Vietnam property ownership foreigners: the rules

Vietnam property ownership foreigners may hold is real but limited. A foreigner can own an apartment or a house in Vietnam, but only in some projects, only up to set caps, and usually for 50 years. A foreigner cannot own land. The rules come from the Law on Housing 2014 and a government decree that guides it.

This article explains who qualifies, what they can buy, the caps and the term. It is written for managers, investors and staff who plan to live or invest here.

Sources: Law on Housing No. 65/2014/QH13, in force from 1 July 2015.

Who may own a home in Vietnam

Article 159 of the Law on Housing lists the foreign owners who qualify. There are three groups:

• Foreign organisations and individuals that invest in housing projects in Vietnam.
• Foreign-invested companies, foreign bank branches and foreign-invested funds that operate in Vietnam.
• Foreign individuals who are allowed to enter Vietnam and who do not hold diplomatic privileges.

The third group covers most expats. The test is simple. You must have entered Vietnam lawfully. You need a valid passport and a visa or entry permission, and you must be able to show it when you buy.

Sources: Law on Housing No. 65/2014/QH13, Article 159.

What a foreigner can buy

Foreign buyers may own homes only in commercial housing projects. These are projects built by a developer to sell or rent on the market. This covers apartments in a condominium building. It also covers houses and villas inside a commercial project.

Some things are off limits. Foreigners cannot buy in areas that the state marks as important for national defence and security. And they cannot own the land itself. What a foreign owner holds is the home, not the land under it.

The buyer receives a certificate of home ownership. Keep it safe. You will need it to sell, lease out or pass the home on.

Sources: Law on Housing No. 65/2014/QH13, Articles 159 and 160.

The ownership caps

Decree 99/2015/ND-CP sets limits so that foreigners do not take over whole buildings or districts. There are two main caps.

• Apartments: foreigners may own at most 30 percent of the apartments in one apartment building.
• Houses and villas: in an area the size of one ward, foreigners may own at most 250 landed houses.

These caps apply to the building or the area, not to one person. When the cap is full, no more foreign buyers can register in that building. Before you pay a deposit, ask the developer how many units foreigners already own. Ask for the answer in writing.

A buyer who gets in early may find room. A buyer who waits may find the foreign quota used up.

Sources: Decree No. 99/2015/ND-CP of 20 October 2015, Article 76.

How long ownership lasts

Article 161 sets the term. A foreign individual may own a home for up to 50 years, counted from the date the certificate is issued. The owner can ask to extend the term if the law allows it at that time. A foreign organisation owns for the term in its investment certificate, and that term also includes any extension.

There is one important exception. A foreigner who is married to a Vietnamese citizen, or to a Vietnamese person who lives abroad, can hold the home on a stable, long-term basis. That owner gets rights close to those of a citizen.

When the term ends and is not extended, the home goes to the state. So the term matters when you plan a resale. A buyer will pay less for a home with 10 years left than for one with 45.

Sources: Law on Housing No. 65/2014/QH13, Article 161.

Practical steps before you buy

1. Check your status. Confirm you are in the group that qualifies, and that your entry papers are in order.
2. Check the project. Make sure it is a commercial housing project and that it is not in a restricted area.
3. Check the quota. Ask how much of the 30 percent or 250 house cap is already used.
4. Check the paperwork. Read the sale contract, the project approvals and the plan for issuing the certificate.
5. Use a local lawyer. Rules and local practice can change. A lawyer can check the latest guidance for your case.

Do not rely on a promise from an agent. Ask to see the rule in the law, and keep a copy of every document you sign.

This article gives general information, not legal, tax or investment advice. Check the original texts and speak with a qualified adviser before you act.

Sources: Law on Housing No. 65/2014/QH13; Decree No. 99/2015/ND-CP.

Sources

• National Assembly of Vietnam, Law on Housing No. 65/2014/QH13, 25 November 2014, Articles 159, 160 and 161.
• Government of Vietnam, Decree No. 99/2015/ND-CP, 20 October 2015, Article 76.