Brunei – Buying or Importing a Car

How do I buy a new car in Brunei as a foreigner?

Purchasing a brand-new car in Brunei follows a fairly uncomplicated path — you visit your chosen dealership, select a model, and proceed from there. Authorised showrooms representing most of the major Japanese, Korean, and European marques are well established across the country, including brands such as Toyota, Honda, Mitsubishi, and Mercedes-Benz. Because public transport options are minimal and petrol is heavily subsidised, most expats come to regard vehicle ownership as indispensable regardless of how long they intend to remain.

As a foreign national looking to buy a car in Brunei, you will need to present a valid passport together with a current work permit before the process can proceed. Beyond these core requirements, dealerships typically ask for proof of your residential address in Brunei and a copy of your employment or residency pass. These documents confirm that you are lawfully resident in the country and entitled to register a vehicle in your own name.

The dealership will draw up a sales contract, and you will be expected to pay a deposit — generally around 10% of the vehicle’s purchase price. Once the deposit is received, the dealer will place an order with the manufacturer. How long delivery takes will depend on the brand and model concerned, and on whether the car is being sourced from Japan, South Korea, or another regional market.

On the subject of financing, a number of local banks in Brunei do offer hire-purchase or instalment loan arrangements for vehicle purchases, though the extent to which these products are accessible to non-citizens varies between institutions and may hinge on the nature of your employment contract and the profile of your employer. Those on shorter-term postings may find that an outright cash purchase is the simpler route. You should approach banks individually to establish their current lending criteria for foreign nationals, since these conditions are subject to change. For authoritative guidance, check with the relevant financial institution or the Autoriti Monetari Brunei Darussalam (AMBD) — Brunei’s monetary and financial regulatory authority — at www.ambd.gov.bn.

How do I buy a used car in Brunei?

There is a reasonably active second-hand car market in Brunei, with vehicles available through both private sellers and used-car dealers. Online classified platforms such as KeretaBrunei.com list used vehicles across a broad spectrum of makes and price points. As with any used-vehicle transaction, careful due diligence before committing to a purchase is well worth the effort.

Prior to agreeing to buy a used vehicle, you should verify whether there is any outstanding road tax (vehicle licence), unpaid fines, or existing finance registered against the car. The Land Transport Department (JPD) requires all registered vehicles to carry a valid Vehicle Licence before they may legally be driven on a public road. You can check a vehicle’s licence status, registration record, and current ownership by contacting the JPD directly or attending their offices in person. Arranging an independent mechanical inspection at a reputable workshop before finalising your purchase is also prudent.

At the point of handover, the seller is expected to provide the vehicle’s Registration Card (often referred to as the Blue Card), evidence of current insurance cover, and any available service history records. Following the sale, the process involves transferring the insurance into the new owner’s name and attending the Land Transport Department to record the formal change of ownership. Both parties generally need to be present at the JPD, although the seller may delegate a representative to act on their behalf if necessary. Always confirm the precise documentation required at the time with the JPD, as procedures are subject to revision.

The registration transfer process requires proof of identity — such as a valid national identity card or passport — along with proof of ownership in the form of a sales receipt or transfer agreement. A valid insurance cover note confirming that the vehicle is insured in line with local legal requirements must also be submitted. Once the ownership change has been formally recorded by the JPD, the new owner will receive an updated Registration Card in their name. The Land Transport Department operates under the Ministry of Transport and Infocommunications (MTIC).

Can I import a vehicle into Brunei, and how does the process work?

Brunei permits the importation of right-hand drive vehicles. Left-hand drive vehicles may be brought into the country, but they are typically required to be re-exported once the owner’s tour of duty or assignment has concluded. If you are relocating from a country where vehicles are driven on the right, you should think carefully about whether importing your existing car makes practical sense over the longer term.

