FOREIGNERS BUYING REAL ESTATE IN VIETNAM

27/07/2023

To buy a house in Vietnam, foreign buyers need to understand the conditions, areas allowed to buy, documents and procedures for buying a house, as well as regulations on the time limit and procedures for extending housing ownership, to ensure that the purchase and sale is carried out in accordance with the process and ensure the interests of foreign buyers.

I. Foreigners are entitled to buy real estate in Vietnam

According to Clause 5 Article 3 of the Law on Vietnamese Nationality 2008, foreigners are understood to include two subjects:

- Foreign nationals.

- Stateless persons permanently or temporarily residing in Vietnam.

*Regarding land use rights of foreigners:

According to the provisions of Article 5 of the 2013 Law on Land, foreigners at home or abroad are not eligible for land use rights, land allocation, land lease by the State, recognition of land use rights, receipt of transfer of land use rights. At the same time, according to Clause 3, Article 186 of the 2013 Law on Land, all recipients of inheritance of land use rights, ownership of houses and other assets attached to land are foreigners, this person is not granted a Red Book but is transferred or gifted with inherited land use rights. Therefore, according to the above regulations, with land use rights, foreigners will not be able to put their names on the Red Book.

*Regarding the ownership and use of houses by foreigners:

Accordingly, pursuant to Clause 1, Article 159 of the Law on Housing 2014 stipulating the subjects entitled to own houses of foreign organizations and individuals in Vietnam, including:

- Foreign organizations and individuals investing in building houses under projects in Vietnam in accordance with this Law and the law having related (Subject 1);

- Foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign investment funds and branches of foreign banks operating in Vietnam (hereinafter collectively referred to as foreign organizations) (Subject 2);

- Foreign individuals are allowed to enter Vietnam (Subject 3). Thus, foreign organizations and individuals still have the right to own and use houses, however, in Clause 2, Article 159 of the Law on Housing 2014 guided in Article 75 of Decree 99/2015/ND-CP (Clause 2 amended and supplemented by Clause 22, Article 1 of Decree 30/2021/ND-CP), organizations, Foreign individuals may only buy houses (apartments and individual houses) located in investment projects to build commercial houses, except for areas ensuring national defense and security in accordance with Vietnamese law.

II. Conditions for foreigners to own real estate in Vietnam

On that basis, the law also sets conditions for foreign organizations and individuals to own houses in Vietnam according to the provisions of Article 160 of the Law on Housing 2014, specifically as follows:

For individuals, organizations in Subject 1 must satisfy the following conditions: Having an investment certificate; There are houses built in the project in accordance with the Law on Housing 2014 and relevant laws.

For foreign organizations, Subject 2 must satisfy the following conditions: Having an investment certificate or a document related to being licensed to operate in Vietnam (hereinafter collectively referred to as an investment certificate) issued by a competent state agency of Vietnam.

For foreigners (Subject 3) must meet the following conditions: Allowed to enter Vietnam, not eligible to enjoy diplomatic and consular privileges and immunities as prescribed by law.

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For more information, please contact:

Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

Attention: This legal update is not an advice and should not be treated as such.