How do foreigners buy real estate in Vietnam? Important points and rules

Changes in the treatment of foreign customers

In recent years, Vietnam has seen a significant evolution in the attitude towards the purchase of real estate by foreigners. Previously, there were many obstacles that made the process difficult for foreign nationals. The conditions for foreign investors in the past had different categories, which also added to the complexity.

Who could purchase real estate

Firstly, only those foreigners who made direct investments in the country's economy or managed registered enterprises with foreign capital had the opportunity to invest in real estate in Vietnam. In addition, there is a category of people who have received special recognition for their contribution to the development of the state. These are usually:

• professionals with unique knowledge;
• Highly qualified employees with in-demand skills;

In addition, those who were married to Vietnamese citizens were allowed, making it possible to secure housing through family ties. Employees of companies with foreign investment were also not left out, who needed to be provided with housing while working in the country.

Opening up the real estate market

The beginning of 2015 was marked by the opening of the real estate market to foreign citizens, which was a landmark event on the way to simplifying real estate transactions. Now not only individuals, but also international investment structures, banking organizations, as well as local branches of foreign companies were able to freely purchase real estate. This included both:

• apartments,
• individual homes,
• villas and townhouses.

The new conditions expanded the rights of owners, allowing them not only to use the property, but also to use it in business. Foreigners were also granted the right to rent out their properties, to trade them and to pass on inheritance.

Lizhold and its benefits

Recent changes in legislation have added the possibility for foreigners in Vietnam on a tourist visa to purchase housing on a leasehold basis. This type of contract involves the ability to hold ownership for up to 50 years with the possibility of renewal. In addition, owners can engage in:

• resale,
• by renting it out,
• inheritance rights.

All these measures greatly simplify the process for new buyers, as now it is not necessary to stay in the country for a long time to become the owner of your own home.

Market accessibility for foreign investors

Lienhold represents the possibility to establish the right to real estate for a permitted period of time, which makes the market more accessible to private investors and foreigners. Thus, the new regulations are becoming more flexible and receptive. The simplification of conditions has made Vietnam more attractive to foreign buyers, transforming it into a place not only for vacation, but also for active business and real estate investment.

Market situation

As for the market situation, stable economic growth and increased interest from foreigners have contributed to a significant increase in housing prices and improvement in the quality of services provided. There has been a significant revitalization in the rental segment and construction of new residential complexes, which is also evidence of the recovery of the entire industry.

Conclusion

Thus, when it comes to the rights and obligations of foreign buyers of real estate in Vietnam, it is important to keep in mind the recent changes that have made the market more open and profitable. Investors are advised to carefully research the terms of transactions and consult with local lawyers and realtors. This will help avoid legal misunderstandings and make the process of buying real estate in the country as efficient as possible.

Buying real estate in the UK for foreigners

The UK has a system similar to the Vietnamese system that regulates the purchase of real estate by foreigners. Since the new legislation came into force in 2015, non-residents have been able to take title to residential properties. They can purchase up to 10% of detached villas or no more than 250 such properties within one administrative district, whichever is less. For apartment complexes, this limit is 30% for apartments. This approach to real estate allows foreign buyers to do business in different parts of the country, unless there are specific prohibitions.

Vietnamese legislation on land ownership

On the other hand, Vietnam has a number of strict laws regarding land ownership. According to national legislation, all land in the country belongs to the state, and individuals can only use it under certain conditions, which implies limited rights to full ownership. Owners of plots have the right to rent, exchange, inherit or encumber them, but cannot fully dispose of the land. Foreign nationals may rent out their properties, but will require special permission from the local government. Tax on rental income varies and the rate depends on the total amount of income received.

Hoi An City: The Venice of the East

The city of Hoi An, famous for its picturesque canals and fishing boats, is often compared to Venetian landscapes. During the rainy season, the streets are flooded, opening up new income opportunities for local boatmen.

Conditions for the acquisition of residential real estate by foreigners

The purchase of residential property by foreigners after 2015 requires the buyer to have an active passport and an entry visa issued by the Vietnamese immigration authorities. If the foreign buyer does not have diplomatic status or consular immunity, he or she can buy housing under the same conditions as local citizens.

