Laos Laws
Acquiring Land or Property as a Non-National
In Laos, the law generally does not allow non-nationals to directly purchase land or find homes for sale and buy them. However, it is possible to buy properties under the name of a Lao citizen. It is crucial to note that this approach carries potential risks that may result in substantial financial losses. Non-nationals seeking to pursue this route can seek advice from our expert team on effective techniques to minimize such risks.
Purchasing Hotels, Guesthouses, and Other Businesses
At present, non-nationals are not allowed to directly purchase businesses in Laos. However, there is an alternative option for non-nationals who wish to acquire such properties. They can enter into long-term leases with Lao nationals, effectively becoming lessees and securing the business along with its property assets. Individual agreements between property or business owners and potential lessees can be easily formed. The law permits leasehold periods ranging from 25 years to even 90 years.
Is Tenure Restricted for Property or Homes For Sale?
The Lao People’s Democratic Republic government has full ownership of all land in Laos. Nonetheless, individuals have the opportunity to acquire land use rights from the government, granting them the authority to utilize the land. When it comes to Lao citizens or those with Lao nationality, there are no specified limitations on the duration of tenure for properties available for sale or other types of property. Consequently, if a Laos national purchases a property, they possess permanent rights to both the land and the property. On the other hand, non-Laos individuals can purchase buildings, but they are not authorized to own land or obtain land use rights.
In summary, navigating the process of buying property in Laos as a non-national requires careful consideration of the legal restrictions and potential risks involved. Seeking advice from professionals in the field is crucial to ensure a smooth and successful transaction.
Is the buying or selling of land and property subject to taxation?
Yes, the sale or purchase of land and property is indeed subject to taxation. The tax amount applicable to land sales differs based on the specific location and type of land involved. To determine the annual land tax, a rate per square meter is utilized, and the payment is due in the first quarter of every year. Presently, the majority of land transactions are taxed at a rate of 6%. However, it is advisable for investors to consult with experts to accurately determine the taxes owed in their particular situation.
Who is Responsible for Land Tax Payment?
In general, the burden of paying land tax falls upon the seller of a property, as they are expected to fulfill their obligation to the government. Nevertheless, there exists room for flexibility in reaching agreements where the purchaser assumes the responsibility of paying the tax on behalf of the seller. Such arrangements can be subject to negotiation and may be incorporated into leasing agreements for land or property.
Navigating the realm of property and homes available for purchase can be a challenging undertaking, especially in Laos. The laws governing real estate transactions in this country are intricate and demanding, particularly for non-nationals. Mishandling these matters could potentially lead to significant financial burdens for prospective buyers.