From July 1, 2015, the Housing Law began to take effect with new highlights, helping promote Vietnam’s real estate market in a more stable, transparent and professional direction. One of the important new features is that Vietnam allows foreign individuals to own houses in Vietnam.
Foreigners who come to Vietnam to work mostly are directors and senior managers in organizations and businesses. They are well-educated, high income, well know to enjoy and very strict in choosing a good home and a guaranteed living environment. This means that even though the Housing Law has opened up new opportunities for real estate developers, not everyone can grasp this opportunity well if they cannot meet certain criteria.
The revised Housing Law allowing foreign individuals and organizations to own house in Vietnam coming into effect from July 1, 2015 with more “open” regulations allowing foreigners to buy houses has created great impetus for Vietnam’s real estate market.
Under the provisions of the Housing Law, foreigners who are allowed to own real estate in Vietnam are foreign individuals allowed to enter Vietnam. Types of real estates foreigners are allowed to buy include apartments and individual houses in housing construction investment projects.
The law also stipulates that foreigners cannot buy more than 30% of apartments in an apartment building, not more than 10% of the number of projects (villas or individual houses) in construction investment projects or not more than 250 units in a ward-level administrative unit.
Besides, foreigners also need to comprehend about taxes when making transactions of real estates in Vietnam. Foreigners can directly or authorize a third party (by proxy) to declare and pay taxes at a tax office in the district where the property is located. Tax payment should strictly comply with the provisions of Vietnamese law.
It should be noted that foreigners who want to buy houses in Vietnam should seek careful advice on the legality of the apartment/house they want to buy or look for reputable real estate trading floors for more thorough advice.