Brunei – Property Letting

How does the property letting process work in Brunei?

Brunei’s tenancy legislation sets out the respective rights and obligations of landlords and tenants, addressing matters such as lease agreements, rent adjustments, eviction processes, and security deposits. The overall process is considerably less formal than in countries operating centralised tenancy registers — such as Germany’s Mietrecht system or Ireland’s Residential Tenancies Board — but written agreements are the established norm and are strongly recommended in all cases.

A typical letting transaction in Brunei follows a clear sequence: the landlord readies the property, markets it — often through local portals such as Rent Now Brunei, social media channels, or through a letting agent — arranges viewings, screens prospective tenants, agrees on terms, and executes a written tenancy agreement before collecting the deposit and handing over keys.

Written lease agreements are standard practice in Brunei and should set out the lease duration, rent amount, payment arrangements, and the duties of each party. While verbal agreements can theoretically hold legal weight in some common-law jurisdictions, a written contract is both the practical and legal benchmark in Brunei — parties lacking one have very restricted grounds for recourse in the event of a disagreement.

Brunei tenancy agreements typically include core clauses covering: the duration of the lease (generally 2–3 years for residential arrangements); the rent amount, due date, and any mechanism for adjustments; the security deposit amount and conditions governing its return; and maintenance responsibilities, specifying which party is accountable for repairs and how issues should be reported.

Beyond these standard provisions, agreements frequently contain negotiated terms addressing early termination rights and associated penalties, clarification of which utilities are covered by the rent, and any restrictions or conditions relating to pets.

Although not legally required, condition reports serve a valuable function at the outset of a tenancy. These documents record the state of the property before the tenant moves in, capturing existing wear or damage. A joint inspection by both landlord and tenant, backed by written notes and photographs, provides a reliable reference point when assessing deposit deductions at the end of the lease and can prevent costly disputes.

Residential tenancies in Brunei are predominantly long-term in character, typically spanning two to three years, which offers a degree of continuity for both landlord and tenant. Shorter-term arrangements are also available, particularly for furnished properties or where tenants require greater flexibility.

What types of rental arrangements are available in Brunei — long-term, short-term, and holiday lets?

Long-term residential tenancies form the backbone of Brunei’s rental market. Multi-year leases are widely favoured as they give both parties a stable housing arrangement, and it is essential for landlords and tenants alike to understand the duration, renewal terms, and termination conditions that govern their agreement.

Short-term letting — typically involving furnished properties rented to corporate occupiers, visiting professionals, or expatriates on time-limited assignments — does occur in Brunei, particularly in Bandar Seri Begawan and localities with a dense concentration of oil and gas sector workers. These arrangements are generally formalised through shorter fixed-term agreements on a contractual basis.

Holiday letting platforms such as Airbnb function in something of a legal grey area within Brunei. No dedicated licensing framework for short-term rentals is publicly documented as of 2025, and the Sultanate’s cautious regulatory culture means that operating a commercial short-stay letting business without the appropriate permissions could attract official attention. Any landlord considering this model should obtain specialist legal advice and consult the Ministry of Finance and Economy together with local municipal authorities before proceeding.

Commercial property letting — covering shophouses, offices, and similar units — follows broadly similar contractual principles but is governed by different lease term limits. The maximum permitted lease for shophouses and industrial premises is 30 years, while residential, commercial, or mixed-use development projects may be leased for up to 60 years.

What rental income can landlords expect in Brunei, and how are rates set?

Brunei takes a free-market approach to residential rents. Landlords have the right to set rental amounts and terms freely, subject to observing certain legal requirements. There is no rent control legislation, no designated rent pressure zones, and no formal indexation mechanism operating in the private residential sector as of 2025. Rents are driven primarily by supply and demand, property type, location, and the level of furnishing provided.

The residential leasing market in Brunei was projected to generate revenue of US$295.60 million by 2024, with the house leases segment accounting for the largest share at an estimated US$283.10 million. Steady growth has been underpinned by demand from expatriate workers, particularly those employed in the energy industry.

