Brunei – Selling Property

What are the steps involved in selling property yourself in Brunei?

Putting a property on the market as a private individual in Brunei involves a number of clearly defined stages and legal obligations. Everything begins with establishing what the property is actually worth. Engaging a professional valuer or researching comparable market evidence are both viable ways to arrive at a credible asking price. An accurate figure matters not only for attracting serious buyers but also because it feeds into the stamp duty calculations that arise later in the transaction.

Before inviting any interest, sellers should pull together all documentation connected to the property — the title deed, the land survey, the property deed itself, and any planning consents or building approvals that have been granted. Having these materials to hand from the outset prevents unnecessary hold-ups once a willing buyer appears and the due diligence phase begins.

Although there is no legal requirement to appoint a solicitor, engaging a lawyer with solid experience in real estate matters is strongly advisable. The conveyancing process in Brunei — which covers the drafting of agreements, ensuring regulatory compliance, and registering the completed transfer with the Land Registry — is invariably conducted by a qualified legal professional.

Once the property is ready to be brought to market, the transaction typically unfolds through the following stages:

1. Valuation: Commission a formal appraisal or prepare a comparative market analysis to underpin a realistic list price.
2. Gather documentation: Bring together the title deed, land survey, planning and building approvals, and any other evidence of lawful ownership.
3. Market the property: Prepare a compelling listing supported by quality photographs and thorough property descriptions, and distribute it across online real estate platforms, social media channels, and local advertising outlets.
4. Negotiate and agree terms: In Brunei it is customary for price agreement to begin verbally before lawyers for each party prepare a formal written Sale and Purchase Agreement (SPA).
5. Buyer due diligence: The buyer will typically arrange inspections and review all legal documentation. The buyer’s solicitor will conduct a land search at the Lands Department to confirm the seller’s ownership, verify the right to sell, and identify any encumbrances that might cloud the title or undermine the validity of the transaction.
6. Sign the Memorandum of Transfer (MOT): The formal transfer instrument is executed by both parties and stamp duty is paid on the relevant documents.
7. Register the transfer: The buyer submits a registration application through the Land Application and Registration Information System (LARIS). Once the MOT has been signed and stamp duty discharged, the Land Department records the new owner in the Land Registry and issues a fresh Title Deed. This step generally takes around five days, after which the seller’s lawyer will be advised to collect the Title Deed from the Lands Department.

While selling independently is entirely lawful in Brunei, professional legal assistance significantly reduces the risk of procedural errors. Given the intricacies of the Land Code and the changes introduced by the 2025 amendments, engaging a qualified lawyer is strongly advisable for any vendor — particularly those unfamiliar with how Brunei’s property system operates.

Do most sellers in Brunei use an estate agent, or is private selling common?

Both approaches exist in Brunei, though working with a licensed estate agent is the more prevalent route — especially for residential sales. The market is compact and heavily relationship-based, so informal networks and personal recommendations carry considerable weight alongside formal property listings.

Many sellers opt for professional representation to navigate the process more efficiently. Every estate agent operating in Brunei must hold registration with the Board of Valuers and Estate Agents (BoVEA). Sellers wishing to verify a professional’s credentials should look for a valid BoVEA registration number, which is ordinarily printed on business cards or displayed on agency websites. This accreditation confirms that the agent operates within established industry rules and ethical obligations. Choosing a BoVEA-registered agent gives sellers a level of consumer protection that informal arrangements simply cannot offer.

Private sales are legally permitted and do take place, particularly where seller and buyer already have an existing relationship. Going it alone is perfectly feasible provided the correct legal procedures are followed and the property is marketed with care; that said, even private sellers are well advised to involve a real estate lawyer to ensure compliance with all statutory requirements.

Online platforms, social media groups, and conventional local advertising are all actively used to connect sellers with prospective buyers. Unlike larger markets where dominant portals — such as Rightmove in the UK or Domain in Australia — handle the bulk of listings, Brunei’s digital property landscape is more modest, with a handful of local websites and Facebook-based groups serving as the primary channels. Sellers taking the private route must be ready to manage enquiries, conduct viewings, and carry negotiations themselves before passing the legal work to their solicitor.

How does capital gains tax work when selling property in Brunei?

Brunei Darussalam imposes no capital gains tax whatsoever. This exemption extends equally to residents and non-residents completing a property sale. Gains arising from the disposal of property or other investments are not subject to any form of taxation in Brunei. This represents a notable advantage over many other jurisdictions — in the United Kingdom, for instance, capital gains tax on residential property disposals can reach 24%, and even in Australia’s concessional system a portion of property profits remains taxable.

