Vietnam is one of the nations that attracts foreign investors the most because of its open-door policy and stable socioeconomic conditions. Many foreign people and organizations travel to Vietnam to live and work, and many of them want to purchase apartments. Many Vietnamese real estate developers also hope to increase their clientele by offering apartments to foreigners.
However, current law allows foreigners or foreign organizations to purchase apartments in Vietnam, and real estate developers are allowed to sell apartments in Vietnam as long as they fulfill certain requirements.
Vietnam has grown in popularity as a travel destination in recent years because of its robust economy, contemporary lifestyle, affordable prices, and significant real estate profit potential. Foreigners’ desire to buy apartments has increased steadily as a result of this. Understanding the laws and regulations is crucial for foreigners to execute transactions safely and successfully; nevertheless, it helps to reduce risks during the apartment-buying process in Vietnam.
1. Who is eligible for home ownership in Vietnam?
The legal landscape for foreign property ownership in Vietnam has undergone significant changes in recent years, making it more accessible for international buyers. The cornerstone of these changes is the Law on Residential Housing, which came into effect in 2024.
This landmark legislation opened up new possibilities for foreigners to own property in Vietnam.
- Individuals including foreign citizens, who permanently or temporarily residing in Vietnam having valid documentation permitted to enter Vietnam, except diplomatic immunity and privilege; who have valid passport, visa to enter Vietnam, and proof of marriage / single status
- Overseas Vietnamese (Vietnamese citizens, original Vietnamese who are now currently residing or living for a long time in a foreign country);
- Foreign enterprises, branches and representative offices of foreign enterprises, foreign investment funds, and branches of foreign banks which are operating in Vietnam;
- Foreign entities who invest in project-based housing construction in Vietnam as prescribed in this Law and corresponding regulations of law;
2. Conditions for individuals eligible to own an apartment in Vietnam
Foreigners must meet the following conditions:
- Permitted to enter Vietnam under the following conditions:
- Have a passport or valid international travel documents and visa, except in cases of visa exemption;
- Foreigners entering under the unilateral visa exemption must have a passport that is valid for at least 06 months.
- Not be a case that would delay entry to Vietnam.
- Not eligible for diplomatic and consular privileges and immunity according to the provisions of the law; and
- Have a valid passport with an entry stamp into Vietnam or equivalent legal documents for entry into Vietnam at the time of signing the housing transaction.
3. Conditions regarding the form and duration of apartment ownership in Vietnam
3.1. Conditions regarding the form of apartment ownership
- Foreigners can own apartments in Vietnam through the following forms:
- Purchase, lease-purchase commercial housing from investors of housing construction investment projects, receive as a gift, or inherit commercial housing in housing construction investment projects not located in areas requiring national defense and security assurance;
- Purchase, lease-purchase housing from foreign organizations or individuals who already own housing as stipulated in item 3.1 above.
3.2. Conditions regarding the duration of apartment ownership
- The duration of apartment ownership for foreigners is regulated as follows:
- Foreign individuals can own apartments according to the agreement in the real estate transaction but not exceeding more than 50 years, starting from the date of issuance of the Certificate, and it can be extended once for a period of no more than 50 years if needed;
- In the case of a foreign individual marrying a Vietnamese citizen residing in Vietnam, he/she can own an apartment and have the rights as an apartment owner like a Vietnamese citizen;
- In the case of a foreign individual marrying a Vietnamese person residing abroad, who is permitted to enter Vietnam, he/she can own an apartment and have the rights as an apartment owner like a Vietnamese person residing abroad.
- Before the duration of apartment ownership expires, the owner can directly offer or authorize another organization or individual to exercise the right to gift or sell this apartment to individuals eligible to own an apartment in Vietnam; if the duration of apartment ownership expires and the owner does not gift or sell the apartment, it will become public property.
4. Conditions regarding the ownership ratio of foreign individuals in an apartment building
- For an apartment building including mixed-use apartment buildings), foreign organizations and individuals are allowed to own a maximum of 30% of the total number of apartments for residential purposes in that building. If an apartment building has many units or many blocks sharing a common base, foreign organizations or individuals are only allowed to own a maximum of 30% of the total number of apartments for residential purposes in each unit or each block.
- Before purchasing an apartment, foreigners can identify the list of housing construction investment projects in the area where foreign individuals are allowed to own houses on the web portal of the provincial People’s Committee. Foreign individuals can also find the ownership status of the apartments in the project they intend to buy at the web portal of the provincial housing management authority where the project is located.
In summary, there are complex legal requirements when buying apartments for foreign people and organizations. Thus, relevant individuals and organizations need to know about and have legal guidance and support from Vietnamese real estate lawyers in order to ensure that the purchase of properties in Vietnam is in compliance with the legislation and to limit the dangers that could occur.
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