Below you can find the steps involved. Foreigners cannot buy and own land, like in many other Southeast Asian countries. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. In case your tenant moves out, they’ll found you a new one. One question – what happens at the end of the 50 or 70 year lease period. Thank you for the article. Foreigners often buy property directly from developers on the primary market, or from foreigners that previously bought property on the primary market. In Vietnam, the land is collectively owned by all Vietnamese people but governed by the state. The VAT is 10% when buying condominiums on the primary market. Needs more warnings about buying a propoerty in Vietnam. Kindly refer to the breakdown below and for the highlighted inconsistencies. Old colonial style buildings mixed with local culture and new skyscrapers make this place one of the most interesting places to invest in the coming years. Standard Chartered). Nevertheless, foreigners are not allowed to buy more than 30% of the condominium properties, nor to have more than 10% share in a land project. If you look for a beachside resort, Da Nang or Nha Trang could be better choices. We’re not even half way through this whole selling process and it’s hard to find information on the internet, or a qualified lawyer overseas or in Vietnam to help. However, property prices are still some of the lowest in Asia. That said, Hanoi is more complex as it requires temporary residential proof. You usually have to pay the following amounts: When paid, the developer will provide you a booking number and you’ll be on the list of ‘First buyers’. In Vietnam, all land is owned collectively, so technically neither foreigners nor locals may … At the end of 2015, the Ho Chi Minh Stock Exchange (HOSE) removed all restrictions on foreign ownership. *Keep in mind that you need to keep all the supporting documents about the purchase and sale to repatriate the funds (e.g Deposit agreement, Purchase agreement, payment statements from the bank you used to transfer the money into Vietnam to buy the unit, and the Sales agreement). The average price per square meter is USD 2,269 in the central areas, while property in suburban areas averages at USD 1,083 per square meter. Your agent can help you to find tenants and to draft the tenant agreement. For more info, I recommend you to read our separate article that goes into more details. As mentioned, foreigners can buy 30% of the condominium units in a project. You can sublease, mortgage, contribute as capital, gift, bequest, exchange, etc, the unit under certain limitations. Is it guaranteed? When the ‘rumor phase’ has finished, the developer organizes the official sales event, people who have a booking number are only allowed to attend. We use cookies to ensure that we give you the best experience on our website. Property is from a local developer and freehold. I assume that by “lease” you mean Long Term Lease and not SPA, which are the two ways for a foreigner to buy a property at the moment. If you buy-to-let, you need to pay a VAT of 5% and a personal income tax of 5%. Vietnamese can control land plots permanently though, while foreigners can only do so for up to 50 years (sometimes 70) at a time. I need 2 bedrooms, 2 bathrooms full furniture apartment in HCMC and I’ll pay 30% of the total amount and the remaining amount will be as monthly installments for 4 or 5 years. 1. I accept that this form collects my name, email and other information that may be forwarded to a real estate agency or other relevant agency (read our. Both are said to be 50 years + 50 years renewable. It’s not always easy to choose the right location when investing in a foreign country. If you check for property in places like Da Nang and Nha Trang, you can easily find condos starting from USD 60,000 – 80,000 per unit. – There’s no need to open a special investor account, or any local bank account for that matter, when buying property. There is a common misconception that foreign citizens or companies cannot buy property in Vietnam. You can also read my separate articles that list new upcoming property projects for sale in Ho Chi Minh City, and other cities. This typically takes 3-6 months. joint-ownership). You better talk with a lawyer as I haven’t heard about this kind of situation before. – There’s no need to have a special investor account when selling property, but you do need to open a local bank account (preferably using an international bank, e.g. Transfer Tax = 5% With that said, prices are lower than in Ho Chi Minh City. Before you invest in Vietnam’s property market, you have to understand the local buying process. Single persons who sell property must provide a ‘single certificate’ from their home