The Housing Law is an important issue and a decisive factor for stability and harmony in daily life, especially for foreigners who wish to live in Vietnam. Understanding and complying with housing regulations not only protect individual rights but also contribute to the sustainable development of the community and the country. In this article, we will introduce key points of the Housing Law relevant to foreigners, aiming to help them integrate smoothly and enjoy peaceful living in their second home country.
According to Vietnam’s Housing Law of 2014, foreigners have the right to purchase residential houses, non-agricultural land, and lease properties under specific legal provisions. Some argue that foreigners have advantages in Vietnam’s real estate market, which may contribute to rising property prices, especially in rapidly developing tourist areas. Conversely, others believe these policies can attract foreign investment, thereby contributing to the economic and infrastructural development of the country.
Forms of Real Estate Ownership
According to Article 17 of the Housing Law of 2023, foreign individuals entering Vietnam have the right to own residential properties. This provision allows foreigners to own properties in Vietnam, including condominiums and private houses, through the following methods:
- Ownership through Purchase or Lease Purchase: Foreign individuals can own residential properties by purchasing or lease-purchasing commercial housing from developers undertaking housing construction projects, receiving gifts, or inheriting commercial housing in projects not located in areas requiring national defense and security as stipulated in Article 16 of the Housing Law of 2023.
- Ownership through Purchase or Lease Purchase from Existing Foreign Owners: Foreign individuals can also own residential properties by purchasing or lease-purchasing houses from organizations or individuals who are already foreign property owners under the above regulations.
These regulations specify the conditions under which foreign individuals may legally own and use real estate in Vietnam. They highlight the legal framework governing the property ownership rights of foreigners in the Vietnamese real estate market, aiming to facilitate investment while ensuring compliance with national security requirements and legal regulations.
Regulations on Quantity
- Limitation on Number of Units: Foreign individuals are allowed to purchase, lease-purchase, receive as gifts, inherit, and own up to 30% of the total number of apartments in a condominium building. For standalone residential properties such as villas, semi-detached houses, foreign individuals are permitted to purchase, lease-purchase, receive as gifts, inherit, and own up to 250 houses in an area equivalent to the population scale of a ward.
- Density Considerations: In areas with a population equivalent to a ward where there are many condominiums or standalone houses along a street, foreign individuals may purchase, lease-purchase, receive as gifts, inherit, and own up to the specified number of units and houses as outlined above.
- Government Regulations: The government specifies requirements concerning areas requiring national defense and security, as well as criteria for converting population scales equivalent to a ward. Additionally, the government regulates the number of residential properties that organizations and foreign individuals are allowed to own, the extension of ownership tenure, and issues related to the management and ownership of residential properties by foreign individuals in Vietnam.
It is important to note that foreign individuals are only permitted to own residential properties if they have been granted entry into Vietnam and do not fall under any privileged or exempted categories as defined by diplomatic and consular law.
Permanent Ownership of a House
Theo Điều 73 của Luật Nhà ở năm 2014, người nước ngoài kết hôn với người Việt Nam và đã nhập cảnh vào Việt Nam có thể được cấp giấy phép sở hữu nhà ở vĩnh viễn. Theo quy định, người nước ngoài phải đáp ứng các điều kiện sau để được sở hữu nhà ở vĩnh viễn:
- Kết hôn với người Việt Nam: Điều này có nghĩa là họ đã có hôn ước pháp lý với người Việt Nam, được công nhận bởi cơ quan có thẩm quyền.
- Đã nhập cảnh vào Việt Nam: Người nước ngoài phải có thể chứng minh rằng họ đã nhập cảnh vào Việt Nam hợp pháp theo các quy định của Luật Nhập cảnh, Di trú và Quản lý người nước ngoài.
- Cấp giấy phép sở hữu nhà ở vĩnh viễn: Quy trình cấp giấy phép này do cơ quan nhà nước có thẩm quyền quy định và thực hiện. Thông thường, người nước ngoài cần nộp đủ các hồ sơ cần thiết và tuân thủ các điều kiện quy định nhằm đảm bảo an ninh, trật tự xã hội và các quy định khác của pháp luật Việt Nam.
Ngoài ra, quyền sở hữu nhà ở vĩnh viễn của người nước ngoài kết hôn với người Việt Nam còn phụ thuộc vào các quy định chi tiết khác của pháp luật, bao gồm quy định về đất đai, quy hoạch, an toàn xây dựng và bảo vệ môi trường.
Permanent Ownership of a House
According to Article 73 of the Housing Law of 2014, foreign individuals who are married to Vietnamese citizens and have entered Vietnam may be granted a permanent ownership certificate for residential properties. The regulations stipulate that foreign individuals must meet the following conditions to qualify for permanent ownership:
- Marriage to a Vietnamese citizen: This means they must have a legally recognized marriage with a Vietnamese citizen, acknowledged by the competent authority.
