Summary of Key Updates

• Stateless permanent residents may acquire one residential property for personal use (approval required).
• Foreign nationals cannot own freehold land; only lease, sub-lease, or charge is permitted.
• All non-citizens holding land through Power of Attorney or other arrangements must declare within 12 months (by August 1, 2026).
• Inherited freehold land by foreigners must be declared and sold within 10 years or will be converted to leasehold.
• Leaseholds capped at 30 years (industrial/shophouse) and 60 years (residential/commercial).
• Brunei citizens cannot hold land as nominees on behalf of foreigners or PRs.

Introduction

As of August 1, 2025, Brunei Darussalam enacted the Land Code (Amendment) Order 2025 (LCAO 2025). Mandated by His Majesty Sultan Haji Hassanal Bolkiah, this law reforms land governance, clarifies ownership rights, and addresses long-standing grey areas involving stateless permanent residents, foreigners, and former citizens.

The updated code aims to bring transparency, reduce misuse of land titles, and modernize Brunei’s property ownership framework.

Key Changes by Group

Stateless Permanent Residents

Stateless PRs may own one residential property, strictly for personal occupation. All other properties must be leasehold, following Ministry of Development guidelines.

Foreign Nationals

Foreigners cannot own freehold land. They may only hold land through lease, sub-lease, or charge. Existing arrangements (e.g., Power of Attorney, Trusts) must be declared within 12 months. Non-compliance voids claims, and land reverts to citizens or state management.

Inheritance Cases

If a foreigner inherits freehold property, it must be declared within 12 months and sold to a Brunei citizen within 10 years. Otherwise, the title is converted to leasehold. Leasehold inheritance continues only for the remaining lease term.

Former Citizens and Former PRs

Former Brunei citizens or PRs must sell their freehold land within 10 years. Otherwise, it automatically converts to leasehold.

Nominee Ownership Banned

Brunei citizens can no longer hold property on behalf of foreigners or PRs. Any such nominee agreements are void under the new law.

For Investors: What to Know Now

A Tight Timeline

Foreign investors with proxy ownership must declare their interests by August 1, 2026 at the Land Office.

Lease Periods Now Fixed

• Industrial or shophouse use: max 30-year lease
• Residential or mixed commercial: max 60-year lease

These caps will directly affect project planning, financing, and long-term property value.

What Real Estate Agents and Landowners Should Do

• Update property listings to show clearly whether freehold or leasehold.
• Assist clients with mandatory declarations before deadlines.
• Educate foreign clients and former citizens about the 10-year disposal rule.

Legal experts recommend obtaining professional legal advice before entering, inheriting, or transferring land-related agreements.

Frequently Asked Questions

Can foreigners buy property in Brunei?

No. Foreigners cannot own freehold land. They may only lease property (30–60 years depending on type).

Can stateless PRs own freehold property?

Yes, but limited to one residential property for personal use. All other properties must be leasehold.

What happens if a foreigner inherits freehold land?

They must declare the inheritance within 12 months and sell within 10 years. If not, the land becomes leasehold.

When is the deadline to declare land interests?

All declarations must be made by August 1, 2026.

External References

• Ministry of Development (MoD) – Brunei
• The Scoop – Land Code 2025 Coverage
• Borneo Bulletin – Legal News

Note: This article is for general informational purposes only and does not constitute legal advice. For case-specific guidance, consult a qualified legal professional in Brunei Darussalam.