Points to note before buying properties in Vienam
There are some points to note when you come up with a purchase decision:
- Despite the difference in tenure of ownership for foreign and local homebuyers, there is no difference in the purchase price between a local and foreign purchaser.
- According to Vietnam’s Housing Law, every foreigner who has a Vietnamese visa stamp on their passport can buy a property in Vietnam. However, if you enjoy diplomatic or consular immunities and privileges, this does not apply.
- By Vietnamese law, land is a national good, so you can only own the structure built on a property, not the land that it is on. You can enjoy a “land use right” for up to 50 years, with an option to extend the land use right at the end of it. The exact conditions for the extension are still unclear and will be detailed in further regulations.
- Also note that if a foreigner is married to a Vietnamese citizen or a Việt kiều holding Vietnamese nationality, he/she will have the same ownership rights as Vietnamese citizens.
- Foreign individuals and entities may only buy, receive or inherit apartments and houses in commercial projects and not in areas that limit or ban foreigners.
- The total number of units owned by all foreign buyers must not exceed 30% of the units in one apartment building, or 250 landed property units in one ward.
- A foreigner may lease his/her property for any purpose that is not banned by law, but he/she must inform the Housing Department of the People’s Committee where the property is located, before leasing the property. In this case, he/she is subject to Vietnam’s property taxes.
- Besides individuals, foreign companies, branches, representative offices of foreign companies, foreign investment funds and branches of foreign banks that are operating in Vietnam are also entitled to purchase property of residential projects with some certain limitations.
- Foreign-invested enterprises that operate in Vietnam under the investment law but are not engaged in real estate, can purchase residential houses for their employees. They must possess investment certificates or written certifications of investment activities as appropriate to investment forms specified by the investment law granted by a competent Vietnamese state agency. They can buy properties as houses for their employees, but are not able to use them for leasing or other purposes.
Summarized by Tracy Vu @ CENTURY 21 Capital RealtyEmail: email@example.com
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