Brunei also levies no personal income tax on individuals. This means that any financial gain realised from the sale of a property — be it a family home or an investment asset — falls entirely outside the scope of individual income or capital gains taxation as the law stands in 2025.

There is, however, one nuance of which corporate vendors should be mindful. Although no capital gains tax exists, where the Collector of Income Tax determines that profits on a disposal form part of a company’s ordinary trading activities, those profits become taxable as revenue gains rather than capital. Sellers transacting through a corporate vehicle rather than in a personal capacity should therefore take specialist local tax advice before proceeding.

Brunei has no net wealth tax and imposes no inheritance, estate, or gift taxes. Sellers are nonetheless encouraged to verify the current position with the Ministry of Finance and Economy, as tax policy is always subject to change.

Are there other taxes or costs involved in selling property in Brunei?

The absence of capital gains tax and personal income tax keeps the direct tax burden on Brunei property sales minimal, but sellers should budget for a number of other costs that arise in the course of a typical transaction.

Stamp duty is the principal transactional charge. Property dealings in Brunei attract stamp duty, levied on the instruments used to effect the transfer — whether by way of sale or lease — and calculated by reference to the property’s value. Duties are imposed on instruments listed in Schedule 1 of the Stamp Act, Chapter 34, at either ad-valorem or fixed rates; instruments covered include lease and tenancy agreements, mortgages, and share transfer documents. In Brunei, stamp duty on a property transfer is conventionally borne by the buyer, but the Sale and Purchase Agreement should spell this out expressly. Up-to-date rate information is available from the Ministry of Finance and Economy’s Stamp Duty FAQ.

Legal fees apply to both sides of the transaction, each party bearing the costs of their own legal representation. Solicitors charge for the preparation of contracts, deeds of sale, and any other instruments required to complete the transaction. Fees will reflect the complexity of the deal and the experience of the lawyer engaged, so it is prudent to agree a written fee schedule before instructing any legal professional.

Property tax on commercial premises is relevant where a commercial unit is being sold. Commercial properties attract a property tax assessed on the estimated value of the premises, with the applicable amount determined by the relevant local municipal authority.

Estate agent commission is payable where a BoVEA-registered agent has been instructed. Commission rates in Brunei are not prescribed by statute and are instead a matter for negotiation between seller and agent; always obtain a clear written agreement on fees before formally engaging an agent.

Brunei operates without any VAT or general sales tax. There are no transfer taxes beyond stamp duty, and the country imposes no inheritance, estate, or gift levies. This compares favourably with markets such as France and Spain, where sellers encounter a layered structure of transfer taxes, notary charges, and municipal land appreciation taxes.

What legal requirements must sellers meet in Brunei?

Brunei’s property law draws simultaneously on customary tradition, Islamic legal principles, and modern statute — an unusual combination that reflects the nation’s history and cultural identity while keeping pace with the demands of a growing economy. Sellers need to be familiar with several core obligations before proceeding.

Title registration is compulsory. The Land Department administers land registration across the country. Every lease and every transfer of property rights must be entered in the Land Registry, providing a public record that settles questions of ownership and gives the courts a clear basis for resolving any disputes that arise.

Sellers must be able to demonstrate clean title. Before any transaction can be finalised, thorough due diligence is expected — this means confirming ownership and establishing that the property carries no outstanding encumbrances. Buyers and their lawyers will check that the land is properly registered and that the seller genuinely holds the right to transfer it. Sellers should therefore address any title defects before listing the property.

Foreign sellers face specific statutory constraints. With effect from 1 August 2025, Brunei brought into force the Land Code (Amendment) Order 2025 (LCAO 2025), a comprehensive reform of land governance that clarifies ownership rights and resolves longstanding ambiguities affecting stateless permanent residents, foreign nationals, and former citizens.

Under the LCAO 2025, the principal rules applicable to foreign nationals are as follows: foreigners may not hold freehold land and are restricted to leasehold, sub-leasehold, or charge arrangements. Where a foreigner inherits freehold property, the inheritance must be declared within 12 months and the property sold to a Brunei citizen within 10 years; failure to do so results in automatic conversion of the title to leasehold. Any inherited leasehold interest runs only for the remainder of the original lease term. Brunei citizens are prohibited from holding property on behalf of foreigners or permanent residents, and any nominee arrangements of this kind are rendered void by the new legislation.

