Malaysia Legal Fees & Stamp Duty Calculator
Calculate legal fees and stamp duty for property transfer (SPA) and loan agreements in Malaysia. Get accurate cost estimates for your factory, warehouse, or commercial property purchase.
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Disclaimer: This calculator provides estimates only. Actual fees may vary. Please consult with your lawyer and bank for accurate figures.
Understanding Legal Fees and Stamp Duty in Malaysia
When purchasing industrial or commercial property in Malaysia, buyers must pay legal fees and stamp duty for both the Sale and Purchase Agreement (SPA) and the loan agreement. These costs are calculated based on regulated rates set by the Malaysian government.
SPA Legal Fees Structure
- First RM 500,000: 1.25% (minimum RM 500)
- Subsequent RM 7,000,000: 1%
- Exceeding RM 7,500,000: subject to negotiation (max 1%)
Stamp Duty Rates (Effective 2023)
- First RM 100,000: 1%
- RM 100,001 - RM 500,000: 2%
- RM 500,001 - RM 1,000,000: 3%
- Above RM 1,000,000: 4%
Loan Agreement Legal Fees (SRO 2023)
Same as SPA legal fees under Solicitors' Remuneration Order 2023:
- First RM 500,000: 1.25% (minimum RM 500)
- Subsequent RM 7,000,000: 1%
- Exceeding RM 7,500,000: subject to negotiation (max 1%)
Loan Agreement Stamp Duty
Flat rate of 0.5% on the loan amount as per Stamp Act 1949.
Stamp Duty MOT Schedule (Stamp Act 1949)
Property transfer stamp duty is paid on the Memorandum of Transfer and is calculated on a progressive scale: 1% on the first RM100,000 of consideration, 2% on the next RM400,000 (RM100,001 to RM500,000), 3% on the next RM500,000 (RM500,001 to RM1,000,000), and 4% on every ringgit above RM1,000,000. For example, a RM1.5 million industrial property attracts RM44,000 in MOT stamp duty (RM1,000 + RM8,000 + RM15,000 + RM20,000). Stamp duty is payable to LHDN within 30 days of SPA execution; late payment penalties run from RM25 (within 3 months) to 100% (after 6 months).
Conveyancing Legal Fees (SRO 2023)
The Solicitors' Remuneration Order 2023 came into force on 15 July 2023, replacing the long-standing SRO 2005. The current scale charges 1.25% on the first RM500,000 of consideration and 1% on the slice from RM500,001 up to RM7.5 million (with descending tiers above that). On a RM1.5 million SPA, the scaled fee is RM6,250 + RM10,000 = RM16,250, with a similar separate charge applying to the loan agreement. Solicitors are permitted to discount up to 25% off the scale under SRO 2023, so actual quotes typically come in 15–25% below the formula above. HDA (Housing Development Act) properties bought directly from licensed developers attract a statutory 25–50% discount, but industrial sub-sales do not qualify.
Loan Agreement Stamp Duty & Disbursements
Beyond the SPA, financed buyers also pay loan agreement stamp duty at a flat 0.5% of the loan amount (e.g. RM6,000 on a RM1.2M loan), plus loan agreement legal fees on the same SRO 2023 scale, professional valuation fees (typically RM2,500–RM6,000 for industrial buildings), bank processing fees (RM200–RM500), and various disbursements such as land office search, registration fees, certified true copy charges and stamping fees. Total transaction costs on a RM1.5 million industrial purchase commonly land between RM85,000 and RM110,000 before factoring in the down payment.
Calculator FAQ
Are these the actual fees I will pay?
The calculator returns the scaled SRO 2023 fees and statutory stamp duty exactly as published. Most law firms quote within 15–25% of the scale (the maximum SRO-permitted discount), so plan for the upper bound and treat any savings as upside.
Does the first-home stamp duty exemption apply to factories?
No. The 100% MOT stamp duty exemption for residential properties priced up to RM500,000 applies only to a Malaysian citizen's first residential home. Factories, warehouses, commercial shop-lots and industrial land all pay the full progressive rate.
What about foreign buyers?
Foreign buyers of residential property face a flat 8% MOT stamp duty under the Budget 2026 surcharge — the calculator above models the standard Malaysian-citizen scale. For commercial/industrial purchases by foreigners, the standard progressive scale still applies but the buyer must satisfy state minimum-price thresholds (typically RM1M in Selangor, RM2M in KL).
When is each fee paid?
Stamp duty is due to LHDN within 30 days of SPA execution. SPA legal fees are typically billed in stages — deposit on engagement, balance on completion. Loan agreement fees and loan stamp duty are usually deducted from the bank's first disbursement, not paid out-of-pocket.
Can fees be negotiated below the calculator output?
SRO 2023 caps the discount at 25%. Any quote below 75% of the scale is technically a breach of the order and can be reported to the Bar Council. Most firms quote at scale or slightly below for individual buyers, with deeper discounts reserved for repeat developer clients.
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