Brunei – Buying Property

Can foreign nationals legally buy and own property in Brunei?

Freehold land in Brunei is entirely off-limits to foreign nationals. Non-citizens may only hold an interest in land through a lease, sub-lease, or charge — a foundational distinction that sets Brunei apart from several of its Southeast Asian neighbours, including Thailand and Malaysia, where certain categories of freehold title can be obtained by foreign purchasers under defined conditions.

On 1 August 2025, the Land Code (Amendment) Order 2025 entered into force, substantially tightening and clarifying the rules that govern non-citizen land interests. Among its most significant provisions, the amendment expressly prohibits “nominee” arrangements — that is, situations where a Brunei citizen holds land on behalf of a non-citizen or stateless individual. Any trust or arrangement of this kind is now declared void by law.

All non-citizens currently holding land through a Power of Attorney or equivalent arrangement are required to declare this within 12 months of the amendment taking effect — by 1 August 2026. The updated legislation is designed to bring greater transparency to land ownership, curb misuse of title arrangements, and modernise Brunei’s property framework. If you have any existing arrangement of this nature, taking urgent legal advice is strongly recommended.

Non-citizens who inherit freehold land are not permitted to retain it indefinitely. Upon inheritance, they must declare the interest within 12 months; the freehold must then be sold to a Brunei citizen within 10 years, or it will be automatically converted to leasehold.

While foreigners are permitted to purchase apartments and condominiums, acquiring individual houses or parcels of land is generally prohibited. This policy is intended to protect the national land heritage while permitting a degree of openness to international investment. Leases are ordinarily granted for 30 to 60 years, with certain exceptions applicable to longer-term leases in sectors such as oil and gas. The overall ceiling for foreign leasehold ownership is 99 years, with renewal subject to government approval.

Foreign nationals must secure approval from the Ministry of Home Affairs prior to completing any property purchase. Agricultural land is entirely closed to foreign ownership. Those wishing to lease or develop property must obtain permission from the government, which tends to grant such approvals when the proposed development offers a tangible benefit to Brunei’s economy or society.

The authority responsible for land registration and ownership regulation is the Lands Department within the Ministry of Development. Official information is available at www.mod.gov.bn. Given the pace of recent legislative change, always verify the latest requirements directly with the Lands Department or a qualified local lawyer before taking any steps toward a purchase.

What are average property prices in Brunei, and how do they vary by region?

Brunei’s private property market is considerably more limited in scale than those of neighbouring countries, largely because many locals access their first home through government-assisted schemes rather than open-market purchases. This dynamic constrains the volume of available data, though some useful reference points have been established through academic and official sources.

Looking at baseline price comparisons in ascending order, terrace houses come in at BND 62,000, semi-detached properties at BND 83,000, detached homes at BND 97,000, and apartments at BND 126,000. These figures are drawn from spatio-temporal research published in 2025 and should be treated as broad indicators — actual transaction prices can vary substantially according to location, size, and condition.

In Q4 2024, Brunei’s Residential Property Price Index (RPPI), published by the Brunei Darussalam Central Bank (BDCB), stood at 89.5 — a decline of 2.5% compared with Q4 2023 and a fall of 4.3% relative to Q3 2024. This official index represents one of the most reliable benchmarks for tracking residential price movements in the country.

In terms of geographic spread, the overwhelming majority of private property transactions in Q4 2024 took place in the Brunei-Muara district, which recorded 127 purchases, followed by the Belait district with 13 and the Tutong district with 7. This concentration confirms that most open-market activity revolves around the capital and its environs. Properties in and around Bandar Seri Begawan typically attract higher prices than those in Tutong or Temburong.

For the most current asking prices, it is worth consulting reputable property portals such as Rumah Brunei or established local estate agencies, as listed prices can move considerably with broader market conditions.

Where are the most popular locations to buy property in Brunei?

