM4,500 |
| Legal fee, SPA | RM6,250 | RM7,250 | RM11,250 |
| Legal fee, loan | RM5,625 | RM6,650 | RM10,250 |
| Total (before tax and disbursements) | RM23,125 | RM28,600 | RM50,000 |
| As % of price | about 4.6% | about 4.8% | 5.0% |
A useful rule of thumb: set aside around 5% of the price for stamp duty and legal fees, on top of the 10% deposit, and adjust once you have your lawyer’s quotation. If you qualify for the first-time buyer exemption, the stamp duty lines shrink sharply.
First-time homebuyer stamp duty exemption
Malaysia gives first-time homebuyers a stamp duty exemption, and recent budgets have extended and widened it.
- Budget 2026: full exemption on the MOT and loan agreement for first homes valued up to RM500,000, extended to 31 December 2027. KPMG notes the relief benefits Malaysian citizens and permanent residents.
- Budget 2027 proposal (announced 9 October 2026): for SPAs signed from 1 January 2027 to 31 December 2030, full exemption on homes up to RM500,000, and for homes above RM500,000 up to RM750,000, full exemption on the first RM500,000 plus 50% exemption on the amount above it.
Under the Budget 2027 proposal, a first-time buyer of a RM600,000 home would pay no MOT duty on the first RM500,000 and half of the RM3,000 due on the remaining RM100,000, so RM1,500 instead of RM12,000. The loan agreement is also covered by the relief. Proposals become effective only once gazetted, so confirm the final conditions with your lawyer before you rely on them.
Stamp duty and costs for foreign buyers in Johor
Foreign buyers pay a different transfer stamp duty and face extra state-level steps. From 1 January 2026, transfers executed by non-citizens and foreign companies are charged a flat 8%, while Malaysian permanent residents are excluded and continue to pay the tiered rates.
| Item | Malaysian, RM1,000,000 | Foreign buyer, RM1,000,000 |
|---|---|---|
| Stamp duty, MOT | RM24,000 (tiered) | RM80,000 (flat 8%) |
| Stamp duty, loan (0.5%, 70% loan) | RM3,500 | RM3,500 |
| Legal fees, SPA | RM11,250 | RM11,250 |
| State consent | Not required | Required; application and fees apply |
In Johor, foreigners generally need to meet a minimum purchase price of RM1 million and obtain state consent. Loan margins for foreigners vary by bank. Our JB buying process guide sets out the steps; for the latest SPA price list of units that meet the threshold, WhatsApp us.
When each cost falls due on a new launch
On a new launch, costs are spread across several years rather than paid in one go. Knowing the order helps you keep cash ready at the right time.
| Phase | Costs that usually fall due |
|---|---|
| Booking | Booking fee (part of the 10% deposit) |
| SPA signing (usually within about two weeks) | Balance of the 10% deposit; SPA legal fee and disbursements |
| Loan signing | Loan legal fee; 0.5% loan stamp duty; valuation fee if not included; insurance |
| Construction (about 3 to 4 years) | Progressive interest on the amount the bank has released |
| Transfer and title stage | Stamp duty on the transfer, as advised by your lawyer |
| Vacant possession | Advance maintenance fee and sinking fund, utility deposits, furnishing |
| Every year after | Quit rent, assessment rates, insurance renewal |
For EXSIM’s Johor projects, completion is targeted around 2030 for Causewayz Square and 2029–2030 for The Asteriaz and The Celestz, so move-in costs sit several years away from the SPA. That gives you time to save for them, but it also means budgeting with today’s rules and checking for changes, such as new budget measures, before each payment.
Common budgeting mistakes to avoid
Most cost surprises come from a few predictable gaps. Planning for them is simple once you know where they are.
- Forgetting the second legal fee. The SPA and the loan are separate documents with separate fees. Budget for both.
- Using the old foreigner rate. Some online calculators still show tiered rates or 4% for foreigners. From 2026 the transfer rate for non-citizens is a flat 8%.
- Assuming the exemption applies automatically. First-time buyer relief has conditions, including the price cap and first-home status. Confirm eligibility with your lawyer before you sign.
- Leaving out service tax and disbursements. These can add a meaningful amount to each legal bill.
- Underestimating move-in costs. Furnishing a rental unit can be a significant sum; plan it alongside the first full loan instalment.
Other costs to budget for
A few smaller items complete the picture. None is large on its own, but together they add up.
- Valuation fee. The bank’s valuer assesses the property for the loan; many loan packages include it.
- Insurance. Banks usually require fire insurance, and many buyers add mortgage reducing term assurance (MRTA) or similar cover.
- Progressive interest. During construction you pay interest on the amount released; see our progressive payment guide for a worked example.
- Move-in costs. Advance maintenance fees and sinking fund, water and electricity deposits and furnishing. The Asteriaz, for example, has a published maintenance fee of RM0.51 psf.
- Running costs. Quit rent and assessment rates are paid yearly once the unit is in your name.
How to keep purchase costs under control
Most of these costs are set by law, but good planning still makes a difference.
- Ask for written quotations from your lawyer for the SPA and loan, with disbursements itemised.
- Check your first-time buyer eligibility early, and time your SPA signing with your lawyer if a new exemption period is about to start.
- Match your loan to your needs. A slightly lower loan reduces loan stamp duty, loan legal fees and interest.
- Use one law firm for both documents where possible, which keeps coordination simple.
- Keep a budget sheet listing each fee, its due date and the amount paid.
To see what these costs look like for a specific unit at Causewayz Square, The Asteriaz or The Celestz, WhatsApp us for the latest SPA price list and a cost illustration.
Sources
- Skrine: Taxes on buying and selling property (stamp duty bands)
- KPMG Malaysia: Budget 2026 stamp duty
- The Star: Budget 2027 stamp duty exemptions for first-time homebuyers
- SAYS: Budget 2026 first-time buyer exemption until 2027
- Conventus Law: The Solicitors’ Remuneration Order 2023
- Malaysian Bar: Circular on SRO 2023
This guide is general information, not financial advice.