Tiếng ViệtVietnam’s real estate market is increasingly attracting foreign buyers thanks to its strong profit potential, favorable living environment, and open investment policies. Purchasing Real Estate for Foreigners in Vietnam is strictly regulated, with multiple conditions and limitations on property types, ownership duration, and land-use rights.
The following article by Lexconsult & Partners will help you clearly understand the conditions, entitlements, and legal procedures applicable when foreigners purchase houses, apartments, or other real estate in Vietnam—updated in accordance with the Housing Law 2023, the Land Law 2024, and the Law on Real Estate Business 2024—to ensure that all transactions remain lawful and secure.
1. Definition and Legal Basis for Real Estate Purchases by Foreigners in Vietnam
1.1. Definition of Real Estate Purchases by Foreigners
According to Clause 1, Article 3 of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam 2014, a foreigner is a person holding a document identifying foreign nationality or a stateless person entering, exiting, transiting, or residing in Vietnam.
“Purchasing real estate for foreigners in Vietnam” refers to the act of a foreign individual or organization engaging in transactions to purchase, lease-purchase, receive as a gift, or inherit houses, apartments, or construction works attached to land within the scope and conditions permitted under Vietnamese law.
1.2. Legal Basis Governing Real Estate Purchases by Foreigners in Vietnam
– The Housing Law 2023 (Articles 16 to 22) regulates homeownership in Vietnam by foreign organizations and individuals.
– The 2023 Law on Real Estate Business.
– The Land Law 2024.
– Decree No. 95/2024/NĐ-CP detailing certain provisions of the Housing Law.
2. Conditions for Foreigners to Purchase Real Estate in Vietnam
2.1. Eligible Subjects
Under Article 4 of the 2024 Land Law, foreigners are not classified as land users; therefore, foreigners cannot purchase real estate in the form of land.
According to Article 17 of the 2023 Housing Law, foreigners permitted to own residential property in Vietnam include foreign individuals who are legally allowed to enter Vietnam and are not eligible for diplomatic or consular privileges or immunities (Clause 3, Article 18 of the 2023 Housing Law).
However, foreigners may only purchase, lease-purchase, receive as a gift, inherit, and own no more than 30% of the total number of apartments in a condominium building. In the case of detached houses (including villas and terraced houses), they may purchase, lease-purchase, receive as a gift, inherit, and own no more than 250 houses within an area with a population equivalent to that of a ward.
2.2. Forms of Real Estate Acquisition by Foreigners in Vietnam
Clause 2, Article 17 of the 2023 Housing Law sets out the forms by which foreigners may own houses in Vietnam. Foreigners may acquire real estate in Vietnam through:
– Homeownership by purchasing or lease-purchasing commercial housing from developers of housing construction projects, or by receiving gifts or inheritance of commercial housing located within housing projects that are not situated in areas requiring national defense and security protection under Article 16 of this Law;
– Organizations and individuals may own housing through purchasing or lease-purchasing houses from foreign organizations or individuals who have already acquired homeownership pursuant to point (b) of this clause.
2.3. Ownership Duration for Foreigners in Vietnam
Limitations on ownership duration: Foreigners may own residential property for a maximum of 50 years from the date of issuance of the Certificate, and may apply for one extension if required (Clause 2, Article 20 of the 2023 Housing Law). Two exceptions apply:
– A foreign individual married to a Vietnamese citizen residing in Vietnam is allowed to own residential property with the same rights as a Vietnamese homeowner.
– A foreign individual married to an overseas Vietnamese who is permitted to enter Vietnam is entitled to own residential property with the same rights as an overseas Vietnamese homeowner.
Procedures for extending homeownership duration for foreigners in Vietnam are governed by Decree No. 95/2024/NĐ-CP.
3. Legal Procedures for Foreigners Purchasing Real Estate in Vietnam
3.1. Preparing Documents and Consular Legalization When Purchasing Real Estate as a Foreigner
According to Article 3 of Decree No. 95/2024/NĐ-CP, when purchasing real estate in Vietnam, foreign individuals must prepare two essential types of documents: (i) documents proving eligibility for homeownership, and (ii) documents proving that the individual belongs to the category permitted to own residential property in Vietnam.
