With the increasing number of foreigners living and working in Vietnam, the demand for stable home ownership has grown significantly. However, the relevant legal procedures remain relatively complex. DNP Vietnam Law Firm hopes that this article will help readers gain a clearer understanding of the conditions, procedures, and rights related to property ownership under the current legal framework.
Legal Grounds:
– Law on Housing 2024 (Law No. 27/2023/QH15)
– Decree No. 95/2024/NĐ-CP guiding the implementation of the Law on Housing
1. Conditions for Foreigners to Purchase Residential Property in Vietnam
1.1. Eligible Buyers
Foreign individuals eligible to purchase housing in Vietnam must meet the following conditions:
– Possess a valid passport and be legally permitted to enter Vietnam by the competent immigration authority.
– Not fall under the category of persons entitled to diplomatic or consular immunity in accordance with Vietnamese law.
– When carrying out the transaction, present the original passport and lawful entry stamp to verify legal residency status.
1.2. Types of Residential Property Eligible for Purchase
Foreign individuals are permitted to purchase only specific types of housing in Vietnam, as follows:
– Commercial housing, including apartments or detached houses located within commercial housing development projects.
– Not eligible to purchase social housing, official-duty housing, properties located within areas reserved for national defense or security, or undeveloped land plots.
– The property project must not be located within areas prohibited for foreign ownership, as publicly announced by the Ministry of National Defense and the Ministry of Public Security.
1.3. Ownership Limitations
Foreign individuals are subject to specific restrictions on housing ownership in Vietnam, as follows:
- Ownership must not exceed 30% of the total number of apartments in a single condominium building.
- Ownership must not exceed 250 detached or terraced houses within a single ward-level administrative unit.
- Before purchasing, foreign buyers should verify with the Department of Construction or the project developer to confirm the remaining number of units available for foreign ownership.
1.4. Ownership Duration
- The maximum ownership period is 50 years, with the possibility of one-time renewal for another 50 years upon request.
- In cases where a foreign individual marries a Vietnamese citizen, the homeowner shall enjoy permanent and stable ownership rights, equivalent to those of Vietnamese citizens.
2. Rights and Obligations of Foreign Homeowners in Vietnam
2.1. Rights of the Homeowner
Foreign individuals who legally own residential property in Vietnam are entitled to the following rights:
- The right to use, lease, gift, inherit, mortgage, and transfer the property in accordance with Vietnamese law.
- The right to be issued a Certificate of Home Ownership (commonly known as the “Pink Book”) under their own name.
- The right to transfer or gift the property to a Vietnamese citizen or another eligible foreign individual, provided that the ownership quota for foreigners has not been exceeded.
2.2. Obligations of the Homeowner
- When leasing out the property, the owner must notify the district-level Housing Management Office in writing and fulfill all applicable tax obligations as prescribed by law.
- Payments for property transactions must be made through a bank account in Vietnam; cash payments are not permitted.
- The homeowner must comply with regulations on security, public order, and temporary residence registration if residing in the property.
3. Procedures for Foreigners to Purchase Residential Property in Vietnam
3.1. Required Documents
The foreign buyer must prepare the following documents:
- A valid passport bearing a current entry stamp issued by the Vietnamese immigration authority;
- A written declaration confirming that the buyer is not entitled to diplomatic or consular immunity (self-declared according to the prescribed form);
- Documents proving marital status (if applicable), to determine eligibility for long-term ownership;
- A bank account in Vietnam used for payment transactions in Vietnamese Dong (VND).
3.2. Transaction Process
Step 1: Select a suitable housing project and verify legal information and the foreign ownership quota through the developer or the Department of Construction.
Step 2: Sign a deposit agreement, typically equivalent to 5–10% of the apartment’s value.
Step 3: Execute the sale and purchase contract:
- If purchasing directly from the developer → notarization is not required.
- If purchasing from an individual (resale) → notarization is mandatory at a licensed notary office.
Step 4: Make the payment via a Vietnamese bank account, in Vietnamese Dong (VND); cash payments are not accepted.
Step 5: Receive the property handover and accompanying documents (handover minutes, invoices, and payment receipts, etc.).
3.3. Procedures for Title Transfer and Issuance of the Certificate of Home Ownership
Step 1: Prepare the registration dossier, including:
- The notarized sale and purchase contract;
- Passport and valid visa of the foreign buyer;
- Proof of payment and receipts for taxes and fees.
Step 2: Submit the dossier to the Land Registration Office in the locality where the property is situated.
Step 3: Fulfill all financial obligations:
- The seller must pay personal income tax at the rate of 2%;
- The buyer must pay a registration fee of 0.5%.
Step 4: Receive the Certificate of Home Ownership (Pink Book), which clearly states the ownership duration (50 years or permanent ownership if eligible).
4. Important Notes After Purchasing a House
- Upon the expiration of the 50-year ownership term, if no extension or transfer is made, ownership rights shall terminate in accordance with the Law on Housing.
- All transactions, including leasing, selling, or gifting, must comply with Vietnamese regulations and be conducted through a Vietnamese bank account.
- Foreign individuals are not permitted to purchase land plots or hold land use rights; they may only own residential buildings attached to the land within the legally allowed scope.
Foreign individuals may lawfully purchase and own residential property in Vietnam provided that they meet all legal requirements and comply with the prescribed procedures. However, the process requires clear documentation, valid supporting papers, and transparent payment transactions. DNP Vietnam Law Firm is committed to providing comprehensive legal consultation, document preparation, and client representation to ensure a fast, compliant, and legally secure home purchase process for foreign buyers.
DNP VIET NAM LAW FIRM
Contact:
🏢 Address: 5th Floor, 52 Nguyen Thi Nhung Street, Van Phuc Estate, Hiep Binh Ward, Ho Chi Minh City, Viet Nam
📩 Email: info@dnp-law.com
📞 Hotline: 0987 290 273 (Dinh Van Tuan Lawyer)
Website: https://www.dnp-law.com/
