The quantity of foreigners coming to Vietnam is increasing very fast, not only for tourism but also to live and work. Many of them have need of owning properties in Vietnam for living and also for invesment. So what do foreign owners in Vietnam need to note?
Who can buy properties in Vietnam?
– Foreign organizations and individuals invest in the housing projects in Vietnam according to the provisions of law;
– Foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign investment funds and branches of foreign banks operating in Vietnam.
– Foreign individuals are allowed to enter Vietnam. Particularly for Chinese customers,they need a passport without Nine-dash line ((九段线) to buy things in Vietnam.
What can foreigners buy in Vietnam?
Types of real estate that foreigners are allowed to buy include apartments, villas, shop house, offices, commercial townhouse, houses in housing projects and resale properties from foreigners.
How many properties can foreigners buy in Vietnam?
About the total number of properties foreigner can buy is not exactly stated in Vietnamese Law. But the law stipulates that foreigners can not buy more than 30% of the number of apartments in an apartment building, no more than 10% of villa and townhouse projects, or no more than 250 apartments in a ward administrative unit.
How long can foreigners own properties in Vietnam?
For foreign individuals, they are allowed to own houses under agreements in house purchase, sale, lease-purchase or donation contracts for house inheritance but for no more than 50 years, counting from the date the certificates are granted. and can be extended according to the Government’s regulations if required; house ownership term must be clearly stated in the certificate.
Under the provisions of Point c, Clause 2, Article 161 of the Housing Law, foreign buyers can do the extension of the house ownership duration which is prescribed as follows:
a) 03 months before the expiration of house ownership, if the owner wishes to extend the home, he / she must send an application specifying the deadline for the extension, enclosed with a certified copy of the certificate of housing. In the next step, they need to send those documents to the People’s Committee of the province where the house is located for consideration and settlement;
b) Within 30 days from the receipt of the owner’s request, the People’s Committee of the province shall consider and issue a written agreement on one-time extension of the house ownership term at the request of the owner own but must not exceed 50 years from the date of expiry of the house ownership for the first time stated in the Certificate, except for the case specified in Clause 3 of this Article;
In case of expiration of the house ownership term, the owner does not ask for extension, nor sell or donate this house to subjects subject to house ownership in Vietnam, this house is State owned. (Point d, Clause 2, Article 161 of the Law on Housing 2014).
How do foreigners sell/rent out their apartments?
Before the expiration of the house ownership, the foreign organization or individual sells or donates the house, the buyers/donee may own the house according to the following provisions:
a) In case of selling or giving away houses to domestic organizations, individuals,
the buyer receives ownership of freehold;
b) In case of selling or giving away houses to foreign organizations or individuals that are entitled to own houses receive ownership in the remaining term; upon the remaining ownership period.
c) The seller or the donner of the house must pay taxes and financial obligations to the Vietnamese State in accordance with law.
Foreigner can rent out their apartments to both local tenants and foreign tenants. Similar to all other cases, owners need to implement obligated procejures such as: paying taxes and residence registration.
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