Brunei Rental Income Guide 2026

Overview — Rental Income in Brunei

Brunei does not tax individuals on rental income from property. This applies to all types of property: residential houses, apartments, commercial units, and land. The absence of personal income tax means that individuals receive gross rental income without any tax deductions. There is no requirement to declare rental income to any tax authority. For companies, rental income may be subject to corporate income tax at the standard 18.5% rate if the company is in the business of property letting. However, a company that merely holds investment property and receives incidental rental income may not be subject to tax if the income is capital in nature.

Individual Landlords — Zero Tax

Individual landlords (Brunei citizens, permanent residents, and expatriates) pay no tax on rental income. This applies regardless of the number of properties owned, the amount of rental income received, or the frequency of letting. An individual owning 10 rental properties receiving BND 500,000 per year in total rent pays zero income tax on that income. There is no distinction between furnished and unfurnished letting, short-term and long-term letting, or residential and commercial letting. The rent is received in full without any withholding or deduction. This makes individual property investment in Brunei extremely tax-efficient.

Corporate Landlords — CIT at 18.5%

Companies that let property as a business activity are subject to corporate income tax at 18.5% on net rental profits (gross rental income minus allowable expenses). Deductible expenses include mortgage interest, property maintenance, insurance, management fees, legal fees, and capital allowances on the building (typically 10% straight-line). Rental losses may be offset against other income of the company. For a company whose primary business is property investment and letting, the effective tax rate of 18.5% on net rental income is competitive within the ASEAN region. Companies should maintain proper accounts and file annual tax returns.

No Withholding Tax on Rent

Brunei does not impose withholding tax on rental payments, whether paid to residents or non-residents. A tenant paying rent to a landlord does not need to withhold any amount for tax purposes. This applies to residential, commercial, and industrial leases. For non-resident landlords receiving rent from Brunei property, the full rental income can be remitted abroad without any withholding. This is a significant advantage compared to many countries that impose withholding tax on rental payments to non-residents (e.g., 15% in Ghana, 10–20% in many jurisdictions).

Short-Term Letting & Airbnb

Short-term letting (holiday rentals, serviced apartments, Airbnb-style letting) is treated the same as long-term letting for tax purposes in Brunei. Individual landlords receive rental income tax-free regardless of the letting period. Companies operating short-term letting businesses are subject to CIT at 18.5% on net profits. Landlords should ensure they comply with any local regulations regarding short-term letting, including licensing requirements from the Brunei Tourism Board and strata management rules for condominiums. There are no specific tax reporting requirements for short-term letting platforms.

FAQs

Do I need to register as a taxpayer if I rent out property?

No, individual landlords do not need to register with any tax authority for rental income. Companies should already be registered for corporate tax purposes and must include rental income in their accounts.

Can I claim deductions for property expenses?

Individual landlords cannot claim deductions because the rental income is not taxable. Corporate landlords can claim allowable expenses against rental income for CIT purposes.

Is rental income from overseas property taxable?

Individuals in Brunei are not taxed on any income, including foreign rental income. Companies may be subject to CIT on foreign income remitted to Brunei.

Disclaimer

This guide provides general information about Bruneian rental income tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified tax advisor or the Brunei Ministry of Finance and Economy for advice specific to your situation. InvestmentKit does not provide tax advice.