System overview
Laos has a small banking sector dominated by state-owned banks (BCEL, Lao Development Bank) and a handful of private and joint-venture banks (Phongsavanh Bank, ST Bank, Indochina Bank, ACLEDA Bank Lao). The Bank of the Lao PDR (BOL) is the central bank [1]. The Lao kip (LAK) has persistently depreciated (roughly 5-10% per year against the USD in recent years). The economy is partially dollarised in practice despite BOL restrictions on foreign-currency transactions. Many major purchases are quoted in Thai baht (THB) or USD.
Opening an account as a foreigner
Requirements:
- Valid passport with valid visa (work visa, retirement visa, or long-stay visa). Tourist visa is generally insufficient.
- Work permit or residence certificate (depending on the bank).
- Proof of address in Laos: rental contract or certificate of residence from the local authorities.
- Initial deposit: 500,000-2,000,000 LAK (about 20-80 EUR at market rates).
BCEL is the most widely used bank by expats. It has English-speaking staff in Vientiane and Luang Prabang branches, and its mobile app (BCEL One) is functional. ACLEDA Bank Lao (subsidiary of Cambodia's ACLEDA) is also foreigner-friendly.
Account types
- LAK savings account: everyday account. Interest rates of 4-7% (reflecting high inflation). The kip tends to depreciate, so the real return is often negative for foreign residents.
- Foreign-currency savings account: USD or THB accounts are available but BOL restricts payments in foreign currency within Laos. Useful for receiving foreign income and holding value.
- Fixed-deposit account: LAK or USD, 1 to 12 months. Rates of 5-10% in LAK, 3-5% in USD.
International transfers
Inbound
SWIFT transfers are possible but slower than in neighbouring countries (2-5 business days). Correspondent fees are 15-30 USD per transfer. Wise does not support LAK. Transfers are typically routed through a US or Thai correspondent bank.
Outbound
Laos has capital controls. You need BOL approval for outward remittances above 10,000 USD per month, plus documentation of source of funds. In practice, most expats use informal channels (cash carried across the Thai border, or transfers via Thai bank accounts) for significant outbound movements.
Digital banking
BCEL One is the leading mobile banking app in Laos. It supports:
- Transfers between BCEL accounts.
- Transfers to other Lao banks (real time via Lao National Payment Network).
- Bill payment and mobile top-up.
- QR payments (LaoQR).
- English-language interface.
Digital banking in Laos is less advanced than in Thailand or Vietnam. Cash remains the dominant payment method.
Debit and credit cards
Debit cards (Visa/Mastercard/JCB) are typically available with savings accounts. Credit cards are difficult for foreigners without a work permit and proof of income; collateral-based cards are possible but uncommon.
ATMs
Present in Vientiane, Luang Prabang, Savannakhet and Pakse. Outside major towns, coverage is sparse. Foreign-card withdrawal fee: 15,000-25,000 LAK (about 0.60-1 EUR) per transaction. Maximum per withdrawal: 1,000,000-2,000,000 LAK (about 40-80 EUR). ATMs dispense LAK only.
Tax implications of interest
Interest on bank deposits incurs 10% withholding tax, deducted at source.
This page is not financial advice. Confirm current requirements with the specific bank branch.