Special conditions for foreign citizens

• Marriages to Vietnamese citizens:For people married to Vietnamese citizens, there are special legal provisions that allow them to own real estate without time restrictions.
• Time of possession:In contrast, all other foreigners are only allowed to own real estate for a period of up to 50 years, which significantly imposes restrictions on ownership rights.

Thus, the process of foreigners acquiring real estate in Vietnam remains more stringent compared to other regions, and this plays a key role for investors considering investing in the country.

Opportunities to own real estate in Vietnam

Vietnam offers many real estate opportunities for foreigners. Citizens of other countries can extend their ownership of property for an additional 50 years, but this requires the approval of the local People's Committee, which is responsible for the management of the property. This condition is especially important for those who are married to Vietnamese citizens, as in this case there is no need to notify the housing authorities of plans to rent out the property.

New legal framework

More recently, a new legal system has been initiated to allow foreign nationals to purchase housing and obtain mortgage loans on equal terms with Vietnamese citizens. If a foreign resident owns residential real estate and has a residence permit, he or she can freely leave Vietnam and return without the need for a visa.

Acquisition of housing for employees of foreign companies

For international companies engaged in investments, there is an option to purchase residential properties for their employees. However, in this case, the residential properties cannot be used for rental or other commercial purposes. The rules require that foreign organizations can own private homes if certain conditions are met. In particular,

• The holding period shall not exceed the period specified in the investment certificates issued by the Vietnamese authorities;
• The real estate may only be used for the needs of employees with no right to further leases.

Restrictions in certain areas

Ensuring security and preserving state sovereignty creates certain restrictions - there are areas where foreigners and their companies are prohibited from owning real estate. Local building authorities regularly post information on their official websites about such areas and houses where foreign ownership is registered. However, so far such a register does not cover all cities and provinces in Vietnam.

The famous Golden Bridge

Amidst all these changes, the Ba Na Hills tourist area is home to the famous Golden Bridge pedestrian bridge, which attracts many tourists and those interested in buying real estate. It is also important to note thattax residents of the Russian FederationIn other words, persons staying in the country for more than 183 days a year must notify the Russian tax authorities of the creation of bank accounts abroad or the opening of legal entities. This requirement may be relevant when purchasing residential real estate abroad.

Search for real estate in Vietnam

For those who plan to search for real estate in Vietnam, we recommend starting with online resources that will greatly simplify the selection process. On platforms such as.fazwaz.vnand other specialized sites, you can sort options by various criteria, save interesting offers and subscribe to new announcements. You can also leave a request for selection of housing, and experienced realtors will offer you the most suitable options that meet your preferences. Use all available tools to make your real estate search process efficient and convenient.

Overview of the Vietnamese real estate market

Today, to get a full understanding of the current state of the Vietnamese real estate market, it is necessary to read several articles and recent news. Given the current trends, Vietnam offers a variety of options for buying real estate.

Villa in Da Nang

One of the interesting properties includes a villa located in Da Nang and valued at553,021 €The total area of this villa is210 square metersThe property has two bedrooms and one bathroom. This luxury property was created for vacation purposes and shows a high profitability, exceeding the10% per yearThis is made possible by its prime location right by the sea.

New projectFusion Resort & Villasin Da Nang offers unique amenities for a comfortable vacation, including:

• individual gardens
• private swimming pools
• pavilions

All villas are in close proximity to the beach, which is certainly one of the main advantages of this offer.

Apartments in Ho Chi Minh City

It is also worth paying attention to other real estate options. For example, in Ho Chi Minh City there is an apartment for sale for110,128 €The area of this apartment is46 square metersand includes 3 rooms, including two bedrooms. The apartment can be viewed online and purchased remotely with payment in rubles.

This offer is a luxury dwelling in the projectGlory Heightscreated by a well-known real estatedeveloperVinhomes Grand Park. This apartment will be a great investment for investors as it offers a one bedroom layout with an additional room. RESIDENTIAL COMPLEXGlory Heightsis located in the most sought-after area of Ho Chi Minh City, which enhances its appeal to buyers.

