The issue of foreigners buying houses in Vietnam is a topic of increasing interest to many people. Since 2015, the amendments to the Housing Law allowing foreigners to buy houses in Vietnam has been seen as a very positive move in the policy. In general, the requirements for this object have been specified quite specifically and clearly, thereby creating a new demand source and promising to further promote the development of the domestic real estate market. . So, when buying a house in Vietnam, what do foreigners need to know?
I. can foreigners buy houses in vietnam
According to the provisions of Clause 3, Article 7 of the Law on Housing 2014, the subjects owning houses in Vietnam are “Foreign organizations and individuals specified in Clause 1, Article 159 of this Law”
And in Clause 2, Article 159 of the LLaw on Housing 2014, it is also clear in what form foreigners are allowed to own houses in Vietnam :
– Investing in the construction of project-based houses in Vietnam in accordance with this Law and relevant laws.
– Purchase, lease-purchase, donation or inheritance of commercial houses, including: condominiums and separate houses in housing construction projects, except for areas under national defense and security assurance according to regulations. Government regulations.
=> Therefor, foreigners are allowed to own houses in Vietnam (except in other special cases)
The current law does not specify which areas are these, but assigns the responsibility to the Ministry of Defense, the Ministry of Public Security to specifically identify these areas in each locality to notify the provincial People’s Committee. direct the Department of Construction to define a specific list.
However, at present, many localities have not issued this list, leading to the fact that in many cases, the Department of Natural Resources and Environment in the locality has not been able to issue the pink book to foreign buyers.
Ii. What should foreigners pay attention to when buying houses in Vietnam?
What types of property can foreigners buy? How many? Transferable or not? Tax calculated like? We can refer to Circular 19/2016/TT-BXD guiding the implementation of regulations on foreigners buying houses in Vietnam.
1. Number of houses owned by foreigners
- For apartments:
– Foreign individuals are only allowed to buy, rent, purchase, receive, inherit and own no more than 30% of the number of apartments in an apartment building (1 unit, regardless of whether it is separate or in the same podium).
– If there are 2 or more apartment buildings in a ward-level administrative area, foreign individuals are only entitled to own no more than 30% of the apartments of each apartment building and no more than 30% of the total number of apartments of all of these apartments
- For detached houses: (including villas, adjoining houses)
– A construction project with less than 2,500 individual houses: foreign individuals can own no more than 10% of the number of houses in that project (it mean <250 units)
– A construction project with a number of individual houses equivalent to 2,500 houses: foreign individuals are only allowed to own no more than 250 houses in that project.
– For 2 or more projects with the total number of houses in these projects less than or equal to 2,500 houses, foreign individuals are only entitled to own no more than 10% of the number of houses of each project.
2. The expiry date of the foreigner’s house
– Foreign individuals owning houses under contracts of purchase, sale, lease purchase, donation, inheritance: no more than 50 years from the date of issuance of the Certificate of Ownership .
– With regard to a foreign organization, it is entitled to own the house according to the time agreed in the contracts but not exceed the time limit stated in the investment registration certificate, including the extended period.
3. Extension: Foreign individuals can extend more time if they need. 3 months before the expiration of home ownership, submit an application for extension and a copy of the house ownership certificate at the People’s Committee of the province where the house is located .
Note: can only be extended 1 time and up to 50 years
4. When ownership expires: Foreign individuals may sell or donate. If this right is not exercised, the house is owned by the state
Note, if foreigners marry Vietnamese people or marry overseas Vietnamese: They will be able to own stable, long-term houses and have the same rights of the homeowner. Vietnamese people.
Iii. PROCEDURES FOR FOREIGNERS TO BUY HOUSES IN VIETNAM
– For foreign individuals, it is necessary to have a valid passport, with the entry verification seal of the immigration authorities of Vietnam.
– Overseas Vietnamese, in addition to their passports, need additional documents certifying that they are of Vietnamese origin or papers proving that they still have Vietnamese nationality, not subject to diplomatic privileges and immunities
– Foreign organizations must meet all conditions to recognize home ownership in Vietnam, concurrently have a valid investment registration certificate or a valid business paper at the time of signing the contracts. housing translation.