Guidelines for a foreigner who wishes to buy a house in Vietnam
Restriction to foreigners’ acquisition of houses in Vietnam has been loosened in Vietnam since the effective date of the 2014 Law on Housing (on July 01, 2015). Here are some frequently asked questions and answers when a foreigner wishes to buy a house in Vietnam:
Who is entitled to own a house in Vietnam?
Foreign entities eligible for the house ownership in Vietnam are:
- Foreign organizations and individuals who invest in the project-based housing construction in Vietnam.
- Foreign-invested enterprises, branches and representative offices of foreign enterprises, foreign-invested funds and branches of foreign banks operating in Vietnam.
- Foreign individuals who are permitted to enter Vietnam.
Who is entitled to own a house in Vietnam?
Foreign entities eligible for the house ownership in Vietnam are:
- Foreign organizations and individuals who invest in the project-based housing construction in Vietnam.
- Foreign-invested enterprises, branches and representative offices of foreign enterprises, foreign-invested funds and branches of foreign banks operating in Vietnam.
- Foreign individuals who are permitted to enter Vietnam.
How can a foreigner own a house in Vietnam?
A foreigner can own a house when he/she:
- Invests in the project-based housing construction in Vietnam.
- Buys, leases under a lease purchase agreement, receives as a gift or inherits commercial housing that is either an apartment or a separate house in a housing construction project, except for those in national defense areas.
Required documents for purchasing a house in Vietnam
1. Documents proving the buyer’s eligibility for house ownership in Vietnam including:
- A valid passport bearing the seal affixed by an immigration authority of Vietnam and not eligible for diplomatic privilege or exemption and its certified copy if the house buyer is a foreign individual.
- An Investment Registration Certificate or document proving permission granted by a competent authority of Vietnam for operation in Vietnam which is still effective when the housing agreement is concluded and its certified copy if the house buyer is a foreign organization.
2. The house sale contract
Required information stated in a house sale contract consists of:
- Full names of the individuals or the organizations that are parties to the contract and their addresses (hereinafter referred to as “the parties”);
- The description of the house and land area for sale. In case of an apartment sale contract or apartment lease purchase contract, the parties shall specify the shared area and private area; the floor area of the apartment; the purposes of the shared area in the apartment building according to the approved design.
- The value of the buyer’s stake and the selling price or rent agreed upon by both parties, or the price imposed by the State (if any).
- The duration and the payment method in case of a sale and purchase, lease, lease purchase contract or transfer of a house sale contract;
- Time for the house transfer and receipt; warranty duration if the house is newly built; the duration of the lease, lease purchase, mortgage, lending, permission for stay and housing management authorization; the time limit for the capital contribution;
- Rights and obligations of the parties;
- Commitments of the parties;
- Other agreements;
- Effective date of the contract;
- Conclusion date of the contract;
- The signatures and full names or names of the parties; the signature, position, full name and the seal (if any) of the legal representative of the organization shall be provided if the party is an organization.
3. Application for the Certificate of house ownership and land use rights
The house buyer shall check carefully the documents provided by the seller
The house buyer shall check carefully the documents provided by the seller.
Such documents are the proof of eligibility for the house sale and purchase, including:
- The Certificate of house ownership.
- Documents proving that the house has neither disputes, complaints, proceedings for the house ownership nor duration of the house ownership if the house in under the ownership.
- Documents proving that the house is not distrained by a competent State authority.
- Documents proving that the house does not have to be demolished or is not built on the land that has to be withdrawn under a decision issued by a competent authority.
Notes: The aforesaid documents are not applied to off-the-plan houses.
Rights and obligations of foreiners owning housing in Vietnam
1. Foreign organizations and individuals who invest in project-based housing construction in Vietnam
a. Rights
- Enjoy inalienable rights to their lawful house ownership;
- Use the house for residential purposes and other purposes that are not banned by law;
- Obtain the Certificate of house ownership;
- Sell, transfer the house sale contract, lease, lease under a lease purchase agreement, gift, exchange, inherit, mortgage, contribute capital, lend, permit other people to stay in the house, authorize the housing management; If the entity that receives a house as a gift or inheritance is not eligible for house ownership, such entity is only entitled to receive an amount of money that is equal to the value of the house instead of owning it;
- Use public amenities in the residential area where the house is located.
The owner of an apartment building has the right to ownership and the right to enjoyment of the shared area and shared infrastructure in the apartment building, apart from construction works for sale or to be transferred to the State as prescribed in regulations of law or as agreed under the house sale contract or the lease purchase contract;
- Maintain, renovate, demolish and rebuild the house as prescribed in the Law on Housing and the Law on Construction;
- Receive the compensation as prescribed in regulations of law or payment according to the fair market price when their house is demolished, purchased under a compulsory purchase order or commandeered by the State for national defense and security purposes; for socio-economic development purposes or in case of the war, in emergency or natural disaster situations;
- File complaints or lawsuits over violations against their lawful ownership and other violations against the law on housing.