Despite Brunei’s compact size, property activity tends to cluster in particular areas. The country is divided into four districts, and the Brunei-Muara District — home to the capital, Bandar Seri Begawan — is both the most populated and the most commercially developed. The large majority of private-sector transactions occur here, making it the natural starting point for prospective buyers.

The sub-districts recording the highest volumes of private residential purchases in Q4 2024 were Mukim Sengkurong, Mukim Kilanas, Mukim Pengkalan Batu, Mukim Mentiri, and Mukim Gadong. Gadong stands out as a well-established commercial and lifestyle centre, offering convenient access to shopping malls, restaurants, and international schools — all of which make it a particularly appealing base for expatriates.

Within the Belait district, Kuala Belait offers a coastal setting with pleasant sea views and a solid range of local amenities, while the nearby town of Seria is closely associated with the oil and gas industry and maintains a well-established international community linked to the energy sector. Together, these two towns constitute the second-most active area of private market activity in the country.

For those drawn to a quieter pace of life, the Tutong district provides greater space, closer proximity to nature, and generally lower property prices. This appeals to buyers who are less reliant on urban conveniences, though it is worth noting that Tutong has fewer international amenities and a smaller expatriate population than either Brunei-Muara or Belait.

Are there any emerging or up-and-coming areas worth considering in Brunei?

Temburong, the most geographically isolated of Brunei’s four districts, has been drawing increasing attention in the wake of significant infrastructure investment. The Sultan Haji Omar Ali Saifuddien Bridge — commonly referred to as the Temburong Bridge — opened in 2020 and for the first time created a direct road connection between Temburong and Bandar Seri Begawan. The resulting reduction in travel times has gradually stimulated interest in the district’s comparatively affordable land.

Property value growth across Brunei is closely linked to government economic programmes, the performance of the oil and gas sector, and the rollout of new infrastructure. The administration’s Wawasan 2035 economic diversification strategy may generate fresh growth corridors, particularly in sectors earmarked for expansion such as logistics, technology, and tourism. Areas situated near planned development zones in these fields could stand to benefit over the medium term.

Waterfront property is also emerging as a notable niche. Brunei’s position on the South China Sea has prompted rising demand for prestige coastal homes, and areas around Muara and along Brunei Bay have attracted the most visible new development activity in recent years, drawing buyers in search of premium waterfront addresses.

What are the current trends in the property market in Brunei?

Brunei house prices recorded a year-on-year decline of 3.9% in September 2024, following an earlier dip of 0.8% in the previous quarter. The BDCB’s RPPI figures through Q4 2024 confirm this continued softening, suggesting that buyers presently enjoy greater negotiating leverage than was the case during the post-pandemic period — when the market hit an all-time high growth rate of 17.6% in June 2021.

One of the more prominent shifts taking shape is the growing appetite for luxury residential properties. As household wealth rises among a segment of the population and the wider economy develops, demand for high-end homes has gathered pace, prompting developers to bring forward upscale projects and broaden the range of premium offerings on the market.

Mixed-use developments have also risen in prominence. Projects that blend residential, commercial, and retail components within a single integrated complex are appealing to buyers and tenants who value convenience and a vibrant neighbourhood atmosphere. This format reduces the need to travel for everyday services and is increasingly favoured by developers seeking to differentiate their offerings.

Additional trends shaping the market include heightened interest in eco-friendly and energy-efficient construction, greater integration of smart-home technology for security and daily management, and the popularity of community-orientated developments featuring shared facilities and green spaces — particularly among families and expatriates. For the most up-to-date market data, consult the BDCB’s quarterly RPPI reports at www.bdcb.gov.bn.

Is buying property in Brunei a good investment?

Rental yields in Brunei tend to be moderate when measured against some other Southeast Asian markets, reflecting the relative stability of property values and the limited volatility of a smaller, more controlled market. Government housing support for citizens narrows the pool of domestic rental demand, which places particular importance on the expatriate community as a target tenant base for investor-landlords.