- Entry into Vietnam: Foreign individuals must be able to prove that they have entered Vietnam legally according to the provisions of the Law on Entry, Exit, Transit, and Residence of Foreigners.
- Issuance of Permanent Ownership Certificate: The process of issuing this certificate is regulated and implemented by the competent state authority. Typically, foreign individuals need to submit all necessary documents and comply with specified conditions to ensure national security, social order, and other legal regulations of Vietnam.
Additionally, the right to permanent ownership of residential properties by foreign individuals married to Vietnamese citizens is also subject to other detailed provisions of the law, including regulations on land, urban planning, construction safety, and environmental protection.
Rights in relation to other transactions
In addition, under current Housing Law of Vietnam, foreign individuals have the right to engage in various real estate transactions such as leasing, mortgage, contributing capital, gift-giving, gratitude, and exchange, including:
- Leasing: Foreign individuals are permitted to lease the residential properties they own. However, the leasing activities must comply with the provisions of the Housing Law and related legal documents. The rental prices must also adhere to the regulations set by the government or competent state management agencies.
- Mortgage: This involves using the property as collateral to fulfill obligations. Foreigners can mortgage the real estate they own to banks or credit institutions to secure their obligations. Nonetheless, this must also comply with financial, banking regulations, and related laws.
- Contribution of Capital: Foreign individuals can participate in contributing capital to real estate projects in Vietnam. However, this must be permitted according to foreign investment laws and requires approval from the competent state authorities.
- Gifts, Gratitude, Exchange: Foreign individuals can use their real estate properties as gifts, for gratitude, or exchange with other individuals or organizations. However, this must also comply with tax regulations, management requirements, and other laws of Vietnam.
- These provisions aim to regulate and facilitate foreign participation in the Vietnamese real estate market while ensuring compliance with legal frameworks and safeguarding national interests.
Procedures for purchasing real estate for foreigners in Vietnam
1. Opening a bank account
To open a bank account in Vietnam, foreign individuals need to provide the following documents:
– Passport: It must be notarized and translated into Vietnamese at a notary public office.
– Other documents: Additional documents as required by the bank.
After opening an account, foreign individuals can use this account for payments through the following methods:
– Bank transfer: Foreign individuals can transfer money from their bank account abroad to their bank account in Vietnam of the seller. This transfer typically involves the process of converting foreign currency into Vietnamese Dong. The seller will coordinate with the bank to facilitate this conversion.
– Direct transfer from abroad: Foreign individuals can directly transfer money from their foreign bank account to the seller’s bank account in Vietnam. This process requires the SWIFT code of the seller’s bank to execute the payment.
– Cash deposit through bank: If foreign individuals are present in Vietnam, they can deposit cash at the bank’s counter for the seller.
2. Proof of the Source of funds
To purchase real estate in Vietnam, foreigners need to demonstrate the source of their investment funds transparently and comply with Vietnamese legal regulations on anti-money laundering and counter-terrorism financing. Below are the documents that foreigners may need to provide to prove the source of their investment funds:
– Purchase and Sale Contract or Lease Agreement: This is a crucial document to demonstrate that the foreigner has executed a transaction to buy or lease real estate in Vietnam. This document may be the original or a notarized copy.
– Certificate of Source of Funds: These are essential documents to prove the legal origin of the funds used to pay for the real estate. These documents may include:
+ Income Certificate: Includes documents such as employment contracts, pay slips, payment orders, tax declarations, and related paperwork.
+ Financial Reports: For organizations, financial reports may be required to verify the source of investment funds.
+ Other Documents as Required by Authorities: Besides the listed documents, foreigners may need to provide additional documents as specifically requested by relevant government agencies to substantiate the source of their investment funds.
3. Property ownership period
Foreigners can own real estate in Vietnam under two forms:
– Ownership for up to 50 years from the date of issuance of the Certificate of Land Use Rights and Ownership of Residential Houses.
– Or the same ownership duration as Vietnamese citizens, if the foreigner marries a Vietnamese citizen or is a Vietnamese overseas national with Vietnamese citizenship.
– In the case of having the same ownership duration as Vietnamese citizens, this applies when a foreigner marries a Vietnamese citizen or is a Vietnamese overseas national with Vietnamese citizenship. They then have the rights to use, own, transfer, and inherit real estate freely, similar to Vietnamese citizens.
4. The Certificate of Land Use Rights and Ownership of Residential House
The Certificate of Land Use Rights and Ownership of Residential House (Land and House Ownership Certificate) is a legally significant document issued by the competent state management agency after the completion of legal procedures and related requirements. Here are its key components:
– Owner information: Includes the owner’s name, address, ID card number or passport (for foreigners), and contact information.
