– Foreigners can only buy properties for residential purposes, not for commercial purposes.

•  – Foreigners can only buy properties in designated areas, which are usually urban areas and tourist zones. They are not allowed to buy properties in certain restricted areas, such as near military bases or national borders.
• – Foreigners are not allowed to own more than 30% of the units in a condominium complex, or more than 250 houses in a ward or township.
• – Foreigners are required to have a valid visa and to declare their source of income to be eligible to buy properties in Vietnam.

Besides, The Vietnam Housing Law also stipulates

Land ownership

In Vietnam, land is owned by the state and individuals and organizations can only have the right to use land. This means that when foreigners buy a house, they are essentially buying the right to use the land on which the house is built. The leasehold period for residential land is up to 50 years, and it can be extended.

Taxation

When buying a house in Vietnam, foreigners are subject to a value-added tax (VAT) of 10%, and a personal income tax (PIT) of 2% if they sell the property within five years of purchase. They are also subject to an annual property tax, which is calculated based on the value of the property.

The process of buying a house in Vietnam as a foreigner can be quite complex and involves several steps. Here is a general overview of the process:

Find a property – Do foreigners buy houses in Vietnam

The first step is to find a suitable property that meets your requirements and budget. You can work with a reputable local real estate agent to help you find properties that meet your needs.

Negotiate the purchase agreement – Do foreigners buy houses in Vietnam

Once you find a property that you want to buy, you will need to negotiate the purchase agreement with the seller. It is recommended to work with a legal firm to help with the negotiation and drafting of the purchase agreement.

Pay the deposit – Do foreigners buy houses in Vietnam

After the purchase agreement is signed, you will need to pay a deposit to secure the property. The deposit is typically around 10% of the purchase price.

Conduct due diligence – Do foreigners buy houses in Vietnam

Before finalizing the purchase, it is important to conduct due diligence to ensure that the property has a clear title and is free from any legal issues or disputes. A legal firm can help with the due diligence process.

Pay the purchase price

Once the due diligence is completed and any issues are resolved, you can pay the remaining purchase price. As a foreigner, you will need to use a foreign currency account opened at a licensed bank in Vietnam to make the payment.

Transfer ownership

After the purchase price is paid, the transfer of ownership can be completed. A legal firm can help with the registration of the property transfer.

Pay taxes and fees

As mentioned earlier, you will need to pay a value-added tax (VAT) of 10%, personal income tax (PIT) of 2%, and an annual property tax. Your legal firm can help you with the calculation and payment of these taxes and fees.

It is important to note that the specific process may vary depending on the location of the property and other factors. It is recommended to work with a trusted local real estate agent and legal firm to ensure that all relevant laws and regulations are followed throughout the process.

GATE2V.COM will be the unit to help you with housing laws in Vietnam to make buying a house easier. All legal procedures will be consulted and supported by our staff. Contact us: (84) 916 545 618

Important documents for buying a house in Vietnam?

When buying a house in Vietnam as a foreigner, there are several important documents that you should obtain and review to ensure that the property has a clear title and is free from any legal issues or disputes. These documents may include:

Land use right certificate – Do foreigners buy houses in Vietnam

This document confirms the right to use the land on which the property is located. It includes information such as the size and location of the land, the duration of the land use right, and any restrictions or encumbrances on the land.

Construction permit – Do foreigners buy houses in Vietnam

This document confirms that the property has been built in accordance with local building regulations and has been approved for use as a residence.

Ownership certificate – Do foreigners buy houses in Vietnam

This document confirms the ownership of the property and is issued by the local land registry office. It includes information such as the name of the owner, the size and location of the property, and any encumbrances or restrictions on the property.

Sale and purchase agreement – Do foreigners buy houses in Vietnam

This document outlines the terms and conditions of the sale and purchase of the property, including the purchase price, payment terms, and any warranties or representations made by the seller.

Tax receipts and certificates

These documents confirm that all relevant taxes and fees associated with the property have been paid up to date.

Other legal documents

Depending on the location and type of property, there may be other legal documents that you should obtain and review, such as zoning certificates, environmental permits, and utility certificates.