On the favourable side, Brunei’s tax framework is genuinely compelling. There is no personal income tax, no tax on dividends for individuals, no capital gains tax, and no gift tax. This means investors face a considerably lighter fiscal burden than their counterparts in most European markets or Australia — rental income and proceeds from resale are not taxed at the individual level in the way they would be in those jurisdictions.

Capital appreciation in Brunei is closely tied to government economic initiatives, the fortunes of the oil and gas sector, and infrastructure development. While Wawasan 2035 may unlock new growth areas in logistics, technology, and tourism over time, the prevailing trend in recent years has been one of gradual price softening rather than strong upward momentum.

Foreign buyers should also give thought to currency considerations. The Brunei dollar (BND) is pegged 1:1 with the Singapore dollar, which provides a degree of exchange rate predictability within the region. Nevertheless, fluctuations against other major currencies remain a factor. The leasehold nature of available properties can also constrain long-term ownership and erode resale value as the remaining term shortens. As with any property investment, independent financial and legal advice is strongly recommended before making a commitment.

What types of property are commonly available to buy in Brunei?

For foreign nationals, the property types accessible via leasehold arrangement are primarily apartments, which are most commonly found in urban centres such as Bandar Seri Begawan; commercial premises, which foreign businesses may lease for a variety of purposes; and industrial spaces, available in designated zones for qualifying commercial activities.

The broader market — encompassing property primarily available to citizens and permanent residents — includes government-built housing estates, which typically consist of rows of terraced or detached homes offered to eligible citizens at heavily subsidised prices or on long-term payment terms. On the private market, terraced houses, semi-detached homes, and standalone bungalows form the bulk of landed residential stock, though these are generally beyond the reach of non-citizen foreign buyers.

The price structure of Brunei’s housing market is worth noting: apartments are priced higher than landed property types such as terraces and semi-detached homes, which further underscores the strong local preference for landed living. For foreign buyers confined to leasehold strata units, this means competing in a segment that domestic buyers regard as relatively less desirable — a dynamic that carries implications for both rental demand and future resale values.

Commercial property — including office suites, retail units, and shophouses — is available on leasehold terms with the relevant government approvals and represents a frequently used entry route for foreign businesses and investors establishing a presence in Brunei. Designated industrial plots are similarly available for qualifying purposes.

What is the typical step-by-step process for buying property in Brunei?

The process of purchasing property in Brunei differs from that in countries such as the UK or Australia in several important respects: there is no separate conveyancing profession distinct from solicitors, no public residential auction system for most properties, and all foreign acquisitions require government approval before a transaction can be completed. The process broadly unfolds as follows:

1. Confirm eligibility and seek legal advice. Before beginning a property search, foreign nationals should engage a qualified Brunei lawyer to establish what types of property they may legally acquire and to receive preliminary guidance on the approval process. Obtaining professional legal advice before entering into, inheriting from, or transferring any land-related agreement is consistently recommended by legal practitioners.
2. Property search. Search for suitable leasehold properties through local estate agents or online listings. Confirm that any property you identify is one that a foreign national is legally permitted to acquire — in practice, this generally means strata-title apartments or approved commercial units.
3. Make an offer and negotiate. Submit a written offer on the property and enter into any necessary negotiations with the seller or lessor. Once terms are agreed, a Letter of Offer or Sale and Purchase Agreement (SPA) will be prepared.
4. Apply for government approval. Foreign buyers must submit an application for approval to the relevant authority — typically the Ministry of Home Affairs — before the transaction can progress. This is a critical and mandatory step with no direct parallel in most Western markets, and processing times can vary. Your lawyer will manage this stage.
5. Due diligence. Instruct a local lawyer to carry out thorough due diligence, covering verification of ownership, review of lease terms, and confirmation of regulatory compliance. This should include a title check at the Lands Department, confirmation that no encumbrances or outstanding charges exist, and scrutiny of any existing lease conditions.
6. Sign the Sale and Purchase Agreement. Once due diligence is satisfactory and government approval has been obtained, the SPA is executed. A deposit — ordinarily 10% of the agreed purchase price — is paid at this point.
7. Submit transfer application via LARIS. Moving away from earlier paper-based procedures, submissions are now made through the LARIS (Land Administration and Revenue Information System) online platform, which requires an active e-Darussalam account. Your lawyer will typically prepare and submit the necessary documentation to the Lands Department.
8. Sign the Memorandum of Transfer (MOT). Once the Lands Department has received the application, you will be required to attend in person to sign the Memorandum of Transfer within three days. Failure to do so within 21 days will result in the application being discontinued.
9. Pay stamp duty. Stamp duty — a levy applied to the registration or transfer of property — falls due at this stage. The current rate is BND 6 per BND 1,000 of the property’s value, plus a registration fee of BND 1. Always confirm the prevailing rate with the Ministry of Finance and Economy, as rates are subject to revision.
10. Property registration and title deed. Following execution of the MOT and payment of stamp duty, the Lands Department registers you as the new owner in the Land Registry and issues a Title Deed, a process that takes approximately five days. Your lawyer will be notified to collect the deed on your behalf.

