Foreign Ownership of Property Legal Framework
Based on the revised Law on Housing No.65/2014/QH13 announced on 25th November 2014 and Decree No.99/2015/ND-CP guiding the implementation of the LOH on 10th October 2015, foreign home buyers can now invest and own a property in Vietnam. Here are several important pointers that all prospective foreign investors (individual) should know of:
Any foreign individual with a valid passport and allowed to enter Vietnam is eligible for home ownership.
Foreign individuals are entitled to exercise rights of homeowners similarly to Vietnam citizens provided that he/she comply to not buy, rent and purchase, receive, inherit and own more than 30% of apartments in an apartment building, or not more than 10% of separate houses in a commercial housing project. These include villas, standalone houses and terrace houses in an area whose population is equivalent to a ward-administrative division.
The foreign individual is eligible for the homeownership as agreed in agreements on housing sale, lease purchase, gifting, or inheritance for not more than 50 years, from the day on which they are granted the Certificate and they may be also granted extension as prescribed in regulations of the Government; the duration of the homeownership must be stated in the Certificate.
Three months prior to the expiry of home ownership, foreign individuals need to submit an application dossier to the competent authority for consideration and approval of one additional 50-year extension of the ownership term.
Before the time limit of the homeownership prescribed in the Law expires, the foreign individual is entitled to gift or sell their property to entities eligible for homeownership in Vietnam; if not, their property shall be under State administration.
The foreign individual is entitled to rent out his/her property for lawful purposes provided that he/she notifies the respective district agencies in charge of housing where the property is located of the housing lease as prescribed in regulations by the Minister of Construction and pays taxes on the lease accordingly.
When a foreign individual resells his property; if the buyer is a Vietnamese, the ownership title can be converted to freehold, if the buyer is a foreigner, the ownership will be the remainder of the leasehold rundown by the foreign seller.
Foreign buyers are not permitted to buy individual resale properties from Vietnamese sellers.
HUTTONS VN has over the years achieved great success in meeting the investment goals of foreign buyers; utilizing a clearly defined holistic investment strategy of “acquire-operate-dispose”, we have provided clients with reliable advice and assisted them throughout the whole investment process. Coupling our superior market knowledge with commitment to due diligence in our pursuit for the worthy property investment, we have tirelessly sort and analysed through many property projects to bring our clients only those with high capital appreciation potential and rental yield.
We understand that each of our clients is unique with different preferences, by consulting closely with you; we provide an investment solution custom-fitted to your objectives and preferences. Moreover, we do not discriminate the property products we recommend so you can be assured that we have a wide variety for your every needs. The only discrimination we do make is on the basis of the property having upsides generating income and/or gaining value (or not).
When assisting our clients to acquire property, we take into account your next steps based on your investment objectives. From the start to end of your investment process we are beside you all the way providing you advices that aid your decisions. After acquisition, we drive assets financial performance by operationally managing your assets: optimally timing property cycles, enhancing operational efficiency, and ensuring organic rental growth. Our experience in leasing management allows us to quickly source and manage reliable tenants, providing you with stable yields and peace of mind.
Most of our clients are unable to cope with the day to day management of their Vietnam property being based overseas. Having an office in Vietnam and being versed in day to day property management have allowed us to easily manage all aspects of leasing our clients’ assets, managing tenants, rent collection and remittance, scheduling maintenance and repairs. We build strong relationships with our clients (investors), tenants and partners by providing exceptional personal service in a timely and professional manner.
Local financing is not readily available to overseas based foreign individuals; domestic banks will only provide mortgage loans to foreigners residing and working in Vietnam. Overseas based foreign individuals are recommended to seek financing options offshore.
AO PROP provides both assistance and consultation during the loan application process and we utilise our close connections with both domestic and offshore financial institutions to help locate our clients the best-performing loans.