Buying Property In Myanmar – Some Property Information
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 caused an influx of foreign investors and real estate prices in Myanmar soared. The purpose of this article is to provide some information to those who wish to purchase property in Myanmar regarding the ownership / ownership of the property and the restrictions placed on foreign ownership.
Buying Property in Myanmar – Tenure / Ownership
Myanmar’s Constitution of 2008 guarantees the right of private property and inheritance to citizens under the Land and Income Law of 1879, subject to the payment of taxes, the government’s authority to acquire the land for public requirements and government control. on minerals and mines. .
Freehold lands can be transferred and inherited and are 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 available primarily in larger towns and cities.
The government grants or leases concession land for a period of 10 to 90 years. It is possible to transfer rights and the income from the land is applicable to the fellow. Mainly, the land grant is available in towns and cities.
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 the land should be used and managed, in accordance with the Land Nationalization Act of 1953. Generally, land is classified according to its use and different regulations apply for different uses. .
Buying Property in Myanmar: Restrictions on Property Ownership by Foreigners
Both foreigners and foreign-owned companies cannot buy land and condominiums. According to the Real Estate Transfer Restriction Act of 1987 (TIPRL), citizens cannot transfer real estate to foreigners. Therefore, foreigners cannot accept mortgages as collateral. However, 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 helping to form a joint venture with one of the government agencies. Typically, foreigners investing in property development enter into an agreement with the government to build, operate, and transfer the property. An investor can implement any ‘build, operate and transfer project’ on sole proprietorship or by partnering with a government agency as a joint venture.
Under 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 consecutively renewed for ten years two times. 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 for religious lands, lands restricted due to state security, and lands that are in dispute. The state may also prohibit land leases in urban residential areas if the investor’s business is likely to have an impact on the environment due to pollution, noise, or culture.