FAQs

Frequently Asked Questions for Foreign Purchasers

Disclaimer: This FAQ is a summary based on general information only. The Laws in Vietnam is subject to change by the local government. The reader is advised to consult with a professional/legal consultant before taking any action. The Developer does not accept or assume any responsibility for any damage or consequences as a result of the reader acting or ceases to act, upon such information contained in this FAQ. The laws for foreign ownership and new tax regulations guiding foreign purchasers to purchase shall be announced in due course on 1st July 2015.


Before 1st July 2015, only selected categories of foreigners are permitted to purchase apartment in Vietnam. The categories mainly include:

  1. Foreign company set up in Vietnam (but not real estate developers),
  2. Foreign company owners, managers working in Vietnam,
  3. Foreign Individuals with significant contribution to Vietnam,
  4. Foreign Individuals  with special skills demanded by Vietnam
  5. Foreign Individuals married to a Vietnamese citizen.

With effect from 1st July 2015, the new laws allow all foreign individuals who are granted with visa to Vietnam, to buy residential properties in Vietnam.

Foreign organisations, their Vietnam-based branches and representative offices are all eligible to buy.

All types of residential property, including condominiums and landed property such as villa and townhouses, can be purchased.

Before 1st July 2015, foreign purchasers are required to submit the following certified true copy during purchase:

  1. Passport,
  2. Valid temporary residence card or permanent residence card or visa which permits them to reside in Vietnam for at least 1 year,
  3. Necessary documents to prove that he/she is eligible for purchase and ownership of residential houses according to Question No.1 above.

The foreign purchaser must stay in Vietnam.

Under new law to be effective from 1st July 2015:

Although the law provides that foreigners “allowed to enter into Vietnam” are eligible to buy property in Vietnam, currently there is no further regulation clarifying this.

Yes, buyer can buy under Long Term Lease for the time being and if they are eligible to buy under Sale Contract, we will allow buyer to convert to SPA.

Under the laws in Vietnam, regardless of the number of names in the SPA, the property of a married buyer will be shared with the spouse by default unless the spouse declares to withdraw the ownership rights through a notarized public.

Before 1st July 2015, an eligible foreigner can buy only one condominium in Vietnam.

With effect from 1st July 2015, an eligible foreigner can buy as many as 30% of the total units in one condominium complex, or 250 landed properties units in one particular administrative (or the equivalent of) ward.

There is no such limit.

There is no such limit.

Before 1st July 2015, the tenure allowed for eligible foreign purchaser is limited to 50 years from the date of the purchaser’s Certification of House Ownership and Land Use Right (Pink Book) without option to renew upon expiry.

With effect from 1st July 2015, the tenure allowed for eligible foreign purchaser is limited to 50 years from the date of the purchaser’s Certification of House Ownership and Land Use Right (Pink Book) with renewal possibility. For foreigners married to Vietnamese citizens, freehold tenure is granted.

Before 1st July 2015:

12 months upon expiry of ownership duration (max 50 years from the Pink Book’s issuance date), the foreign purchasers must sell or donate their residential houses.

 With effect from 1st July 2015:

Before expiry of ownership duration, the foreigners can either sell or donate the residential houses or apply for the tenure renewal. Currently there is no further regulation clarifying how to renew the tenure.

There is no difference in the purchase price between a local and foreign purchaser.

There is no restriction on subsequent selling by the foreigners. The foreigner is entitled to sell its property in the open market and to either locals or foreigners. The difference is that if sold to a local, the title of the property will revert to a freehold status.

Based on the current regulations, all purchasers (locals and foreigners) are required to pay only the following taxes and fees:

  1. Value Added Tax (VAT) : 10%
  2. Registration Fee for application of the Pink Book: Less than 0.5% of Purchase Price

There is no equivalent term of stamp duty in Vietnam.

Before 1st July 2015: No.

 Under new law to be effective from 1st July 2015: Yes, foreign purchasers can lease out their property with prior written notice sent to authority and you shall be self-responsible for taxes imposed on such lease. Currently there is no further guidance on the aforesaid prior written notice.

Before handover of the purchased property, foreign purchasers can re-sale anytime by way of transfer of the Sale and Purchase Agreement (SPA) which is subject to the endorsement of the developer.

Upon handover of the purchased property, the purchasers can re-sale only if the Pink Book has been issued.

Currently, tax laws in Vietnam allow income tax exemption in transfer between family members and we have not seen any tax regulation on different treatment for transactions between foreigners in this case.

Under the tax laws in Vietnam, such transfer shall be considered as re-sale and Personal Income Tax (PIT) is applicable as follow:

  • 2% of the transacted resale value reflected in the notarised sale contract between existing buyer and new buyer.

Foreign purchasers can transfer the SPA to any Vietnamese or foreigners provided that the foreigners are entitled to own residential property in Vietnam.

For a transfer to Vietnamese, the tenure shall be automatically converted to Freehold.

If a transfer is made to foreigner after the pink book is issued, a new tenure of 50 year shall be awarded to the foreign sub-purchaser upon the issuance of the new pink book.

The law requires all payments from foreign purchasers to be made via a financial institution in Vietnam and record made by relevant financial institution is required for repatriation. As such, we suggest that buyer should check with their bankers the process of transfer or document required for transfer.

The variance between the amount paid via the financial institution and the total amount to be repatriated will be recognized as profit which shall be subject to income tax.

The purchasers can transfer the SPA to a third party according to the normal procedures provided in prevailing regulation, i.e. Circular 16 as follow:

  • The involved parties shall make a document on the transfer of the SPA according to the template provided in Circular 16 and it is certified by a notary public.
  • Proof of income tax payment must be submitted to the Developer before the Developer confirms the transfer of the SPA.

No, there is no Capital Gain Tax, however, based on the current law, Personal Income Tax (PIT) or Company Income Tax (CIT) is applicable.

  • 2% of the transacted resale value reflected in the notarised sale contract between existing buyer and new buyer.

There is no difference in tax for local and foreign purchasers.

To the best of our knowledge, there shall be new tax regulations guiding foreign purchasers to purchase in due course on 1st July 2015.

Our Sales Department will be able to assist by referring an external Marketing Agent experienced in lease to our foreigner purchasers.

As a gauge, it took about 6-9 months from handover date for our previous completed properties.

The list of required documents is typically passport, marriage certificate (if purchasers are married etc.), sale contract etc. Additional documents may be required by the authority at time of application

At this moment, some foreign banks do provide loans to foreigners (working or not working in Vietnam) with Vietnamese spouse residing in Vietnam . There shall be new regulations guiding foreign purchaser in due course, as the new Law on Residential Housing will be effective from 1st July 2015.

Foreign purchasers must satisfy the conditions for obtaining Vietnamese passport. Currently, there is no provision allowing a foreigner to obtain Vietnamese passport solely based on his/her purchase of residential house in Vietnam.

In such event, the property (ies) shall be dealt with in accordance to the Vietnam law on Inheritance. i.e. testate succession or intestate succession.

Yes. According to the Vietnamese laws, all disputes relating to the real estate located in Vietnam must be resolved in relevant Court of Vietnam.

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