All non-citizens holding land through a Power of Attorney or similar arrangement are required to make a formal declaration within 12 months — that is, by 1 August 2026. Anyone in this position should seek legal advice without delay. Unlike some European jurisdictions, Brunei does not compel sellers to produce an energy performance certificate or a structural report as a precondition of marketing, although buyers may commission their own surveys as part of their own due diligence. Consult the Ministry of Development, which has oversight of the Land and Survey Department, for the latest requirements regarding registration.

How does the exchange and completion process work in Brunei?

The property conveyancing process in Brunei reflects the country’s common law heritage as a former British protectorate. In contrast to civil law jurisdictions across continental Europe — where a notary typically occupies the central role in completing a transaction — it is Brunei-qualified solicitors who manage conveyancing from start to finish.

Once a buyer has settled on a property, they put forward an offer. It is standard practice in Brunei for price agreement to begin informally, with a verbal understanding, before lawyers on both sides formalise matters in a written Sale and Purchase Agreement (SPA). The SPA records the agreed price, all conditions of sale, and the timetable for completion. Each party normally retains separate legal representation, and the buyer pays a deposit — customarily around 10% of the agreed purchase price — upon signing the SPA.

The entire conveyancing process is managed by the parties’ respective lawyers, covering the preparation of all documents, verification of statutory compliance, and ultimate registration with the Land Registry. The seller’s solicitor is responsible for drafting the Memorandum of Transfer (MOT), which is the instrument that formally conveys legal title from seller to buyer.

Before completion, the buyer will conduct due diligence, which includes physical inspections of the property and a thorough review of all legal documents. The buyer’s lawyer carries out a title search at the Land Department, confirming that the seller is the true owner and that the title is free of any encumbrances, liens, or other impediments.

On the agreed completion date, the buyer pays the balance of the purchase price and ownership passes. The transfer is then lodged for registration with the Land and Survey Department. Once the MOT is executed and stamp duty has been paid, the Land Department registers the new owner and issues a Title Deed — a process that ordinarily takes around five days.

The overall timeframe from accepted offer through to completion varies by transaction, but a typical residential sale runs to between one and three months, depending on the complexity of the title, whether the buyer is relying on mortgage finance, and how promptly all parties attend to their respective obligations. This is broadly in line with a standard conveyancing transaction in the UK or Singapore, though individual circumstances will always affect the precise timeline.

Is property exchange or part-exchange an option in Brunei?

Direct property exchange is not a recognised or widely used method of transacting real estate in Brunei. Whereas markets such as the UK or the United States have established developer part-exchange schemes and chain-based property swaps, Brunei’s market operates predominantly through conventional cash purchases or mortgage-funded sale-and-purchase transactions.

No dedicated statutory framework exists in Brunei to govern the direct swap of one property for another as a distinct transaction type. In theory, two willing parties could structure a mutual exchange as two simultaneous sales — each governed by its own SPA, each attracting separate stamp duty liability, and each requiring independent registration with the Land Department — but achieving this in practice would demand meticulous legal coordination and is not a product that estate agents or developers routinely offer.

For foreign vendors in particular, the tenure restrictions introduced by the Land Code add a further layer of complexity to any exchange arrangement. Since foreigners are barred from holding freehold land and may only deal in leasehold, sub-leasehold, or charge interests, any incoming property under an exchange would need to satisfy these same eligibility constraints. Professional legal advice from a Brunei-qualified solicitor is indispensable before pursuing this route.

What should foreign sellers know about repatriating sale proceeds from Brunei?

For vendors seeking to transfer the proceeds of a Brunei property sale overseas, the general position is encouraging. Brunei does not operate formal foreign exchange controls, though the movement and exchange of currency is monitored by the authorities. This means there is no blanket statutory prohibition on sending funds abroad — but all transfers are subject to oversight and financial reporting requirements, and this is particularly pertinent where large amounts are involved.

Because neither capital gains tax nor personal income tax applies to individual sellers, proceeds from a disposal are not subject to any withholding at source before transfer. Gains from the sale of property are not taxed locally for individual vendors as the law stands in 2025, meaning the full net proceeds should be available for remittance without a local tax deduction being applied first.

Sellers must nonetheless be alert to the possibility that their country of residence or citizenship will treat a gain on an overseas property as taxable. Tax treaties between Brunei and other nations may influence how your home tax authority treats such a gain. Brunei does offer unilateral relief on income arising from Commonwealth countries that provide reciprocal relief, but the maximum relief is capped at half the applicable Brunei Darussalam rate. Consulting a qualified tax adviser in both jurisdictions before exchanging contracts is strongly recommended.