country, certified at that country’s consulate/embassy where they live, and later certified by Vietnamese authorities. The rest must be allocated to Vietnamese citizens. There are qualified lawyers in Vietnam that can help with this. It will give you the right to lease your property and declare information regarding inheritance, for example. But thanks to the Vietnam’s Land Use Rights (LUR) (also known as Ownership Certificate of Property), foreigners are allowed to use and control the land they lease with a leasehold period of up to 50-70 years. In Metro Star (District 9), the starting price was as little as USD 1,500 per square meter before completion. Most of the rest purchase in beachfront … Below you can find a comparison of what has practically changed after 2015. Promote your Asia properties or pre-construction projects via our website and email list. At the time I’m writing this article, the Government is considering extending the leasehold period from 50 years to 99 years, which is positive of course. My understanding is that you can only sell to a local. It’s attracting a lot of foreign companies, expats and wealthy locals. Very useful. Selling a house in Vietnam can very cumbersome for foreigners, especially if the married couple don’t live in the same country. Stamp duty = 0.5% Your email address will not be published. Besides, not only did Vietnam loosen its restrictions to foreigners in the real estate market. Also bear in mind that you’ll need to pay a personal income tax (PIT) plus a value-added tax (VAT) of 10% of the total yearly rental income. As you can see, drastic changes have been made to open Vietnam to the foreign market. Hi Gavin, if your marriage would have been registered in Vietnam before the Pink book was issued, you would automatically co-own the property with your wife (i.e. 2. 1. Keep in mind that you need to submit a Land Use Rights Certificate (LURC) to the Vietnamese Government before you’re able to lease the land. A provision contained in the Housing Law two months ago allowed foreigners to buy houses in Vietnam, but most real estate developers still have few foreign clients. In fact, even citizens are not allowed to own land. Marcus is a Swedish Engineer and previously worked as a Sales Manager within the Automotive industry in Shanghai. Despite ownership issues, many foreigners are looking to buy property in Vietnam However, in July 2015, the Vietnamese Government introduced the Vietnamese Law on Residential Housing (LRH), which made it remarkably easier for foreigners to buy property. Da Nang has experienced great increases in housing prices recently and gets heavily developed. The law provide detailed regulations on entities who have rights to buy houses in Vietnam, as well as their conditions, rights and obligations. Before that, foreigners had to work in Vietnam for at least 1 year (the same as it goes in China) and meet certain criteria. 4. This has happened before. Can foreigners buy land in Vietnam? You can choose units from a list during the event but it’s not obligatory to attend the event in person. Make sure to hire a lawyer and that you will receive your ownership certificate (pink book) beforehand. I’m Thieu I’m from Vietnam I can help you. Yes, we do know people who already got the pink books in Hanoi, for example. When I visited Nha Trang some time ago, I was surprised to see signs in both Chinese and Russian, many locals, even street vendors, are capable to communicate in Russian or Chinese, when foreigners try to haggle over prices. Your email address will not be published. Promote your Asia properties or pre-construction projects via our website and email list. You can sign the Sales & Purchase Agreement (SPA) around 3-6 months after paying the deposit agreement. It also gives you the right to control the land leased or allocated by the Vietnamese state. Thankfully, Vietnam has a law on land called Land Use Rights (LUR) that reduces the risks for foreigners to invest in Vietnam. Foreigners allow to buy property in Vietnam including condominium and landed property such as villa and townhouses but foreigners are not allowed to own land. Ask your agent for help to create a rental agreement. Vietnam doesn’t have any investment visa for overseas property investors. In short: Yes, with the new Vietnam Housing Law, Foreigners are now able to own/buy/invest in Vietnam Property on a 50+ years leasehold. With a comparison to China, I’d say that Hanoi is similar to Beijing, whilst Ho Chi Minh City resembles Shanghai or Shenzhen. 