Categorized | Pattaya Lifestyle

Property Market in Myanmar & Laos (Final Blog of Series)

Posted on 20 December 2012 by ABPC

Property Market – Thailand’s Neighbours

As we continue our theme on the property market of some of Thailand’s near neighbours we will look at Myanmar (Burma) and Laos.

The information and views expressed below is again taken from the respected website http://www.globalpropertyguide.com

Myanmar: Overview

Myanmar (pop. 57,641,000; GDP/cap US$154) is one of the most closed societies. Its leadership exists largely to enrich itself by whatever means possible. The simple act of having a telephone installed requires a bribe, and the system appears to be institutionalized, with little interest by the military leadership to change matters, since it also helps perpetuate its hold on power. Smuggling of everything from drugs to jade is rife across the porous borders with China and Thailand.

Most overseas development assistance ceased after the junta began to suppress the democracy movement in 1988 and subsequently refused to honor the results of the 1990 legislative elections. The World Bank has approved no new lending for Myanmar since 1987, and has no plans to resume its program.

Foreign investment is highly restricted. Foreigners cannot own land but can lease it for periods up to 30 years, or more if approved by the government.
Myanmar restricts property ownership to its citizens
Rental Income: Property income earned by nonresident foreigners is generally taxed at a flat rate of 35%.
Capital Gains: Capital gains realized by nonresident foreigners are generally taxed at a flat rate of 40%.
Inheritance: There are no inheritance taxes in the country.
Residents: Residents are taxed on their worldwide income.

Real estate status in Laos
Laos (pop. 6,201,000; GDP/cap US$482), officially Lao People’s Democratic Republic, is the poorest and least developed country in East Asia. More than three-quarters of the country’s people live on less than US$2 a day and the country’s social indicators are among the worst in the region, according to World Bank. Only 66.4 percent of the population is literate. Aside from poor economic conditions, foreigners are cautious about going to Laos because of Avian flu.

Foreigners can only lease land, for up to 75 years.
Income tax is moderate in Laos
Rental Income: Rental income from leases of houses, lands and other assets is taxed at a flat rate of 15%.
Capital Gains: Capital gains derived from selling real property are considered as ordinary income and taxed at progressive rates.
Inheritance: There are no inheritance tax in Laos.
Residents: Individuals are taxed on their income from sources in Laos at progressive rates, from 5% to 25%.

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