Renting Properties in Yangon, Myanmar
Are you considering staying in Yangon? Looking for a place to rent? Or simply just want to understand the laws regarding rental properties in Myanmar. If so, then we have got you covered.
Do Foreigners have the right to own a property in Yangon, Myanmar?
The short answer to the question is “no”. Myanmar doesn’t have a singular piece of legislation or framework governing real estate, rights or obligations. Most of the laws are scattered in the provisions of various other laws.
According to (TIPRA) The Transfer of Immovable Property Restriction Act (1882), foreigners are not allowed to have ownership of immovable properties, basically stating foreigners cannot buy or own land or property in Myanmar.
However, Foreigners are allowed to own property, just not the land! In a condominium a foreign company may own up to 40%, according to the Condominium law of 2017.
If buying property is not your concern, then you are most likely here to find out about Renting properties in Yangon.
In this article we are going to focus on untangling the mayhem of How to Rent Property in Yangon.
So, let’s start with a question –
“Is it difficult to find a place to rent in Yangon?”
It can be a struggle to find a Real Estate Broker you can trust in Yangon, with the lack of laws and guidance. There is a vast supply of properties that exceed the demand, however finding properties that are up to international standards can be more challenging.
Properties in Yangon can vary in price depending on requirements. If you are looking for a property that has a generator, swimming pool and other amenities; these are all variables that will affect the price.
“How do Tenancy Agreements work in Myanmar?”
According to (TIPRA) the Transfer of Immovable Properties Restriction Act (1882), foreigners cannot lease a property exceeding one year. If you wish to stay at a property longer than one year, you’ll have to negotiate a new contract with the landlord. An agreement of six-months or one-year agreements are the standard in the country.
As for payment, the market in Myanmar is somewhat non-flexible. Payments are usually paid in advance usually paying a six-month rental fee upfront.
In Myanmar there are no particular laws regarding renting or buying properties. Thus, in Myanmar, when renting or buying property, it all comes down to the Tenancy Agreement.
As a Tenant it is vital to ensure you have a proper Real Estate Broker who will ensure you are covered from any additional fees, ensuring the landlord takes responsibility for repairs etc.
“Documentation and Procedures”
For any Foreigner wanting to rent property in Myanmar you must provide evidence that you have legal status to live and work in the country, a business visa.
Usually, if a tenant is not moving into the property straight away, the landlord would request a holding deposit. This basically tells the landlord that you are serious about taking the property and it’ll be taken off the market. The holding deposit won’t be refundable if the tenant decides not to take the property.
Once the Tenancy Agreement is signed, tenants should take it to the Internal Revenue Department Office and pay the stamp duty tax. The stamp duty tax ranges from 0.5% to 2.5% of the tenancy agreement, if the agreement is valued under $35,000 then the tax will be 0.5% and you wont have to pay the commerical tax. However, exact figures will vary.
If tenants do not pay the stamp duty tax, then the tenancy agreement isn’t official. A foreign individual or business entity must legally register any immovable property and the locations to the respective Township People Council, and sometimes to the Immigration department in the township you are living, according to (TIPRA) The Immovable Property Restriction Act (1882).
“Rights of Tenants”
The tenant legally doesn’t have any rights in law. As stated before, the tenancy agreement should be carefully negotiated as this will be the only piece of evidence as to your rights and responsibilities at the property.