The answer is yes. Although Vietnamese law prohibits foreigners from owning land, they can still invest in real estate attached to land through land leases. These properties, such as apartments or villas in projects, often come with long-term land leases, lasting for decades.
The answer is yes. Although Vietnamese law prohibits foreigners from owning land, they can still invest in real estate attached to land through land leases. These properties, such as apartments or villas in projects, often come with long-term land leases, lasting for decades.
Although foreigners can own real estate in Vietnam, there are still restrictions on the type of real estate and the duration of ownership.
– Condominiums: Foreigners are allowed to buy apartments in buildings with long-term land use rights, usually 50-70 years.
– Landed real estate: Foreigners are not allowed to directly own land in Vietnam. However, they can buy the same real estate through a long-term land lease, usually lasting up to 70 years. Extension of the land lease can be negotiated with the landowner.
– Industrial real estate: Are foreigners allowed to buy commercial real estate in Vietnam? The answer is yes, but there are still certain restrictions. Foreigners looking to invest in Vietnam’s growing industrial sector can also buy industrial real estate such as warehouses and factories. Similar to real estate, foreigners are not allowed to own land. However, foreigners can buy ownership of the structures themselves through a land lease. The Vietnamese government has offered many incentives to attract foreign investment in industrial parks, and this can be a potentially lucrative option.
There are some important differences in Vietnam’s real estate ownership laws for foreigners. Although foreigners are not allowed to own land directly, they can choose to own buildings built on leased land.
– Land use rights: Individual ownership: Foreigners can buy apartments in designated commercial housing projects and own them for 50 years, with the possibility of extending the ownership after the initial period. This ownership is reflected in the Pink Book.
– Marriage incentives: Marrying a Vietnamese citizen will give foreigners permanent ownership, meaning they can own real estate in the same way as Vietnamese citizens.
– Corporate ownership: Foreign companies can own real estate as long as their investment project is valid. The exact time frame will be detailed in their official Investment Certificate.
– Purchase limit: Foreigners can buy up to:
+ 30% of the number of apartments in an apartment building.
+ 10% of the number of houses in housing projects.
+ Up to 250 houses in an area with a population equivalent to a ward.
In areas where the number of real estates that foreigners can own is limited, if a foreigner inherits the ownership of a real estate, he/she will not receive the real estate directly. Instead, he/she will receive the equivalent value of the inherited real estate.
The ownership of real estate by foreigners comes with a 50-year land lease. An application for extension of land use can be submitted three months before the expiry date, during which time the owner has the right to sell or will the real estate. If not renewed or sold before the deadline, the real estate ownership will be transferred to state ownership.
- Check the legality of the project: Before deciding to buy a house, foreigners need to carefully check the legality of the real estate project. In particular, it is necessary to ensure that the project is allowed to be sold to foreigners and is not located in a restricted area or related to national security.
- Comply with ownership limits: Buyers need to pay attention to the limits on the number of apartments and houses that foreigners can own in each project and area. This helps avoid legal risks later.
- Prepare complete documents: The procedures for buying and selling and granting a Certificate of house ownership require foreigners to prepare complete legal documents such as passports, valid visas and documents related to the purchase and sale transaction. Careful preparation will help reduce time and difficulties during the implementation process.
- Consider the ownership period: Buyers need to note that the maximum ownership period is 50 years and carefully consider the conditions for extension after the expiration of the period. This helps ensure the rights of the buyer in case of long-term use.
- Cooperate with legal consulting units: For foreigners who are not familiar with Vietnamese law, cooperating with legal consulting units or reputable real estate companies will help ensure the buying and selling process goes smoothly and legally.
- Housing Law 2014: Article 159 clearly stipulates the right to own houses in Vietnam of foreign organizations and individuals.
- Decree 99/2015/ND-CP: Detailed regulations and guidance on the implementation of a number of articles of the Housing Law related to foreigners buying and owning houses in Vietnam.
- Circular 19/2016/TT-BXD: Detailed guidance on the implementation of a number of provisions of the Housing Law and Decree 99/2015/ND-CP related to the right to own houses of foreigners in Vietnam.