One of the most important restrictions to keep in mind relates to vehicle age. Used vehicles imported for private use must have been first registered no more than 3 years prior to importation, and must have been manufactured no more than 4 years beforehand. For commercial vehicles, the corresponding limits are no more than 60 months from the original registration date and no more than 6 years from the year of manufacture. These age limits effectively rule out importing most older personal vehicles from abroad for private use.

All used vehicles destined for Brunei must undergo a pre-delivery inspection in their country of origin before being shipped. This is a step you will need to plan and budget for well in advance, as it must take place before the vehicle leaves the exporting country. After arrival in Brunei, the vehicle must pass through customs before it can be registered and legally driven.

The general sequence of steps for importing a private vehicle is as follows:

1. Obtain an Import Permit from the Brunei Land Transport Department (LTD/JPD). This permit must be in hand before the vehicle is dispatched.
2. Obtain a Certificate of Origin from the country in which the vehicle was manufactured, documenting its provenance.
3. Obtain a Bill of Sale from the seller, detailing the vehicle’s particulars, the agreed purchase price, and the contact information of both buyer and seller.
4. Arrange a pre-shipment inspection in the exporting country, as mandated by Brunei’s import regulations for used vehicles.
5. Ship the vehicle to Brunei — it will typically arrive at Muara Port, the country’s principal seaport.
6. Present documents to Customs. On arrival in Brunei, submit the required paperwork to the customs authorities, who will verify the documentation and examine the vehicle.
7. Pay applicable duties and taxes as determined by the Royal Customs and Excise Department.
8. Register the vehicle with the Land Transport Department once customs clearance has been obtained and all duties settled.

Importing a vehicle from within ASEAN tends to involve a more streamlined process than bringing one in from outside the region. If you are importing from a non-ASEAN country, the procedure is more involved and may call for additional documentation and compliance checks. The authority responsible for import permits and vehicle compliance is the Land Transport Department (JPD) under the Ministry of Transport and Infocommunications. Customs matters are handled by the Royal Customs and Excise Department, Ministry of Finance and Economy.

Unlike some other jurisdictions, Brunei does not offer a broad “removal goods” or “personal effects” exemption from import duty for privately owned vehicles brought in by individuals relocating to the country. Diplomatic and consular personnel are treated differently: non-diplomatic home-based staff qualify to purchase one duty-free vehicle for personal use during their posting, provided the duty exemption is claimed within the first six months of their initial arrival. This privilege does not extend to ordinary expatriate workers. Always confirm the latest exemption rules with the Royal Customs and Excise Department before making any arrangements.

What are the costs involved in importing a car to Brunei?

Under Brunei’s tariff framework, goods attract either an import duty or an excise duty, but not both simultaneously. Motor vehicles fall into the category of goods that are subject to excise duty. Excise duty is applied to certain imported goods and to some domestically produced goods; the categories covered include motor vehicles, tobacco products, alcoholic beverages, and petroleum. The excise duty rates applied to vehicles can be considerable, and they are calculated on the CIF (Cost, Insurance, and Freight) value of the vehicle — meaning the dutiable base encompasses the purchase price of the car plus the costs of shipping and insuring it to Brunei.

Brunei operates without a VAT system and does not impose any export taxes, charges, or levies. This distinguishes it meaningfully from many other import destinations — for instance, unlike vehicle imports into the EU or the UK, where VAT at standard rates (typically 20–25%) is layered on top of customs duty, no equivalent consumption tax applies to vehicle imports in Brunei. That said, excise duty on vehicles can still be substantial, and a formal duty assessment from the Royal Customs and Excise Department should be obtained before you commit to importing a vehicle.

