Foreigners participating in buying and selling real estate in Vietnam is becoming increasingly popular thanks to the open integration policy and the vibrant development of the real estate market. However, because legal regulations on ownership and real estate transactions for foreigners have unique limitations and requirements, understanding the legal regulations and necessary notes is a prerequisite to ensure legality as well as long-term benefits. 

Along with the need for foreigners to work in Vietnam is the need for a stable living. Accordingly, depending on their economic ability, foreigners choose different forms such as renting an apartment, renting a villa, or staying in a dormitory at the workplace if their economic ability does not allow or they do not have the need to live long-term in Vietnam. Besides, there is a group of foreigners who have economic potential and consider Vietnam as their second home, wishing to own an apartment for long-term, stable living. Based on that need, in the real estate market, there are many individuals, brokerage and business organizations that act as a bridge for foreigners to access and buy houses in Vietnam. In addition to organizations and individuals that comply with legal regulations and provide accurate information to help homebuyers avoid risks, there are many organizations and individuals that take advantage of foreigners’ tastes and provide inaccurate information, advice, and brokerage for foreigners to buy but the real estate is not qualified or not sold to foreigners, causing many homebuyers to encounter legal problems and irrecoverable property damage.

    So what factors should foreigners who want to conduct real estate transactions in Vietnam consider before making a decision? Below is a summary of issues that foreigners need to consider before deciding to buy real estate in Vietnam:

I. Forms of real estate ownership for foreigners in Vietnam

a) For land use rights

The Land Law 2024 stipulates that foreigners who are not of Vietnamese origin cannot be granted land use rights certificates. Therefore, foreigners should note that when they want to buy residential real estate with land use rights, they will not be issued a land use right certificate.

b) For housing 

According to Clause 1, Article 17 of the Housing Law 2023, foreign organizations and individuals allowed to own houses in Vietnam include:

• Economic organizations with foreign investment capital invest in housing construction projects in Vietnam according to the provisions of this Law and other relevant laws;
• Economic organizations with foreign investment capital, branches, representative offices of foreign enterprises, foreign investment funds and foreign bank branches operating in Vietnam (collectively referred to as foreign organizations);
• Foreign individuals are allowed to enter Vietnam.

According to the provisions of Clause 2, Article 17 of the Housing Law 2023, foreign organizations and individuals specified above can own housing in Vietnam, including apartments and individual houses through the following forms:

• Organizations specified in Point a, Clause 1 of this Article may own housing through the implementation of housing construction investment projects in Vietnam;
• Organizations and individuals specified in Points b and c, Clause 1 of this Article may own housing through purchasing, renting and purchasing commercial housing from investors of housing construction investment projects, receiving donations, or inheriting commercial housing in housing construction investment projects that are not in areas that need to ensure national defense and security as prescribed in Article 16 of this Law;
• Organizations and individuals specified in Points b and c, Clause 1 of this Article may own housing through purchasing or renting houses from foreign organizations and individuals that already own houses as prescribed in Point b of this Clause.

So, Foreigners are only allowed to own apartments and individual houses (Including: Villas, townhouses and independent houses) in housing construction investment projects, except for areas ensuring national defense and security according to the regulations of the State of Vietnam.

II. Regarding conditions for foreigners when buying houses in Vietnam

• For organizations: Be eligible to own a house in Vietnam and have an Investment Registration Certificate or documents permitted by a competent Vietnamese agency to operate in Vietnam that are still valid at the time of signing housing transactions (hereinafter referred to as Investment Registration Certificate).
• For individuals: Be eligible to own a house in Vietnam and have a valid passport with an entry verification stamp of the Vietnam immigration management agency and are not eligible for diplomatic privileges and immunities according to the provisions of the Ordinance on privileges and immunities for diplomatic representative offices, consular offices and representative offices of international organizations in Vietnam. In case of husband and wife, both husband and wife need to sign the sales contract.

III. Duration of ownership of residential real estate by foreigners in Vietnam

Article 20 of the Housing Law 2023 stipulates that foreigners can own housing according to agreements in transactions of buying and selling, renting, donating, or inheriting housing but not more than 50 years from the date of issuance of the Certificate and can be extended once for a period of not more than 50 years if needed.

IV. Taxes and fees for foreigners when buying houses in Vietnam

When buying a house in Vietnam, you must pay the following fees:

• Registration fee when registering ownership with a competent state agency: 

• • Registration fee = 0.5%*(House area*Price of 01m2*Percentage of remaining quality of the project)

• Fee for issuance of land use rights certificate.
• Contract notarization fee (if any).

V. Who can foreigners buy houses in Vietnam from?

Foreigners can only buy houses from only 02 subjects:

• Directly from the project investor, the purchased housing must be in the apartment fund allowed to be sold to foreigners;
• Acquired from other foreign organizations and individuals. It is necessary to comply with the regulations on transfer according to Vietnamese law

So, When signing a contract to buy and sell real estate, specifically housing permitted to foreigners, foreigners need to carefully consider the provisions of Vietnamese law to properly comply with the regulations to ensure their rights and avoid unnecessary risks of damage.

VI. Foreigners need to check the legal status of the real estate and the seller when buying and selling real estate in Vietnam

When buying and selling real estate in Vietnam, foreigners need to check the legality of the real estate and the seller. This includes:

• Verify the real estate has a full Certificate of land use rights, ownership of houses and other assets attached to land.
• Ensure real estate is not subject to dispute, distraint or mortgage that has not been released.

For real estate projects, foreigners need to check that the project has been approved and has enough construction permits according to Vietnamese law.

In addition, real estate buyers in Vietnam should request the seller to provide complete legal documents to ensure transparent and legal transactions.

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