The Land Act of Bhutan 2007 is the comprehensive legislation governing land ownership, tenure, use, and administration in the Kingdom of Bhutan. Enacted by the Parliament of Bhutan during the transition to constitutional democracy, the Act replaced the earlier Land Act of 1979 and established a modern legal framework for property rights, land registration, and the resolution of land disputes, while maintaining the principle that all land ultimately belongs to the state and is held in trust for the people.
The Land Act of Bhutan 2007 is the principal legislation governing land ownership, tenure, use, and administration in the Kingdom of Bhutan. Enacted by the Parliament of Bhutan during the historic transition from absolute monarchy to constitutional democracy, the Act replaced the earlier Land Act of 1979 and established a comprehensive legal framework for property rights in the kingdom. It was one of the most significant pieces of legislation passed in the period leading up to the adoption of the 2008 Constitution, reflecting the government's effort to modernise the legal infrastructure in preparation for democratic governance.[1]
Land law in Bhutan is inseparable from the country's broader political, cultural, and economic history. In a nation where the overwhelming majority of the population has traditionally depended on subsistence agriculture, the regulation of land ownership has been a matter of fundamental importance. The 2007 Act sought to balance the traditional principle that all land belongs to the Druk Gyalpo (king) — held in trust for the people — with the modern requirements of individual property rights, economic development, and the promotion of Gross National Happiness.[1]
Historical Background
Traditional Land Tenure
Historically, all land in Bhutan was considered the property of the king, with subjects holding usufructuary rights — the right to use and benefit from the land without owning it outright. This system was rooted in Buddhist political philosophy, in which the monarch served as the protector and custodian of the land and its people. In practice, land was allocated to families through a system of grants and inheritance that varied by region. In the northern and central valleys, land was typically associated with specific households and passed down through matrilineal or patrilineal inheritance. In the southern foothills, land was often granted to settlers — including Lhotshampa migrants — who cleared and cultivated previously forested areas.[2]
The Land Act of 1979
The Land Act of 1979, enacted under King Jigme Singye Wangchuck, was the first comprehensive land legislation in Bhutan. It established the principle that Bhutanese citizens had the right to own land, set ceilings on individual landholdings (25 acres for wet paddy land and 10 acres for dry land), and introduced a land registration system. The 1979 Act also empowered the government to acquire private land for public purposes with compensation. However, the 1979 Act was limited in scope and did not adequately address issues such as land transactions, dispute resolution, or environmental protection.[2]
Key Provisions of the 2007 Act
Ownership and Citizenship
The 2007 Act firmly establishes that only Bhutanese citizens may own land in the Kingdom of Bhutan (Section 7). This provision links land ownership directly to the nationality law framework: the loss of citizenship automatically results in the forfeiture of land rights. The Act also prohibits the sale, lease, or transfer of land to non-citizens, including foreigners and foreign-owned companies. This restriction reflects the government's longstanding policy of preventing foreign acquisition of Bhutanese land, a concern heightened by the country's position between the much larger nations of India and China.[1]
Land Categories
The Act classifies all land in Bhutan into several categories: Thram land (registered private land held by individuals), government land (land owned by government institutions and used for public purposes), state reserve forest land (forest and conservation areas managed by the government), community land (land used communally by local communities for grazing, forestry, or other purposes), and other categories including monastic land and industrial estate land. Agricultural land is further distinguished by use into chhuzhing (irrigated paddy fields used primarily for rice), kamzhing (rain-fed dryland cultivation), tsamdro (traditionally held grazing pasture), and sokshing (forest areas used for leaf litter and fodder collection). Each category is subject to different rules regarding use, transfer, and development.[1]
One of the most significant and controversial provisions of the 2007 Act was the nationalisation of tsamdro and sokshing lands. These categories, which had previously been held privately under the thram system, were reclassified as state-owned reserved forest land. The government undertook to buy back rights from existing titleholders, a process that generated considerable debate among rural communities dependent on these traditional land-use rights.
Although foreign ownership is prohibited, the Act permits long-term leases of up to 99 years for approved investment purposes. Outside the formal provisions of the Act, the kidu land programme — a form of royal welfare dating from the seventeenth century — remains an important mechanism through which the monarch grants land or other relief to disadvantaged citizens.
Land Ceiling
The Act maintains the principle of a ceiling on individual landholdings, set at 25 acres per citizen. Any land held in excess of the ceiling is subject to acquisition by the government. The ceiling policy is designed to prevent the concentration of land in the hands of a few wealthy individuals and to promote equitable distribution of agricultural resources. The ceiling applies to all forms of registered land and is enforced through the land registration and transaction system.[1]
Land Registration and Thram
The Act established a comprehensive land registration system administered by the National Land Commission Secretariat (NLCS). All private land must be registered in a Thram (land register), which records the owner, location, area, and category of each plot. The Thram serves as the primary legal document of land ownership. The Act introduced provisions for the digitization of land records and the creation of a national cadastral survey, significantly modernising the administration of land rights in Bhutan.[3]
Land Transactions
The Act regulates the sale, purchase, gift, exchange, and mortgage of land. All land transactions must be registered with the NLCS, and transfers to non-citizens are prohibited. The Act establishes procedures for the valuation of land, the payment of transfer taxes, and the resolution of disputes arising from transactions. The government retains the right of first refusal on all land sales, meaning it can purchase land at the assessed value before it is sold to a private buyer.[1]
Government Acquisition
The Act provides for the compulsory acquisition of private land by the government for public purposes, including infrastructure development, urban planning, and environmental conservation. Acquisition must be accompanied by fair compensation at market value, and affected landowners have the right to appeal the acquisition and the compensation amount. The Act also empowers local governments (Dzongkhag and Gewog administrations) to acquire land for local development projects.[1]
Environmental Provisions
Reflecting Bhutan's constitutional commitment to maintaining at least 60 percent of its territory under forest cover, the 2007 Act includes significant environmental provisions. The conversion of forest land to agricultural or residential use is strictly regulated, and the clearing of state reserve forest land is prohibited without government authorization. The Act also addresses wetland protection, watershed management, and the preservation of environmentally sensitive areas. These provisions align with Bhutan's broader environmental policies, including its status as the world's only carbon-negative country.[2]
Impact on the Lhotshampa
The land legislation has had particular significance for the Lhotshampa population. During the refugee crisis of the early 1990s, tens of thousands of Lhotshampa who were expelled or fled Bhutan had their land confiscated by the state. Under both the 1979 and 2007 Acts, land ownership is contingent on citizenship; the denationalization of the Lhotshampa under the 1985 Citizenship Act therefore automatically resulted in the loss of their land rights. Many of the confiscated properties were redistributed to northern Bhutanese settlers or converted to government use. The question of land restitution remains one of the most contentious unresolved issues of the refugee crisis.[4]
References
- National Land Commission Secretariat. "Land Act of Bhutan 2007." https://www.nlcs.gov.bt/wp-content/uploads/2012/08/Land-Act-of-Bhutan-2007.pdf
- Wikipedia. "Land reform in Bhutan." https://en.wikipedia.org/wiki/Law_of_Bhutan
- National Land Commission Secretariat (NLCS), Royal Government of Bhutan. https://www.nlcs.gov.bt/
- Human Rights Watch. "Trapped by Inequality: Bhutanese Refugee Women in Nepal." 2003. https://www.hrw.org/reports/2003/nepal0903/6.htm
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