Can foreigners buy houses and land in Vietnam

In the globalization integration, Vietnam is becoming an attractive destination attracting many foreigners to live and work. So the demand […]
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16/12/2021

In the globalization integration, Vietnam is becoming an attractive destination attracting many foreigners to live and work. So the demand to buy houses and buy land also increases. It raises many questions such as  “Can foreigners buy houses and land in Vietnam? ” or “What are the conditions for foreigners to own the property in Vietnam? ”. Let’s answer these questions with AZLAW in the article below.

Nowadays, foreigners are understood to include two subjects: foreigners residing in Vietnam and foreigners not residing in Vietnam. The foreigners residing in Vietnam are foreign citizens and stateless people permanently or temporarily in Vietnam (according to Clause 5, Article 3 of the Law on Vietnamese Nationality 2008).

CAN FOREIGNERS BUY LAND IN VIETNAM?

According to Article 5 of the 2013 Land Law, The State stipulates who is allowed to use, lease land, and recognized land use rights includes:

  • Domestic organizations include state agencies, units of the people’s armed forces, political organizations, socio-political organizations, economic organizations, socio-political-professional organizations, social organizations, socio-professional organizations, public non-business organizations, and other organizations as prescribed by civil law (named ” organizations” );
  • Domestic households and individuals (named ” households and individuals “);
  • Residential community includes the Vietnamese community living in the same village, hamlet, quarters, and similar residential areas with the same customs, habits, or lineage.
  • Religious establishments include pagodas, churches, chapels, sanctuaries, Buddhist recitation halls, monasteries, religious schools, headquarters of religious organizations, and other religious establishments;
  • Foreign organizations with diplomatic functions include diplomatic missions, consular offices, and other foreign representative offices with diplomatic functions recognized by the Vietnamese Government; representative office of an organization of the United Nations, an intergovernmental agency or organization, a representative office of an intergovernmental organization;
  • Vietnamese people residing abroad under the law on nationality;
  • Enterprises with 100% foreign-invested enterprises. The joint-venture and Vietnamese enterprises that the foreign investors purchase, merge, or repurchase follow the law on foreign investment.

Furthermore, Article 169 of the Land Law stipulates the recipients of land use rights as follows:

  • Households and individuals may receive the transfer of agricultural land use rights through the transfer of land use rights specified at Point b, Clause 1, Article 179 of this Law;
  • Economic organizations, households, and individuals may receive the land use rights through the transfer of land use rights, except for the case specified in Article 191 of this Law. The overseas Vietnamese may receive land use rights transfer through the transfer of land use rights in industrial parks, industrial clusters, export processing zones, hi-tech parks, and economic zones. Foreign-invested enterprises may receive the transfer of investment capital which is the value of land use rights according to the Government’s regulations;
  • Organizations, households, individuals, and communities may receive land use right transfer through the donation of land use rights according to the Provisions of Point c, Clause 2, Article 174 and Point e, Clause 1, Article 179 of this Law, except for the case specified in Article 191 of this Law;
  • Organizations, households, individuals, and communities may receive land use right transfer by inheritance of land use rights;
  • Overseas Vietnamese who are eligible to own houses in Vietnam following the law on housing may receive and transfer residential land use rights through the form of purchase, lease-purchase, inheritance, or donation for housing with residential land use rights or receiving residential land use rights in housing development projects;
  • Economic organizations and joint-venture enterprises receive land use right transfer by receiving capital contribution in the form of land use rights;
  • Organizations, households, individuals, residential communities, religious establishments, and overseas Vietnamese may receive land use rights through land allocation by the State; foreign-invested enterprises receive land use rights through the State’ allocation of land for the implementation of investment projects to build houses for sale or sale in combination with lease;
  • Economic organizations, self-financed public non-business organizations, households, individuals, overseas Vietnamese, foreign-invested enterprises, foreign organizations with diplomatic functions receive land use rights through land lease by the State;
  • Organizations, households, individuals, residential communities, and religious establishments may receive land use rights through the State’s recognition of land use rights for land being used stably;
  • Organizations, households, individuals, overseas Vietnamese, and foreign-invested enterprises may receive land use rights according to the results of successful conciliation of land disputes granted by the People’s Committees of Vietnam; agreement in the mortgage contract for debt settlement; decisions of competent state agencies on settlement of land disputes, complaints, and denunciations about land, decisions or judgments of people’s courts, judgment enforcement decisions of judgment enforcement agencies; a document recognizing that the auction results of land use rights are under the law; documents on the division of land use rights under the law for households or groups of people with common land use rights;
  • Residential communities and religious establishments may receive land use rights according to successful conciliation results on land disputes recognized by competent People’s Committees; decisions of competent state agencies on settlement of land disputes, complaints, and denunciations about land, decisions or judgments of people’s courts, judgment enforcement decisions of judgment enforcement agencies. 

Thus, from the above provisions, the foreigners are not eligible to receive land use rights transfer (called “land purchase”) in Vietnam.

CAN FOREIGNERS BUY HOUSES IN VIETNAM?

According to Article 159 of the 2014 Housing Law, foreign individuals are allowed to own houses and form of house ownership in Vietnam, as follow:

– Foreign individuals entitled to own houses in Vietnam include:

  • Foreign individuals investing in housing construction under projects in Vietnam following this Law and relevant laws;
  • Foreign individuals are allowed to enter Vietnam.

– Foreign individuals may own houses in Vietnam through the following forms:

  • Invest in housing construction projects in Vietnam following this Law and relevant laws;
  • Purchase, lease-purchase, gift, or inheritance of commercial housing, including apartments and separate houses in housing construction investment projects, except for areas ensuring national defense and security as prescribed Government.

Thus, foreigners are allowed to own houses in commercial housing construction investment projects, except for areas ensuring national defense and security.

However, to own a house in Vietnam, a foreigner needs to satisfy the following conditions:

  • Foreign individuals investing in housing construction under projects in Vietnam must have an investment certificate and have a house built in the project following this Law and relevant laws.
  • Foreign individuals permitted to enter Vietnam must be allowed to enter Vietnam and not be entitled to diplomatic and consular privileges and immunities as prescribed by Vietnamese law.

DOCUMENTS PROVING OBJECTS AND CONDITIONS TO OWN HOUSE IN VIETNAM

According to Article 74 of Decree 99/2015/ND-CP, documents proving the subjects and conditions to own houses in Vietnam include:

  • Foreign individuals must have a valid passport with an entry verification stamp of the immigration of Vietnam and are not entitled to diplomatic privileges and immunities under law regulations on privileges and immunities for diplomatic missions, consular offices, and representative offices of international organizations in Vietnam.

Above is AZLAW’s answer on whether foreigners can buy houses or buy land in Vietnam. If you have any questions or need legal assistance, please don’t hesitate to contact us at Hotline 0987.748.111 or email info@azlaw.com.vn 

0987.748.111