DO FOREIGNER MAY OWNERSHIP OF HOUSES IN VIETNAM?

 

Do Foreigners may ownership of houses in Vietnam?

According to:

  • Law on Housing 2014;
  • Decree no 99/2015/ND-CP dated 20/10/2015;
  • Circular No 19/2016/TT-BXD dated 30/6/2016.

 

I. ELIGIBLE FOR THE HOMEOWNERSHIP

Include:

1. Foreigner who invest in project-based housing construction in Vietnam (is required to have an Investment certificate and have houses which are built under a project as prescribed in this Law and corresponding regulations of law);

2. Foreign individuals who are allowed to enter Vietnam (is required to have a permission to enter Vietnam and he/she is not granted diplomatic immunity and privileges as prescribed).

 

II. IN CASES WHERE FOREIGN INDIVIDUALS ARE ENTITLED TO DONATE OR INHERIT HOUSES IN VIETNAM

1. Foreigner who receives a house as an inheritance or a gift which is located in an area in which foreign entities must not own houses, or the quantity of which exceeds the permissible limits. May directly sell or offer the houses or authorize other persons to do so;

2. Foreign individual who is not permitted to enter Vietnam, receives a house in Vietnam as a gift or an inheritance. May authorize other organizations and individuals residing or operating in Vietnam to sell or offer the houses;

3. The house of an entity specified may only be sold or offered if the following documents are available:

3.1. An offering contract, inheritance documents conformable with regulations of law on housing and civil law of Vietnam;

3.2. Documents proving the house ownership of the giver or the inheritor according to the Law on Housing and Decree no 99/2015/ND-CP dated 20/10/2015;

3.3. A valid document authorizing another person to sell or offer the house if another person is authorized to do so.

4. Where the inheritors comprise both entities eligible to own houses in Vietnam and entities not eligible to own houses in Vietnam, the inheritors must reach a consensus on dividing the house in one of the following cases:

4.1. A person eligible to own houses in Vietnam is selected to receive the Certificate of the house from the competent authority;

4.2. The house is sold or offered to another entity eligible to own houses in Vietnam to enjoy value.

 

III. TYPE OF HOUSING ALLOWED TO OWN

Houses (including apartments and detached houses) of commercial housing construction projects, except for those in areas having national defense and security requirements prescribed by Vietnam’s regulations of law.

 

IV. LEGITIMATE HOUSING THROUGH THE METHODS

1. Invest in project-based housing construction in Vietnam as prescribed in this Law and corresponding regulations of law;

2. Buy, rent and purchase, receive, or inherit commercial housing including apartments and separate houses in the project for housing construction, except for areas under management relating to national defense and security as prescribed in regulations of the Government.

 

V. DETERMINATION OF QUANTITY OF HOUSES

1. In an apartment building (including multipurpose apartment buildings):

1.1. Up to 30% of residential apartments thereof;

1.2. If an apartment building has more than one unit or block: up to 30% of residential apartments of each unit or block.

2. Detached houses (including row houses, independent houses, villas):

2.1. If there is only 01 housing project in an area whose population is equivalent to that of a ward: up to 10% of the houses, maximum 250 houses of such project, whichever comes first;

2.2. If there are 02 housing project in an area whose population is equivalent to that of a ward: up to 10% of the houses of 02 housing project, maximum 250 houses of 02 housing project;

2.3. If there are more than 01 housing project in an area whose population is equivalent to that of a ward: the quantity of detached houses owned by foreigner reached the limit specified (250 houses) of 02 housing project, detached houses of any other project within such area may not be sold to foreigner.

 

VI. HOUSE OWNERSHIP DURATION

1. Foreigners may own housing for up to 50 years from the date of issue of the Certificate. When the house ownership period was written on the Certificate (Certificate of land use right, ownership of houses and other land attached assets – Pink book) expires, if the owner wishes to have this period extended, the State shall consider granting an extension according to law. House ownership duration must be specified in the Certificate. There is no provision for the issuance of Certificate to the Foreigners in the case of a foreigner renting an apartment for a definite period;

2. In case the foreign organization or individual sells or offers the house before the expiration of the ownership period, if the house is sold or gifted to a domestic organization, household, individual, or a Vietnamese citizen residing overseas: the buyer or recipient will acquire a long-term ownership of the house;

3. In case the foreign organization or individual sells or offers the house before the expiration of the ownership period,  if the house is sold to a foreign organization or individual eligible to own housing in Vietnam: the buyer or recipient may own the house for the remaining period. When this period expires, if the owner wishes to have this period extended, the State shall consider granting an extension;

4.The seller or giver must pay tax and other amounts to the state budget as prescribed by Vietnam’s law.