Asia-Pacific · LAK
Laos
Reviewed 2026-06-21
Top income tax
25%
Self-employed SS
Optional
VAT
10%
Capital gains
2%
Exit tax
No
Nomad visa
No
63
/ 100
Tax efficiency70
Ease to enter42
Ease to exit77
Cost of living94
Internet9
English25
Laos taxes individuals on a progressive monthly scale from 5 percent up to a 25 percent top rate, with residents (183 days or more) taxed on worldwide income while foreigners are generally taxed only on Lao-sourced earnings. There is no wealth tax, no capital gains tax beyond a flat transaction levy on share and property sales, no CFC regime and no exit tax, but social security and a 10 percent VAT apply. For a solopreneur it is a very low cost base with weak English proficiency, no digital nomad visa and a difficult business setup environment.
Personal income tax
Income tax structureProgressive
Top income tax rate25%
Entry income tax rate5%
Top rate threshold$35,350
Taxation basisTerritorial
Local/state income taxNo
Social security
Self-employed social securityOptional
Employee SS rate5.5%
Employer SS rate6%
Indirect & other taxes
VAT standard rate10%
Capital gains rate2%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxYes
Inheritance top rate5%
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate20%
WHT on dividends10%
CFC rulesNo
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaNo
Entrepreneur visaNo
Ease of setup2 / 5
Lifestyle
Cost of living index26.4
Internet speed47.46 Mbps
English proficiencyLow
Civil liberties18
Sources
- PwC Worldwide Tax Summaries — Lao PDR Individual: Taxes on personal income
- PwC Worldwide Tax Summaries — Lao PDR Individual: Income determination (capital gains, dividends)
- PwC Worldwide Tax Summaries — Lao PDR Corporate: Taxes on corporate income
- PwC Worldwide Tax Summaries — Lao PDR Individual: Other taxes (social security, VAT, gift tax)
- DataReportal — Digital 2026: Laos (Ookla fixed broadband speed)
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.