BUYING PROPERTY IN VIETNAM – HOW TO BUY A HOUSE?

Currently, many foreigners want to buy real estate in Vietnam but they do not know the conditions and procedures for buying houses in Vietnam? If you have the above problems, you can contact us at  0979.964.828   (Viber/WhatsApp)  or refer to the article “Can foreigner buy a house in Vietnam? ” by  Luat Hung Bach Law Firm 

Can foreigner buy house in Vietnam? 

Vietnam’s real estate market has a great attraction for domestic investors and many foreigners and Viet Kieu (Vietnamese citizens who live abroad). Homeownership in Vietnam is a residence and an effective investment while Vietnam’s economy is developing. Recently,  the real estate lawyer of Luat Hung Bach Law Firm has received many questions: Can foreigner buy property under the name of the foreigner? Should you ask someone to homeownership in Vietnam? How to own real estate in Vietnam?

According to Article 7  Law on Housing 2014  of Vietnam, Entities eligible for the homeownership in Vietnam consists of:

• Vietnamese organizations, households, or individuals;
• Overseas Vietnamese;
• Foreign organizations and individuals prescribed in Clause 1 Article 159 of this Law.

With the above provisions, foreign organizations and individuals are entitled to buy house in Vietnam. However, not all foreign organizations and individuals are allowed to buy house. They must fall into one of the following cases:

• Foreign entities who invest in project-based housing construction in Vietnam as prescribed in the Law on Housing, the Law on Real Estate Business, and corresponding law regulations.
• Foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign-invested funds, and branches of foreign banks operating in Vietnam, etc. These enterprises which are registered to operate in Vietnam are entitled to buy house in Vietnam.
• Foreign individuals are allowed to enter Vietnam. He/she is required to have permission to enter Vietnam and he/she is not granted diplomatic immunity and privileges as prescribed.

Thus, if foreigner satisfies the above requirements prescribed, they will be allowed to buy a house in Vietnam. Do you have problems with immigration to Vietnam? If you want to buy a house in Vietnam, you are able to contact a real estate lawyer at  0979.964.828  (Viber/WhatsApp)  or send an email to luathungbach.hcm@gmail.com for advice and support. aid.

Reference:  List of housing projects sold to foreigners in Hanoi.

How to buy a house in Vietnam?

Foreign individuals who satisfy the above conditions can buy house in Vietnam with one of the following ways:

1. Invest in project-based housing construction in Vietnam

Procedures for investment in construction of commercial housing projects as prescribed in Vietnamese law are carried out according to the following steps:

• Step 1:  Submit a dossier to request the competent authority of Vietnam to approve the policy on housing project.
• Step 2:  Apply for a Certificate of land use right and  Construction Permit for the project.
• Step 3:  Deploy and build housing projects in Vietnam.

Basically, the procedure to build a project in Vietnam will include the above steps. However, this is very complicated so foreigners are able to build a housing project. Furthermore, the scale and cost of the investment project is also very large compared with the purchase and sale of apartments.

2. The Foreigner buys house in a commercial housing project.

The homeownership Conditions for foreigners in Vietnam will be simple if they choose to buy house in projects. The Vietnamese law stipulates that commercial housing construction projects are sold to foreigner with a rate of no more than 30% of the apartments. With the current number of commercial housing projects, foreigner can be assured of the supply of apartments.

Buying and owning houses in such projects by foreigners will be much simpler and more convenient than building housing projects. Although projects can be bought by foreigners, it is necessary to exclude projects with risks of affecting national defense and security. The Ministry of National Defense, the Ministry of Public Security, and the People’s Committees of provinces and cities in Vietnam will have specific regulations on this issue.

Currently, according to statistics of Luat Hung Bach Law Firm, there are hundreds of eligible projects for sale to foreigners. If you need to find an apartment in any province of Vietnam, you can contact  0979.964.828  (Viber/WhatsApp)  or email luathungbach.hcm@gmail.com for support. In addition to providing a list of projects for you to choose from, we can support the procedure until you own a house in accordance with Vietnamese law.

The foreigner who has entry visas to Vietnam can buy house according to the following steps:

Step 1: Choosing property.

The foreigner chooses apartments in commercial housing projects to buy. You should choose reputable projects and investors to minimize risks. When choosing, it is also necessary to check whether the apartment or project is eligible for sale to foreigners in accordance with Vietnamese law.

Step 2: Hiring a property lawyer in Vietnam (optional)

I suggest you should consult a solicitor for significant transactions as there may be still some difficulties blocking your way.