Brunei ranks among Southeast Asia’s more affordable high-income nations. Government subsidies on fuel and utilities help contain many household expenses, though property in and around Bandar Seri Begawan and the cost of imported goods can stretch budgets. Central and well-connected suburban locations attract premium rents relative to more outlying areas. Landlords seeking to gauge current market rates should research comparable listings on portals such as Rent Now Brunei, since widely available official rental indices do not exist. The Ministry of Development should be consulted for any guidance or restrictions that may apply to particular property categories.

Do landlords need to provide a furnished or unfurnished property in Brunei?

Brunei law imposes no obligation on landlords to let their properties either furnished or unfurnished — this is entirely a commercial decision. Both options are available in the market and cater to differing tenant requirements. Fully furnished properties are supplied complete with furniture, appliances, and everyday household items, making them immediately habitable for incoming tenants.

The decision between furnished and unfurnished accommodation generally comes down to the tenant’s circumstances, the intended length of stay, and personal preference. A furnished home suits someone wanting a hassle-free arrival, while an unfurnished property offers greater scope for personalisation.

In practice, furnished units tend to command higher monthly rents and are especially prevalent in the short-term and corporate letting segments — both of which are active in Brunei given its substantial expatriate and professional population. Unfurnished properties are more typical in longer-term family tenancies. Landlords should list all furnishings and fittings in both the tenancy agreement and the condition report to guard against deposit disputes. Under current Brunei law, furnishing level does not trigger a different tax classification or place a letting into a separate legal category.

Do you need a licence or registration to let a property in Brunei?

Letting agents operating in Brunei are expected to have a sound grasp of local property legislation; however, no specific licensing requirement exists for agents as of 2025. The same broadly applies to landlords: there is no mandatory landlord licence, no obligation to register a tenancy with any central body (such as Ireland’s Residential Tenancies Board or France’s Observatoire des Loyers), and no formal tenancy registration authority in Brunei.

This stands in marked contrast to jurisdictions where registration is a statutory condition for collecting rent or enforcing a lease. In Brunei, a properly drafted and executed written tenancy agreement remains the principal legal instrument protecting both parties.

That said, landlords who let through a corporate structure should note that rental income accruing in or derived from Brunei is liable to Corporate Income Tax (CIT) when received by a company. Foreign nationals with more intricate ownership arrangements — such as those holding property through a locally incorporated company — should clarify their compliance obligations with a local solicitor and the Collector of Income Tax.

Obligations may also differ depending on the property type and how it is being marketed. Landlords contemplating short-term or commercial letting should check with local municipal offices and the Ministry of Development whether activity-specific permits are required. Given the pace of regulatory change following the 2025 Land Code amendments, confirming the current position with the relevant authority before any letting commences is always prudent.

How do you obtain a landlord licence or register as a landlord in Brunei?

Because Brunei does not currently operate a mandatory landlord licensing or registration system for standard residential letting (as of 2025), there is no formal application process to complete before marketing a property. The steps a diligent landlord should take are primarily practical and contractual in nature rather than administrative.

1. Confirm your ownership and legal right to let. Verify your title at the Land Department (Jabatan Tanah), which operates under the Ministry of Development. Confirm that your title deed — or, for non-citizen owners, your lease — permits sub-letting where relevant. The Brunei Land Department is the primary governmental authority overseeing land administration and ensuring that all property transactions comply with applicable legislation.
2. Check your ownership category. Foreign nationals may not hold freehold land and are limited to leasehold, sub-lease, or charge arrangements. All non-citizens holding land through Power of Attorney or similar arrangements must formally declare their interests within 12 months (by August 1, 2026). Ensure your arrangement is fully compliant before advertising the property.
3. Prepare the property and complete a condition report. Record the property’s state with photographs and a written inventory before any tenancy commences.
4. Draft and execute a written tenancy agreement. Instruct a local solicitor to prepare or review the agreement. Standard templates are available, but having a lawyer examine the document is strongly advised for non-resident landlords. For current fee guidance, contact the Attorney General’s Chambers or a registered Brunei law firm.
5. Collect the security deposit and first month’s rent. Document both payments in writing and provide a signed receipt.
6. If letting through a company structure, register any corporate letting activity with the Collector of Income Tax, since corporate rental income is subject to CIT.
7. Maintain thorough records. Retain all correspondence, payment records, and documentation throughout the tenancy and for a reasonable period after it concludes, in case any dispute arises.