Another apartment option in Ho Chi Minh City

Another interesting opportunity is an apartment in a popular neighborhood in Ho Chi Minh City, at a cost of180,638 €and an area of81 square meters.. This apartment has 4 rooms, including 3 bedrooms and 2 bathrooms. As in previous offers, the property is available for viewing online and payment can be made in rubles.

This facility is also part of the complexGlory Heightsand provides investors with a chance for yields of up to30% per year. This high potential yield is due to the following10% offto buy.

Compact apartments

If you're looking for a more compact option, it's worth considering a studio in Ho Chi Minh City, priced at76,042 €. The square footage of this apartment is only31 square metersIt contains one room and one bathroom. As in previous offers, online showings, remote transaction and payment in rubles are available. This studio is also part of the projectGlory Heightsand represents an interesting investment option.

Apartment in Nha Trang

In addition, an apartment in Nha Trang is offered at a price of97,168 €She occupies46 square metersand includes 2 rooms, one bedroom and one bath. This apartment is located in a resort complexLibera Nha Trangand promise a high return on investment reaching10%.

This reputable developer offers beachfront accommodation that is ideal for both temporary living and stable rental income. The complex's amenities include:

• swimming pools
• recreational areas

This makes living here particularly comfortable. Nha Trang has more200 days of sunshine a yearThis creates the perfect conditions to relax and enjoy life by the sea.

Interesting offers on the real estate market in Vietnam

On the Vietnamese real estate market you can find a lot of interesting offers. One of them is a cozy studio in Nha Trang, which costs 46,010 €. Its area is 28 square meters and it will be a great option for both personal use and investment.

This property is located in the Libera Nha Trang resort complex and offers high rental yields reaching10% per year! The proximity to the beach makes this offer particularly attractive for those who want to enjoy more than a200 days of sunshineevery year. The complex offers a variety of amenities including swimming pools and activity areas.

Unique apartments in Nha Trang

Another great opportunity in Nha Trang is an apartment for a51,423 €with an area of 26 square meters, located on the first line of the sea. This property is located in the heart of one of the most popular resort cities in Vietnam and is perfect for people who want to earn a stable rental income.

As in the previous sentence, you will be able to enjoy the200 days of sunshineyear, and the Japanese management company Asahi Luxstay provides high quality service to its customers.

Popular options in Ho Chi Minh City

Ho Chi Minh City also offers attractive housing options. For example, an apartment with a price of139,836 €and an area of 55 square meters is created for the purpose of renting and is a unique offer in the city.

This business class features vertical landscaping and is located in the modern Grand Park neighborhood, which has a well-developed infrastructure. In addition, a unique installment plan for investors is available, which makes the offer even more tempting.

Apartments for investors

It is also worth paying attention to the apartments for102,000 €occupying 46 square meters. This project was developed by a major developer in Vietnam and is located in a rapidly developing area of the city.

• It provides for a protected area
• Excellent infrastructure
• Ideal for technology park employees of large companies such as Intel and Samsung

Investment attractiveness of Vietnamese real estate

Vietnamese real estate attracts both local and foreign investors.

General information about real estate

In the real estate industry, it's surprising that only 10% of realtors have the knowledge and skills to be qualified. This underscores how important it is to carefully select a real estate broker when buying real estate.

Stages of acquiring real estate

Purchasing real estate is a multifaceted process that involves several key stages, one of which is the reservation of the property. This stage involves the payment of a deposit, which serves as a guarantee of the buyer's serious intentions. When considering the security aspect of real estate transactions in Vietnam, it should be noted that the methods of protecting the rights of buyers here have much in common with the practices of other countries.

Buying property on the primary market

When preparing to buy housing on the primary market, it is worth considering whether the developer has all the necessary licenses to carry out construction work, to study the building permits in the area, as well as check the availability of approvals for the project with all local authorities. In cases where you intend to purchase residential space from the developer, both under construction and ready-made housing, it is required to familiarize yourself with certain documents.

• Certificate of registration of the developer.
• Building permit with 1/500 detailing.
• Documents confirming the developer's right to the given land plot.
• Approval documentation from the investor.
• License for investment in construction activities.

Purchase on the secondary market

If you are considering purchasing real estate on the secondary market, checking the legal cleanliness of the documents is one of the top priorities. This can best be done by a lawyer who will schedule a check of all legal aspects. Important points to pay attention to are as follows.

