Transferring Property to Family
in Malaysia (Love & Affection, 2026)

General guidance for 2026 — not legal advice. Rules vary by state and may change; confirm with a licensed Malaysian solicitor or the relevant authority. Just acquired a property? Ask us about renovating →

What is a love-and-affection property transfer?

A love-and-affection transfer (or “natural love and affection” transfer) is a transaction where property is gifted or transferred between close family members for no monetary consideration, or for a nominal sum, rather than at arm’s length market value. Because no sale price is paid, the transaction is treated as a gift — but stamp duty is still assessed on the market value of the property (not on zero consideration).

The Malaysian government provides stamp duty remissions to encourage property transfers within families. These remissions are published via orders under the Stamp Act 1949 and have been updated over the years, most recently with effect from 1 April 2023.

Love-and-affection transfers are commonly used for:

• Parents gifting a property to a child when they retire or as part of estate planning.
• Spouses putting property solely into the other’s name for financial or succession planning purposes.
• Parents transferring a property that was purchased in their name for a child who had insufficient credit history at the time of purchase.
• Older family members transferring to younger generations before death to simplify estate administration.

Stamp duty remission rates for family transfers (2026)

The following remissions apply to instruments of transfer executed on or after 1 April 2023, where the recipient is a Malaysian citizen:

Standard ad valorem stamp duty rates (for reference, applying to the portion above RM1 million in parent-child transfers, or to all non-qualifying family transfers):

Comparison: outright sale vs love-and-affection transfer

How does a family transfer compare to a normal sub-sale? Here is a side-by-side for a property valued at RM700,000 being passed from a parent to a child:

For a RM700,000 property, the stamp duty saving on a parent-to-child transfer (vs commercial purchase) is approximately RM14,000. For a RM2,000,000 property from parent to child, the duty on the RM1m balance above the remission threshold would be 50% of RM30,000 = RM15,000 (compared to RM60,000 on a full commercial purchase).

Who qualifies for the remission?

The LHDN (Inland Revenue Board) remission order specifies:

• The transfer must be on natural love and affection (no money changes hands, or only a nominal sum).
• The recipient (transferee) must be a Malaysian citizen — permanent residents and foreigners do not qualify.
• The qualifying relationships are spouses, and parents and children (including grandparents and grandchildren). Adopted children are generally included but verify with LHDN for the specific instrument.
• The instrument of transfer must be executed on or after 1 April 2023 to attract the current rates.
• The property must be immovable property in Malaysia — houses, apartments, land and commercial property all qualify.

Crucially, siblings do not qualify for the remission. A transfer from one sibling to another is assessed at the full ad valorem rate. The same applies to in-laws, cousins, and other relatives.

Step-by-step: how to execute a love-and-affection transfer

1. Engage a licensed Malaysian solicitor. The transfer requires a Memorandum of Transfer (Form 14A under the National Land Code 1965). The solicitor will also prepare a statutory declaration confirming the relationship and that no monetary consideration is involved.
2. Obtain a valuation report. LHDN will assess stamp duty on the market value of the property, not the stated consideration (which may be RM1). A licensed valuer (registered under the Board of Valuers, Appraisers, Estate Agents and Property Managers, BOVAEP) will produce the valuation report required by LHDN for stamp duty adjudication.
3. Clear existing encumbrances. If there is an existing bank loan on the property, the transferee must either: (a) take over the loan (the bank must consent and assess the transferee’s credit); or (b) the transferor redeems the loan in full before transfer. Most banks treat a love-and-affection transfer as a disposal triggering their redemption clause — confirm with the bank early.
4. LHDN stamp duty adjudication. The solicitor submits the MOT together with the valuation report and relationship evidence to LHDN for stamp duty assessment. LHDN adjudicates the market value and applies the appropriate remission.
5. Pay any stamp duty assessed. For spouse transfers this is nil. For parent-child transfers on properties above RM1m, pay 50% of the standard rate on the excess value.
6. Presentation and registration at the land office. The stamped MOT is presented at the relevant land office (or land registry for Sabah/Sarawak). Upon registration, the transferee’s name appears on the title.
7. Update quit rent and assessment records. Inform JKPTG (quit rent/cukai tanah) and the local council (assessment/cukai pintu) of the new ownership so future bills are addressed correctly.

