What are the Conditions for Foreigners to Own Housing in Vietnam? Can Vietnamese Sell Houses to Foreigners?

What are the Conditions for Foreigners to Own Housing in Vietnam? Can Vietnamese Sell Houses to Foreigners?

Conditions for Foreigners to Own Housing in Vietnam

According to Article 159 of the 2014 Housing Law, the subjects and forms of housing ownership in Vietnam for foreign organizations and individuals are as follows:

• Subjects eligible to own housing in Vietnam include:

  • Foreign organizations and individuals investing in housing construction projects in Vietnam under this Law and relevant laws;

  • Foreign-invested enterprises, branches, and representative offices of foreign enterprises, foreign investment funds, and foreign bank branches operating in Vietnam (collectively referred to as foreign organizations);

  • Foreign individuals allowed to enter Vietnam.

• Foreign organizations and individuals can own houses in Vietnam through the following forms:

  • Investing in housing construction projects in Vietnam under this Law and relevant laws;

  • Buying, leasing, receiving as gifts, or inheriting commercial housing, including apartments and detached houses in housing construction projects, except for areas ensuring national defense and security as regulated by the Government.

According to Article 160 of the 2014 Housing Law, the conditions for foreign organizations and individuals to own housing in Vietnam are as follows:

• For foreign organizations and individuals specified in point a, clause 1, Article 159 of this Law, they must have an investment certificate and have houses built in the project in accordance with this Law and relevant laws.

• For foreign organizations specified in point b, clause 1, Article 159 of this Law, they must have an investment certificate or relevant documents permitting their operation in Vietnam (collectively referred to as investment certificate) issued by competent Vietnamese authorities.

• For foreign individuals specified in point c, clause 1, Article 159 of this Law, they must be allowed to enter Vietnam and must not be entitled to diplomatic or consular privileges and immunities.

• The Government shall detail the papers proving the subjects and conditions that foreign organizations and individuals are eligible to own housing in Vietnam.

Thus, according to the above regulations, foreign individuals are allowed to own housing in Vietnam when they meet the required conditions and own it through investing in housing construction projects or buying, leasing, receiving as gifts, or inheriting commercial housing, including apartments and detached houses in housing construction projects, except for areas ensuring national defense and security as regulated by the Government.

If a Vietnamese individual wants to sell their owned apartment to a foreigner, it is not a permitted form of housing ownership for foreigners in Vietnam, so it cannot be realized.

Rights of Foreigners Owning Housing in Vietnam

According to Article 161 of the 2014 Housing Law, the rights of foreign individuals owning housing in Vietnam are as follows:

• Foreign organizations and individuals specified in point a, clause 1, Article 159 of this Law shall exercise the rights of housing owners as stipulated in Article 10 of this Law; if the house is built on leased land, they shall only have the right to lease the house.

• Foreign organizations and individuals specified in points b and c, clause 1, Article 159 of this Law have the same rights as Vietnamese citizens but must comply with the following provisions:

  • They can only buy, lease, receive as gifts, or inherit no more than 30% of the apartments in a building; if it is a detached house, including villas and adjacent houses, they can only buy, lease, receive as gifts, or inherit no more than 250 houses in an area equivalent to a ward-level administrative unit.

  • If there are many apartment buildings or detached houses on a street in an area equivalent to a ward-level administrative unit, the Government will specify the number of apartments and detached houses that foreign organizations and individuals can buy, lease, receive as gifts, or inherit.

  • If they receive gifts or inherit houses not within the scope specified in point b, clause 2, Article 159 of this Law, or exceed the number of houses specified in point a of this clause, they shall only be entitled to the value of the houses.

  • Foreign individuals can own housing under the agreements in transactions of buying, leasing, receiving as gifts, or inheriting housing, but for no more than 50 years from the date the certificate is issued, and they can be extended according to Government regulations if needed; the ownership term must be clearly stated in the certificate.

  • If foreign individuals marry Vietnamese citizens or overseas Vietnamese, they can own housing permanently and have the same rights as Vietnamese citizens.

  • For foreign organizations, they can own housing under the agreements in transactions of buying, leasing, receiving as gifts, or inheriting housing, but for no more than the duration specified in their investment certificate, including extensions; the ownership term starts from the date the certificate is issued and must be clearly stated in the certificate.

  • Before the ownership term expires, owners can give or sell these houses to subjects eligible to own housing in Vietnam; if the term expires without the owner selling or giving the houses, these houses will belong to the state.

Obligations of Foreigners Owning Housing in Vietnam

According to Article 162 of the 2014 Housing Law, the obligations of foreign individuals owning housing in Vietnam are as follows:

• Foreign organizations and individuals specified in point a, clause 1, Article 159 of this Law shall have the obligations of housing owners as stipulated in Article 11 of this Law.

• Foreign organizations and individuals specified in points b and c, clause 1, Article 159 of this Law have the same obligations as Vietnamese citizens but must comply with the following provisions:

  • For foreign individuals, they can lease their houses for purposes not prohibited by law, but before leasing, they must notify the housing management authority at the district level where the house is located as per the Minister of Construction's regulations and must pay taxes on the leasing activities as per the law.

  • If foreign individuals marry Vietnamese citizens or overseas Vietnamese, they shall have the same obligations as Vietnamese citizens.

  • For foreign organizations, they can only use the houses to accommodate their employees and cannot lease them, use them as offices, or for other purposes.

  • Payments for purchasing or leasing houses must be made through credit institutions operating in Vietnam.

Thus, foreigners wishing to own housing in Vietnam must meet the conditions and forms of ownership as stipulated. Vietnamese individuals cannot sell their apartments to foreigners, as this does not align with the permitted forms of housing ownership for foreigners in Vietnam. Accordingly, foreign individuals owning housing in Vietnam shall enjoy the rights and fulfill the obligations as per the law.