Here's the guide for those who want to buy house in Vietnam for both investment & living purpose
Individuals: Foreign individuals are eligible to buy residential properties in Vietnam, as long as they can enter the country legally.
Entities: All legal entities like foreign investment funds, banks, Vietnamese branches & representative offices of overseas companies that are established in Vietnam; are eligible to buy Vietnam properties.
Types: The new Residential Housing Law allows eligible foreign entity & individuals to buy and own all residential sectors including apartments and landed properties such as villas & townhouses (previously only applicable to apartments).
Foreigner Quota Restrictions: (i) Foreigners can own not exceeding 30% of the total units within one condominium complex; (ii) and not exceeding 10% for the total number of the separate houses for each project.
Purpose of Purchase: The properties owned by foreigners can be sold, sub-leased, inherited and collateralize (previously only for owner occupying purpose).
Land Tenure (i) Foreign Individuals: up to 50 years leasehold from the date of issuance of ownership certificate + possible renewal (subjected to approval by authorities.)
(ii) Foreign Individuals + Vietnamese spouse: Freehold
(iii) Foreign organizations: up to the duration (inclusive of extended duration) indicated in the investment certificate.
What are the Taxes Involved in the New Vietnam Foreign Property Ownership?
The following taxes are applicable to property sales transactions:
Value Added Tax (VAT): 10% VAT is taxed on any sale of property by local or foreigners.
Registration Tax for Ownership: 0.5% registration tax for obtaining the house ownership certificate on the apartment value.
Personal Income Tax (For Resale): If personal income is earned through the assignment or resale of apartments or houses, a 2% personal income tax has to be paid on the transacted value.
Personal Income Tax (for Rental Income) If personal income is earned through rental of house/apartment, 5% VAT and 5% PIT has to be paid on revenue.
For rental income exceeding VND 1,500,000 per month, a business license tax of VND 1,000,000 (approx US$45) per year applies.
Administration Fee: A minimal administration fee is to be granted an ownership certificate at the current regulation.
(luxury property)
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