How to buy property in Laos
Land, Properties, and Homes for Sale in Laos – Tips and Tricks to Be Aware of
Buying land or property or finding a home for sale is major undertaking for any individual. If that individual is a non-national the issues can be even more complicated in Laos. Mistakes can prove to be expensive so understanding some simple tips and tricks can help an investor find their way through the issues.
Foreigners Buying Land or Houses
Generally, the law in Laos does not permit non-nationals to purchase land or find homes for sale and purchase them. It is however, possible to buy in the name of a Lao person. Any non-national considering this should be aware that there are potential risks that could prove very expensive. Non-nationals can always talk to our team about techniques for minimising the risk of losing money. Call us on +856 20 2389 9999 or email on sale@realestateinlaos.com to speak with one of our experts.
Foreigners Buying Hotels, Guesthouses, and Other Kinds of Businesses
Currently, buying a Laos business is not permitted if the purchaser is non-national. However, it is possible for non-nationals to enter into a long term lease with a Laos national. Becoming a lessee is one way of securing a business with property assets. Individual agreements between property or business owners and potential lessees can be created easily. The law allows for a range of periods to be included in a leasing agreement. Leasehold periods are possible under the law for periods of 25 years, and even up to 90 years.
Does Property or Homes For Sale Come with Restricted Tenure?
The Government of the Lao People’s Democratic Republic owns all land in Laos. However, land use rights can be bought from the government, giving the holder the right to use the land. For Lao citizens or those with Lao nationality, there is no established period of tenure regarding homes for sale or other property. This means that if a property has been bought by a Laos national, they have the rights to use that land and property permanently. Non-Laos nationals may purchase buildings but are not permitted to own land or the land use rights.
Is the Sale or Purchase of Land and Property Taxed?
Land and property sale is subject to taxation. The amount of land tax varies according to the location and they type of land involved. Land tax is calculated annually based on a rate per square meter and falls due during the first quarter of each year. Currently, most is charged at 6% but investors should seek professional advice to establish what taxes are due. Call us on +856 20 2389 9999 or email on sale@realestateinlaos.com to speak with one of our experts.
Who Pays Land Tax?
The seller of a property should be responsible for paying tax to the government. However, it is possible to come to agreements where the purchaser pays the tax on behalf of the seller. These arrangements are negotiable and can be included in any leasing agreement for land or property.
Finding Your Way Around Property and Homes For Sale
For any person who has found a home for sale, the law in Laos is complex. For non-nationals it is doubly so. If issues are not dealt with correctly it could prove to be very costly for the purchaser. Get the best advice on how to progress by calling Realetateinlaos.Com on +856 20 2389 9999. You can also email us on sale@realestateinlaos.com