Notes: If the house was built on the rental land, the foreign investor may only lease out such house.
b. Obligations
- Use the house for proper purposes as prescribed; compile and store documents on their house ownership;
- Comply with regulations on fire safety, hygiene, environment, social safety and order as prescribed;
- Fulfill regulations on the sale or transfer of the house sale contract, the lease, lease purchase, gifting, exchange, inheritance, mortgage, capital contribution, lending, permission for stay or authorization of housing management; and comply with the Law on Marriage and Family when the house as a matrimonial property is transacted;
- Conform to regulations of law and do not cause damages to benefits of the State, public or lawful rights and interests of other households or individuals when their house is maintained, renovated, demolished or rebuilt; if the house owner is eligible for fix-term house ownership as prescribed in Clause 1 Article 123 of the Law on Housing, the house shall be renovated or demolished under the agreement between the contractual parties;
- Purchase fire insurance if fire insurance is compulsory to that type of house;
- Implement effective decisions on actions against violations, disputes, complaints against housing, housing compensation, relocation or demolishment made by the competent authority when the State withdraws their land, conducts land clearance, purchases under a compulsory purchase order, commandeers or purchases their house in advance;
- Enable related entities and competent persons to carry out the inspection, observation or maintenance of equipment systems, technical infrastructure and shared area;
- Fulfill financial obligations to the State when their house ownership is recognized, their transactions are conducted and the period in which the house is used;
- If the house owner is a foreign individual, he/she is entitled to lease out the house(s) for lawful purposes provided that he/she notifies the housing authority of the district where the house is located of the housing lease and pay taxes on such housing lease as prescribed before leasing out the house(s);
- If a foreign individual gets married to a Vietnamese citizen or an overseas Vietnamese, he/she shall fulfill obligations of a house owner similarly to a Vietnamese citizen;
- The house owner that is a foreign organization may use the house as accommodation for its employees but is not allowed to use it for lease, as offices or for other purposes;
- Pay for the purchase or lease of the house(s) through a credit institution operating in Vietnam.
2. Foreign-invested enterprises, branches and representative offices of foreign enterprises, foreign-invested funds and branches of foreign banks operating in Vietnam/ Foreign individuals who are permitted to enter Vietnam
a. Rights
- Buy, lease under a lease purchase agreement, receive as a gift, inherit and own not more than 30% of apartments in an apartment building; or not more than 250 separate houses including villas, row houses in an area whose population is equivalent to that of a ward.
If in an area whose population is equivalent to that of a ward with multiple apartment buildings or separate houses in a street, the foreign entity is entitled to own:
+ Not exceeding 10% of the total quantity of separate houses in a project which has fewer than 2,500 houses.
+ Not exceeding 250 separate houses in a project which has 2,500 separate houses.
+ Not exceeding 10% of the quantity of separate houses in each project if there are at least two projects in which the total quantity of such houses is not exceeding 2,500 houses.
- If the entity that receives a house as a gift or inheritance is not eligible for house ownership or the quantity of houses received exceeds the aforementioned limits, such entity is only entitled to receive an amount of money that is equal to the value of the house instead of owning it.
- The house owner is entitled to own the house(s) not more than 50 years from the day on which the Certificate is granted and may apply for the extension (if the house owner is a foreign individual).
- The maximum duration of the house ownership is specified in the Certificate of Investment, including the extension (if the house owner is a foreign organization).
- If a foreign individual gets married to a Vietnamese citizen or an overseas Vietnamese, he/she will qualify for the stable and long-term house ownership and has all rights of a house owner similarly to a Vietnamese citizen.
Notes: Before the house ownership expires, the house owner may give or sell his/her house(s) to a person eligible for house ownership in Vietnam. If the house(s) is/are not given or sold by the expiration date, the ownership of the house will be acquired by the State.
b. Obligations
- If the house owner is a foreign individual, he/she is entitled to lease out the house(s) for lawful purposes provided that he/she notifies the housing authority of the district where the house is located of the housing lease and pay taxes on such housing lease as prescribed before leasing out the house(s);
- If a foreign individual gets married to a Vietnamese citizen or an overseas Vietnamese, he/she shall fulfill obligations of a house owner similarly to a Vietnamese citizen;
- The house owner that is a foreign organization may use the house as accommodation for its employees but is not allowed to use it for lease, as offices or for other purposes;
- Pay for the purchase or lease of the house(s) through a credit institution operating in Vietnam.
Read in Vietnamese: Hướng dẫn người nước ngoài mua nhà ở tại Việt Nam
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