On a practical level, substantial international transfers should be routed through a licensed bank or a regulated money transfer provider to satisfy anti-money laundering (AML) reporting obligations in both Brunei and the destination country. The Autoriti Monetari Brunei Darussalam (AMBD) — Brunei’s central bank and financial services regulator — has oversight of currency flows and financial transactions. For large sums, it is worth engaging a specialist currency transfer provider, as the differences in exchange rates and service fees between providers can be substantial and have a meaningful effect on the final amount received.

Frequently asked questions about selling property in Brunei

How long does the selling process typically take from listing to completion in Brunei?

Timescales depend on the condition of the title, whether the buyer is funding the purchase with a mortgage, and how swiftly all parties complete their respective tasks. A routine residential transaction generally runs from one to three months between acceptance of an offer and registration of the transfer. The time spent finding a buyer before that point will vary with market conditions and pricing strategy. Foreign vendors should build in additional time if the property type requires any form of government approval before the transfer can proceed.

What happens if the buyer pulls out after the Sale and Purchase Agreement is signed?

A signed Sale and Purchase Agreement (SPA) in Brunei is a legally enforceable contract. Should a buyer withdraw without adequate legal grounds, the seller is ordinarily entitled to keep the deposit — which typically represents around 10% of the purchase price — by way of compensation. Depending on what the SPA stipulates, the seller may also be in a position to claim additional damages. If a buyer defaults, legal advice should be taken immediately, since the remedies available will turn on the precise wording of the agreement that was signed.

Can I sell my property in Brunei remotely or while living abroad?

Selling from abroad is possible provided the seller grants a Power of Attorney (POA) to a trusted representative — most commonly a qualified solicitor — who is authorised to act throughout the transaction. It is important to note, however, that under the 2025 Land Code amendments all non-citizens holding land through a Power of Attorney or comparable arrangement are required to make a formal declaration by 1 August 2026. Any existing POA arrangements should therefore be reviewed by a Brunei-qualified lawyer before the sale is initiated.

Do I need to pay any tax in Brunei on the profit from my property sale?

No capital gains tax and no personal income tax exists in Brunei. Accordingly, any gain realised on the sale of a residential or investment property by an individual seller is not subject to local taxation as the law stands in 2025. It remains important, however, to consider whether your country of tax residence requires you to declare and pay tax on a gain arising from a foreign property — always take advice from a qualified tax professional in both countries before finalising the sale.

Are there any restrictions on which properties a foreign national can sell in Brunei?

Foreign nationals are prohibited from holding freehold land in Brunei and may only deal in leasehold, sub-leasehold, or charge interests. As a foreign seller you will therefore typically be disposing of a leasehold interest rather than an outright title. Leases are generally issued for terms of 30 to 60 years, with some sector-specific exceptions permitting longer durations. The number of years remaining on the lease at the point of sale will have a significant bearing on how attractive the property is to prospective buyers and their lenders.

Is there a mandatory inspection or certificate required before selling a property in Brunei?

Brunei does not require sellers to produce a statutory certificate comparable to the UK’s Energy Performance Certificate or Spain’s cédula de habitabilidad before a property can be listed or sold. Buyers may nonetheless arrange their own structural or condition surveys as part of their due diligence, and sellers are expected to disclose any material defects of which they are aware. Owners are generally required to keep their property in a condition consistent with current safety and health standards and to observe applicable laws relating to urban planning and environmental compliance.

How is inheritance of property in Brunei handled for non-Muslim foreign sellers?

Non-Muslims in Brunei are governed by civil law principles when it comes to inheritance — the process typically involves the execution of a will, and the transfer of assets upon death requires the estate to be administered by an appointed executor or administrator. Where a foreign national inherits freehold property, the inheritance must be declared within 12 months and the property sold to a Brunei citizen within 10 years; if this obligation is not met, the title converts automatically to leasehold. Any inherited leasehold interest continues only for the balance of the original lease term. Given the deadlines and complexities introduced by the 2025 Land Code amendments, specialist legal advice is essential for anyone who has acquired property through inheritance.

Where can I find a licensed estate agent or property lawyer in Brunei?

All estate agents practising in Brunei must be registered with the Board of Valuers and Estate Agents (BoVEA), and their registration number can be used to verify their credentials. For legal representation, sellers should instruct a solicitor admitted to the Brunei Bar with experience in property and conveyancing matters. The Ministry of Development, which has oversight of the Land and Survey Department, and the Ministry of Finance and Economy are the principal official sources of guidance on property registration procedures and stamp duty requirements respectively.