Factory Legal Fees & Stamp Duty Calculator (Malaysia)
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.
Property Details
Purchase price of the property
Amount of property loan
Results
Enter values and click Calculate
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.
FAQ
How much is the stamp duty on a RM5 million factory in Malaysia?
RM184,000 on the transfer (MOT): RM1,000 on the first RM100,000, RM8,000 on the next RM400,000, RM15,000 on the next RM500,000 and RM160,000 (4%) on the remaining RM4,000,000. If you take a loan, add 0.5% of the loan amount as stamp duty on the loan agreement.
What are the stamp duty rates for a property transfer (MOT)?
1% on the first RM100,000, 2% on the next RM400,000, 3% on the next RM500,000 and 4% on any amount above RM1,000,000.
How much are the legal fees for buying a factory?
Under the Solicitors' Remuneration Order 2023: 1.25% on the first RM500,000 (minimum RM500) and 1% on the next RM7,000,000. Above RM7,500,000 the fee is negotiable but should not exceed 1%. The loan agreement has its own legal fee on the same scale.
Is there stamp duty on the loan agreement?
Yes, 0.5% of the loan amount.
Do foreigners pay 8% stamp duty when buying a factory in Malaysia?
No. The flat 8% transfer stamp duty for non-citizens and foreign companies (Finance Act 2025, from 1 January 2026) applies to residential property only. A foreign buyer of a factory, warehouse or industrial land pays the normal 1% to 4% scale. In Selangor the state minimum price for foreigners buying industrial buildings is RM3 million in all zones, state consent is required, and the buyer usually needs a MITI manufacturing licence.
Who pays the stamp duty and legal fees?
In Malaysia the buyer normally pays the transfer stamp duty, the legal fees for the sale and purchase agreement, and all loan-related legal fees and stamp duty. The seller pays their own lawyer if they appoint one.
What does it cost to buy a factory? RM3m, RM5m and RM10m examples
Based on an 80% loan and full SRO 2023 scale legal fees, before the 8% service tax on legal fees, valuation and disbursements, and before any legal fee discount of up to 25%. The same figures apply to foreign buyers of a factory.
| Item | RM3m | RM5m | RM10m |
|---|---|---|---|
| Transfer stamp duty (MOT) | RM104,000 | RM184,000 | RM384,000 |
| SPA legal fee | RM31,250 | RM51,250 | RM101,250 |
| Loan stamp duty (0.5%) | RM12,000 | RM20,000 | RM40,000 |
| Loan agreement legal fee | RM25,250 | RM41,250 | RM81,250 |
| Total | RM172,500 | RM296,500 | RM606,500 |
RM10m column: legal fees above RM7.5m are negotiable; the table uses the 1% cap.
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). Under the Stamp Act an instrument must be stamped within 30 days of being signed, and late stamping attracts penalties, so the lawyer normally stamps the transfer as soon as it is executed.
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. SRO 2023 allows solicitors to discount up to 25% off the scale fee for the sale and purchase agreement, so a quote below the formula above is normal. Above RM7.5 million the fee is negotiable but should not exceed 1%.
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. On a RM1.5 million factory with a RM1.2 million loan, the scale figures add up to about RM79,500 (RM44,000 transfer duty, RM16,250 SPA fee, RM13,250 loan legal fee, RM6,000 loan duty), before the 8% service tax on legal fees, valuation and disbursements, and before any discount on legal fees.
Calculator FAQ
Are these the actual fees I will pay?
The calculator returns the full SRO 2023 scale fees and the statutory stamp duty. Stamp duty is fixed by law; legal fees can be up to 25% lower because SRO 2023 allows that discount on the sale and purchase fee. Add 8% service tax on legal fees, plus valuation and disbursements.
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?
Since 1 January 2026 (Finance Act 2025), the flat 8% transfer stamp duty for non-citizens and foreign companies applies to residential property only. Factories, warehouses and industrial land are not affected: foreigners pay the same 1% to 4% scale shown above. They do need state consent and must meet the state minimum price, which in Selangor is RM3 million for industrial buildings in all zones (state circular of 28 August 2014), and the buyer usually needs a MITI manufacturing licence. In Kuala Lumpur, industrial purchases are approved case by case.
When is each fee paid?
Each instrument must be stamped within 30 days of being signed, so transfer stamp duty is paid when the transfer is executed. 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.
Also try our Factory Loan Calculator →
Ready to find your property?
Tell us what you need or what you want to sell or let. We usually reply within hours.