If you do not have any experience and are concerned about risks when carrying out procedures for buying and selling house in Vietnam, you can contact phone number  0979.964.828 (Viber/WhatsApp)  or email luathungbach.hcm@gmail.com for advice and support from a lawyer.

Step 3: Depositing to buy house in Vietnam.

After choosing a suitable apartment, foreigner can sign a deposit contract to buy a house. The deposit amount depends on the agreement of the parties or the investor of each project. The deposit will be deducted from the amount you pay when you buy the home.

The deposit will also determine the value of the house, the time of signing the sale and purchase contract and other relevant terms. The value of houses in Vietnam depends on each area, each project and according to the agreement of the parties.

Step 4: Sign a house purchase contract and make payment.

The foreigner signs a house purchase contract with the project investor. The housing purchase contracts for foreigner will stipulate the rights and obligations of the parties. The foreigner can pay for a house in Vietnam in one of the following ways:

• Cash payment to the seller: Note that if the house purchase is paid in foreign currency by a foreigner, the amount of foreign currency brought into Vietnam must not exceed the value of the apartment. When entering Vietnam, they must complete customs declaration procedures.
• Payment by wire transfer from overseas accounts: Foreigners pay for house purchases in Vietnam by transferring money from their accounts abroad to sellers’ accounts in Vietnam.
• Payment by transfer from an account opened at a Vietnamese bank: Foreigner will open an account at one of the banks in Vietnam. They need to Payment on account and then transfer money from your account to the investor/seller.

Step 5: Apply for a Home Ownership Certificate/Pink Book for foreigners.

After receiving the apartment, foreigner can carry out the procedures for applying for a pink book. Or foreigner can also provide documents for the investor to apply for a pink book for them.

Taxes and fees when foreigner buys house in Vietnam

The law of Vietnam does not distinguish between tax obligations and fees when buying a house between Vietnamese and foreigner. When foreigner buys house in Vietnam, they may be applied to the following taxes and fees:

•   Income tax when transferring house: The income fee when transferring house is prescribed at 2%/transfer value. This fee can be agreed upon by the buyer or seller.
•   Registration fee: The registration fee when applying for a pink book is 0.5%/asset value.

In addition to the above two fees, to ensure safety when buying a house in Vietnam. Some foreigners may pay an extra fee to hire a lawyer to check, select a project/apartment and assist with the purchase procedure.

Buying house Documents in Vietnam

Question:  Hi Lawyer! I am a Korean citizen and have a Vietnamese wife; we are working in Hanoi now. We want to buy a house near our workplace. We have a lot of questions: foreigners are allowed to register in the pink book, are not they? What documents do we provide to buy a house in Vietnam?

Thank you Lawyer!

Hello!  According to the Vietnamese law, a foreigner who buys a house needs to have a dossier including the following documents:

•   Marriage registration.
•   Identity card, household registration, passport of the wife.
•   Passport Legalized Consular in Vietnam of husband
•   Visa to enter Vietnam is still valid. The visa period is counted to the time of signing the house purchase contracts.
•   Visa exemption certificate (if any).

Foreigner can prepare the above documents to buy a house in Vietnam. According to regulations, foreigner can still have their names on the pink book if they meet the conditions prescribed by Vietnamese law.

A purchase house contract for foreigner in Vietnam

According to Vietnamese law, the investor of a commercial housing project will prepare a Model Contract which signs with the customer to buy the apartment. This contract must be registered with the competent authority.

How long does it take for foreigner to have homeownership in Vietnam?

Question:  Hi Lawyer! I am an overseas Vietnamese and have US Citizenship. I want to buy a house in Vietnam but I do not know if overseas Vietnamese can buy it? How long is the homeownership period? When the homeownership expires, can I sell it? I hope a lawyer can help me.

Thank you!

Answer:  Hi! For your question, Luat Hung Bach Law Firm would like to answer as follows:

According to Vietnamese law, overseas Vietnamese and foreigner are allowed to buy house in Vietnam.

How long is the homeownership period? The time limit for homeownership in Vietnam depends on each type. Specifically:

•   Foreigner and overseas Vietnamese buy an apartment: 50 years. At the end of the above period, if they need to continue using it, they will apply for an extension.
•   With foreign organizations: the homeownership period time is calculated according to the term of the investment certificate in Vietnam.

Expiry of homeownership term, what should foreigner do? : Expiry of homeownership term, foreigner can apply for an extension to continue using. If you do not continue using, you can sell, donate, contribute capital, etc. before the expiration dates.

The above time is not expired or extended. Foreigners will lose ownership of houses in Vietnam.