No published government fees apply to registering a residential tenancy as of 2025, since no such registration obligation exists. Stamp duty may nonetheless apply to tenancy agreements depending on their value and term — seek guidance from a local solicitor or the Collector of Stamp Duties for the current rates, as these are subject to change.

What are the rules around deposits in Brunei?

Security deposits in Brunei are conventionally set at one or two months’ rent, with the conditions governing their return set out in the tenancy agreement. This broadly mirrors practice in comparable Southeast Asian markets such as Malaysia and Singapore, though Brunei lacks the formal statutory deposit protection schemes found in the UK — where deposits must be lodged with a government-approved custodian — or Ireland, where deposit rules are prescribed by the Residential Tenancies Board.

As of 2025, there is no mandatory government-backed tenancy deposit protection scheme in Brunei. Deposits are held directly by the landlord, and the terms covering their return — including permissible deductions for damage, cleaning, or outstanding rent — are determined entirely by the provisions of the tenancy agreement. This makes precise contractual language on deposit matters especially important.

Standard practice is for landlords to return the deposit within a reasonable period following the end of the tenancy — often within 14 to 30 days — after any applicable deductions have been assessed. There are no statutory limits on the amounts that may be deducted beyond what the contract specifies, and no independent adjudication service exists. Should a dispute arise, the parties must seek resolution through Brunei’s civil courts or by way of mediation.

Landlords should always issue a written deposit receipt and conduct a thorough check-out inspection with the tenant present, referring back to the original condition report. This documentation is the primary safeguard for both parties in the absence of a statutory scheme. As the regulatory framework in Brunei continues to develop, always confirm the current legal position with a local solicitor.

Who is responsible for maintenance and repairs in Brunei?

The tenancy agreement is the principal document that allocates responsibility for maintenance and repairs between landlord and tenant, and also establishes the procedures for reporting and resolving issues. These standard provisions help both parties understand their respective obligations from the outset.

In general practice in Brunei, landlords bear responsibility for structural repairs, the fabric of the building, and ensuring the property is in a habitable condition at the commencement of the tenancy. Tenants are ordinarily expected to maintain day-to-day upkeep, attend to minor repairs, and remedy any damage attributable to their own actions or negligence. This broadly reflects the common-law landlord-tenant maintenance framework familiar in Malaysia and Singapore, though without the same degree of statutory codification found in jurisdictions such as the UK — where the Landlord and Tenant Act 1985 imposes repairing obligations as a matter of law regardless of what any contract may say.

In Brunei, the rights and responsibilities of property owners are defined by legislation designed to balance the interests of owners and tenants alike. Owners retain substantial rights over their properties, including the right to use, rent, sell, or transfer them within the boundaries established by law.

No widely published statutory minimum habitability standards for private rental accommodation exist in Brunei equivalent to, for example, the UK’s Decent Homes Standard or New Zealand’s Healthy Homes Standards. Landlords are nonetheless expected to deliver properties that are structurally sound, safe, and properly maintained. Any disagreement over maintenance responsibilities is ultimately resolved by reference to the tenancy agreement and, if no resolution is reached, through the civil courts.

How are letting agents used in Brunei, and what do they charge?

Before appointing a letting agent, it is sensible to enquire about their experience, track record, and the references they can provide. A competent agent should demonstrate a solid understanding of the local property market and be capable of offering useful guidance to both landlords and tenants throughout the letting process.

Letting agents in Brunei typically provide a range of services covering property marketing, tenant introduction, preparation of tenancy agreements, and — under full management arrangements — ongoing rent collection, co-ordination of maintenance, and tenant liaison. Some agents additionally offer property valuations and market appraisals.

Agents are expected to have a good working knowledge of local property laws and regulations. There are no specific licensing requirements for letting agents in Brunei; professionalism and market expertise are the primary indicators of quality. Unlike the UK — where agents are subject to mandatory redress schemes and fee disclosure obligations — or Australia, where agents must hold a state-issued licence, Brunei has no equivalent regulatory regime for property agents as of 2025.

Agent fees are not subject to legal regulation in Brunei. The prevailing market practice is for a commission of approximately one month’s rent for a tenant-find service, though this figure varies between agents and depending on the scope of the arrangement. In some cases the commission is divided between landlord and tenant; in others one party bears it entirely. Fee arrangements should always be confirmed in writing before instructing an agent. For any emerging consumer protection guidance, consult the Ministry of Finance and Economy directly, as the regulatory landscape may evolve.

