Housing Ownership Laws for Foreigners in Vietnam

Laws

July 03, 2020

    • On November 25, 2014, the National Assembly of Vietnam passed the amended Housing Law, which allows foreign individuals and organizations to own houses in Vietnam. The law officially takes effect from July 1, 2015.


    Who are allowed to buy houses in Vietnam

    •      Foreign organizations and individuals invest in the construction of houses under projects in Vietnam in accordance with the Housing Law and relevant laws.
    •      Foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign investment funds and branches of foreign banks operating in Vietnam (called organizations).
    •      Foreign individuals are allowed to enter Vietnam.


    Conditions to buy real estate in Vietnam



    Legal service is actually helpful for the tenant to avoid breaking rules 


    Foreign individuals who must meet the following conditions will be allowed to buy and own houses in Vietnam:


    •      Foreign individuals must be allowed to enter Vietnam and not entitled to diplomatic or consular privileges and immunities. (Clause 3, Article 160 of the Law on Housing 2014)
    •      Foreign individuals must have a valid passport affixed with a stamp of entry verification of the Vietnam Immigration Department (Clause 1, Article 74 of Government Decree 99/2015)
    •      Foreign individuals must have full civil act capacity to conduct housing transactions in accordance with Vietnamese law, not required to have temporary registration or permanent registration at the place where the houses are located. to be transacted (Point b, Clause 2, Article 119 of the Law on Housing 2014)
    •      Foreign individuals are only allowed to buy and own houses of no more than 30% of the number of apartments in an apartment building; In case of separate houses, including villas and adjacent houses, the area with the population equivalent to a ward-level administrative unit may buy no more than 250 houses (Point a Clause 2, Article 161 of the 2014 Housing Law.)
    •      In an area with a population equal to a ward-level administrative unit that has investment projects on construction of commercial houses, including separate houses for sale, foreign individuals may own a number of amount of separate houses according to the following regulations (Article 76 of Government Decree 99/2015)


    Regulations to obey while owning houses in Vietnam

    Foreign individuals and organizations living and operating in Vietnam, foreign individuals and organizations investing in the construction of houses under projects in Vietnam may own houses in Vietnam.


    Foreign organizations and individuals investing in the construction of houses under projects in Vietnam have the same rights and obligations as those of domestic entities. However, foreign organizations and other foreign individuals still have certain limitations.


    •      In case there is only one project with a number of separate houses of less than 2,500 houses, foreign organizations and individuals may own no more than 10% of the total number of houses in that project;
    •      In case there is only one project with the number of separate houses equivalent to 2,500 houses, foreign organizations and individuals may own no more than 250 apartments;
    •      In case there are two or more projects where the total number of separate houses in these projects is less than or equal to 2,500 units, foreign organizations and individuals may own no more than 10% of the dwelling houses of each project.
    •      Foreign individuals are allowed to own houses as agreed upon in purchase and sale contract transactions but for a maximum of not more than 50 years from the date of being granted the certificate and can be extended if needed.
    •      In case a foreign individual marries to a Vietnamese citizen or a Vietnamese citizen residing overseas, he/she is entitled to own stable and long-term housing and the rights of the owner like Vietnamese citizen. (Point c, Clause 2, Article 161 of the Housing Law).


    Foreign individuals may lease houses for purposes not prohibited by law and must pay taxes according to law provisions; foreign organizations are only allowed to use houses for employees working at such organizations, not for other purposes;


    The payment for the purchase, lease-purchase of houses must be via a credit institution operating in Vietnam;


    Foreign individuals marrying Vietnamese citizens have the same rights and obligations as Vietnamese citizens;


    Before the expiration of the house ownership, the owner may sell to another party; if past this time limit, the owners do not sell or give away, the houses shall belong to the State.


    Housing Law for foreigners



    A foreigner who married a Vietnamese citizen may have a chance to receive the housing ownership in Vietnam



    Foreigners can own houses in Vietnam through the following two groups of forms:


    •      Investing in housing construction under projects in Vietnam;
    •      Buy, rent purchase, receive as gifts, inherit commercial housing including apartments and separate houses in housing construction investment projects, except for areas of national defence and security according to regulations. Government regulations.


    Note:


    •      The form of house purchase or lease means that the lessee pays in advance to the lessor 20% of the value of the house, except for cases where the lessee has the conditions to pay in advance, the payment shall not exceed 50%;
    •      The remaining amount to be paid shall be converted into monthly rent to the lessor for a definite period of time; after the expiry of the house-purchase-house lease expiry and when the remainder of the house rent has been paid, the lessee may own the house.


