Property in Vietnam is an affordable opportunity to level up your investment portfolio and invest in a foreign asset. One of the leading countries in Southeast Asia attracts overseas investors with reasonable prices and a large selection. There are certain peculiarities of buying property in Vietnam by foreigners, which must be in line with current legislation. Read on to find out how to become an owner of Vietnamese property.
Content:
- How to buy property in Vietnam as a foreigner
- Real estate prices
- Stages of buying property in Vietnam
- How to buy property in Vietnam remotely
- Property tax in Vietnam for foreigners
- Make buying property in Vietnam easy with us!
How to buy property in Vietnam as a foreigner
Previously, the country had tight restrictions on the purchase of real estate by foreign nationals. With the liberalisation of legislation, the situation has changed. Below are the features of buying and registration of property in Vietnam in 2023:
- To make a purchase, it is enough to have a tourist visa and a valid passport.
- Foreigners can acquire apartments in condominiums. However, they are allowed to own no more than 30% of all units within a particular residential complex and no more than 250 housing units within 1 administrative district.
- When buying property in Vietnam by foreigners, the ownership lasts 50 years and is renewable.
- Expats can acquire a house, but the land underneath is leasehold. Land plots in the country are state-owned. This practice is typical for most countries in Southeast Asia and in fact does not interfere with the disposal of real estate.
Thus, foreigners can own and use real estate to relocate, spend holidays, or generate rental income.
Buying property in Vietnam by a non-resident of the country does not grant them citizenship. To become a citizen, one must reside in the country long-term and pass an exam to prove their Vietnamese language proficiency.
Real estate prices
The cost depends on a number of factors:
- Real estate type and class;
- Region;
- Living space area and number of bedrooms.
At the time of publication of the article, prices range quite widely. For example, in Ho Chi Minh City, a 2-bedroom apartment is for sale at $11,000. A 3-bedroom apartment in the same development is on the market for $29,000. Meanwhile, a penthouse is offered for $1.1 million. A villa costs either $300,000 or $2 million.
Stages of buying property in Vietnam
Whether you are looking for a new home or investment asset, professional brokers can suggest how to buy a property in Vietnam profitably and correctly. Knowledge of the nuances of local legislation guarantees the purity and safety of the transaction. First, it is important to decide on the purpose of the purchase. If you want to acquire a holiday home, you can consider locations such as Nha Trang, Quang Ninh, or Da Nang. These are the best known coastal cities with numerous tourist attractions. If you are exploring investment opportunities, you can look beyond tourist destinations. Apartments with the highest returns are in Hanoi and Ho Chi Minh City.
The stages of the property purchase procedure are as follows:
- Selecting a unit and estimating potential profit. If this is an apartment in an off-plan development, it is equally important to research the developer’s reputation. It is not enough to find something that suits you in every way. You also need to check whether the selected apartment in Vietnam is available for private ownership by foreigners.
- Choosing a payment method. This can be cash or bank transfer. When purchasing an off-plan unit, the developer may offer instalment plans. It is important to take into account that if you carry more than $5,000 in cash, you must declare it upon entry and prove its origin. You can only pay in Vietnamese dong.
- Booking a unit and making a deposit. It proves the buyer’s solvency and interest in the transaction. Subsequently, the deposit goes toward the transaction cost.
- Signing a sale and purchase agreement and paying for the purchase with further transfer of ownership. The agreement is certified by a notary.
- Obtaining a certificate of ownership, namely the pink book for apartments or the red book for houses.
How to buy property in Vietnam remotely
Is it possible to conduct a property transaction remotely? It is. The remote Vietnam property purchase procedure is similar to the one in other countries. The transaction must be conducted by an estate agent licensed to provide this type of service. They are appointed by a power of attorney and verify the compliance of all necessary paperwork. The buyer only needs funds to pay for the purchase. In such cases, money is usually transferred to the account of a representative company, which acts as a guarantor of a safe transaction.
Property tax in Vietnam for foreigners
The costs of buying and selling property in Vietnam involve paying 10% VAT, which is already included in the purchase price, and 0.5% registration fee. The buyer also must pay a maintenance fee equal to 2% of the price before VAT.
Property taxes in Vietnam for non-residents planning to receive rental income include 5% VAT and 5% personal income tax. If homeowners sell their home, they are required to pay a transaction fee, which is equal to 2% of the sale price.
Make buying property in Vietnam easy with us!
The website contains a large selection of real estate in the republic. There are both residential and commercial units: apartments, land plots, and villas in Vietnam. Listings are published directly from developers and agencies. A convenient search system allows you to select the type of real estate you are interested in using filters, set the desired neighbourhood, and calculate the price in dollars and euros. A smooth property purchase procedure in Vietnam requires knowledge of the local legislation and market. You can get detailed information about the registration process from our specialists. To receive advice and learn about buying property in Vietnam, pros and cons, leave a request in the contact form.
