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

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].

On November 6, 2023, Thailand’s Department of Lands issued a circular letter clarifying that the use of units in condominium buildings for hotel business operations is not allowed. Circular Letter No. Mor Tor 0517.3/Wor 23302, which was sent to all provincial governors in Thailand, explains this by emphasizing that although the Condominium Act (No. 4) B.E. 2551 (2008) rules that some condominium units can be used for commercial operations purposes, the term “commercial operations” does not include hotel business operations. This is in accordance with the Condominium Act’s primary aim of safeguarding the rights of condominium unit owners for residential purposes rather than for the purpose of commercial or hotel business operations. The circular letter also references Opinion of the Council of State No. 710/2550, which specifies that the commercial operations allowed under the Condominium Act are those providing services to the co-owners of a condominium building (e.g., convenience stores and restaurants) and further specifies that these commercial condominium unit areas must have separate exits and entrances that do not disturb the residents of the condominium building. In light of these considerations, using a condominium building for hotel business operations is not permissible, regardless of whether consent is obtained from the co-owners of the condominium building or whether the condominium building’s purpose is changed from residential to hotel purposes (whether in whole or in part). To use a condominium building for hotel business operations, the building owner would have to first cancel the condominium building’s registration under the Condominium Act so that it is no longer regarded as a condominium building. Then it can be used for hotel business operations, provided that the building and business operator comply with the requirements under the hotel law and other relevant laws and regulations (e.g., Building Control Act, Town and Country Planning