The entire process typically takes 4–8 weeks from solicitor engagement to title update, depending on LHDN adjudication speed and land office queue times.

RPGT treatment on love-and-affection transfers

Real Property Gains Tax (RPGT) may apply to the transferor (the person giving the property) if the transfer is treated as a disposal for RPGT purposes. Key points:

• Between spouses: A transfer between spouses on love-and-affection grounds is generally treated as a no-gain-no-loss transfer for RPGT — the transferee is deemed to have acquired the property at the same cost as the transferor. RPGT is deferred, not eliminated; it crystallises when the recipient later disposes of the property.
• Parent to child / child to parent: The same no-gain-no-loss treatment applies for RPGT; the child steps into the parent’s cost base. Confirm the current RPGT exemption order with LHDN at the time of transfer.
• Holding period: After a love-and-affection transfer, the new owner’s RPGT holding period generally restarts from the date of the transfer (not from when the transferor originally acquired the property). This affects which RPGT rate applies on a future sale.

See RPGT rates and exemptions → for full details on disposal rates and available exemptions (including the once-in-a-lifetime private residence exemption).

Common pitfalls and mistakes

• Not clearing the loan first. Many banks have a clause requiring their consent (or full redemption) before a transfer, even to family. Proceeding without bank consent can trigger default provisions.
• Using an informal valuation. LHDN will substitute their own market value if the submitted valuation appears undervalued. Always use a BOVAEP-registered valuer to minimise the risk of a higher LHDN assessment.
• Assuming siblings qualify for remission. They do not — sibling-to-sibling transfers attract full ad valorem stamp duty.
• Forgetting to update billing records. Quit rent and assessment bills going to the old owner can result in arrears accumulating in the transferor’s name, causing confusion on future transactions.
• Timing: pre vs post 1 April 2023. Transfers executed before that date are subject to the prior remission regime (spouse: 100% remission on first RM100k only; parent-child: 50% remission). The current more generous rates apply only to instruments executed from 1 April 2023.

Transfers to siblings, in-laws and other relatives

Transfers to family members outside the qualifying relationships (siblings, in-laws, cousins, nephews/nieces) do not attract a love-and-affection stamp duty remission. The full ad valorem rates apply, assessed on market value. Options to consider in such cases:

• A commercial sub-sale at an agreed price (if the family member has sufficient funds or loan eligibility).
• A gift via will or inheritance — no stamp duty on testamentary transmission, though probate costs apply.
• For co-ownership restructuring, a partition of shares or buyout between existing co-proprietors.

See joint property ownership → for more on co-proprietorship structures.

Impact on existing loans and banking considerations

If the property has an outstanding mortgage:

• The transferee must qualify for a new home loan (or take over the existing one) in their own name. Banks will assess their income, existing commitments and creditworthiness independently.
• If the transferee cannot service the loan, the transferor may need to redeem (pay off) the existing loan before the transfer can proceed — or remain as a joint borrower, which complicates the “full” nature of the transfer.
• Some banks offer a “loan assumption” process where the new owner takes over the existing loan on the same terms. This is bank-specific and subject to their credit assessment.

After the transfer: renovating the property

A love-and-affection transfer often marks the start of a new chapter for the property — a child receiving a family home may want to renovate it to modern standards, or a parent gifting a property to ensure the child has a home may fund a refurbishment as part of the gift.

Whether it is a full renovation, a kitchen upgrade, or a fresh coat of paint, ClickBina handles renovations across the Klang Valley. See our full house renovation cost guide → for 2026 price ranges.

Sources & official references

• Stamp Act 1949 (Act 378) — stamp duty assessment on instruments of transfer — LHDN (Inland Revenue Board of Malaysia)
• Stamp Duty (Remission) (No. 2) Order 2023 — love-and-affection remission effective 1 April 2023 — LHDN
• Real Property Gains Tax Act 1976 (Act 169) — RPGT on disposals and exemptions — LHDN
• National Land Code 1965 (Act 56) — Form 14A (MOT) — JKPTG
• EY Malaysia Tax Alert — Stamp Duty Exemption for Love and Affection Transfers — ey.com/en_my
• CCS & Co (Malaysian law firm) — Stamp Duty Treatment for Love and Affection Transfers — ccs-co.com