Key required documents include:
– Documents proving eligibility for homeownership: The foreign individual must hold a valid passport bearing an entry stamp into Vietnam, or other legally equivalent documents evidencing legal entry at the time of signing the housing transaction, as prescribed in points (b) and (c), Clause 2, Article 17 of the Housing Law.
– Documents proving the individual is eligible to own housing in Vietnam: A foreign passport and a written declaration confirming that the individual is not subject to diplomatic or consular privileges or immunities.
– Sale, lease-purchase, or gift agreement for the real estate;
– Documents proving the seller’s ownership (Certificate of Land Use Rights, House Ownership, etc.);
– Consular legalization and notarized translation for foreign documents.
3.2. Process of Contract Signing, Notarization, and Registration of Ownership
– Sign the sale or lease-purchase contract with the developer or a seller legally permitted to transact with foreigners;
– Notarize or authenticate the contract at a legally authorized notarial practice organization;
– Apply for title transfer at the Land Registration Office;
– Pay taxes and registration fees, then receive the Certificate of House Ownership.
4. Notes for Foreigners When Purchasing Real Estate in Vietnam
– Verify the legal status of the project: Ensure the property is legally eligible for sale to foreigners.
– Conduct due diligence on the seller: Confirm ownership rights and ensure there are no disputes or encumbrances on the property.
– Clarify ownership duration: Specify the ownership term in the sale contract and certificate to avoid confusion with the permanent ownership available to Vietnamese citizens.
– Seek legal counsel before the transaction: Foreign buyers should hire a real estate lawyer for support from project due diligence to contract drafting and ownership transfer.
– Transfer or inheritance: Upon expiration of the ownership term, the foreign individual may transfer or gift the property to a Vietnamese citizen or apply for an extension of ownership rights as prescribed.
5. Legal Advisory from Lexconsult & Partners
With extensive expertise in real estate legal consulting for foreign clients, the lawyers at Lexconsult & Partners provide comprehensive support, including:
– Conducting due diligence on project legality and the developer to ensure lawful ownership;
– Advising on suitable forms of ownership (purchase, lease-purchase, inheritance, etc.);
– Drafting and reviewing real estate sale and purchase agreements;
– Representing clients in working with State authorities during ownership transfer and registration procedures;
– Advising on taxation, transfer procedures, and extension of ownership duration.
6. FAQ – Frequently Asked Questions About Foreigners Purchasing Real Estate in Vietnam
Can foreigners own residential property in Vietnam?
→ Yes. Foreigners may own housing in Vietnam if they meet the conditions stipulated under the 2023 Housing Law.
Can foreigners purchase condominiums in Vietnam?
→ Yes, but ownership must not exceed 30% of the total number of apartments in a condominium building (Article 19 of the 2023 Housing Law).
What is the ownership duration for foreigners?
→ Up to 50 years, with a one-time extension permitted pursuant to Article 20 of the 2023 Housing Law.
Are foreigners allowed to lease real estate in Vietnam?
→ Yes. Article 161 of the Housing Law regulates housing transactions, including leasing. Foreign individuals must fall under the category eligible for homeownership in Vietnam according to this Law, and residency registration at the property’s location is not required.
Can foreigners have their names on the pink book (Certificate of Ownership) when purchasing housing in Vietnam?
→ Yes. Under Article 20 of the 2023 Housing Law, foreign individuals defined in point (c), Clause 1, Article 17 of this Law have homeownership rights equivalent to Vietnamese citizens, while complying with the specific provisions under Article 20.
Contact Lexconsult & Partners if you are facing difficulties related to purchasing real estate as a foreigner in Vietnam, so you can receive detailed guidance, clearly identify your rights and obligations, and ensure that all procedures are carried out in full compliance with the law.
📞 Hotline: 0938 657 775
📧 Email: info@lexconsult.com.vn
