More Property Investment Opportunities For Foreigners In Vietnam.
The Infiniti Condo at Riviera Point District 7, HCMC
Vietnam has opened more property investment opportunities for foreigners as adjusting on its law. On July 1, 2015, the Housing Law (Law on Housing No. 65/2014/QH13) became effective. It has enormous significance in bringing more property investment opportunities to foreigners and therefore boost the nation’s economy.
First, foreigners who have been granted a Vietnamese visa, plus foreign investment funds, banks, Vietnamese branches and representative offices of overseas companies can now purchase residential property. Foreigners can now own all types of properties, including condominiums and landed property such as villas and townhouses. Properties owned by foreigners can be sub-leased, inherited and collateralized.
Second, overseas Vietnamese who have maintained their Vietnamese citizenship will be treated like locals and are permitted to own unlimited property in their own names. It is estimated that about 70% of the 4 million overseas Vietnamese around the world still maintain their original citizenship.
For foreign individuals the house ownership period is 30 years, but it can be extended. The new law also limits foreigners from owning more than 30% of a single apartment building. Or more than 350 houses and apartments in a ward, a subdistrict-level administrative area. The Ho Chi Minh City Real Estate Association has objected to this. Because of the concentration of foreigners in key districts.
Detailed guidelines on implementing the Housing Law (Decree 99) became effective on December 10, 2015. According to Decree 99, foreigners are allowed to own houses in Vietnam as long as they were able to meet these conditions:
- The foreigner’s valid passport should have an entry stamp affixed to it from Vietnam’s immigration authority.
- They should not be in the category of people entitled to preferential treatment or diplomatic immunity in accordance with the Ordinance on Preferential Treatment Rights and Immunities Applicable to Representative Diplomatic Offices, Foreign Consulates and Representative Offices of International Organisations in Vietnam.
On August 15, 2016 the Ministry of Construction Circular 19/2016/TT-BXD (Circular 19) which contains guidelines on the Law on Housing, and on Decree No. 99/2015/ND-CP, became effective.
- Foreigners can only own up to 30% of the total residential apartments of a particular condominium.
- As for individual houses under commercial housing projects (including villas and semi-detached housings), foreigners are allowed to own 10% of the total individual houses of a particular project.
(*) Sources: globalpropertyguide.com