Content Summary
Nowadays, the number of foreigners learning about conditions and procedures to buy a house in Vietnam is constantly increasing. Considering the needs of foreigners about owning a house in Vietnam and helping foreigners buy a house in Vietnam conveniently, quickly, and save the most costs incurred during the implementation of the procedure, AZLAW guides the details of conditions and procedures for foreigners to buy houses in Vietnam are as follows:
Foreigners are entitled to buy houses in Vietnam
According to the provisions of Clause 1, Article 159 of the Law on Housing 2014, foreign organizations and individuals are allowed to own houses in Vietnam, including:
- Foreign organizations and individuals invest in housing construction under projects in Vietnam following the Law on Housing and relevant laws.
- Foreign-invested companies, overseas branches, corporate agencies, foreign investment funds, foreign bank branches operating in Vietnam (called ” organizations”).
- Foreigners are allowed to enter Vietnam.
Forms of homeownership by foreigners in Vietnam
Foreigners are allowed to own houses in Vietnam in two groups of the following forms:
- Investing in housing construction in projects in Vietnam;
- Buy, lease-purchase, offer or inherit the apartment buildings or separate houses in housing construction investment projects, except for areas with defense and security functions as prescribed by law.
Note:
+ The form of lease-purchase of a house is that the lessee pays the landlord from 20% of the house value in advance but not more than 50%;
+ The remaining amount to be paid is included in the monthly rent payable to the landlord for a certain period; After the lease-purchase term expires and the remaining amount is paid in full, the lessee has the right to own the house.
Thus, foreigners, including foreign organizations and individuals, are only allowed to buy houses that are apartments or villas, adjacent houses in investment projects on housing construction. Foreigners are not allowed to buy land or houses in residential areas.
Conditions for foreigners to buy houses in Vietnam
For individuals and organizations investing in housing construction under projects in Vietnam, when owning a house in Vietnam, they must satisfy the following conditions:
- Have an investment certificate
- There are houses built in the project according to the provisions of the law on housing.
Foreign organizations being foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign investment funds, and foreign bank branches operating in Vietnam must satisfy the following conditions when buying a house in Vietnam:
- Own an Investment Certificate or a document proving being allowed to operate in Vietnam ( the Investment Certificate) issued by a competent Vietnamese state agency.
For foreign individuals buying houses in Vietnam:
- To be allowed to enter Vietnam and not be entitled to diplomatic and consular privileges and immunities as prescribed by law.
Foreigners are only allowed to own houses when:
- Only buy, rent-purchase, receive as gifts, inherit and own no more than 30% of the number of apartments in an apartment building. If it is a separate house, including villas and adjacent houses, in an area with a population equivalent to a ward-level administrative unit, only buy, rent-purchase, receive as a gift, inherit and own no more than two hundred and fifty houses.
Term of house ownership by foreigners in Vietnam
- For foreign individuals, are entitled to own houses as agreed upon in contracts for purchase, sale, lease-purchase, donation, or inheritance, but for a maximum of 50 years from the date of issuance of the Certificate of Inheritance and can be extended according to the Government’s regulations if required; the house ownership term must be clearly stated in the Certificate;
- In case a foreign individual marries a Vietnamese citizen or marries a Vietnamese residing overseas, he/she is entitled to own a stable and long-term house and has the same rights as a house owner as a Vietnamese citizen.
- Foreign organizations shall own houses as agreed in the contract of sale, purchase, lease-purchase, donation, or inheritance of houses, but not exceeding the time limit stated in the Investment Certificate, including for an extended period. The house ownership period is counted from the date of the granting of the Certificate.
Order and procedures when foreigners buy houses in Vietnam
Step 1: Sign the contract
Step 2: Notarize and authenticate the contract.
Step 3: Apply for a certificate
With the agreement of all parties, only one side submits a dossier to request the competent state agency to issue a certificate for this house. For the case of purchase or lease-purchase of an apartment by the project investor, the investor is responsible for carrying out the procedures for the competent state agency to issue the Certificate to the buyer or the lessee, except for the purchaser, the lessee voluntarily carries out the process to apply for a certificate.
Procedures for transferring commercial housing purchase and sale contracts for foreigners
According to the provisions of Clause 2, Article 123 of the Law on Housing 2014 and Article 32 of Circular 19/2016/TT-BXD, if the commercial house investor has not yet applied to issue the Certificate, the transferee is responsible for fulfilling all obligations under the house purchase and sale contract signed with the investor.
The order and procedures for transferring commercial housing purchase and sale contracts are specified in Article 33 of Circular 19/2016/TT-BXD as follows:
Step 1: Make a contract transfer document
– Quantity: The written transfer of the signed contract by both parties is made into 06 copies (03 copies for the investor, 01 copy for the tax authority, 01 copy for the transferor, and 01 copy for the transferee). )
– The notary and the notary agency must keep one copy in case the contract transfer document must be authenticated
Step 2: Notarize or authenticate the contract
– In case the transferor of the house purchase and sale contract is not a company or cooperative that has the function of doing real estate business following the law on real estate, the document on the transfer of the contract must be notarized or authenticated.
– The transferor of the apartment purchase and sale contract is a company or cooperative with the function of the real estate business, the notarization of the lease contract is optional but agreed upon by the parties themselves.
– Notarization location: Notarization at the Office / Notary Public in the province or central city.
Step 3: Declare taxes, fees, and charges
Step 4: Ask the investor to confirm this in the contract transfer document
Step 5: Apply for the certificate
(If the commercial housing purchase and sale contract has been agreed with the investor, voluntarily carry out the procedures for granting a certificate to the competent state agency).
The above is the full content of detailed regulations on conditions, order, and procedures applied in case foreigners buy or transfer houses in Vietnam.
For detailed advice and assistance in carrying out the procedure, please don’t hesitate to contact AZLAW via hotline 0987.748.111 – 0987.553.289 or email info@azlaw.com.vn for support.
