Can foreigners buy property in Vietnam ? | Details answer

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can foreigners buy property in vietnam
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Can foreigners buy property in Vietnam? Foreigners or foreign-invested companies are allowed to buy or own real estate in this country. However, there are some conditions that you need to keep in mind when buying property in Vietnam. In this post, Wolo Tours will answer this question in detail to make purchases easier. Learn more!

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1. Can foreigners buy property in Vietnam?

It is completely possible for foreigners to buy property in Vietnam as they currently do not have any restrictions on the number of properties they can buy. Due to being one of the fastest-growing economies in Southeast Asia, Vietnam has attracted many foreign investors and expatriates to come live and work in the country.

As a result, the local government has introduced the Vietnamese Law on Residential Housing, which made it significantly easier for foreigners to own property in Vietnam since 2015. However, they still need to keep in mind some conditions when buying real estate illegally.

can foreigners buy property in vietnam

Can foreigners buy property in Vietnam?

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2. Requirement for foreigners to own property in Vietnam

There are certain things such as the property market, ownership regulations, real estate foreign ownership certificates, as well as taxes that you need to understand before purchasing property in Vietnam. More so, the attractions of the Law on Residential Housing (LRH) which dictate foreign property ownership include:

  • Foreigners are allowed to buy a property as long as they have a tourist visa.
  • Foreigners are allowed to buy countless units of real estate in the country. But, foreigners can not buy over 250 houses in a single ward.
  • Foreigners can buy up to 30% of the apartments in the apartment complex and cannot own more than 10% of the apartments in a land plot project.
  • The lease term is 50 years. However, they are allowed to extend it.
  • Foreigners married to Vietnamese have free property rights.
can foreigners buy property in vietnam

Requirement for foreigners to own property in Vietnam

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3. Can foreigners buy land in Vietnam?

Similar to most other Southeast Asian countries, foreigners can not buy and own land in Vietnam. According to the country’s constitution, the land is the collective property of all Vietnamese people and is managed by the government.

However, the law allows foreign companies and individuals to lease land for up to 50 years. But in some cases, it can go up to 70 to 99 years. Regardless of the rules and regulations becoming more relaxed and more easily loosened, you still have to be mindful in the future. For example, there is nothing to guarantee that you can usually renew your lease.

can foreigners own property in vietnam

Foreigners can not buy and own land in Vietnam

4. The process for foreigners to buy land in Vietnam

After the response to the question “Can foreigners buy property in Vietnam?” You should understand the buying process thoroughly before deciding to invest in Vietnam. No one wants to encounter any unexpected additional charges that may come up later. The following is a list of crucial things you should notice during the buying process.

4.1. Pay for a property in Vietnam

Foreigners who own property in Vietnam have many ways to choose to pay for it. There are:

  • Paying with cash assets, a housing mortgage, or both of them.
  • Some different interest rates will be allowed.
  • Nowadays, transactions that usually use VND (Vietnamese Dong) and US Dollars are not valid.

An example of a common payment method for an apartment project in District 2, Ho Chi Minh City, Vietnam is below.

PAYMENT SCHEDULE
Units TWO BEDROOM (VND) TWO BEDROOM (USD)
Total area 77.01 m2 77.01 sqm
Usage area 71.02 m2 77.02 sqm
Price/Total area (Not include VAT) 71.758.521 VND 3,098 USD
Total price (Include VAT) 6.085.840.200 VND 261,700 USD
Total price (Not include VAT) 5.532.582.000 VND 237,909 USD
Maintenance fee (2%) 110.651.640 VND 4,758 USD
Total price after discount (Include VAT + 2% maintenance fee) 6.196.491.484 VND 266,458 USD
can foreigners buy property in vietnam

Pay for a property in Vietnam

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4.2. Consider the reason to buy

You ought to find your reason why you want to buy it and what you are looking for when investing in Vietnam. The central area of Ha Noi and Ho Chi Minh City is the best choice for foreigners own property in Vietnam who are looking for high-quality hotels. They are attracting many foreign corporations, former officials, and locals.

can foreigners buy property in vietnam

Consider the reason to buy

If you like to relax on the beach, then Da Nang, Ba Ria Vung Tau, Quang Ninh, Phu Quoc, and Nha Trang are the most suitable. In Da Nang city, housing prices especially have increased rapidly in recent years. And, you are better off buying a wide range of apartments in places in Ho Chi Minh City if you are interested in high rental or business returns.

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4.3. Hire a property lawyer in Vietnam (optional)

Hiring a property lawyer in Vietnam is one of the most important options that you should refer to for important transactions as there may still be some difficulties standing in your way. Moreover, you are a foreigner, and the Vietnamese Law on Residential Housing you can not know all.

can a foreigner buy property in vietnam

Hire a property lawyer in Vietnam (Optional)

However, investors will hardly need a lawyer when buying apartments on the primary market. You can find not only foreign developers but also reputable domestic developers. Usually, your real estate developer or agent will include a real estate attorney when necessary.

4.4. Book a property

Once your agent has helped you find your favorite property, it is time to make a reservation for it. Normally, it will fall between 50 million and 100 million VND (about 2.100 USD to 4.500 USD). This fee is for reservation purposes prior to the opening date, the amount is refundable at any time.

can foreigners buy property in vietnam

Book a property

For example, if your reservation number is 87th during the opening ceremony, after 86 other people will have priority to choose the property to buy. On the other hand, if you decide not to buy the property, you can get the reservation amount back.