A standard transaction typically takes 6–12 weeks to complete; more complex cases may require additional time.

Do I need a lawyer to buy property in Brunei, and how do I find a reputable one?

While there is no categorical legal obligation for a buyer to retain their own solicitor in every private transaction, engaging a qualified local lawyer is strongly advisable and, for foreign buyers, effectively indispensable in practice. The government approval process, the due diligence requirements, and the complexity introduced by the updated Land Code all make independent legal guidance a necessity rather than an optional extra.

When selecting a lawyer to assist with a property transaction in Brunei, prioritise those with demonstrated expertise in property and real estate law, and confirm that they hold membership of the Law Society of Brunei Darussalam.

The Law Society of Brunei Darussalam is the regulatory body overseeing solicitors in the country. You can verify a lawyer’s standing and locate registered practitioners through its official directory. The Attorney General’s Chambers also plays a supervisory role in legal practice. For current contact details and a list of registered solicitors, visit the Attorney General’s Chambers website at www.agc.gov.bn.

Legal fees vary depending on the complexity of the transaction and the experience of the solicitor. It is advisable to discuss the scope of services and associated costs before formally engaging a lawyer, and always request a written fee estimate at the outset. Fees are often calculated as a percentage of the property’s value, though the specific rate can differ between firms. Verify current figures directly with your chosen solicitor or the Law Society as of 2025.

Personal recommendations from fellow expatriates or others who have completed property transactions in Brunei provide one of the most reliable routes to identifying a trustworthy solicitor, particularly for those new to the country.

What are the most common pitfalls and problems expats encounter when buying property in Brunei?

Attempting freehold acquisition through nominees. It is no longer permissible for Brunei citizens to hold land on behalf of non-citizens or permanent residents. Nominee arrangements of this kind are explicitly void under the revised law. Foreign buyers who attempt to use such a route risk losing the property entirely, while their local counterpart may face serious legal consequences. Only legitimate leasehold or strata-title routes should be pursued.

Failure to declare existing proxy arrangements. Foreign investors who have interests held through proxy ownership must declare these at the Land Office by 1 August 2026. Regardless of how longstanding such an arrangement may be, failure to make the required declaration could result in the claim being extinguished entirely.

Unclear title and lease conditions. The leasehold structure of available properties can limit both long-term ownership and eventual resale value, particularly as the remaining term diminishes. Property laws and regulations can also change, making legal expertise essential for navigating the framework. Always instruct your lawyer to check the remaining lease term and any renewal rights before committing to a purchase.

Agricultural and restricted land designations. Foreign buyers are prohibited from owning agricultural land in Brunei. A zoning misclassification can prove extremely costly — confirm that any property you are considering is properly zoned for its intended purpose. Foreign investors looking at commercial property must similarly ensure that their planned use is fully compliant with local zoning regulations.