What taxes apply to rental income in Brunei?

Brunei offers one of the most favourable tax environments in Southeast Asia for individual landlords. The Sultanate does not levy personal income tax on individuals, and accordingly no separate foreign tax relief provision is built into Brunei’s domestic tax law. This means that individual landlords — whether resident or non-resident — face no personal income tax liability in Brunei on rental income earned from property located there (as of 2025).

The absence of personal income tax is one of the most notable characteristics of the Bruneian tax system. This exemption extends to rental earnings, making property investment particularly appealing to those seeking to build a passive income stream.

Brunei Darussalam also imposes no capital gains tax. Consequently, profits realised on the sale of a rental property are generally not taxed, unless the tax authorities can demonstrate that dealing in property constitutes part of a regular business activity.

Other property-related charges do, however, apply. Stamp duty is payable on property purchases, with rates generally falling between 1% and 3% of the purchase price depending on the value involved. An annual property tax is also levied on owners, at a rate generally around 0.5% of the assessed property value as of 2025. Landlords should verify the current stamp duty rates and property tax assessments with the Ministry of Finance and Economy, since these figures may be revised.

The position differs for landlords operating through a corporate structure. Rental income accruing in or derived from Brunei, or received in Brunei from abroad, is subject to Corporate Income Tax (CIT). Companies should consult the Collector of Income Tax for the current CIT rate and applicable filing requirements.

Non-resident individual landlords should also bear in mind that while Brunei does not tax their rental earnings locally, their country of tax residence may well do so. Brunei has concluded double taxation agreements (DTAs) with a number of countries to prevent the same income from being taxed in two jurisdictions, which can provide a material benefit for those with income from multiple sources. Advice from a local tax professional and a qualified adviser in your country of residence is always recommended before letting property in Brunei.

What are the rules around ending a tenancy or evicting a tenant in Brunei?

The termination of a tenancy in Brunei is governed principally by the terms of the lease agreement rather than by any comprehensive statutory framework comparable to, for example, the UK’s Housing Act 1988 or New Zealand’s Residential Tenancies Act. This means that the notice periods required, the grounds on which a tenancy may be ended, and the procedures for recovering possession of the property are largely determined by what the parties agreed when they signed the contract — further underlining the importance of a thorough and well-structured agreement.

Standard Brunei tenancy agreements specify a notice period — typically one to two months — that either party must provide before or during a fixed term. Provisions relating to early termination rights, associated penalties, and notice requirements are among the terms most commonly negotiated between landlords and tenants and incorporated into Brunei leases. Where a notice period is not stipulated in the agreement, both parties generally fall back on common-law principles rooted in Brunei’s legal tradition.

Should a tenant decline to vacate after a valid notice has been served, the landlord must obtain a court order for possession through Brunei’s civil court system. There is no fast-track eviction tribunal or equivalent accelerated procedure available. Grounds for seeking possession typically include non-payment of rent, breach of the tenancy agreement, or expiry of the lease term. Landlords must not attempt to remove a tenant by force or change the locks without first obtaining a court order, as doing so could expose them to legal liability.

Brunei’s tenancy legislation addresses the rights and obligations of landlords and tenants across a range of matters, including eviction procedures. Foreign landlords are especially encouraged to take local legal advice before initiating possession proceedings, as the requirements of Brunei’s civil court process may be unfamiliar and strict procedural compliance is essential.

What should expat landlords know about managing property remotely in Brunei?

Overseeing a rental property in Brunei from overseas is entirely achievable but demands careful preparation. The most practical approach is to appoint a reliable local property manager or letting agent who can handle day-to-day tenant matters, co-ordinate maintenance, and collect rent on the landlord’s behalf. Given that no specific licensing requirements exist for letting agents in Brunei, it is especially important to vet any prospective agent thoroughly and obtain references before granting management authority.

