On February 1, 2024, Laos’ Decree on Condominiums No. 352/GOV took effect. This decree expands on the Law on Land (2019), which introduced the concept of condominiums into the Lao regulatory framework and opened the possibility for foreigners to own apartment units (redefined as “condominium units”—see below). The Law on Land revolutionized concepts of property ownership and investment in a country where foreign ownership is still uncommon. The recent Decree on Condominiums elaborates on the law by clarifying definitions, outlining procedures for acquiring a unit, setting requirements for operating a condominium business in Laos, and addressing issues related to ownership of condominiums. Definitions Condominium: The Decree on Condominiums defines a condominium as a multistory building containing several units and various facilities. The construction must be on a parcel of land registered as “condominium land.” The units composing the condominium can be sold or assigned to domestic and foreign individuals, legal entities, or organizations. Unit: This refers to any of the units that compose the condominium and whose ownership can be by Lao or foreign individuals, legal entities, or organizations. The decree classifies units into three categories: Residential units for living in; Office units for working spaces for enterprises; and Commercial and service units that serve as a trade or service center, such as for department stores, restaurants, fitness centers, and so on. Unit owners must register the unit in accordance with its specific purpose, which must be in line with any applicable urban planning restrictions on certain types of units. Apartment building: This is a building composed of several floors and rooms that cannot be sold to Lao or foreign nationals. According to the Decree on Condominiums, rooms composing the apartment building can only be offered for rent by the owner. This is the main difference between “condominium” and

Thailand has opted to continue its reduction of rates for the sale and mortgage of certain types of properties to Thai individuals, as detailed in two ministerial regulations issued by the Ministry of Interior dated December 28, 2023, and published in the Government Gazette on January 2, 2024. In recent years, Thailand has allowed a reduction of the government fees for registering the sale and mortgage to Thai individuals of detached houses, semidetached houses, row houses, commercial buildings, the accompanying land, and condominium units with a sale price, official assessed value, and mortgage amount of up to THB 3 million. The reduced rates for these government fees are as follows: Sale: 1% of the officially assessed value (reduced from the normal rate of 2%). Mortgage: 0.01% of the mortgage amount (reduced from the normal rate of 1%). To be eligible for the reduced mortgage registration rate of 0.01%, both the sale and mortgage must be registered at the same time. These reduced rates will be valid until December 31, 2024. For more details on the reduced fees, or on any aspect of property law in Thailand, please contact Chaiwat Keratisuthisathorn at [email protected].

As part of its membership in Lex Mundi, Tilleke & Gibbins has published an updated edition of its Guide to Doing Business in Thailand for 2023. This guide outlines the key factors for starting and operating a business in the Thai market. Issues covered include: Investment incentives Financial facilities Exchange controls Import and export regulations Structures for doing business Requirements for the Establishment of a Business Operation of the Business Cessation or Termination of the Business Labor legislation, relations, and supply Tax Immigration requirements This publication is part of Lex Mundi’s Country Guides series prepared by member firms in more than 100 jurisdictions worldwide. The guides serve as a useful resource for planning international business strategy and researching new markets. The full Guide to Doing Business in Thailand is available through the button below.

Thailand’s Ministry of Interior has extended the deadlines for payment of the 2024 land and building tax and related procedures by two months. The announcement was published in the Government Gazette on November 30, 2023. According to the new timeline in the ministry’s announcement, the official land and building tax assessment forms will be sent to taxpayers by the end of April 2024 (extended from February 2024) while the deadline for payment of land and building tax has been extended to June 30, 2024 (from April 30, 2024). For payments made in installments, the announcement also extended the deadline for each installment as follows: For more details on these measures, or any aspect of Thailand’s land and building tax, please contact Chaiwat Keratisuthisathorn at [email protected] or Supranee Arjjit at [email protected].