Foreigners can now purchase real estate in Vietnam. However, ownership of this property is restricted to 50 years and may only be renewed once. Find out in this article the types of properties available for purchase in Vietnam.
Can I buy property as a foreigner in Vietnam?
In 2014, the legislation on land ownership in Vietnam was revised to favor an open real estate market. Viet Kieu (Vietnamese residents living abroad), foreigners with a visa, and foreign legal organizations can now buy land in Vietnam just like Vietnamese people.
What properties can I buy and sell as a foreigner in Vietnam?
Vietnam’s land ownership legislation applies to all sorts of property. A foreign owner can buy an apartment, a home, a villa, or a plot of land.
Foreign persons and corporations are not permitted to own more than 30% of a building or more than 250 properties in the same district. The 2014 legislation on land ownership in Vietnam has so significantly altered the legal position of foreigners, since before a foreigner could not acquire property in Vietnam.
Useful article: 6 Popular Types of Property in Vietnam
What are the differences between Vietnamese and foreign homeowners?
The land in Vietnam belongs to the people, who entrust its care to the state. As a result, private property does not exist, and this is only a permission to utilize State-owned property for a limited time.
The primary contrast between Vietnamese nationals and foreigners is the length of the act. Although it is no longer essential to obtain a work permit or be married to a Vietnamese citizen in order to purchase property in Vietnam, the period of property ownership for a foreigner is restricted to 50 years. Foreigners who marry a Vietnamese citizen or a Viet Kieu, on the other hand, can hold property virtually indefinitely.
Nonetheless, the legislation currently allows for the deed to be renewed for another 50 years by filing an application to the People’s Committee of the province in which the property is located.
Another distinction is the notice to the administrative authorities of the intention to rent out the property. In contrast to unmarried foreigners, foreigners married to Vietnamese nationals are not required to inform an administrative entity of their intention to rent their property.
How can I start buying property in Vietnam?
The following are the major processes for foreign people or foreign companies to do when purchasing a home in Vietnam:
- Step 1: Choose a property and sign a reservation agreement. It is advisable to have a professional review your reservation agreement before signing.
- Step 2: Pay a deposit to the property seller.
- Step 3: Hire a due diligence specialist to do a background check. Examine the seller’s ID, registration certificate, property certificate, ownership certificate, and other papers.
- Step 4: To complete the deal, sign a home contract. Have a Vietnamese translator evaluate the contract’s text before signing.
- Step 5: Pay all fees and taxes at the local tax office where the property is situated. The seller will pay the income tax, and the buyer will pay the registration fee.
Step 6: Make a request for a certificate of ownership.
Conclusion
There are many steps involved in the buying and selling process in Vietnam for foreigners. To simplify, many companies are offering more flexible plans for you to buy and own property in Vietnam easily.
Homebase is one such firm that provides foreigners and locals with numerous ownership options and up to 90% initial help. They employ a tried-and-true model popular in the United States (similar to Divvy Homes, Zillow, and Reddoor). It is funded by reputable companies and private inventors from across the world, such as Y Combinator, Partech Partners, Iterative VC, and VinaCapital. Homebase brings the homeownership plan closer to anybody in Southeast Asia.
If you wish to learn more about Homebase, call (+84) 964 245 404 or fill in a contact form.