Buying A Property In Vietnam

Updated 2021-12-30 14:30

Vietnam is a country riddled with mystery and intrigue, history and scenery. If you are planning on staying here for a significant amount of time, buying a property in Vietnam may have crossed your mind. Throughout this article, we are going to share several pieces of important and up to date information on the process you must endure in order to purchase property in Vietnam.

Who Can Buy Property In Vietnam?

As it happens, there are far fewer restrictions than there used to be. At present, foreigners are legally entitled to buy property in Vietnam, whether in the form of a house, apartment, building or commercial space. It's important to stress that no foreign company or individual is permitted to own, rent, inherit or buy anything upwards of 30% of units in a traditional ward system or apartment building.

Depending on who buys the property, the length of ownership differs slightly. Put another way, foreign individuals may own a property in Vietnam for a period of up to 50 years. Foreign-owned companies on the other hand have the right to own property for as long as they retain their investment license in Vietnam.

Something important to remember is that foreigners do not have the right to own land in this country. On the other hand, even the locals don't have this privilege; all land in Vietnam is collectively owned by the people in theory. However, as land ownership is regulated by the state, the people have very little jurisdiction. Foreign individuals or companies can apply for leasing rights and are permitted to build on the land, given the appropriate approval.

How To Buy Property In Vietnam

There are numerous means of successfully buying a property in Vietnam and we will focus on the three most common.

  1. Buying as a foreign individual is completely realistic in practice. It isn't necessary to form any kind of legal entity; however, the first term of ownership is not allowed to exceed 50 years in duration. This can be renewed, though. Buying property this way is the closest thing to private ownership in Vietnam. Moreover, once you have registered your newly-purchased property with the local tax authority, you are permitted to sublet.
  2. Forming a joint venture in Vietnam is the second option available to foreigners. To utilise this option, a Vietnamese partner is mandatory. Joint venture companies have the right to buy households and buildings for lease or sale. Be sure to apply due diligence when selecting your Vietnamese nominee. If they are not reliable or trustworthy, you could encounter a number of terrible consequences later.
  3. Setting up a company that is 100% foreign-owned is another common way of buying property in Vietnam. Doing this will give you the freedom to lease land and construct warehouses, factories and commercial buildings. Unfortunately, establishing a company won't give you the right to sell or lease the properties you build. At least not with the same freedoms a local real estate company would have. The only way around this would be to actually establish a real estate company in Vietnam yourself.

Although buying a property in Vietnam isn't the most complicated process, registering can take up to two or three months. Be sure to consult with a legal entity and acquire the correct guidance before making your purchase. Furthermore, if you're looking for further information on setting up a business in Vietnam, we have published a number of articles that may interest you.

We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.