Can foreigners purchase property in Myanmar? 

Until recently it was not possible for foreign investors and expats to purchase property in Myanmar. In fact, the Transfer of Immovable Property Restriction Law specifically prohibited the sale of immovable property between citizens and foreigners. 

Condominium Law 

Theoretically this changed in January 2016 when Myanmar’s Union Parliament passed what is known as the Condominium Law. For the first time, foreigners are now legally able to purchase condominiums in Myanmar. However, there are some limitations. 

To qualify as a condominium suitable for foreign ownership under the Condominium Law, a building must meet a number of requirements. The Ministry of Construction must firstly approve the development’s application to qualify as a condominium. The building must also be constructed on a collectively owned parcel of land at least 20,000 square feet in size, with all the owners required to obtain an apartment ownership registration certificate. Additionally, total foreign ownership in any project is restricted to 40 per cent of the total space. 

Understandably perhaps, not all apartment developments in Myanmar will meet these criteria, although the Condominium Law does allow for the creation of a Special Purpose Committee to review and approve projects that existed prior to its introduction. Further bylaws, updates and reforms of the banking system are likely to provide more detail on this process and more scope for foreign investment in this space.

Foreigners obtaining finance 

Another limitation, rather than a restriction as such, for foreign investors wishing to purchase property in Myanmar is the ability to obtain finance. Historically it has been common for property purchases to be made in cash, as surprising as that may seem to expats. Myanmar’s banking sector has undergone a number of reforms recently, with a number of foreign banks licensed to operate under the guidance of the Central Bank of Myanmar since 2015. For now, foreign investors must purchase a condominium through a transfer of funds from abroad. For more on obtaining finance in Myanmar, see our article here.

Purchasing of land by foreigners is not permitted 

Though purchase of land is not permitted to foreigners, a real estate investor may apply for a 70 year leasehold with a Myanmar Investment Commission (MIC) permit. However, this would be restricted to larger investments and not the purchase of individual apartments or small plots of land. 

Source: Directorate of Investment and Company Administration 

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