4.5. Pay and sign the deposit contract

At the Sale Opening Ceremony, the booking amount will be converted into a deposit and non-refundable if you decide to buy the property. When you sign the Option to enter into the Deposit Contract Agreement, pay your deposit by credit card or bank wire transfer.

can foreigners buy property in vietnam

Pay the deposite and sign the contract

4.6. Pay installment

Usually, within 14 days of paying your first deposit, you have to make your first installment. By making the first payment, you have agreed to enter into the Deposit Agreement. After this, it will not be transferable.

can foreigners buy house in vietnam

Pay installment

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4.7. Pay the installments per schedule

You and the seller should agree on all points of the contract before signing. You will then pay the following installments as specified in the contract terms. Example of the payment schedule for an apartment project in Ho Chi Minh City, Vietnam.

Time for payment Payment Rate Total (USD) Noted
May, 2019 4,292 Deposite
June, 2019 10% 26,170 Signing a deposite contract
Notice of signing a purchase contract 15% 39,255 Include VAT
After 1 month from the 2nd payment date 1.5% 3,296 Include VAT
After 1 month from the 3rd payment date 1.5% 3,296 Include VAT
After 1 month from the 4th payment date 1.5% 3,296 Include VAT
After 1 month from the 5th payment date 1.5% 3,296 Include VAT
After 1 month from the 6th payment date 1.5% 3,296 Include VAT
After 1 month from the 7th payment date 1.5% 3,296 Include VAT
After 1 month from the 8th payment date 1.5% 3,296 Include VAT
After 1 month from the 9th payment date 1.5% 3,296 Include VAT
After 1 month from the 10th payment date 1.5% 3,296 Include VAT
After 1 month from the 11th payment date 1.5% 3,296 Include VAT
After 1 month from the 12th payment date 2% 5,234 Include VAT
After 1 month from the 13th payment date 2% 5,234 Include VAT
After 1 month from the 14th payment date 2% 5,234 Include VAT
After 1 month from the 15th payment date 2% 5,234 Include VAT
After 1 month from the 16th payment date 2% 5,234 Include VAT
After 1 month from the 17th payment date 2% 5,234 Include VAT
After 1 month from the 18th payment date 3% 7,851 Include VAT
After 1 month from the 19th payment date 3% 7,851 Include VAT
After 1 month from the 20th payment date 3% 7,851 Include VAT
After 1 month from the 21st payment date 3% 7,851 Include VAT
After 1 month from the 22nd payment date 3% 7,851 Include VAT
After 1 month from the 23rd payment date 3% 7,851 Include VAT
Notice of apartment handover 25% + 2% Maintenance fee 70,183 Include VAT
Notice of handing over the certificates of ownership of house 5% 13,085 Include VAT
102.00% 266,458
can foreigners buy property in vietnam

Pay the installments per schedule

4.8. Sales and purchase agreement (SPA)

Buying property in Vietnam is a great investment for foreigners and individuals, but the process can sometimes be daunting. After qualifying your foreign ownership, the seller should draft and execute a Sales and Purchase Agreement (SPA) and it should be transferable thereafter.

can foreigners buy property in vietnam

Sales and purchase agreement (SPA)

4.9. Handover of the unit

To the Foreigners own property in Vietnam, you will have to pay the maintenance fee equivalent to 2% of the value of the property sold before you get your property. In addition to the maintenance fee, you need to pay one-year management and operation fee, registration fee (0.5%), and installment. Some developers may waive management fees for the first few years as a promotion.

can you buy property in vietnam as a foreigner

Handover of the unit

4.10. Prepare for the pink book

Once you have signed the Sales and Purchase agreement and have your financial obligations under control, it is time to submit the accompanying documents to receive the pink book. If you buy from a qualified developer, they will do this for you.

can foreigners buy property in vietnam

Prepare for the pink book

4.11. Final payment

The final payment is usually within 14 days from the date of receipt of the notice of receipt of the pink book. Note that you will be required to verify any cash value over $US 5,000 upon arrival or departure from Vietnam as required by law. However, the authorities usually do not check your money entering Vietnam but money out of Vietnam.

can foreigners buy property in vietnam

Final payment

5. Is there a difference between a Vietnamese citizen owner and a foreign owner?

In fact, even Vietnamese citizens and foreigners are not allowed to own land. In Vietnam, the land is theoretically owned by the Vietnamese people but managed by the government. Foreigners residing in Vietnam are allowed to buy houses. They may own a house but not the land on which it is built and they have the option of renting land from the government.

can you buy property in vietnam as a foreigner

Is there a difference between a Vietnamese citizen owner and a foreign owner?

Foreigners residing in Vietnam are allowed to own houses but not to sublease them. Foreigners can also sell, donate, inherit or donate houses as gifts. But if they terminate their residence in Vietnam without handling the accommodation, then after 90 days from the date of leaving Vietnam, the Certificate of Housing will automatically expire and the State of Vietnam will manage and use the house.

This article has answered and explained to you the question “Can foreigners buy property in Vietnam?”. If you find it challenging to buy a property and obtain title documents in Vietnam as a foreigner, you should contact a lawyer or talk to an agent. Wolo Tours is the best choice in this field, do not hesitate to contact them if you have any questions in the following way.

Contact Information:

  • Address: 2nd floor No 02, Alley 232, Yen Hoa street, Cau Giay district, Hanoi, Viet Nam
  • Website: https://vietnamvisatourist.com/
  • Hotline: (+84) 918 21 2468
  • Email: support@Vietnamvisatourist.com

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