Summary of Key Updates

• Stateless permanent residents can now own one freehold residential lot for personal use.
• Foreign landholders must declare their interests within 12 months or lose legal claim.
• Inherited freehold land by foreigners must be sold within 10 years or reclassified as leasehold.
• Leaseholds are capped at 30 years for industrial/shophouses and 60 years for residential/commercial.
• Brunei citizens are prohibited from holding land on behalf of foreigners or PRs.

Introduction

As of August 1, 2025, Brunei Darussalam has enacted a major update to its land governance with the Land Code (Amendment) Order 2025 (LCAO 2025). Mandated by His Majesty Sultan Haji Hassanal Bolkiah, this legislative reform aims to clarify who can legally own land in Brunei and under what terms. It particularly addresses long-standing grey areas involving stateless permanent residents, non-citizens, and former citizens.

The new rules are designed to bring greater transparency, reduce misuse of land titles, and modernize Brunei’s approach to property ownership.

Key Changes by Group

Stateless Permanent Residents

Stateless permanent residents may now legally own one residential freehold lot, provided it’s for personal use. This lot can be acquired by purchase, transfer, or inheritance. For any other land, lease agreements will apply based on Ministry of Development (MoD) guidelines.

Non-Citizens and Foreigners

Foreign nationals cannot own freehold land outright. They may only hold land through a lease, sub-lease, or charge. Any existing arrangements—such as Power of Attorney or Trust Deeds—must be declared within 12 months of the law’s implementation. Failure to comply means the claim becomes void, and the land reverts to its original owner or becomes state-managed.

Inheritance Cases

Foreigners can inherit freehold property, but they are required to declare the inheritance within 12 months of the landowner’s death. They must then sell the property to a Brunei citizen within 10 years. If not, the freehold will be converted into a leasehold for a fixed term.

Leasehold inheritance works differently: the non-citizen will simply inherit the remaining lease duration.

Former Citizens and Former PRs

Anyone who has lost Brunei citizenship or permanent resident status must sell their freehold land to a Brunei citizen within 10 years. Failure to do so triggers automatic conversion to leasehold.

Nominee Ownership Now Banned

Brunei citizens are no longer allowed to act as nominees or hold property on behalf of foreigners or stateless PRs. Any document or trust that attempts this is considered void.

For Investors: What to Know Now

A Tight Timeline

If you’re a foreign investor with informal or proxy ownership, your time to act is limited. You have until August 1, 2026, to declare land interests to the Land Office.

Lease Periods Now Fixed

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

These time limits will influence development timelines, resale potential, and long-term land value.

What Real Estate Agents and Landowners Should Do

• Ensure all listings clearly specify whether the property is freehold or leasehold.
• Help clients with declarations before deadlines.
• Advise foreigners and former citizens on their 10-year sale requirement.

Legal experts recommend getting professional advice before entering into or transferring land-related agreements.

External References

• Ministry of Development
• Land Code (Amendment) Order Website – LCAO 2025

Note: This article provides general information and is not legal advice. For case-specific guidance, consult a qualified legal professional.