Agreeing on the monthly rent does not always tell you how much you will need to pay before moving into a rental property. Legal fees, stamp duty, administration charges, and other tenancy agreement costs can increase the upfront amount, and it may not always be clear how each fee is calculated.
The legal fees for a tenancy agreement in Malaysia depend on factors such as the monthly rent and the legal work involved, while stamp duty is calculated separately based on the annual rent and tenancy duration. Once the agreement is signed, it should also be stamped with Lembaga Hasil Dalam Negeri Malaysia (LHDN) within the required period.
This guide explains the current legal fee scale, tenancy agreement stamp duty rates and calculations, who may be responsible for the costs, and the stamping process in Malaysia for 2026.
Browse rental properties across Malaysia and find a home that suits your needs.What Fees Do You Pay For A Tenancy Agreement In Malaysia?
A tenancy agreement records the agreed rental terms between a landlord and tenant, including the rent, tenancy period, deposits, responsibilities, and termination conditions.
The costs involved can vary depending on the monthly rent, tenancy duration, whether a solicitor prepares the tenancy agreement, and any other services required.
Tenants and landlords should request a clear breakdown of charges so they understand what each amount covers.
How Much Are The Legal Fees For A Tenancy Agreement In Malaysia?
The legal fees for tenancy agreement Malaysia are governed by the Solicitors’ Remuneration Order 2023 (SRO 2023), which came into operation on 15 July 2023 and replaced the previous Solicitors’ Remuneration Order 2005.
The amount payable varies according to the monthly rent.
For example, if the monthly rent is RM3,000, 30% would be RM900. The applicable scale fee for preparing the tenancy agreement would therefore be RM900, before applicable taxes and disbursements.
For monthly rent of RM1,500, 30% is RM450. As this falls below the prescribed minimum, the scale fee would be RM500.
The SRO 2023 also contains specific provisions for situations such as tenancy renewals, varying rent, and other consideration deemed to form part of the rent. Therefore, the final solicitor’s fee can depend on the circumstances of the agreement.
How Much Is Tenancy Agreement Stamp Duty And How Is It Calculated?
Stamp duty is imposed on instruments, including tenancy agreements, under the Stamp Act 1949. The amount payable depends on the annual rent and length of the tenancy.
The current rates are:
| Tenancy Duration | Stamp Duty For Every RM250 Or Part Thereof Of Annual Rent |
| Not exceeding one year | RM1 |
| More than one year but not exceeding three years | RM3 |
| More than three years but not exceeding five years | RM5 |
| More than five years or for an indefinite period | RM7 |
The previous RM2,400 annual rental exemption no longer applies under the current rates. This means older calculations that first subtract RM2,400 from the annual rent should not be used for new agreements.
To calculate the stamp duty, you need to know the annual rent and the length of the tenancy, as the applicable rate varies according to the tenancy duration.
The basic calculation is:
Annual rent ÷ RM250 × applicable stamp duty rate
Where the annual rent is not an exact multiple of RM250, the calculation applies to every RM250 or part thereof.
For example, suppose the monthly rent is RM1,700:
Annual rent: RM1,700 × 12 = RM20,400
RM20,400 ÷ RM250 = 81.6
As stamp duty applies to every RM250 or part thereof, this becomes 82 units.
The stamp duty would therefore be:
| Tenancy Duration | Calculation | Stamp Duty |
| One year | 82 × RM1 | RM82 |
| Two years | 82 × RM3 | RM246 |
| Four years | 82 × RM5 | RM410 |
| More than five years | 82 × RM7 | RM574 |
For a tenancy lasting less than one year, Lembaga Hasil Dalam Negeri Malaysia (LHDN) has clarified that the rent is annualised for stamp duty purposes. For example, a six-month tenancy at RM2,000 per month has total rent of RM12,000, but its annualised rent for the stamp duty calculation is RM24,000.
<a href=”https://www.iproperty.com.my/financing/mortgage-calculator/”>Estimate your monthly home loan repayments with the Mortgage Calculator.</a>How Do You Stamp A Tenancy Agreement Online In 2026?
The stamping process has changed significantly from the previous system.
From 1 January 2026, lease and tenancy instruments are included in Phase 1 of Malaysia’s Stamp Duty Self-Assessment System (STSDS). Under STSDS, the duty payer or an appointed agent can manage the process electronically through the MyTax portal.
