Land Use Rights in Myanmar

Under Myanmar law, foreign-owned companies and foreign individuals are prohibited from owning land and buildings. In general, leases of immovable property to foreign parties are limited to a maximum term of one year.

However, foreign investors may apply to the Myanmar Investment Commission for an exemption from this restriction. If granted, investors can secure long-term leases of up to 50 years, with the possibility of two additional 10-year extensions.

In addition, foreign investors in Special Economic Zones are entitled to lease land for up to 50 years, with the option to extend the lease by an additional 25 years.

Ownership of Condominium Units

Myanmar law permits foreigners and foreign-owned companies to purchase up to 40% of the units in a condominium. However, for this to apply, the development must be properly registered as a "condominium" project in accordance with the Condominium Law.

Implementing regulations, covering the registration of condominium projects, land registration procedures, and the purchasing of units, are expected to be enacted to further clarify the process.

Taking Security over Property

In general, security over immovable property in Myanmar must be registered with the relevant government authorities.

The Transfer of Immovable Property Restriction Act of 1987 prohibits foreign-owned companies and foreign individuals from taking security over land and buildings in Myanmar. To navigate this restriction, foreign lenders often appoint Myanmar banks as security agents, since local banks are legally permitted to take and enforce security over immovable property.

For movable assets or contractual rights, security interests must be registered with the Directorate of Investment and Company Administration via its online platform.

Enforcement of Security Interests

In most cases, enforcing a security interest in Myanmar requires court intervention. However, there are two notable exceptions:

• Movable property: If the secured property is already in the possession of the security holder, enforcement can proceed without court involvement.
• Immovable property: Enforcement may also proceed without court intervention if the security holder already holds title to the property.

How We Can Assist

Our legal advisers offer support in the following areas:

• Drafting, reviewing, and negotiating lease agreements, loan agreements, and security documents
• Advising on land use rights and taking security over property in Myanmar
• Assisting with applications for long-term land lease authorisations from government authorities