The Republic of the Union of Myanmar, commonly known as Myanmar, is a sovereign country in Southeast Asia. After the army began to relinquish its control over the government and after the release of human rights activist Aung San Suu Kyi, there has been a rapid improvement in the country’s foreign relations. Trade has improved and economic sanctions imposed by the United States and the European Union have also been lifted. This triggered an influx of foreign investors and real estate prices in Myanmar skyrocketed. The purpose of this article is to provide information to those wishing to purchase property in Myanmar regarding property tenure/ownership and restrictions placed on foreign ownership.

Buy property in Myanmar – Tenure/property

Myanmar’s 2008 constitution guarantees the right of private property and inheritance to citizens under the Land and Revenue Act, 1879, subject to payment of taxes, government authority to acquire land for public requirements, and government control over minerals and mines. .

Freehold land can be transferred and inherited and is exempt from land income. Such land can be expropriated only if it is in the public interest, but the owner must receive adequate compensation. Freehold land is mainly available in larger towns and cities.

Concession land is granted or leased by the government for a period of 10 to 90 years. Rights can be transferred and land revenues are applicable to the concession holder. Mainly, concession land is available in towns and cities.

A license is required to own agricultural land. The application submitted by a foreigner must be approved by the Foreign Investment Commission. In addition, the president has the power to stipulate how land should be used and administered, according to the Land Nationalization Law of 1953. Land is generally classified according to its use, and different regulations apply for different uses.

Buy property in Myanmar – Restrictions placed on property by foreigners

Foreigners, as well as foreign-owned businesses, cannot purchase land and condominiums. According to the Real Property Transfer Restriction Act of 1987 (TIPRL), citizens cannot transfer real property to foreigners. Therefore, foreigners cannot accept mortgages as collateral. However, the TIPRL is not applicable to companies/organizations that have entered into contracts with the State.

Foreigners can obtain the right to use the land through a lease with the government or by contributing to form a joint venture with one of the government agencies. Foreigners who invest in real estate development typically enter into an agreement with the government to build, operate, and transfer the property. An investor can implement any ‘build, operate and transfer project’ in sole ownership or by partnering with a government agency as a joint venture.

The new Foreign Investment Law of 2012 which replaced the old Myanmar Foreign Investment Law 10/1988, investors can lease land for up to 50 years. The lease can be renewed consecutively for ten years twice. The Myanmar Investment Commission can grant even better lease terms if the investor is willing to invest in economically underdeveloped areas.

The government does not grant leases on religious land, land restricted for state security reasons, and land that is in dispute. The state may also reject leases for land in urban residential areas if the investor’s business is likely to affect the environment through pollution, noise, or culture.