With its remarkable economic growth and stunning landscapes, Vietnam is becoming an ideal destination for foreign investors, including those interested in real estate. However, the legal complexities surrounding property ownership for foreigners in Vietnam can be challenging.

This comprehensive guide aims to simplify the process of purchasing real estate for foreign individuals in Vietnam. It will cover everything from eligibility requirements to ownership restrictions. We will explore the different types of properties that foreigners are allowed to buy, provide a step-by-step explanation of the buying process, and address the common question: Can foreigners own property in Vietnam?

By offering a clear understanding of the regulations and the necessary steps involved, this guide is designed to help foreigners navigate the real estate market in Vietnam more effectively.

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Can foreigners buy real estate  in Vietnam?

The 2014 Housing Law stipulates that foreigners cannot purchase real estate in Vietnam, but they are still permitted to own residential property, provided they comply with legal procedures.

According to Article 159 of the 2014 Housing Law, the following foreign individuals and organizations are eligible to own housing in Vietnam:

• Foreign organizations and individuals investing in housing construction projects in Vietnam as per the law and related regulations.
• Foreign-invested enterprises, branches, and representative offices of foreign companies, foreign investment funds, and branches of foreign banks operating in Vietnam (collectively referred to as foreign organizations).
• Foreign individuals who are legally permitted to enter Vietnam.

Additionally, the law specifies that foreigners can only own residential property in Vietnam through one of the following methods:

• Investing in housing construction projects in Vietnam in accordance with this law and other related regulations.
• Purchasing, leasing-purchasing, receiving as a gift, or inheriting commercial housing, including apartments and standalone houses in housing development projects, except in areas designated for national defense and security, as stipulated by the government.

Under these provisions, foreigners who wish to buy property in Vietnam are limited to purchasing residential properties (including apartments and standalone houses) within commercial housing development projects, with the exception of areas critical to national defense and security.

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Regulations on Home Ownership for Foreign Individuals

Clause 2, Article 161 of the 2014 Housing Law establishes the rights of foreign homeowners in Vietnam, as follows:

Foreign organizations and individuals defined under points b and c, Clause 1, Article 159 of this Law possess ownership rights similar to Vietnamese citizens, but they must comply with the following stipulations:

Foreigners can only purchase, lease-purchase, receive as a gift, inherit, and own a maximum of 30% of the total number of apartments in a condominium. For standalone houses, including villas and row houses, they can only acquire, lease-purchase, receive as a gift, inherit, and own no more than 250 houses within an area equivalent to a local administrative unit (commune-level).

In cases where there are multiple condominiums in a commune-level area or standalone houses along a street, the government will specify the exact number of apartments and standalone houses that foreign organizations and individuals are permitted to purchase, lease-purchase, receive as gifts, inherit, and own.

If a foreign individual receives a house as a gift or inheritance that does not fall under the provisions in point b, Clause 2, Article 159 of this Law, or exceeds the number of houses allowed under point a, they can only receive the monetary value of that property.

Foreign individuals can own residential property based on agreements made in contracts for buying, lease-purchasing, gifting, or inheriting housing, with the maximum ownership duration set at 50 years from the date of issuance of the ownership certificate. This duration may be extended per government regulations if needed; the ownership term must be clearly stated in the certificate.

If a foreign individual marries a Vietnamese citizen or a Vietnamese national residing abroad, they are entitled to stable, long-term ownership of property, enjoying rights similar to those of Vietnamese citizens.

Before the expiration of the ownership period stipulated by this Law, the owner may gift or sell their property to eligible parties permitted to own property in Vietnam. If the ownership period expires and the owner has not sold or gifted the property, that property will revert to state ownership.

In summary, the maximum duration of property ownership for foreigners is 50 years, although it can be extended if necessary. Additionally, it is essential to pay attention to the maximum number of apartments or houses that one can own as per the aforementioned regulations.

For more information about buying real estate for foreigners, feel free to contact NVCS Law Firm. We are here to provide expert guidance every step of the way.

Lawyer: Mr. Tony 

Phone: +84 919 195 939

Email: tuulawyer@nvcs.vn

Website: nvcs.vn 

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