• Verification of ownership: existence of documents confirming the seller's right to the property, including a building permit.
• Seller's bankruptcy: find out if the seller is in bankruptcy.
• Restrictions on sale: whether there are no restrictions on the ability to sell this type of property.
• Debts: take into account the former owner's debts on utility bills and other debts to the management company.

Signing a reservation agreement

Once you have verified that the property is legally clean and free of possible encumbrances, it is time to sign a reservation agreement. This agreement fixes the obligations of both parties in the transaction. Usually the buyer makes a deposit, which can range from 50 to 200 million VND, which is approximately equivalent to 4.5 to 9 thousand US dollars. This money serves as proof of the client's serious intention, and in case of rejection, the amount remains with the seller as compensation. It is possible to book the property for a maximum period of up to 15 days, so it is highly recommended to check all the terms of the contract with a professional lawyer.

Signing process

The agreement can be signed either at the developer's office or at the agency's office, which is relevant when dealing with real estate on the secondary market. The deposit can be made either in cash or by bank transfer.

Da Nang: regional characteristics

Speaking of Da Nang, we should highlight this resort city, which is located in the central part of Vietnam and is known for its history when it was a French port. Nowadays, Da Nang is famous for its beautiful beaches and excellent conditions for both living and recreation.

Completion of the deal

For the successful completion of the transaction it is extremely important to prepare all the necessary documents and consult with experienced lawyers. This significantly reduces the risk of problems and makes the real estate purchase process more comfortable and safe for all parties to the transaction.

Introduction to Vietnam's real estate system

Vietnamese real estate is a complex market and certain documents must be prepared from both the seller and the buyer to complete the sale transaction. The main requirements are a citizen's passport, a certificate of marital status, including marriage or divorce papers, or a certificate confirming that there are no marital obligations. Also required are papers showing ownership of the dwelling, as well as a land use certificate.

Notarization of the transaction

Notarization of the agreement is mandatory for secondary market transactions. The notary verifies all submitted certificates and issues four copies of the agreement:

• One stays with the seller;
• The second is with the buyer;
• The third goes to the tax authorities;
• The fourth is sent to the real estate registration agency.

Before signing the contract, make sure it is signed by all required parties or their authorized representatives.

Contract language

The contract to buy a home must be written in Vietnamese. In case you do not know the language, it is best to contact a professional translator to help you understand all the terms of the deal. Although some sellers may offer bilingual documents to clients to increase convenience,legally recognizedonly the local language version counts.

Important things to consider when signing

There are several key aspects to consider when signing a contract:

• Make surethat the seller is indeed the legal owner of the property and provides the appropriate guarantees;
• Get acquainted with his obligations in the event of disputes related to property rights;
• Understand how the payment will be made;
• Examine the potential tax liabilities that may arise after the transaction.
• Clarify the timeline for the transfer of ownership rights.

After signing the contract

After the contract is signed, you have ten days to submit an application for changes to the land use certificate and to file a tax declaration for calculations and payment of taxes to the local environmental and natural resources authorities. If this is not done on time, you may facefines.

The role of a construction company

If the deal is conducted by a construction company, it is responsible for registering the procedure with the local building department and tax service.

Payment for the transaction

As for the financial aspects of the deal, foreign citizens can make payments either in cash or through bank transfers. It is important to remember that all financial transactions must go throughlicensed financial institutionsIn Vietnam, for example, local banks. This ensures the protection of your rights and interests during the transaction process.

Sending money to Vietnam usually doesn't pose significant difficulties. However, it's important to remember that all financial transactions must be properly documented to avoid potential issues and questions regarding the source of funds, especially if you plan to sell a property and transfer the money abroad.

Purchase of real estate and payment

When it comes to transactions involving secondary housing, the full amount is paid upfront. In the case of purchasing a new building from a construction company, the payment process is carried out in stages. Payment terms may vary depending on the specific property; most often, the initial payment (at the foundation stage) is about 20-30% of the total property cost. The remaining funds are paid during the construction process, with the last 5% paid after receiving the certificate of ownership.

