1. Conditions to buy an apartment in Vietnam for foreign people
Pursuant to Article 74 of Decree 99/2015/ND-CP stipulating conditions for buying an apartment in Vietnam as foreigners, as follows:
- For organizations, they are required to have the Investment Registration Certificate or other documents (which demonstrate that organizations are entitled to operate in Vietnam) granted by the Vietnamese competent State authorities. Specifically, these certificates or documents have to remain the validity at the time of entering into house purchase agreements or lease agreements.
- For individuals, foreigners need to demand the following two conditions:
- Unexpired passport with a stamp of entry verification from the Vietnamese immigration management authorities;
- Not being entitled to diplomatic privileges or exemptions.
2. What procedures do foreigners need to perform when buying an apartment in Vietnam?
Pursuant to Clause 2, Article 9 of the Law on Housing 2014, procedures for granting Certificates to house owners are performed according to the Law on Land.
Application contents:
- A proposal for granting the Certificate of House Ownership according to a prescribed sample of Circular 23/2014/TT-BTNMT (04/DK sample)
- Documents demonstrating the establishment of a legal house.
Procedures:
- Step 1: Foreigners prepare full and necessary documents that demonstrate they have enough conditions to be owned a house (or an apartment) in Vietnam;
- Step 2: When foreigners enter into house purchase agreements, those agreements have to contain contents as defined by Article 121 of the Law on Housing 2014;
- Step 3: Applications will be submitted at Offices for registering land use rights and house ownership where a house is located. Offices for registering land use rights and house ownership will check applications after receiving them. If applications are invalid or don’t contain fully the contents prescribed by the Law, the competent Authorities will notify the redemption to applicants and guide them to supplement and finish the remaining documents according to the Law.
- Step 4: Foreigners perform financial obligations;
- Step 5: Foreigners receive the Certificate.
3. Rights and obligations of foreigners
Pursuant to Article 161 of the Law on Housing 2014, stipulating foreigners’ rights and obligations when they buy an apartment in Vietnam, as follows:
- Foreign organizations or individuals according to Point a, Clause 1, Article 159 of this Law are entitled to implement the house owner’s rights as defined by Article 10 of this Law; However, if these subjects’ house or apartment is built on the leased land, they are only entitled to lease that house or apartment.
- Foreign organizations or individuals according to Point b and c, Clause 1, Article 159 of this Law are entitled to implement the house owner’s rights as Vietnamese citizens, but they have to comply with the following regulations:
- Foreign organizations or individuals aren’t entitled to buy, lease, receive for donation and inherit, and own more than thirty percent (30%) of the number of apartments in one building; or more than two hundred fifty (250) separate houses, including villas or row houses in an area whose population is equivalent to that of a ward-level administrative unit. If an area has a population equivalent to a ward-level administrative unit and has many apartments or row houses in a street, the Government shall specifically stipulate the number of apartments or row houses that foreign organizations or individuals are allowed to implement the above house owner’s rights;
- If foreign organizations or individuals donated or inherited houses that contrast with Point b, Clause 2, Article 159 of the Law on Housing 2014 or more than the number of houses as defined by Point a of this Clause, these subjects are only received the validity of those houses.
- For foreign individuals, they are entitled to own houses agreed upon in contracts of sale and purchase, lease, donation, and inheritance for at least fifty (50) years from the date they receive a Certificate and house ownerships are extended according to the Government’s regulations if needed; the duration of house ownerships shall be clearly recorded in the Certificate. In case, foreign individuals marry Vietnamese citizens or Vietnamese people residing abroad; they are entitled to own stable and long-term houses and receive house ownership’s rights as Vietnamese citizens;
- For foreign organizations, they are entitled to own houses agreed upon in contracts of sale and purchase, lease, donation, and inheritance, but these ownerships don’t exceed the duration recorded on the Investment Registration Certificate (that those organizations are granted), including the extra extended duration; the duration of house ownerships is calculated from the date organizations receive the Certificate, and the Certificate is clearly recorded this issue;
- Before expiring of house ownership according to regulations of the Law on Housing 2014, owners can donate or sell their houses to subjects that are eligible for house ownership in Vietnam; However, if house ownership is expired but owners don’t donate or sell them, those houses belong to the State.
Contact Our Legal Experts
At TLA, our experienced attorneys specialize in diverse legal fields, including criminal, civil, corporate, and family law. We provide comprehensive legal support and personalized advice.
For Expert Legal Consultation, Contact Us:
1. Lawyer Vu Thi Phuong Thanh – Director of TLA Law Firm, Hanoi Bar Association.
Email: vtpthanh@tlalaw.vn
2. Lawyer Tran My Le – Chairwoman of TLA Law Firm’s Members’ Council, Hanoi Bar Association.
Email: tmle@tlalaw.vn
Address: Floor 7, No. 6 Duong Dinh Nghe Street, Yen Hoa, Cau Giay, Hanoi
Website: https://tlalaw.vn/
Hotline: 0906246464
_Phi Ngoc Dung_