Yula.la News

According to the recently amended land law in Laos, the land is the ownership of the national community where the State represents the ownership holder and manages lands in a unison manner across the country with allocation plans, land use planning, and land development. The State grants long-term and secured land use rights to Lao citizens.

Meanwhile, foreigners have the right to lease, receive a concession of State land or purchase land use rights within a settled timeframe, and take a lease of the land from Lao citizens. The organizations that have been established with the authorization of the State, have the right only to lease or receive a concession of the land and lease from the Lao citizens.

Mainly, there are two types of Land Titling in Laos, which is a legal proof document on the ownership of the land, they are:

Land Title – a record which is considered as approved evidence for the rights of land usage, declared by the provincial or district-level land authority 

Land Certificate – official evidence for temporary rights of land usage on agricultural land or forest land, which is issued by the community or local authority.

However, Land title does not include buildings ownership that is constructed on the registered land. 

To get a land title, the owner must submit the application requesting the document with the provincial, city, district, or Land Management Authority where the land is located. The relevant authority should validate and issue the land title within three days.

According to the latest Law on Land in Laos, land ownership can now be granted to Lao nationality and foreigner under The Temporary Ownership, which is granted only for the purpose of constructing condominiums, apartment buildings, or other residential or commercial complexes up to 50 years. Due to this, foreigners can get a chance to own land for a specific use.

Through “Temporary Owner” foreigners will no longer have to get a concession agreement or leasing to own land. Furthermore, the foreign owner can have a right to transfer, mortgage, or grant the right to the land and the construction on it within the Temporary Ownership term.

Lao citizens and foreigners, regardless of their residency or employment status in Laos, are now able to own apartments in condominiums where the construction was authorized by the government. Lao citizens who own an apartment in a condominium can also get a portion of the land use rights of the condominium depending on the size of the apartment. This is an attempt to levitating the real estate market in Laos, as expats and foreign investors are considered to have a high potential for investing in apartments.

There are still the restriction for foreigners to own a land (hence the Temporary Ownership) the law seems to permit foreign investors to explore, evaluate the land or construction and valuate the land

Condominium Ownership for Foreigners

The amended law allows foreigners to construct and own condominium, which it must comply with legal entity. Foreign investors still need authorization for the construction from the Ministry of Planning and Investment, get a construction permit from the Ministry of Public Works and Transport, and register the land as “condominium land” with the Department of Natural Resources and Environment in the chosen provinces. 

As foreigners are still prohibited from owning a land permanently, the Law on Land provides three options for foreign developers as below:

1. Leasing land held by Lao citizens for a maximum of 30 years

2. Leasing or obtaining concession of land from the state for a maximum of 50 years

3. Purchasing limited land use rights as allocated by the state, for a maximum of 50 years.

Land Concession

Though foreign investors can’t permanently own land, they still can own on through a concession agreement with the authority. Below are types of lease/concession arrangements and the maximum duration of lease.

1. Lease or concession by the GOL (Government of Laos) to foreigners: 30 years

2. Lease by Lao citizen to foreigners: 20 years

3. Lease or concession by the GOL to foreign investors: 50 years

4. Lease by Lao citizen to foreign investors: 30 years

In conclusion, there are 2 ways for foreigners to own land, which are through Temporary Ownership and Concession. Though, the regulation on land ownership is still restricted, owning real estates like condominium and houses are possible.

Sources:

https://laolandinfo.org/en/legislations/

https://www.lexology.com/library/detail.aspx?g=387a95d8-6e8f-46e2-a912-f600227488fe