5 FREQUENTLY ASKED QUESTIONS ABOUT FOREIGNERS BUYING HOUSES IN VIETNAM

WHY SHOULD YOU CHOOSE THIS TYPE OF ENTERPRISE?
28 August, 2017
Glonics ( Korean Investor)
25 September, 2017

5 FREQUENTLY ASKED QUESTIONS ABOUT FOREIGNERS BUYING HOUSES IN VIETNAM

5 FREQUENTLY ASKED QUESTIONS ABOUT FOREIGNERS BUYING HOUSES IN VIETNAM

1/ Conditions for foreigners buying houses in Vietnam
1.1 Foreign entities who invest in project-based housing construction in Vietnam as prescribed in Housing Law No. 65/2014/QH13 (hereinafter referred to as Housing Law 2014) and corresponding regulations of law;
To have an Investment certificate and have houses which are built under a project as prescribed in Housing Law 2014 and relevant regulations.
1.2 Foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign-invested funds and branches of foreign banks operating in Vietnam;
To have an Investment certificate or a Permission to run business in Vietnam issued by the competent agency in Vietnam.

1.3 Foreign individuals who are allowed to enter Vietnam.
to have a permission to enter Vietnam and he/she is not granted diplomatic immunity and privileges as rescribed.

2/ The forms and period of the housing ownership of Foreign entities in Vietnam
2.1 Invest in project-based housing construction in Vietnam as prescribed in Housing Law 2014 and relevant regulations;

2.2 Buy, rent and purchase, receive, or inherit commercial housing including apartments and separate houses in the project for housing construction, except for areas under management relating to national defense and security as prescribed in regulations of the Government;

2.3. The duration of house ownership:
– For individual: Not more than 50 years, from the day on which they are granted the ownership Certificate and they may be also granted extension as prescribed in regulations of the Government;

– For organization: Has the right to house ownership as agreed in agreements on house purchasing contract, lease-purchase, gifting, or inheritance for not longer than duration stated in their Certificate of Investment, including extension duration, the duration of the housing ownership shall be determined from the day on which the organization is granted the Certificate and stated in such Certificate;

3/ The number of houses that Foreign entities can own in Vietnam
The foreign entity may not own more than 30% of apartments in an apartment building; or more than 250 houses (regarding separate houses including villas, row houses) in an area whose population is equivalent to a ward-administrative division.
(see more: Clause 2, Article 161 Housing Law 2014)

4/ The right to sell the house owned by The foreign entities in Vietnam
According Clause 8, Article 79, Decree of Government No. 99/2015/ND-CP dated 20/10/2015 on Guidelines for The Housing Law, foreign entities are prohibited to buy houses then sell for commercial purposes.

However, the current law has no specific regulation on what is “sell for commercial purposes”. Therefore, if there is no need to use anymore, before the expiration of the house ownership period (Has been issued a certificate of ownership), foreign entities have right to sell or gift the house as prescribed in Clause 4, Article 7 Decree No.99/2015/ND-CP.

5/ The right to lease the house owned by The foreign entities in Vietnam
According The Housing Law 2014, foreigner owning houses in Vietnam are allowed to lease such houses without being limited in the number of leased houses.

However, before leasing the house, the foreigner must carry out the notification procedure for the lease at the district-level housing management office where the house is located. And foreigners must pay relevant taxes on these leases in accordance with the law.

(For more detail, please refer to Clause 2, Article 162 Housing Law 2014; Article 31 Circular of Ministry of Construction No. 19/2016/TT-BXD dated 30/6/2016 Guidelines for implementation of some content of the housing law and Decree of Government No.99/2015/ND-CP; The Law on Personal Income Tax )