The Government has decided to allow foreign investors to own residential land rights after spending over a year refining the details of the law.
Foreigners who have invested US$500,000 or more in Laos can now apply to buy land from provincial and capital authorities in accordance with the amended Law on Investment Promotion.
Under the new prime ministerial decree, eligible foreign investors will be allowed to purchase a maximum of 800 square meters of state-owned land for residential purposes or to construct on office building. Overseas investors will be permitted to use their land title as a guarantee for a bank loan and to sell the land in accordance with the law.
In the case of companies with multiple shareholders, only the legal entity can purchase land, meaning only the company itself can become a landowner despite having more than one owner or shareholder.
The restriction that prohibited foreign Investors from purchasing land from individual Lao citizens or enterprises is part of government measures to prevent a rapid increase in land prices which could occur if foreign nationals were allowed to buy unrestricted areas of land. Lao people would also be at risk of losing their land if the government allowed foreign investors to buy land directly from individuals.
Land management authorities will be required to submit any proposals to provincial leaders for consideration and approval.
Source: Vientiane Times