According to HASiL, the duty payer or appointed agent must:
- Have a valid Tax Identification Number (TIN).
- Log in through the MyTax portal.
- Upload the instrument to be stamped under STSDS.
- Complete and submit the STSDS application form.
- Self-assess the stamp duty payable on the instrument.
- Make the payment within the stipulated period.
- Keep the stamped instrument and all related records for seven years from the date the stamp duty is paid.
LHDN states that the assessment is generated upon submission of the STSDS Return Form, allowing payment to be made without waiting for a separate assessment notice.
How Long Do You Have To Stamp A Tenancy Agreement?
An instrument executed in Malaysia should generally be stamped within 30 days from the date it is executed. If it is executed outside Malaysia, it should generally be stamped within 30 days after it is first received in Malaysia.
If the agreement is stamped late, the following penalties may apply:
| Late Stamping Period | Penalty |
| Within three months after the stamping deadline | RM50 or 10% of the deficient duty, whichever is higher |
| More than three months after the stamping deadline | RM100 or 20% of the deficient duty, whichever is higher |
These penalty rates have applied since 1 January 2025.
A tenancy agreement that is not properly stamped may be difficult to rely on in legal proceedings until the outstanding stamp duty and applicable penalty are settled. While an unstamped agreement is not necessarily void, timely stamping helps avoid additional costs and enforcement complications.
How Much Is The Administration Fee For A Tenancy Agreement?
An administration charge should not be confused with stamp duty or a solicitor’s legal fee.
Stamp duty is a Government duty, while a solicitor’s remuneration for preparing a tenancy agreement is governed by the SRO 2023. A separately quoted administration or document-processing charge may depend on the service provider and the services involved.
Instead of assuming that there is one standard administration-fee scale applicable to every tenancy, ask for an itemised breakdown before making payment. It should be clear whether an amount relates to legal work, stamp duty, disbursements, or another service.
Who Pays Tenancy Agreement Fees And Stamp Duty In Malaysia?
Who pays the costs associated with a tenancy agreement depends on the type of charge and the arrangement between the landlord and tenant.
- Stamp duty: Under Section 33 and the Third Schedule of the Stamp Act 1949, the lessee is identified as the party liable for stamp duty on a lease or agreement for lease. For a residential tenancy, this generally means the tenant.
- Legal fees: Responsibility for legal fees may depend on who engages the solicitor and what the landlord and tenant have agreed.
- Other charges: Administration, document-processing, or other agreed fees may also depend on the arrangement between the parties.
Tenants and landlords should confirm who is responsible for each cost before signing the tenancy agreement.
<a href=”https://www.iproperty.com.my/property-insights”>Read Property Insights for useful information on Malaysia’s property market.</a>What Should You Check Before Paying Tenancy Agreement Fees?
Before paying tenancy agreement fees, check that the charges match your rental terms and that you understand what each amount covers. This can help prevent incorrect calculations, unexpected costs, and payment disputes.
Key things to check include:
- Rent and tenancy duration: Confirm that the correct monthly and annual rent and tenancy period have been used for the calculations.
- Current stamp duty rate: Make sure the calculation uses the applicable rate and does not deduct the previous RM2,400 annual rental exemption.
- Legal and administration fees: Check whether legal fees, administration charges, and disbursements are listed separately rather than combined under one general fee.
- Responsibility for payment: Confirm which costs are payable by the tenant and which, if any, are payable by the landlord.
- Stamp duty calculation: Check that stamp duty is calculated for every RM250 or part thereof of annual rent using the correct tenancy duration.
- Itemised breakdown: Request an invoice or breakdown showing exactly what each payment covers.
- Stamping deadline: Ensure the agreement is submitted for stamping within the required period to avoid late-stamping penalties.
Checking these details before payment can help both tenants and landlords understand the total tenancy agreement costs and avoid common mistakes later.
Understanding Your Tenancy Agreement Costs Before Signing
Legal fees, stamp duty, and other charges can add to the upfront cost of renting a property in Malaysia. Understanding these expenses can help tenants and landlords budget more accurately.
With STSDS applying to tenancy and lease instruments from 2026, both parties should also understand the current stamping process and ensure the agreement is stamped within the required period.
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