Should foreigners buy house under the name of a Vietnamese citizen?

Question:  Hi Lawyer! I am an Australian citizen. Currently, I am living and working in Ho Chi Minh City. I want to buy an apartment, but I do not know the procedure. I have a question. Should I buy houses in Vietnam and ask Vietnamese residing in Vietnam to be the apparent owner?

Thank you Lawyer!

Answer:  Hi! For your question, Luat Hung Bach Law Firm would like to answer as follows:

Currently, The Vietnamese law prohibits foreigners buy house under the name of a Vietnamese citizen. Therefore, this is illegal if you ask someone else to buy an apartment in their name. These agreements will not be recognized and protected by Vietnamese law. In some cases, the person who is asked to buy a house by their name may also be handled for violations in accordance with Vietnamese law.

Asking Vietnamese residing in Vietnam to be the apparent owner which often leads to disputes. You may lose the right to own and use the apartment when this case is disputed in Court.

Therefore, you can refer to the conditions for foreigner to buy an apartment in Vietnam. You can carry out the procedures for buying and selling apartments on your own. In case you need assistance with the procedure, you can contact phone number  0979.964.828   (Viber/WhatsApp)  or email to luathungbach.hcm@gmail.com for advice and support.

Can foreigners transfer or donate house in Vietnam?

Question:  Hello Luat Hung Bach Law firm! I am Chinese. I bought an apartment in Vietnam. I will return home, so I want to transfer my house in Vietnam to someone else.  Do foreigners have the right to sell or donate houses? What is the transfer process?

Answer: Hi! For your question, Luat Hung Bach Law Firm answers as follows:

Foreigners are allowed to transfer house in Vietnam.

According to the Law on Housing, foreigners are allowed to sell house in Vietnam. When they do not want to use it and the homeownership is still valid, a foreigner is entitled to sell it or give it to another person. Entities eligible for housing transfer of foreigner can be organizations or individuals as prescribed in Article 7, Law on Housing.

If the buyer is Vietnamese, the homeownership period after receiving the transfer is unexpired. If the buyer is another foreigner, the ownership term will continue the remaining term stated in the Certificate. At the end of the above time limit, if the foreigner wishes, he or she can apply for an extension.

In addition to the transfer, the foreigner also has other rights such as Donating; Mortgage; Capital contribution; Lease,…

Conditions and procedures for foreigner to sell house in Vietnam.

The foreigner can sell house in Vietnam if they meet the following conditions:

•   Have a homeownership certificate.
•   No dispute.
•   Currently owning a home.
•   Not being distrained for judgment enforcement.
•   Not subject to withdrawal or demolition under the decision of a competent authority.

If meeting the above conditions, foreigner can sell house in Vietnam according to the following steps:

•   Step 1: Prepare relevant documents and documents for the transfer.
•   Step 2: Negotiate the transfer price, sign a deposit contract in case you want.
•   Step 3: Notarizing the house sale contract and make the payment.
•   Step 4: Carry out procedures to transfer the name of the red book, pay taxes and fees from the transfer.

The foreigner who want to transfer, donate, mortgage, etc., if you do not know the procedure, you can contact phone number  0979.964.828  (Viber/WhatsApp)  or send an email to luathungbach.hcm @gmail.com for lawyer advice and support.

A lawyer supports the procedures for foreigner to buy houses in Vietnam.

Luat Hung Bach Law Firm is a leading real estate lawyer/ property lawyer service provider in Vietnam. With a team of good, reputable and professional lawyers, we can assist many foreigners in performing tasks such as:

•   Consulting, supporting visa procedures to enter Vietnam.
•   Search and select projects and apartments that are allowed to be sold to foreigners.
•   Reviewing and drafting documents, contracts.
•   Support foreigner to apply for a house ownership certificate.
•   Support procedures for buying, selling, donating, mortgaging, contributing capital,… housing.
•   Representation to resolve disputes in Court.

The foreigner who wants to buy a house in Vietnam or consult and support for the above services can contact Luat Hung Bach Law Firm by one of the methods below:

•   Phone: (Zalo/Viber/Whatsapp): 0979.964.828 
• Fanpage: https://www.facebook.com/LuatHungBach – https://www.facebook.com/Lhb.hcm
• Website: https://lhblaw.vn/ – https://luathungbach.vn/
• Email: luathungbach.hcm@gmail.com

Above is an article by  Luat Hung Bach Law Firm to answer the question “Can foreigner buy a house in Vietnam? “. If you have any problems related to homeownership in Vietnam, you can contact our lawyers for advice and support.

Best regards!