When Buying Land or a House in Laos, Who Pays This 2% Tax?

在老挝买卖土地房子，这笔2%的税到底谁来交？

ການຊື້-ຂາຍທີ່ດິນ ແລະ ເຮືອນຢູ່ ລາວ, ອາກອນ 2% ນີ້ ໃຜຈະເປັນຜູ້ຈ່າຍ?

Published: 2026-09-04 · LaoPaniti legal guides

After years of working in Laos, you have saved some money and finally found a piece of land to buy and build a house. But on the day of the transfer, the staff asks you to pay an "income tax" first, and you are confused: shouldn't the seller pay this tax? Don't worry, today let's talk about the new regulation in Xieng Khouang Province regarding the taxation of land sales, and see how this money is calculated.

1. The 2% tax: what is it based on?

According to the directive issued by Xieng Khouang Province in 2017, the sale of land use rights, buildings, or land with buildings is subject to an income tax. The tax rate is 2% of the assessed value. Note that it is not the contract price, nor the amount you actually paid, but the officially recognized "price range for land and buildings". That is, even if you bought at a low price, the tax must be paid based on the official assessed value.

2. Who pays? Both buyer and seller have a share

Many people think that the tax is always paid by the buyer, but that is not the case. Article 4 of the directive clearly states: when handling the transfer procedures, this income tax is based on the agreement between the buyer and the seller. That is, if the contract specifies who pays, then that party pays; if not, both parties must negotiate. If the seller insists on a "net price", then the 2% tax may fall on you.

3. How to pay? The process should be clear

First, the Provincial Department of Natural Resources and Environment or the district office will review the transaction documents, and after confirmation, they will be transferred to the tax officers. Then the tax officers will collect the tax according to the provisions of the Tax Law. Finally, you must obtain the tax payment certificate before you can complete the transfer. So, do not think that signing the contract is the end of the matter; if the tax is not settled, the land cannot be transferred.

4. Don't forget: this is a regulation of Xieng Khouang Province

This directive was issued by the Governor of Xieng Khouang Province and applies only to Xieng Khouang Province. Other provinces may have similar regulations, but the details may differ. If you are buying or selling land elsewhere, it is best to ask the local tax office first.

5. Related reminders

In Laos, tax issues are not limited to land sales. For example, if you open a shop and make a mistake on the invoice, you may end up paying taxes unnecessarily. To learn more, you can read our previous article "In Laos, if you make a mistake on the invoice when opening a shop, you may pay taxes in vain?".

6. What to do if you encounter tax issues?

If you are planning to buy or sell land or a house in Laos and have questions about this 2% tax, or want to confirm whether you should pay it and how much, do not guess on your own. 老法智 LaoPaniti's AI assistant can help you for free. Just visit https://www.123laoai.com, enter your question, and get a reliable reference opinion within minutes. Remember, asking in advance is better than paying back taxes later.

This article is compiled by 老法智 LaoPaniti and is for reference only, not constituting legal advice.

FAQ

When buying and selling land, is the 2% tax based on the contract price or the assessed value?

It is based on the official assessed value. According to the directive, the tax is 2% of the assessed value, calculated based on the officially determined and recognized price range for land and buildings in each period.

Is this tax paid by the buyer or the seller?

It depends on the agreement between the buyer and the seller. If the contract does not specify, it is recommended that both parties negotiate clearly; otherwise, it may affect the transfer.

Is this regulation only effective in Xieng Khouang Province?

Yes, this is a directive issued by the Governor of Xieng Khouang Province and applies to Xieng Khouang Province. Other provinces may have different regulations.

Legal basis

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