Are you a grandparent planning to transfer a house, condominium or land to your grandchild?
In Malaysia, property may be transferred directly from grandparents to grandchildren by way of love and affection, subject to the applicable legal requirements.
Stamp Duty Exemption for Grandparent-to-Grandchild Transfers
Under the Stamp Duty (Exemption) (No. 3) Order 2023, eligible transfers between grandparents and grandchildren may qualify for:
- Full stamp duty exemption on the first RM1 million of the property’s market value; and
- 50% remission on the stamp duty attributable to the remaining value exceeding RM1 million.
The grandchild receiving the property must be a Malaysian citizen to qualify for this exemption.
Note: The information above is accurate as at the date of publication and is subject to changes in the applicable laws and regulations.
What Should Grandparents Consider?
Before transferring the property, grandparents should consider whether they wish to retain ownership or control of the property during their lifetime.
If the grandchild is below 18 years old, additional legal considerations may arise concerning ownership and the registration of the transfer.
Any existing bank charge or restriction in interest should also be reviewed.
Need Assistance?
At TEH & YU, we assist families in Malaysia with property transfers by way of love and affection.
Contact our conveyancing lawyers to discuss the legal requirements for transferring property to your grandchildren.