Currency transfer exposure. Although the BND/SGD peg provides regional stability, buyers converting funds from other currencies should plan their transfers carefully. Working with a reputable foreign exchange provider and considering the use of forward contracts to lock in rates can help manage risk, especially where the purchase timeline extends over several weeks or months.

Off-plan purchase risks. New-build developments do feature in the Brunei market, but buyers of off-plan or under-construction properties should thoroughly investigate the developer’s track record, scrutinise the terms of any staged payment schedule, and understand what protection is available in the event of delays or project failure. Independent legal review is essential.

Unlicensed agents. Always verify that any estate agent you work with holds the appropriate registration and credentials. Where possible, use agents recommended through established firms or trusted expat networks. An unregistered agent has no regulatory accountability should things go wrong.

Inheritance complications. Property disputes in Brunei are typically resolved through the courts, and the legal framework balances civil law with Shariah law — particularly in relation to inheritance and family matters for Muslims. Non-Muslim foreign buyers should take specific advice on how Brunei’s succession rules may interact with their estate planning arrangements at home.

Can I buy property in Brunei through a company, and is it worth doing?

Foreign investors may participate in land-related activities by forming joint ventures with Brunei citizens or locally incorporated companies. Such partnerships enable a foreign party to engage in property development or land-use business activities. A locally incorporated entity — particularly one with Brunei citizen shareholders — can in some circumstances provide access to the property market in ways that are not directly available to foreign individuals acting alone.

The Investment Incentives Order 2001 also shapes the landscape for foreign participation, offering specific incentives designed to encourage international investment. While foreign investors may fully own certain categories of commercial property, residential property acquisition remains subject to greater restrictions. Corporate structures are therefore most commonly deployed for commercial or industrial acquisitions rather than residential ones.

Potential advantages of holding property through a company can include more flexible succession arrangements, the ability to consolidate multiple assets within a single entity, and certain efficiencies at the corporate tax level. However, there are also meaningful drawbacks: foreign nationals wishing to lease or develop property must still obtain permission from the government, and approvals are typically granted only where the proposed project is judged to benefit Brunei’s economy or society. Corporate acquisitions are subject to the same approval process as individual purchases and may attract additional scrutiny.

Corporate ownership also brings with it ongoing compliance obligations, accounting and administrative costs, and the risk that future regulatory changes could undermine the structure’s effectiveness. This route should not be viewed as a straightforward workaround for the restrictions that apply to foreign individuals. Independent legal and tax advice from a qualified Brunei practitioner is essential before committing to any corporate purchase structure.

What taxes and ongoing costs should I budget for when owning property in Brunei?

By international standards, Brunei’s tax environment is notably favourable — one of the genuine attractions of the market for foreign property holders. The key costs to plan for are set out below:

Although rental income from property is not subject to personal income tax for individuals, foreign buyers who hold property through a corporate structure should note that corporate income tax applies to companies at the relevant rate. Consult the Ministry of Finance and Economy for the current corporate tax rate and any applicable exemptions. It is also important to seek advice from a qualified tax adviser regarding your obligations both in Brunei and in your country of residence, as double taxation agreements and domestic tax rules can interact in ways that are not immediately obvious.

What are the official sources I should consult when buying property in Brunei?