6. According to law, foreigners cannot own properties in areas that are reserved to protect the national defense and security. thanks, We do have a separate article that explains how it works when transferring money into/out of Vietnam: https://www.asiapropertyhq.com/transferring-money-vietnam/. Your article is very informative, however, I’ve noticed that some of the percentage figures for the property taxes are inconsistent from the the video and the article. Alternatively, according to Vietnam’s Housing Law, every foreigner who has a Vietnamese visa stamp on their passport can buy a property in Vietnam. I recommend you to give them a call or send them an email before you go to Vietnam to see what they have to offer and to clear all questions, Transfer your money directly from your home country to another branch in Vietnam. Even if the SPA (Sales and Purchase Agreement) can be used to prove that you bought the property, the strongest evidence of ownership is to have both of them. There are restrictions on the secondary market as you can’t buy property from local citizens in case the foreign quota is already filled (30%). As written in the national Land Law, foreigners and foreign organizations are allowed to lease land. If you buy property on the resale market, this step won’t be included. Here are the points to be covered by the new law on land ownership by foreigners in Vietnam: By holding a visa, even if it is a tourist visa, foreigners can buy real estate without limitation in number. Vietnam Property Tax - Foreigners Guide to Investing in Vietnam. Singapore. Hello. Please contact me email “[email protected]”. Do you plan to buy property in Vietnam? For now the property is in my wife name – I had to transfer funds so that we could but) I didn’t want to take the leasehold option – NOW that the marriage certificate is listed here do you think I can somehow transfer the ownership to my name – or at least joint..? Click here to get in touch with an experienced agent. Under the new regulations, there are no particular restrictions for foreigners to rent out real estate in Vietnam. Even if you’re not allowed to own land, you have the right to use land – as stipulated in the LUR. Now, Viet Kieu (Vietnamese citizens who live abroad), foreigners holding a visa, and foreign legal entities can purchase land in Vietnam, in the same way as Vietnamese citizens. property projects for sale in Ho Chi Minh City, https://www.asiapropertyhq.com/transferring-money-vietnam/, Vietnam Ownership Certificates of Property, The Process when Buying Property in Vietnam, Transferring Money to Vietnam when Buying Property, The Best Cities to Buy Property in Vietnam, Foreigners can buy property if they are allowed to enter Vietnam, There’s no cap to the number of properties you can buy, Foreigners are restricted to buying a maximum of 30% of the units in condominiums and cannot own more than 10% of the properties in landed projects, Foreigners can buy houses, but only 250 of the houses in a given ward (division). How to find available ones? Sure, Vietnam has a nice climate and offers very low living costs and nice cuisine. Rental yields are among the highest and you can pay as little as USD 1,500 per square meter for new condos in upcoming areas around Ho Chi Minh City. This gives you priority to choose units when the first sales event is launched later. Can I buy property as a foreigner in Vietnam? Also what are the best sites or resources for finding and communicating with developers and agents? With a Long Term Lease, the buyer is the owner of the unit through the developer, while for a SPA, the buyer is the owner of the unit through the state. This guide sheds light on the ways that foreign investors can obtain property in Vietnam. When the developer is ready to hand over the unit, you pay 45% (Vietnamese buyers: 25%), you have then paid 95% in total. Before 2015, you could only lease for 50 years and with renewal possibility upon expiration. Disclaimer: We don’t offer any kind of insurance or compensation, due to losses caused by the agency, developer, banks, government or any other party that may be involved in the buying process. They will be able to own the property for a maximum of 50 years and enjoy the same rights to lease, transfer or sell the property as Vietnamese citizens. Thanks! Rental income tax = 20% (inconsistent with article) 5. First the spouse (living in another country) will need to sign a Vietnamese legal paper rendering the property, find the closest lawyer or a notary to prove the marriage is real, and then go to a Vietnamese consulate (often in the capital) to again authenticate the marriage certificate and the passport, and then send these documents to Vietnam. It is important to note the Property Tax in Vietnam as it will affect the net return on your investments. Legal basis of Vietnamese real estate When acquiring a property, you have to remember that the freehold basis is not complete, as landowning is not a legal