Withdrawal of money from Vietnam

Today, withdrawing money from Vietnam is becoming a challenging task for foreigners who own property. To do this, you will need to provide certain documents that confirm the legality of your income. Such documents may include:

• income statements;
• confirming internal transfers;
• purchase and sale agreement.

Real estate in Nha Trang

Nha Trang, one of the most famous resorts in Vietnam, is known for its active residential development. According to the law, the responsibility for obtaining a property ownership certificate lies with the buyer, unless otherwise agreed upon by the parties. Typically, the process of obtaining such a document takes between four to twelve months.

Certificate of ownership

The ownership certificate confirms ownership of real estate – an apartment, house, or land plot. In Vietnam, this document is unofficially referred to as the "pink book" due to its distinctive color. To obtain this certificate and the right to use the land, a number of documents will need to be prepared:

• Application for a certificate in Vietnamese and English languages in the established form;
• Documents confirming the current owner's title to the property;
• Building permit from local authorities if purchasing an apartment in a residential complex;
• Lease agreement for the land or a transfer act for the plot if a villa is being purchased;
• Plan for the property transfer act;
• Documents required in the case of gifting or inheriting an apartment;
• Original sales or donation agreement, or a will;
• Certified copy of a foreign passport;
• Receipt for the payment of taxes and fees in accordance with the legislation.

Procedure for updating property rights

For foreigners owning residential property in Vietnam, the process of renewing property rights consists of several stages. It is important to adhere to all formalities and provide all required documents to ensure your protection and peace of mind. Stay updated on changes in legislation and consult with professionals to make your experience as pleasant and safe as possible.

Procedure for extending the ownership period of real estate

Three months before the expiration of the period during which the owner has rights to their property, they must submit an official request for an extension of this period. In this request, the owner should specify the necessary duration of the extension. In addition to the application itself, a notarized copy of the certificate of ownership is required.

These documents must be sent to the people's committee of the province where the property is located. The people's committee reviews the submitted application within 30 days from the date of receipt, and if all conditions are met, it provides...written permissionfor the extension of property rights. The maximum extension period cannot exceed 50 years from the original term specified in the first certificate.

Updating the certificate after renewal

After receiving permission from the people's committee, the institution that issued the certificate updates its data and sends a copy to the construction department of the same province for statistical purposes.

Remote real estate transactions

As for conducting a real estate transaction from a distance, it is entirely possible to carry out such a deal remotely. To do this, you need to contact a company in the buyer's country that has established connections with Vietnamese partners, or you can establish contact with realtors directly in Vietnam.

If the buyer prefers not to hire their own agent, they have the option to interact with the seller's realtor. If the realtor has a license, they will be able to take on all the legal responsibilities for processing the transaction.

Requirements for remote purchase

To arrange a remote purchase, a power of attorney needs to be drafted, which is prepared by a lawyer in Vietnam. This power of attorney is then sent to the country where the buyer resides, and the client must sign it in the presence of a notary.

In the power of attorney, the buyer authorizes the real estateagency to act on their behalf to complete the transaction. To successfully purchase the property, passport details and funds will be required. All subsequent actions will be carried out by the authorized representative without the buyer's involvement, who will interact directly with the seller through the agent.

Legal verification and payment translations

The authorized person is required to verify the legal purity of the transaction and find out how many apartments in the project are currently available for foreign citizens.

A special settlement account will be opened in the representative company for the transfer of funds, from which the payment to the seller will be made.

Mortgage lending for foreigners

In Nha Trang, as in other places, foreign buyers may encounter issues with mortgage lending. It is most convenient to arrange mortgage loans through international banks such as HSBC or Citibank.

• You can also consider the option of obtaining a loan from the state bank Vietcombank.
• One option could be the Russian-Vietnamese Bank VRB.

Typically, banking institutions offer loans of up to 70% of the apartment's value for various terms, including 5, 10, or 20-25 years. The interest rates on such loans range from 6.5% to 7.5% per annum.

This is one of the most attractive financing schemes available to foreign citizens looking to purchase real estate in Vietnam.

An important aspect of applying for a loan is the need to provide documentation that confirms your income level. Additionally, one should not overlook various taxes and additional costs that may arise during the process of purchasing real estate.