Before proceeding with any property transaction in Brunei, the following official bodies and resources should be consulted directly to verify current rules, fees, and procedures:

• Ministry of Development (Lands Department) — The primary authority for land registration, title searches, lease approvals, and the LARIS online property submission system. Website: www.mod.gov.bn
• Ministry of Finance and Economy — Responsible for stamp duty, corporate taxation, and fiscal incentives. The ministry’s stamp duty guidance is particularly useful for buyers. Website: www.mofe.gov.bn
• Brunei Darussalam Central Bank (BDCB) — Publishes the quarterly Residential Property Price Index (RPPI), the most authoritative source of residential price trend data available. Website: www.bdcb.gov.bn
• Attorney General’s Chambers — Hosts Brunei’s legislative database, including the full text of the Land Code (Cap. 40) and the 2025 amendments. Also the reference point for legal practitioner regulation. Website: www.agc.gov.bn
• Ministry of Home Affairs — The authority from which foreign nationals must obtain approval to purchase property in Brunei. Website: www.moha.gov.bn
• Brunei Economic Development Board (BEDB) — A valuable resource for investors seeking information on commercial and industrial property incentives and the broader investment climate. Website: www.bedb.com.bn

Frequently asked questions

Can a foreign national buy a house or landed property in Brunei?

Foreign nationals in Brunei are permitted to purchase apartments and condominiums but may not acquire land or individual houses. The restriction is designed to preserve the country’s national land heritage while leaving the door open to foreign investment in the real estate sector more broadly. Landed residential properties — including terraced houses, semi-detached homes, and bungalows — are generally unavailable to foreign buyers on freehold or outright ownership terms.

How long is a leasehold title typically valid for in Brunei?

Leases available to foreigners typically run for 30 to 60 years depending on the property type, though the maximum permissible leasehold period for foreign ownership is 99 years, with renewal possible subject to government approval. The exact term will depend on the nature of the property and the conditions imposed by the Lands Department — always clarify this before signing any agreement.

Do I need to obtain government approval to buy property as a foreigner in Brunei?

Yes. Foreign nationals are required to obtain approval from the Ministry of Home Affairs before completing any property purchase. This is a mandatory step with no direct equivalent in many other markets. Your lawyer will ordinarily assist with preparing and lodging the application, but you should factor the approval timeline into your overall purchase schedule.

Is there income tax on rental income from property in Brunei?

There is no personal income tax in Brunei, which means rental income received by individual property owners is not taxed at the individual level. This represents a meaningful advantage over markets such as the UK or Germany, where rental income is taxed at the landlord’s marginal rate. However, those holding property through a corporate structure remain subject to corporate income tax, so always confirm your specific position with a tax adviser.

What happened to nominee ownership arrangements under the 2025 Land Code amendment?

The 2025 amendment expressly prohibits nominee ownership — arrangements in which a Brunei citizen holds land on behalf of a non-citizen — and renders any such trust or arrangement void by law. Foreign investors with interests held through proxy ownership are required to declare those interests at the Land Office by 1 August 2026. Anyone with an existing arrangement of this kind should take urgent legal advice without delay.

Is Brunei’s property market open to all nationalities, or are some buyers restricted more than others?

The restrictions contained in Brunei’s Land Code apply broadly to all non-citizens, irrespective of nationality. The key distinction is between Brunei citizens (who may hold freehold land), permanent residents and stateless persons (whose rights have been further circumscribed by the 2025 amendment), and foreign nationals (who are confined to leasehold, sub-lease, or strata-title arrangements). Certain government housing programmes are reserved exclusively for Brunei citizens and specific indigenous communities and are not accessible to any foreign national regardless of nationality.

Are there any property taxes I need to pay annually when owning property in Brunei?

Commercially used properties attract property tax calculated on the estimated value of the property, with the amount determined by the relevant municipal board. Residential properties are not currently subject to an annual property tax, and Brunei imposes no wealth tax, gift tax, or inheritance duty. Stamp duty is payable on the transfer document at the point of purchase. Always confirm your current obligations with the Ministry of Finance and Economy.

How do I find a reputable property lawyer in Brunei?

Look for a solicitor with specific expertise in Brunei property and real estate law, and confirm that they are a member of the Law Society of Brunei Darussalam. The Attorney General’s Chambers website also provides a searchable register of qualified practitioners. Seeking referrals from fellow expatriates, your employer’s human resources team, or established international relocation services is another reliable approach to finding experienced property solicitors in the country.