right in Vietnam. There are international banks such as, Transfer money (VND) directly to the seller, A loan covering up to 80% of the property value, A loan period of 15 years (so-called loan tenor). Shortly explained, collaterals are used to make sure that you can repay the mortgage in case you default. How about leasing a plot of land? You just need to make sure that the developer will sign a new SPA with you (be sure to contact the developer first).. Keep in mind that to receive the pink book later, you need to have an SPA. Can a foreigner buy property in Vietnam? As the political and cultural center, Hanoi has not attracted as many investors compared to Ho Chi Minh City. Also, this doesn’t only apply to married persons, but singles as well. You will then pay around 10% to 20% additionally. Hey I live in the U.S and plan to travel to Vietnam in a few months to live there up to about a year maybe and hopefully make my first property investments in or around Da Nang. I believe that foreigners can only sell to other foreigners if there’s only a foreign name in the pink book. Fill in the form to get connected with a real estate agent in Vietnam, Malaysia, Thailand or other countries. In general, you have three options when making payments: At the moment, you need to declare any cash values that exceed USD 5000, when entering or exiting Vietnam. We’ve recently heard about a new law and are very curious to hear from you whether anything will change for our situation. The book proves your ownership and rights to the property. If you won’t have the opportunity to join, the agent can join on your behalf. For Vietnamese citizens, the rate is 70%. Citizenship – A foreigner can become a Cambodian Citizen by payment of $50,000, which is paid to the government and noted as a donation. Foreigners can reach the city with direct flights from the major business hubs in Asia. We can mainly blame unfavorable and strict foreign ownership regulations. Even if Vietnam doesn’t offer any investor visas or retirement visas, like Thailand and Malaysia, it’s easy to stay on a tourist visa long-term. There’s also a possibility to renew the lease for 50 more years. 5. The name comes from the small pink book that you should receive after you purchased a unit. Metro Star is located in the upcoming District 9 and is close to Thao Dien, directly connected with the MRT. Ho Chi Minh City offers a vibrant atmosphere, many opportunities, and is close to other hubs like Kuala Lumpur, Phnom Penh, Hong Kong, and Singapore. I got one question though. Foreigners who can enter Vietnam. No, foreigners cannot buy land as it’s ‘jointly owned’ by the people and controlled by the state. Maximum volume of ownership Not sure whether it’s illegal or what should we notice more? And not only do property prices increase fast, but the rental yields are also good, especially in comparison with other Southeast Asian countries. Here, you can easily obtain retirement- and long-term visas. Thankyou! How does it work? I am Phuong, as my study Forgetiner really hard to get Pink book and put there name on it. If you look for high price appreciations, developing areas in Ho Chi Minh City can be a good choice. Rental Income Tax : 5% PIT + 5% VAT per annum on gross rent. Meaning, is there maybe a credit check involved or anything else in addition to them checking your I.D? Hanoi is the capital in Vietnam, but still smaller than the biggest business hub, Ho Chi Minh City. In other words, foreigners now have legal rights to buy houses in Vietnam. VAT = 10% when buying condominiums on the primary market Only then, you can repatriate funds upon selling. At the time of signing the deposit agreement, you have to pay around 10% to 20% of the unit value. Still, places like Thailand, Malaysia, and the Philippines are preferred options among retirees. We use cookies to ensure that we give you the best experience on our website. Learn how Asian countries compare on foreign property ownership rules, taxes, visa options, capital controls and more. 3. Yes, developers generally allow foreigners to pay up to 50% by installments. He is currently a freelance consultant supporting Asiaimportal (HK) Limited with content creation and research. Now, there are no restrictions for foreigners to have Vietnam as their domicile (like in Indonesia) or to stay there for a specific amount of time each year. Below, I’ve summarized the most important information to take note of the new law, issued in 2015: Foreigners cannot buy land in Vietnam, this is the standard in most other Southeast Asian countries. Many foreign investors choose buying property in Ho Chi Minh City (Saigon) or Hanoi. Hi Davide, agents can help you with this. 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