Brunei’s duty calculations are based on the CIF methodology, meaning the dutiable value incorporates not only the vehicle’s price but also freight and insurance charges. When constructing a budget for a vehicle import, you should factor in all of the following elements:

• Excise duty on the vehicle — rates differ according to vehicle type, engine displacement, and declared value; obtain current rates from the Ministry of Finance and Economy (as of 2024, specific rates are set under the Customs Import Duties and Excise Duties Orders — always confirm the latest figures officially).
• Customs brokerage fees — a customs agent or broker will typically charge for handling the import clearance paperwork and liaising with local customs authorities on your behalf.
• International freight charges — these vary considerably based on the country of export, the shipping method chosen (roll-on/roll-off or enclosed container), and prevailing freight rates at the time of shipment.
• Pre-shipment inspection fees — payable in the country of export before the vehicle can be dispatched.
• Compliance and homologation costs — should the vehicle require modifications to conform with Brunei’s requirements (for example, headlight beam alignment for left-hand traffic, locally mandated safety equipment, or instrument adjustments), these works must be carried out and will add to your overall expenditure.
• Vehicle registration fees — payable to the Land Transport Department when the vehicle is first registered in Brunei.
• First-year insurance premium — mandatory insurance must be secured before the vehicle can be registered or driven.

When all of these costs are totalled, importing a vehicle from outside the region often works out substantially more expensive than purchasing one through the domestic market. The age restrictions on used vehicle imports reinforce this conclusion, and many expats find that buying locally is both simpler and more economical. Always verify the current duty rates with the Royal Customs and Excise Department, Ministry of Finance and Economy before proceeding.

How do I register a vehicle in Brunei?

Registering a vehicle with the relevant authorities is an essential requirement before it can be driven legally on Brunei’s roads. The process begins with the submission of a completed application form to the Land Transport Department (Jabatan Pengangkutan Darat, JPD). This form can be collected from any JPD office or accessed through their official website.

When you buy a brand-new vehicle from a dealership in Brunei, the dealer will ordinarily manage the registration process on your behalf, submitting the paperwork to the JPD directly. The Land Transport Department facilitates new vehicle registrations in conjunction with the Brunei Automobile Dealers Association (BATA), with dealers channelling registration forms and supporting documents through designated routes at the Ministry of Transport and Infocommunications (MTIC). As the purchaser, your primary responsibility is to supply your identification documents and insurance evidence to the dealership in a timely manner.

For imported vehicles, the owner assumes responsibility for the registration process following completion of customs clearance. The key documents required at this stage are:

• Proof of identity — a valid national identity card or passport — and proof of ownership, such as the original sales receipt or transfer documentation.
• A valid insurance cover note confirming that the vehicle is insured in accordance with the requirements of local law.
• Customs clearance paperwork confirming that all relevant duties have been paid in full.
• The vehicle’s Certificate of Origin and the pre-shipment inspection certificate.
• The Import Permit originally issued by the JPD.

The JPD may conduct a physical inspection of the vehicle to confirm its condition and verify that it corresponds with the details set out in the submitted documents. Once registration is successfully completed, the vehicle is assigned a registration number and the owner is issued a Registration Card (Blue Card). The Land Transport Department operates as part of the Ministry of Transport and Infocommunications. For the most up-to-date information on registration requirements, applicable fees, and current processing times, contact the JPD directly or visit the MTIC website.

What insurance do I need to drive legally in Brunei?

Valid vehicle insurance is a legal requirement for all drivers in Brunei, and you must carry proof of cover whenever you are behind the wheel. The statutory minimum is third-party liability insurance. This type of policy covers your legal responsibility for death or bodily injury caused to other road users — a requirement broadly comparable to compulsory third-party insurance obligations in other countries.

Vehicle owners and transport operators are required to maintain sufficient insurance coverage, which must as a minimum include third-party liability protection against claims arising from road accidents. Beyond this compulsory baseline, comprehensive policies are also available and cover damage sustained by your own vehicle. Comprehensive cover is not a legal requirement but is strongly advisable, particularly if you own a newer or more valuable vehicle.