– Real estate information: Details the precise address of the property, its area, intended use, and a detailed description of related construction works (if applicable).
– Usage rights: Clearly defines the rights and obligations of the property owner, including the rights to use, transfer, lease, inherit, and other rights as stipulated by law.
– Legal information: Specifies details related to the issuance process of the Land and House Ownership Certificate, including the date of issuance, issuing authority, document number, and other pertinent information.
The Land and House Ownership Certificate serves as crucial legal evidence to confirm the ownership rights of the property owner and forms the basis for conducting transactions related to the property. The issuance of Land and House Ownership Certificate must strictly adhere to legal regulations to ensure its authenticity and legality, thereby protecting the legitimate rights and interests of all involved parties.
5. Extension of property ownership rights
The extension of property ownership rights is an important process to increase the period of use and ownership of real estate, especially when the ownership period is nearing expiration. In Vietnam, regulations concerning the extension of property ownership rights are specified as follows:
– Timing of Extension: Property owners can request an extension of their rights to use and own the property at least 3 months before the ownership period expires. This allows them to prepare and execute related legal procedures meticulously.
– One-Time Extension: The regulations permit the extension of property ownership rights only once. After an extension has been granted, there are no provisions allowing for further extensions. Therefore, the property ownership rights after extension will have a maximum duration of 50 years from the date of the extension.
6. Selling/Renting out property
When wanting to sell or lease property in Vietnam, including foreign owners, it’s crucial to adhere to relevant legal regulations to ensure legal compliance and follow these procedures:
– No Prohibited Lease Forms: According to Vietnam’s Housing Law, property owners have the right to lease their property in any form, as long as these forms are not prohibited by law. Lease forms can include long-term leases, short-term leases, leasing through brokers, or leasing through real estate brokerage services.
– Notification to the Department of Construction: As per regulations, property owners must notify the Department of Construction about the lease period before executing any lease transactions. This information helps functional agencies effectively control and manage activities related to real estate, ensuring that transactions are conducted in accordance with legal regulations.
– Protection of Rights and Interests: The law also clearly stipulates the rights and obligations of parties involved in lease transactions, including landlords and tenants. This includes clearly defining contract terms, provisions for property maintenance, and other rights of the parties involved.
Adhering to these regulations helps protect the rights of property owners and ensures transparency and stability in Vietnam’s real estate market.
7. Declaration of remittance abroad
When foreign individuals initiate the procedure to declare outward remittances from Vietnam, it is essential to clearly specify the purpose for transferring the funds. This purpose must be explicitly defined and align with legal regulations. Common purposes include payment for real estate transactions, business contract obligations, or other personal expenditures.
To support this declaration, foreign individuals need to prepare the following documents:
– A Sales and Purchase Agreement (SPA): This document confirms the transaction for which the funds are being transferred abroad, such as payments for services provided.
– The Certificate of Land Use Rights and Ownership of Residential House (Land and House Ownership Certificate): This document certifies ownership of real estate and may be required to demonstrate the purpose of transferring funds overseas.
– Other Relevant Documents: Depending on specific circumstances, additional documents such as financial reports, income statements, business profiles, or proof of capital origin may also be necessary.
The process of declaring outward remittances from Vietnam is typically facilitated through banks or reputable remittance agencies. Foreign individuals must provide complete and accurate supporting documents to these entities to ensure a smooth process without encountering legal complications.
Frequently Asked Questions (FAQs)
This section will address questions related to foreign ownership of real estate in Vietnam.
1. If a foreigner buys and sells to another foreigner, how long does the new buyer own the property?
– In the case of selling residential property to another foreign individual or organization eligible for residential ownership in Vietnam, the new buyer will own the property for the remaining term. Upon expiration of the remaining ownership term, if the owner wishes to extend, the State will consider and possibly extend it.
2. How is the ownership period calculated if a foreign organization buys real estate?
– The ownership period for a foreign organization is based on the remaining term stated in the Investment Certificate (IC) of that organization. If the term expires, extension may be possible subject to the developer’s regulations.
3. Are Overseas Vietnamese considered foreigners? If Overseas Vietnamese purchase property, are they considered foreigners or Vietnamese?
– In some cases, developers are “obliged” to sell at a higher price because the buyer cannot prove Vietnamese citizenship. However, if the buyer provides a Vietnamese identity card (CCCD) proving their place of birth, they are treated under regulations applicable to Vietnamese citizens.
If you are interested in renting or purchasing an apartment at The Opera Residence, please contact us promptly to receive the latest information.
Hotline: +8486 888 2539.
Source: Achieve Realty VN
