As investment in properties oversea is a big decision, it is suggested the investor consult with real estate lawyer in Vietnam to help checking the eligibility of the developer, the construction permits and other legal documents granted for the project. It is important to review the transaction documents in regard to deposit agreement, sales agreements and other agreements the developer might propose to ensure the protection of rights, to minimize risks and ensure compliance.
On November 25th, 2014, the National Assembly of the Socialist Republic of Vietnam has approved the Housing Act 2014. One of the most prominent new changes is that a foreigner is entitled to purchase a house in Vietnam.
Foreign objects (organization and foreign individual) can own houses in Vietnam are:
-Overseas organizations and individuals investing in housing construction under projects in Vietnam according to the provisions of the Housing Law and related legal documents;
-Enterprises with foreign investment capital, branch or representative offices of foreign enterprises, foreign investment funds and foreign bank branches are operating in Vietnam (hereinafter referred to as foreign organizations);
-Foreign citizens are allowed to enter Vietnam.
Form of ownership housing foreigner in Vietnam:
-Investment in housing construction under the project in Vietnam according to the provisions of the Housing Law and related legislation;
-Purchasing, leasing, donation or inheritance of commercial housing includes apartments and individual houses in the investment projects of housing construction (Except for housing projects in the area of ensuring national defense and security as stipulated by the Government of Vietnam).
Condition, right and obligation of foreigner when buy house in Vietnam:
For individuals or organizations investing in housing construction under a project in Vietnam when seeking to own houses in Vietnam they must satisfy the following conditions:
-Have an investment certificate
-Have housing projects that are built in the project in accordance with the law on housing
For foreign organizations or enterprises with foreign investment capital, branch or representative offices of foreign enterprises, foreign investment funds and foreign bank branches operating in Vietnam, when seeking to buy a house in Vietnam they must satisfy the following conditions:
-Have investment certificates or documents relating to the permit to operate in Vietnam (hereinafter referred to as investment certificate) issued by the competent State agencies of Vietnam.
For foreign individuals buying a house in Vietnam:
-Allowed to enter Vietnam and are not entitled to the privileges and immunities of diplomatic and consular as stipulated by law.
For foreign organizations or enterprises with foreign investment capital, branch or representative offices of foreign enterprises, foreign investment funds and foreign bank branches operating in Vietnam and individual foreigners seeking to buy a house in Vietnam, they can own a house in Vietnam when:
-Buy, lease, donate, inherit and own, to not exceed 30% of the apartments in an apartment building; if the houses are individual houses including villas, semi-detached houses and located in an area with a population equivalent to ward-level administrative, the allowed units that foreigners are permitted to buy, lease, donate, inherit and own must not exceed two hundred and fifty houses;
-For foreign individuals, they shall be entitled to own a house as agreed in the contract of sale, lease, donate or inherit housing but not exceeding a term of 50 years from the date of issuance of the certificate of ownership and it can be extended according to the provisions of the Government if required; the housing ownership period must also be specified in the certificate;
-In the case of foreign individuals married to a citizen of Vietnam or married to a Vietnam citizen settled in a foreign country, they can own the houses for a long and stable term. They also have owner’s rights like a Vietnam citizen;
-For foreign organizations, they shall be entitled to own a house as agreed in the contract of sale, lease, donate or inherit the house but not exceed the term specified in the certificate of ownership, including the extended time. The housing ownership period is calculated from the date of receipt of the certificate of ownership and specified in the certificate.