House Ownership By Foreigners In Vietnam

Recently, owning houses in Vietnam has attracted great attention, especially foreigners who wish to live or stay in the country. Thus, how to legally own a house in Vietnam has become the question that many foreign organizations and individuals are keen to better understand. In this article, we would like to offer some brief guidance on how a foreigner should be able to acquire a house in Vietnam subject to the current Law on Housing No.65/2014/QH13, dated November 25th, 2014 (the “Law on Housing”).

Conditions for Foreigners to Buy Houses in Vietnam

According to the Law on Housing, both foreign individuals and organizations (hereafter to be referred to as “Foreigners/foreigners”) are permitted to buy commercial housing including apartments and separate houses in housing construction investment projects (except for houses in areas under management relating to national defense and security as prescribed by the Government). However, in order to do so, the following conditions should be satisfied:

For organizations: A foreign organization must have an Investment Registration Certificate or equivalent to prove its operations in Vietnam, either of which shall still be valid at the time of signing the house purchase contract.

For individuals: A foreign individual should have a valid passport with an entry verification stamp from the competent authority upon immigration and is not entitled to diplomatic and consular privileges and/or immunities.

Restrictions on Housing Ownership

Housing ownership by foreigners is restricted by the Law on Housing, specifically in regards to apartment buildings. Foreigners meeting the conditions of owning houses as specified above are not allowed to surpass a threshold of 30% ownership of the total number of apartments in such building. In an area having population of a ward-level administrative unit, no more than 250 separate houses may be owned by foreigners in each housing project.

Regarding the specific number of houses that foreigners are allowed to own (specifically, the total number of houses that foreigners can own in each housing construction investment project that is allowed to be owned by foreigners, and the maximum number of houses that each foreigner is allowed to own), such figures will be made public on the Portal of the Department of Construction of that area according to decisions of The Ministry of National Defense and the Ministry of Public Security. In other words, the maximum number of houses that foreigners can own in each area will depend on the decisions of the competent authorities.

House Ownership Duration

The maximum duration that foreign individuals can own houses in Vietnam is 50 years, with possibility of extension. For foreign organizations, they may own houses for a maximum period not exceeding the time limit stated in the Investment Certificate issued to that organization, including the extended period.

Are Foreigners Allowed to Lease to Third Parties?

Foreign individuals who meet the conditions to own houses are allowed to lease to third parties as long as they do not use it for purposes prohibited by laws. However, the authorities will effectively manage the rental of houses by foreign individuals. Specifically, before renting a house, the foreign individual must send written notice on the rent to the competent authority of the district where the house is located. In addition, foreign individuals are responsible for paying taxes related to the rental of houses in accordance with the law.

In cases in which the houses’ owners are foreign organizations, such housing will only be allowed to serve their employees. In other words, foreign organizations are not allowed to use houses for rent, offices, or other purposes.

Transfer of Housing Ownership

Foreigners are strictly prohibited from buying houses to resell for other business purposes. When foreigners no longer need to use houses, they can have them resold to Vietnamese organizations and individuals for ownership. In addition, if the housing is transferred to other foreign organizations or individuals, the latter may enjoy ownership during the remaining ownership terms of such houses.

We hope that the abovementioned guidelines have been informative and helpful. If you have any other related questions, we remain available upon your request. Please feel free to contact D’Andrea & Partners Legal Counsel at info@dandreapartners.com for more information.