Non-resident landlords should consider granting a Power of Attorney (POA) to a trusted individual or qualified professional in Brunei, enabling that person to execute documents, instruct repairs, and manage administrative affairs in their absence. However, it is important to note that the 2025 Land Code amendments have placed heightened scrutiny on POA arrangements connected to land ownership. All non-citizens holding land through Power of Attorney or comparable arrangements must declare their interests within 12 months (by August 1, 2026). Freehold land inherited by foreign nationals must also be declared and disposed of within 10 years, failing which it will be converted to leasehold. Any POA granted for letting purposes should be carefully drafted to avoid inadvertently creating or concealing a beneficial ownership arrangement that triggers these disclosure obligations.

Brunei does not operate foreign exchange controls, although currency exchanges and cross-border movements of funds are monitored. Repatriating rental income to another country is therefore generally possible without regulatory obstruction, which represents a significant practical advantage over several other markets in the region.

Property owners may have reporting obligations connected to property taxes, and it is advisable to consult a local tax professional to understand any requirements that apply to a specific situation. Non-resident landlords should also remain mindful of their obligations in their country of residence, where rental income earned abroad may need to be declared regardless of whether it is subject to tax in Brunei.

For foreign owners, gaining a thorough understanding of rights and responsibilities in Brunei is essential, since these may differ substantially from what they are accustomed to at home. Engaging a local lawyer with expertise in real estate law is strongly recommended to ensure full compliance with all applicable obligations.

Frequently Asked Questions

Can a non-resident own and let property in Brunei?

Foreign nationals may not hold freehold land in Brunei; ownership is restricted to leasehold, sub-lease, or charge arrangements. Provided a valid leasehold or strata interest is held, a non-resident may let the property. Following the Land Code (Amendment) Order 2025, however, all land interests held by foreigners — including those via Power of Attorney or trust structures — must be formally declared. Always confirm your ownership arrangement with a local lawyer and the Land Department before advertising the property to let.

Do I need a local agent to let my property in Brunei?

There is no statutory requirement to use a local letting agent. A landlord may deal directly with tenants. For non-resident landlords, however, a local property manager is strongly recommended for practical purposes — attending to repairs, communicating with tenants, collecting rent, and dealing with authorities on the landlord’s behalf. When selecting an agent, always enquire about their experience, track record, and references before proceeding.

Is rental income taxed in Brunei?

Brunei does not impose personal income tax on individuals, and this exemption extends to rental income — making property investment an attractive option for those seeking passive returns. No capital gains tax applies either. Rental income earned through a company is, however, subject to Corporate Income Tax. Non-resident landlords should verify the tax treatment of their foreign-sourced rental income in their country of residence (as of 2025).

How long is a typical tenancy agreement in Brunei?

Residential tenancies in Brunei are predominantly long-term, typically running for two to three years, which provides certainty for both landlord and tenant. Shorter arrangements are available, particularly for furnished properties or corporate letting. The agreed term should always be clearly stated in the written tenancy agreement.

How much security deposit can I charge in Brunei?

Security deposits are conventionally set at one or two months’ rent, with the terms governing their return specified in the tenancy agreement. There is no statutory ceiling on deposits and no government-backed deposit protection scheme in Brunei as of 2025. Permitted deductions and the timeline for returning the deposit are determined entirely by the agreement. Consult a local solicitor for the most up-to-date position.

Are there rent controls in Brunei?

As of 2025, there is no rent control legislation, rent pressure zone framework, or formal indexation mechanism operating in the Brunei private residential rental market. Landlords are free to set rental amounts and conditions, subject to complying with applicable legal standards. Rates are driven by supply and demand. Check with the Ministry of Development for any future changes to this position.

What happens if a tenant refuses to leave at the end of a tenancy in Brunei?

Where a tenant remains in the property after the tenancy has lawfully ended and declines to vacate, the landlord must apply to the civil courts for a possession order. Taking matters into one’s own hands — such as changing locks or removing a tenant’s possessions without a court order — is not legally permissible. Landlords should seek local legal advice before initiating any court proceedings, as specific procedural requirements must be observed.

Can I use Airbnb or short-term rental platforms to let my property in Brunei?

Short-term rental platforms including Airbnb are active in Brunei, but no dedicated licensing framework for short-term lets is publicly documented as of 2025. Given the Sultanate’s cautious regulatory stance and the evolving nature of its property laws, any landlord considering this model should obtain specialist legal advice and verify the position with local municipal authorities and the Ministry of Finance and Economy before listing a property on such a platform, so as to ensure compliance with any applicable zoning, commercial, or activity-specific rules.