For expats in Vietnam, acquiring property in Hanoi or Ho Chi Minh City presents both residential and investment opportunities. In fact, apartment prices have surged by 70% in Hanoi and 55% in Ho Chi Minh City since 2018, with current prices averaging $2,000 to $2,800 per square meter[1].
Given the housing demand and investment potential, key questions arise about expat property ownership and foreign ownership mechanisms in Vietnam. Please note that Vietnam does not allow any individual to own land, as it is collectively owned by the nation[2], and foreign ownership is limited to the real estate itself, not the land it belongs to.
The Vietnamese government permits certain foreign citizens and economic organizations, like companies and representative offices, to own real estates. Ownership conditions and types of houses vary slightly between individuals and organizations, falling into three specific categories:
To attract investment in the construction industry, Vietnamese law grants foreign investors ownership of houses they build. The type of property depends on what the investor registers to build (e.g., commercial housing, social housing)[3]. Regarding ownership duration, organizations have ownership rights similar to those of Vietnamese citizens, allowing them to own houses for an indefinite period[4].
However, to obtain property ownership under the investment construction scheme, the project must be on land allocated by the government. If the real estate is built on leased land, investors will only have the right to lease the property (i.e., a limited right of economic exploitation), without obtaining ownership[5].
Foreign economic organizations can only own commercial housing properties (i.e., houses for sale, lease-purchase, or lease in accordance with market mechanisms), including apartments and individual houses, obtained through civil transactions such as purchase, lease-purchase, donation, or inheritance[6]. The property ownership duration is determined by agreement but cannot exceed the remaining investment period specified in the Investment Registration Certificate, which is up to 50 or 70 years depending on location of the economic organizations[7].
Under these regulations, economic organizations investing in building houses in Vietnam, even on leased land, can own property through civil transactions if they are legally established in the country.
Foreign individuals can own commercial housing in Vietnam using similar methods as other economic organizations, provided they have entered Vietnam legally and have a valid passport at the time of the transaction[8]. This means that individuals who have never visited Vietnam cannot own property there. Additionally, expats with diplomatic privileges or immunities are not permitted to own property[9].
Ownership is valid for 50 years and can be extended[10]. However, a foreign individual marries a Vietnamese citizen residing in the country, the ownership duration can be indefinite[11].
The 50-year ownership period is designed to align with Vietnam’s land and real estate regulations, as the State’s land allocation and lease term for commercial housing construction projects are limited to 50 years for commercial housing construction projects, with the possibility of extension[12].
Additionally, Vietnamese law also sets out general rules on the maximum number of houses that foreign individuals and foreign organizations are allowed to own, specifically:
Foreign citizens and economic organizations can rent or sell their properties in Vietnam. Before leasing, owners must notify the district-level housing management authority and pay taxes on rental income[15]. When selling property, it must be done before the end of the ownership period; otherwise, the property will revert to state ownership[16].
In Vietnam, property ownership is recorded in the Certificate of Property Ownership (or Pink Book)[17]. To make the purchase of a property effective, this certificate must be transferred from the seller to the buyer. The purchase shall be carried out according to the agreement of both parties, typically following these four steps:
– Market research: Investigate the property, checking for issues such as bank mortgages or disputes.
– Deposit: Pay a deposit to secure the property.
– Contract notarization: Notarize the sale contract and make payment at the notary office.
– Certificate transfer: Submit the notarized contract and other documents at the land management office to update the ownership records and pay the property tax (0.5% of the property value)[18]. Receive the Certificate of Property Ownership with the new owner’s name.
In conclusion, expats and foreign organization can own property in Vietnam if they enter or operate in the country legally. They have the option to use the property as their residence or to lease and sell it as desired. Typically, ownership lasts 50 years and can be extended. However, in certain exceptional cases, such as investing in building houses in Vietnam or marrying a Vietnamese citizen residing in the country, ownership can be indefinite, similar to that ofVietnamese citizens.
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At D’Andrea & Partners Legal Counsel we have authored innovative publications exploring Vietnam, aimed at providing foreign investors and businesses with practical guidance on the Vietnamese market. These publications offer insights into the specific economic and legal framework of the country, including tailored consultancy for the housing sector.
The above content is provided for informational purposes only. The provision of this article does not create an attorney-client relationship between D’Andrea & Partners and the reader and it does not constitute legal advice. Legal advice must be tailored to the specific circumstances of each case, and the contents of this article are not a substitute for professional legal counsel.
[1] Chính Phủ Newspaper, “The average apartment prices in Hanoi and Ho Chi Minh City range from 50 to 70 million VND per square meter”, relevant link is: https://bit.ly/4duN8uX
[2] Article 12, Law on Land 2024 (Law 31/2024/QH15).
[3] Article 17.1.a, Law on Housing 2023 (Law 27/2023/QH15).
[4] Article 20.1, Law on Housing 2023 (Law 27/2023/QH15).
[5] Article 20.1, Law on Housing 2023 (Law 27/2023/QH15).
[6] Article 17.2.b, Law on Housing 2023 (Law 27/2023/QH15).
[7] Article 20.2.d of Law on Housing 2023 (Law 27/2023/QH15); Article 44 of Law on Investment 2020 (Law 61/2020/QH15).
[8] Article 17.2 of Law on Housing 2023 (Law 27/2023/QH15), Article 3.3.d of Decree 95/2024/ND-CP.
[9] Article 18.3, Law on Housing 2023 (Law 27/2023/QH15).
[10] Article 20.2.c, Law on Housing 2023 (Law 27/2023/QH15).
[11] Article 20.2.c, Law on Housing 2023 (Law 27/2023/QH15).
[12] Article 172.1.c, Law on Land 2024 (Law 31/2024/QH15).
[13] Article 5, Decree 95/2024/ND-CP.
[14] Article 5, Decree 95/2024/ND-CP.
[15] Article 21.2, Law on Housing 2023 (Law 27/2023/QH15).
[16] Article 20.2, Law on Housing 2023 (Law 27/2023/QH15).
[17] Article 9.1, Law on Housing 2023 (Law 27/2023/QH15).
[18] Article 8, Decree 10/2022/ND-CP.
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