Insurance in Brunei is provided through private insurers rather than any state-administered scheme — an arrangement broadly consistent with the model operating across most of Southeast Asia. It is worth obtaining quotes from more than one insurer to find a policy that fits both your requirements and your budget. When arranging cover as an expat, it is worth asking whether the insurer will recognise a no-claims discount (NCD) history from your home country. Some providers may factor in prior claim-free years when determining your premium, though this is not universally guaranteed and depends on the policies of the individual insurer. Make a point of raising this question when comparing quotations.

A valid insurance cover note must be in place before you can register a vehicle with the JPD. For information on insurers licensed to operate in Brunei and on the regulatory framework governing insurance, consult the Autoriti Monetari Brunei Darussalam (AMBD), which oversees the financial services sector in Brunei, including insurance providers.

What driving licence do I need in Brunei as an expat?

Foreign nationals who are in Brunei as visitors may drive using their valid home-country licence for up to three months. Beyond that period, a locally issued Brunei driving licence is mandatory. If you are arriving in Brunei on a work permit or long-term residency basis, you should begin the process of obtaining a local licence well before your three-month grace period comes to an end.

Brunei has entered into licence exchange arrangements with certain countries, enabling holders of a valid licence from those nations to convert it into a Brunei licence without sitting a driving test. The countries covered by these agreements may change over time, so it is important to verify the current list before making an application. If your home country is included, the conversion route is considerably more straightforward and removes the need to pass both a theory examination and a practical driving test in Brunei.

If you qualify for a licence exchange, you will need to gather the requisite documents, apply at the Department of Road Transport, and pay the relevant fee. If a direct exchange is not available to you, you will need to complete the full Brunei driving test process, which comprises a written theory component and a practical behind-the-wheel assessment.

An International Driving Permit (IDP) is recognised in Brunei as a supplementary document. It is important to understand, however, that an IDP does not replace your actual driving licence — you must always carry your valid home-country licence when driving. An IDP is most useful during the transitional period before you have secured your Brunei licence. Brunei driving licences carry a validity period of up to three years.

The Department of Road Transport is the authority responsible for issuing and renewing driving licences in Brunei. Further details can be found at their website: MTIC — Department of Road Transport.

How do I sell a car in Brunei?

When the time comes to sell your vehicle in Brunei, there are a number of practical steps to work through to ensure the transaction is clean and that you carry no residual obligations once the car has passed to its new owner. The process involves both a private agreement between the two parties and a formal transfer of ownership registered with the JPD.

A typical vehicle sale in Brunei involves arranging a technical inspection, advertising the car, agreeing on a price with the buyer, completing the ownership transfer, and cancelling your insurance on the vehicle. Any outstanding road tax (vehicle licence) or fines associated with the car should be cleared before the transfer takes place, as unresolved matters of this kind can complicate the ownership change process at the JPD.

At the point of sale, you should hand over the vehicle’s Registration Card (Blue Card), a signed Bill of Sale or transfer agreement, the current valid insurance document, and any available service history. The formal process then requires the insurance to be transferred into the buyer’s name, followed by a visit to the Land Transport Department to record the change of ownership officially. Until the JPD has formally completed the transfer, you may retain a degree of administrative responsibility for the vehicle — making it very much in your interest to ensure this step is dealt with promptly after the sale.

Once ownership has been transferred, you should notify your insurer and cancel your policy on that vehicle. Any unexpired road tax generally carries over to the new owner as part of the registration record. Brunei does not impose a capital gains tax on the private sale of a personal vehicle, and transfer taxes are not levied, so there is typically no tax liability arising from the proceeds of a straightforward private sale. If you are selling vehicles through a business or as part of a commercial operation, however, your obligations may differ, and you should consult a qualified adviser familiar with Brunei law if you have any doubt about your position.

Are there any ongoing costs or obligations for vehicle ownership in Brunei?

Every registered vehicle in Brunei must hold a valid Vehicle Licence — widely known as road tax — before it can lawfully be used on a public road. This is an annual requirement and must be renewed each year through the Land Transport Department (JPD). The precise amount payable will depend on factors such as the vehicle’s engine capacity and category — check current rates with the JPD or on the MTIC website, as these figures are subject to change.

