Buying Property in Vietnam

Can Foreigners Buy Property in Vietnam?

Before 2015, a foreigner could only own a maximum of one unit of condominium. Currently, foreigners can purchase as many property units as they desire since there is no limitation on the total purchase of property units. Nonetheless, there are still some restrictions apply. Here are some important details foreigners should take note of:

* The number of property units in one administrative ward a foreigner can own is limited. Only 250 units of property are allowed in a given ward or district.

* A foreigner can only purchase a maximum of 30% units of the condominiums and are not allowed to own more than 10% properties of a landed project.

Can Foreigners Buy Land in Vietnam?

Unfortunately, foreigners are not allowed to purchase land in Vietnam. But they are allowed to use and control the land they lease with a leasehold period of up to 50-70 years. The leasehold period is renewable.

Do keep in mind that freehold ownership is not permitted for foreigners unless a foreigner is married to a Vietnamese national. Just for clarification, even though you cannot own a land as an individual foreigner, you can still own the property built on the land.

How to Own Property in Vietnam?

All in all, we would say that the best way to buy a property in Vietnam is to start a company on your own.

Options of Popular Legal Entities

* A 100% foreign-owned company

Setting up a 100% foreign-owned company in Vietnam is the best option that allows you to buy property in the country. You can purchase houses and apartments on behalf of your foreign company for a specified term.

Registering a foreign-owned company in Vietnam is easy and convenient, and it will only take 4-6 weeks. During the processing time, you will also obtain an Investment Registration License and a Business Registration Certificate.

When your company holds a lease agreement in Vietnam, it will be valid until the expiration of your Investment License, which has a 10-year validity. You can also sell the property your company own to another person. .

* A joint venture company

Another option to purchase property in Vietnam is by establishing a joint venture company in the form of local-owned company with a Vietnamese citizen.

Through this local company, you and your Vietnamese shareholders can participate in the purchase of households, purchase and lease of buildings and the buildings of the whole real estate project. The ownership of property by this local joint venture company will only end when the company decides to terminate.

Buying Property in Vietnam as a Foreign Individual

Foreign residents in Vietnam can also buy houses, without a company, for own residential purpose only. As a foreigner, you are prohibited to rent it to third parties.