Taxes when purchasing new buildings

When purchasing new buildings, the buyer will encounter many taxes. For example:

• The VAT is 10%, and usually this tax is already included in the total price of the apartment.
• The reserve contribution is equal to 2% of the cost, representing a one-time payment to the developer to create a fund for the future needs of the complex.

Registration and administrative fees

The registration fee, similar to stamp duties, is 0.5% of the property value and is paid by the buyer. Administrative fees, which include the cost of issuing a certificate of ownership, can reach around $100. Notary services cost 1 million dong (approximately $43), plus 0.06% of the property value if it exceeds 1 billion dong (which is about $47,000). This payment is the responsibility of the seller.

Seller's responsibilities

In addition, the seller is obliged to cover the expenses for:

• The realtor's commission can vary from 2% to 5% of the total property value.
• Income tax at a rate of 2%.

Usually, to avoid misunderstandings, it is assumed that the registration fee (0.5% of the property's value) and administrative fees will be paid by the buyer.

VAT on purchase

It is important to remember that when purchasing new buildings, the buyer is also responsible for paying VAT (10%). However, this tax is included in the price, and if the transaction amount does not exceed the price of the apartment, no additional payments will be required.

Tax authorities

It is necessary to pay taxes to the tax authorities at the location of the acquired property. Usually, sellers are willing to cover the costs of notary services (0.06%) and the realtor's commission, as well as pay the income tax of 2%.

Inheritance of property

It should be noted that the transfer of real estate by inheritance is also considered a sale, and in this case, it is also necessary to pay an income tax of 2% on the amount specified in the notarized agreement.

The situation in the real estate market in Ho Chi Minh City

As for the current situation in the real estate market in Ho Chi Minh City, also known as Saigon, it is quite active. Real estate in this region is attracting significant interest from foreign investors. The main factors contributing to this are stable economic growth, active urbanization, and intensive construction in major cities.

Housing prices

Prices for residential and commercial real estate in Vietnam are increasing by 3-7% per year, and even during the COVID-19 pandemic, there has been no decline in prices. When considering long-term rentals, one can expect a return of about 5% per year, making such investments quite attractive.

Conclusion

Don't forget to keep an eye on the latest news and changes in the real estate market in Vietnam. In summary, it should be noted that since July 1, 2015, the real estate market has opened its doors to foreigners. Now, citizens of other countries can come to Vietnam on a tourist visa and purchase property in a leasehold format for up to 50 years, with the possibility of extension.

Moreover, foreign owners can resell their property, pass it on as inheritance, or rent it out. This makes the real estate market in Vietnam more open and attractive to those looking to invest in this developing sector.

Conclusion

In conclusion, I want to emphasize that the real estate market in Vietnam has become more accessible to foreign buyers due to legislative changes introduced in 2015. These reforms have significantly expanded the rights and opportunities for overseas clients, allowing them not only to purchase property for personal use but also to engage in renting, selling, and inheriting it.

As I mentioned before, new horizons are opening up for foreign citizens: they can now easily buy apartments and houses without the need for a long stay in the country. The programlickholdThe possibility of extending property rights creates a stable foundation for investments. However, it is important to remember the existing restrictions, such as maximum ownership shares for foreigners and regulations regarding land rights.

Investment opportunities

From the perspective of long-term investments, Vietnam represents an interesting market due to its economic growth and the continuous increase in the number of tourists. Therefore, acquiring real estate here can become not only a personal achievement but also a profitable investment.

Recommendations for investors

I urge those considering investing in Vietnamese real estate to carefully study all legal aspects and seek assistance from professional lawyers and realtors to avoid potential issues.

It's important to remember:

• Study the legal nuances of acquiring real estate in Vietnam.
• Consult qualified lawyers and real estate agents.
• Consider the existing restrictions on land ownership.

Ultimately, with an understanding of all the nuances, whether you are a foreign investor or simply someone looking to buy an apartment, Vietnam is opening its doors to new opportunities and prospects. This is becoming an exciting time to explore and engage in a growing market that, due to its appeal and affordability, is just beginning to reveal its secrets. I hope the information in this article helps you make the right choice and move forward with your investments with confidence and understanding.