Beyond road tax, vehicle owners in Brunei are required to have their vehicles periodically assessed for roadworthiness. This requirement is broadly analogous to the annual MOT test in the United Kingdom or the periodic Warrant of Fitness (WoF) system in New Zealand, in that it checks whether a vehicle remains in a safe condition for use on public roads. Confirm the current inspection frequency and the list of approved inspection facilities with the JPD, as these requirements may be revised from time to time.

Maintaining valid insurance cover is a further ongoing legal obligation. As discussed above, you must ensure that your policy remains active at all times. The premium you pay will be influenced by your claims history, the age and value of the vehicle, and the level of protection you opt for — whether third-party only or comprehensive.

One particularly notable advantage of running a car in Brunei is the cost of fuel. Petrol prices are kept low by substantial government subsidies, making day-to-day motoring expenses considerably more modest than in most other countries in the region and beyond. This subsidy significantly reduces the overall cost of vehicle ownership for residents. For a comprehensive and current overview of road tax rates, inspection requirements, and associated fees, consult the Land Transport Department (JPD) via the MTIC website or contact the national government service line, Talian Darussalam, on 123.

Frequently asked questions

Do I need a work permit to buy a car in Brunei as a foreigner?

Yes. Foreign nationals who wish to purchase a vehicle in Brunei must hold a valid passport and a current work permit. These documents confirm your lawful right to live and work in the country and are required in order to register a vehicle in your name. If you hold a different visa category, check your eligibility with the Land Transport Department (JPD) directly.

Can I bring a left-hand drive car into Brunei?

The importation of left-hand drive vehicles is permitted, but they are generally expected to be re-exported when the owner’s tour of duty concludes. Since Brunei drives on the left and right-hand drive vehicles are the standard, a left-hand drive car is unlikely to be a practical choice for most long-term residents.

Is there VAT on vehicle imports in Brunei?

Brunei does not operate a VAT system. Imported motor vehicles are instead subject to excise duty, which is calculated on the CIF (Cost, Insurance, and Freight) value of the vehicle. You should confirm the current excise duty rates with the Royal Customs and Excise Department at the Ministry of Finance and Economy before planning any vehicle import.

How old can a used import vehicle be?

Used vehicles imported for private use must not be more than 3 years old from the date of first registration, and no more than 4 years from the year of manufacture. These limits are applied strictly, so you should verify the vehicle’s registration date carefully before proceeding with a purchase intended for import. Check current requirements with the JPD as these rules may be updated.

How long is my foreign driving licence valid in Brunei?

Visitors to Brunei may use their valid home-country driving licence for a period of up to three months, after which a locally issued Brunei licence is required. If Brunei has a licence exchange agreement with your home country, you may be able to convert your licence without sitting a driving test. Confirm the current list of eligible countries with the Department of Road Transport.

Is an International Driving Permit (IDP) accepted in Brunei?

An International Driving Permit is recognised in Brunei and can be useful in situations where your home-country licence alone may not be immediately understood. However, an IDP is not a substitute for your actual driving licence — you are required to carry your valid home-country licence at all times when driving in Brunei.

What is the minimum insurance required to drive in Brunei?

All drivers in Brunei must hold valid vehicle insurance. The legal minimum is third-party liability cover, which protects against claims for injury or death caused to other parties in an accident involving your vehicle. Comprehensive policies that also cover damage to your own vehicle are widely available and recommended. The Autoriti Monetari Brunei Darussalam (AMBD) can provide details of licensed insurers operating in Brunei.

Are there capital gains taxes when selling a vehicle in Brunei?

Brunei does not impose transfer taxes, and there is generally no capital gains tax liability for private individuals when selling a personal vehicle. If you operate commercially or hold vehicles through a corporate structure, your tax position may differ, and you should take advice from a suitably qualified professional with knowledge of Brunei law to clarify your specific obligations.