27/05/2022
𝑻𝒉𝒊𝒏𝒈𝒔 𝒚𝒐𝒖 𝒏𝒆𝒆𝒅 𝒕𝒐 𝒌𝒏𝒐𝒘 𝒂𝒃𝒐𝒖𝒕 𝒃𝒖𝒚𝒊𝒏𝒈 𝒑𝒓𝒐𝒑𝒆𝒓𝒕𝒚 𝒊𝒏 𝑽𝒊𝒆𝒕𝒏𝒂𝒎 𝒂𝒔 𝒂 𝒇𝒐𝒓𝒆𝒊𝒈𝒏𝒆𝒓.
There is a common misconception that foreigners or foreign invested companies not allowed to buy, own property in Vietnam. In reality, it is possible.
However, there are certain conditions that you need to bear in mind when buying property in Vietnam.
𝐂𝐀𝐍 𝐅𝐎𝐑𝐄𝐈𝐆𝐍𝐄𝐑𝐒 𝐁𝐔𝐘 𝐏𝐑𝐎𝐏𝐄𝐑𝐓𝐘 𝐈𝐍 𝐕𝐈𝐄𝐓𝐍𝐀𝐌?
The answers is “Yes, they can buy as many units as they want, as foreigners currently don’t have any restrictions on the amount of properties they can buy.”
Since 2015, the local government introduced the Vietnamese Law on Residential Housing, which made it remarkably easier for foreigners to buy property in Vietnam.
𝐇𝐎𝐖 𝐃𝐈𝐅𝐅𝐈𝐂𝐔𝐋𝐓 𝐈𝐒 𝐓𝐇𝐄 𝐏𝐑𝐎𝐏𝐄𝐑𝐓𝐘 𝐏𝐔𝐑𝐂𝐇𝐀𝐒𝐄 𝐏𝐑𝐎𝐂𝐄𝐒𝐒?
Foreigners are not allowed to own land. In fact, even citizens are not allowed to own land. In Vietnam, land is theoretically collectively owned by the people, but regulated by the State.
Foreigners who are residents in Vietnam are permitted to purchase dwelling houses. They can own a house but not the land on which it is built. They have the option to lease the land from the State.
However, one of the leading real estate groups in Vietnam in Vietnam, Danh Khoi Holdings (DKRH), is marketing a 50-year lease scheme, which is almost a sale. Under this scheme, the buyer acquires a right to the apartment for 50 years, and the right to renew the lease at the term’s expiry without payment of additional rent. If property ownership by foreigners becomes legal within that time, the complex owner will transfer the apartment title to the buyer. If the building for some reason has to be sold, the buyer will get a pro-rata share of the proceeds.
And because the contract is only a lease, the buyer can sub-let his apartment. In other words, the contract gives the buyer many of the rights of ownership. DKRH for example supports the developer selling 38-year leases in Ho Chi Minh City, which has been in existence 12 years (the maximum lease length under Vietnamese law is 50 years).
A foreign investor may also invest in Vietnamese real property by forming a joint venture company with a local partner, or a wholly foreign-owned company, or by forming a Build, Operate and Transfer (BOT) company or one of its variants.
Registering property in Vietnam is not particularly onerous, taking about 43 to 71 days to finish the four procedures needed, which can be support by the lawyers at GBS, and costing considerably less than elsewhere in the region.
𝗪𝗵𝗮𝘁 𝗶𝘀 𝘁𝗵𝗲 𝘀𝘂𝗺𝗺𝗮𝗿𝘆 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗶𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 𝘁𝗼 𝘁𝗮𝗸𝗲 𝗻𝗼𝘁𝗲 𝗼𝗳 𝗩𝗶𝗲𝘁𝗻𝗮𝗺’𝘀 𝗻𝗲𝘄 𝗹𝗮𝘄 𝘁𝗼 𝗳𝗼𝗿𝗲𝗶𝗴𝗻 𝗼𝘄𝗻𝗲𝗿𝘀𝗵𝗶𝗽 𝗼𝗳 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆?
- Foreigners can buy properties by simply possessing a tourist visa
- There’s no cap to the amount 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 a landed project
- Foreigners can now buy houses, but only 250 of the houses in a given ward (division).
If finding it challenging to buy a property and obtain title documents in Vietnam as a foreigner, you should contact a lawyer or talk to an agent. https://www.facebook.com/vn.realeastate can be a good choice.
