Several years ago, the Vietnamese government passed the Law on Residential Housing No. 65/2014/QH13 which enabled foreigners to purchase project houses and condominiums for use here.
If you are a foreigner and are interested in buying a house or an apartment here, our real estate law firm in Vietnam is at your service with detailed information on the requirements you must meet. You can also rely on our Vietnamese lawyers for support during the purchase procedure.
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How to buy a house in Vietnam
Local and foreign citizens are allowed to buy houses in Ho Chi Minh City, in Hanoi or in any other part of Vietnam. The acquisition procedure is not different from that of other countries and implies the following steps:
- search for the suitable type of property which can be done with the help of a real estate agency or on your own;
- complete the due diligence stage, once you found a property that suits your needs and meets your expectations;
- make an advance payment, if the property checks out;
- complete the transaction and paying the remaining amount of money;
- applying for the Pink Book.
Out of all these steps, obtaining the Pink Book is probably the only unknown when comparing buying a property in Vietnam with another country. This is why, you can rely on our lawyers in Vietnam for.
Obtaining the Pink Book
The Pink Book is a legal document that attests to a person’s ownership of any structures on the property as well as their right to use it for land use. It is also known as the Certificate of Property Use Rights and Ownership of House and Other Assets Attached to Land. It includes details on the property and rules and conditions related to land usage.
If you want to buy a house in Ho Chi Minh and need support in applying for the Pink Book, our real estate lawyers in Vietnam can assist with the procedure.
Obtaining a certificate for the right to use a property in Vietnam
There are 3 types of right to use certificates that can be obtained by foreigners who want to acquire properties in Vietnam. These are:
- by award, which implies the government offers the right to use land for Vietnamese companies (you can be a foreign shareholder in such a business);
- by recognition which can be obtained from the government without paying any fee;
- by lease which is available for foreign entities and citizens through a contract with the government.
Each type of contract comes with specific requirements, which is why you can use the services of our real estate law firm in Vietnam for this purpose.
Conditions for foreign citizens and investors who want to own real estate in Vietnam
The first and most important condition for foreign citizens and investors who want to own real estate in Vietnam is to have a valid visa in order to acquire the right of use over a property.
What is also important to know is that once a foreign citizen has obtained a right of use certificate can pass the respective property as inheritance to other family members. They can also rent or sell the house or condominium with prior notification.
One important aspect to take into account is that a foreign citizen cannot hold more than 30% of the properties in a building or more than 250 houses in the same neighborhood.
In the case of companies, the ownership certificate they can obtain cannot be on a longer term than their certificates of investment.
Should you want to acquire properties here, you can rely on our real estate lawyers in Vietnam for guidance in meeting all the requirements imposed by the law.
What types of properties can foreigners buy in Vietnam?
Foreign citizens or investors can purchase various types of real estate in Vietnam, among which:
- apartments;
- villas;
- houses.
These must be part of investment projects that are not located in areas of national defense or security. A list of the premises can be obtained from the Provincial Department of Construction which falls under the supervision of the Ministry of Construction in Vietnam.
Once acquired, the new owner can enjoy the rights over the property no more than 50 years from obtaining it, however, this right can be extended for another 50 years.
If you are interested in acquiring a property in this country, do not hesitate to use the services of our real estate law firm in Vietnam for a quick procedure and to make sure you meet all the requirements in terms of documents.
Documents required to buy a property in Vietnam as a foreigner
For foreigners looking to buy a house in Vietnam there are several documents to prepare. So make sure you have the following paperwork in order to complete the transaction as swiftly as possible:
- the valid passport bearing a Vietnamese visa;
- the valid residence permit for Vietnam;
- proof of funds under the form of a current bank statement;
- the certificate of ownership which must be presented by the seller;
- the sale-purchase agreement;
- the certificate of land use and construction which can be obtained after the purchase.
The latter document will be used to register the property with the Vietnamese Cadaster.
These steps are available no matter where you decide to acquire your property. So, if you want to buy a house in Hanoi, you will need to complete the same procedure.
Is it possible to buy a house in Vietnam and obtain residency/citizenship?
You can buy a property in Vietnam by holding either a tourist visa or residence permit. However, it is important to note that even if Vietnam has a residence by investment program, it is not available for real estate acquisition. So, if you want to immigrate to Vietnam, for example, you will be allowed to acquire the desired property and apply for ordinary residency. Following that, you can also obtain citizenship in Vietnam.
Feel free to address our law firm in Vietnam for guidance in real estate acquisition and residency matters. If you decide to immigrate to Vietnam, our lawyers will help you establish the type of residence permit you qualify for. While it is not difficult to move here, our local specialists can offer information on the most suitable options for you, in accordance with the information you send us about your qualifications.
The Vietnamese residence permit and the work visa are two distinct documents with different. The work permit enables a foreign worker to take a job in Vietnam, whereas a residence card is an official paper permitting a foreigner to enter and remain within Vietnam for the pre-established timeframe which usually coincides with the validity of the employment contract.
Taxes and fees to consider when buying real estate in Vietnam
There are several fees and taxes to be paid if you buy a house in Vietnam. Some of them must be paid by the seller, and some by the buyer. Here is how they are divided between the two parties:
- 2% of the selling price must be paid by the seller under the personal income tax;
- another 2% must be paid by seller as a maintenance fee;
- the buyer must pay the value added tax on the purchase, which is 10%;
- the buyer must also pay the registration fee which is 0.5% of the value of the property.
The notary fee is usually split between the buyer and seller and can range from 0.05% to 0.1% of the property value. Our accountants in Vietnam can offer detailed information on how these costs are calculated.
So, when deciding to buy a house in Ho Chi Min or Hanoi, you ought to consider the value of the property to acquire.
The main provisions of the Real Estate Law in Vietnam
What should be noted about real estate property in Vietnam is that under the national legislation, Vietnamese citizens or companies have the right to use lands and built properties while they are being owned and administered by the government.
This is one of the main reasons to use the services of real estate lawyers in Vietnam when coming here with the purpose of purchasing a property for use or starting a business that operates in this field (under the new law, new share capital requirements are imposed on real estate enterprises).
The most important change in the legislation provides for foreign citizens and companies, including branches and subsidiaries, to acquire various projects for use.
Our law firm in Vietnam can provide you with the latest information on the rights to acquiring real estate here.
We offer specialized accounting support at your disposal. Payroll, financial statements, and day-to-day account administration can all be handled expertly with the aid of our accountants in Vietnam. Get in touch with us to see how we can assist you in charting the proper accounting course for your business.
The Vietnam real estate market
The Vietnamese real estate market is comparable in price ranges with some of the largest markets in Europe. According to the most recent data:
- the market is expected to reach a total value of USD 4.41 trillion in 2024;
- the residential share, which is also the largest, is predicted to have a total value of USD 3.91 trillion;
- by 2028, the real estate sector is expected to grow by 1,60% annually.
For assistance in buying a property here, do not hesitate to contact our real estate lawyers in Vietnam.