    Requirements for foreigners to buy a house

    Case 1: Conditions with the organization


    Organizations must have an investment certificate or documents relating to their permission to operate in Vietnam, issued by a competent Vietnamese state agency at the time of signing the house purchase or lease-purchase contract. 


    Case 2: Conditions with individuals


    Foreign individuals must meet the following two conditions:


    • Having a valid passport with a stamp of verification of entry of the Vietnam Immigration Department;
    • Not eligible for diplomatic privileges and immunities.


    The above are subjects and conditions for foreigners to buy houses in Vietnam in 2019. Accordingly, foreigners can only buy houses in housing construction investment projects and must meet the conditions in each case.


    Administrative procedures, written contract for foreigners to buy a house in Vietnam based on The Housing Law 2014

    Documents for foreigners to buy houses, apartments in Vietnam


    What type of documents do foreigners need to show? According to the regulations to own houses, foreigners need to prove that they are subjects and conditions of house ownership prescribed in Government Decree 99/2015 including the following documents:


    1. Prepare all necessary documents proving eligibility to own houses in Vietnam.


    Clause 1, Article 74 of the Decree provides for documents proving that they are the subjects and conditions for buying houses and houses of foreigners in Vietnam are:


    "1. For foreign individuals, they must have valid passports affixed with stamps of the immigration control of the Vietnamese Immigration Department and not be entitled to diplomatic privileges and immunities according to regulations. of the Ordinance on privileges and immunities for diplomatic missions, consular offices and representative offices of international organizations in Vietnam. "


    2. Sign housing purchase contracts


    Foreigners' house purchase and sale must sign housing purchase and sale contracts with contents and forms compliant with the provisions of Articles 121 Clause 1, Articles 122 Clause 1 and 123 of the Housing Law and notarized or authenticated.


    Files components:


    The issuance of a certificate of land use transfer or a foreigner buying a transfer house must follow the procedures for applying for a certificate for the house owner in accordance with the provisions of the law of a foreigner buying a house in Vietnam:


    •      Make an application for a certificate of housing ownership under the form 04 / ĐK (Clause 23/2014 / TT-BTNMT)
    •      Documents proving that they are the subjects and conditions for buying houses and houses of foreigners in Vietnam
    •      A notarized or authenticated copy of the house transfer contract.
    •      Filing at the Office of the registration of land use right, housing rights at the place where the house is located.
    •      Normally, after the completion of the handover and finalization of the sales contract (about 30 days), the investor will send a notice requesting the customer to apply for a red book in accordance with the law.
    • If the valid dossier receives and guides the fulfilment of financial obligations
    • If the dossier is invalid and complete, after 3 days of receiving the dossier, the competent agency shall notify the refund and guide the completion theory according to regulations.

    3. Procedures for granting ownership certificate. Pursuant to Clause 2, Article 9 of the Law on Housing 2014, the procedures for granting Certificates to house owners comply with the law on land.

    4. Fulfil financial obligations

    5. Receive the certificate

    The time limit for investors to carry out procedures for making red books for customers is usually 50 days from the date customers submit dossiers according to notices. The time limit for issuing a red book will depend on the State agency (about 3-6 months from the date of filing).


    There are some cases that foreigners are not permitted to buy a house

    Not all projects in Vietnam allow foreigners to buy, but there will be a list of specific housing investment projects in areas where foreign organizations and individuals Not allowed to own, published by the Department of Construction on the web portal. Basis: Point a Clause 1, Article 76 of Government Decree 99/2015.


    In addition, Clause 2, Article 76 of this Decree further clarifies this issue: “Foreign organizations and individuals that are eligible to own houses in Vietnam may buy, lease-purchase houses of the project investors only. housing construction projects or purchase of houses of foreign organizations and individuals specified at Point b, Clause 4, Article 7 of this Decree and may inherit or donate only houses of households or individuals or receive donations of houses of organizations in the number of houses specified in Clauses 3 and 4 of this Article in housing investment projects permitted to own them; In cases where foreign organizations or individuals are donated or inherit houses in Vietnam but are not eligible to own houses in Vietnam, they shall be handled according to the provisions of Article 78 of this Decree. "

      

Tag:
Share:
Liên hệ


Loading...