Can People Residing Abroad Inherit Property in Vietnam?

1. CONCEPT AND CLASSIFICATION OF SUBJECTS RESIDING ABROAD

To accurately determine the right to inherit property in Vietnam, the law must first clearly classify the category of "people residing abroad," because the legal regime applicable to each group varies greatly, especially for real estate inheritance.

1.1. Vietnamese citizens residing abroad These are individuals who still retain Vietnamese citizenship (holding a valid Vietnamese passport or identity card), living, working, studying, or residing short-term/long-term in another country. Legally, this group fully holds Vietnamese citizenship and enjoys all citizen rights according to the Constitution and current laws.

1.2. People of Vietnamese descent residing abroad According to the Law on Vietnamese Nationality and the 2024 Land Law, people of Vietnamese descent residing abroad are those who previously held Vietnamese citizenship determined by the principle of bloodline at birth, and their children and grandchildren who are residing and living permanently abroad. This group no longer holds Vietnamese citizenship, having acquired foreign citizenship.

1.3. Foreign individuals These are people without Vietnamese citizenship, including foreign citizens (holding the nationality of another country) and stateless persons. They can be relatives, spouses, adopted children, or persons designated to inherit under a will from a deceased person who has property in Vietnam.

2. THE RIGHT TO INHERIT UNDER THE GENERAL PRINCIPLES OF THE 2015 CIVIL CODE

2.1. The equal right to inherit of individuals According to Article 609 of the 2015 Civil Code (Civil Code 2015): "Individuals have the right to make a will to dispose of their property; to leave their property to heirs at law; and to inherit an estate under a will or according to the law." This provision affirms the principle of absolute equality: Every individual has the right to inherit an estate regardless of their place of residence, ethnicity, gender, or nationality. In addition, Article 680 of the Civil Code 2015 regarding inheritance with foreign elements specifies that the right to inherit movable property is determined according to the law of the country of which the deceased was a citizen before death; for immovable property, the right to inherit must comply with the law of the country where the immovable property is located (i.e., Vietnamese law).

2.2. The right to inherit under a will and according to law Regardless of which country the heir is living in, they have the right to receive an inheritance in Vietnam in two forms:

• Inheritance under a will: The person leaving the estate has the right to dispose of all or part of their property to someone residing abroad. If the will is lawful (Article 630 of the Civil Code 2015), the person abroad is fully entitled to inherit the estate according to the will-maker's intentions.

• Inheritance at law: In cases where there is no will, the will is unlawful, or the person designated in the will refuses to receive the estate, the estate will be divided according to lines of inheritance (Article 651 of the Civil Code 2015). If the person abroad belongs to a line of inheritance (first line: spouse, biological parents, adoptive parents, biological children, adopted children, etc.), they retain the full right to enjoy the corresponding portion of the estate.

3. SPECIALIZED REGULATIONS FOR REAL ESTATE INHERITANCE (HOUSING, LAND)

If the inheritance is money, gold, savings books, stocks, vehicles, or other movable properties, the person abroad can receive it in full and hold ownership or transfer the money abroad (in compliance with foreign exchange management regulations). However, if the estate is Real Estate (Land Use Rights, housing), specialized laws apply different rules for each subject:

3.1. The right to register ownership for Vietnamese Citizens abroad Under the 2024 Land Law (effective from August 1, 2024), Vietnamese citizens residing abroad (who still retain Vietnamese citizenship) have the right to inherit land use rights and housing, and can be issued a Certificate of land use rights and ownership of assets attached to land (Red Book/Pink Book) with full rights identical to domestic individuals. This is a significant legal step toward equalizing the rights of Vietnamese citizens whether they live domestically or abroad.

3.2. Ownership rights for People of Vietnamese descent residing abroad According to the 2024 Land Law and the 2023 Housing Law:

• If they are people of Vietnamese descent residing abroad who are allowed to enter Vietnam: They have the right to inherit housing attached to residential land use rights and be issued a Certificate (their name can be on the Red Book/Pink Book for the housing).

• If they are not allowed to enter Vietnam or the inherited land is not residential land (such as agricultural land, forestry land, commercial and service land not attached to housing, etc.): They will not be issued a Certificate of land use rights, but are entitled to the value of that inherited estate portion. They have the right to transfer (sell) or gift that inherited portion to others who are eligible to receive the property.

3.3. The right to receive estate value for Foreigners Foreign individuals are not among those permitted to own land use rights in Vietnam (under Article 4 of the 2024 Land Law). For housing (apartments, individual houses in commercial housing projects), foreigners can only inherit and register ownership if they belong to the subjects specified in the 2023 Housing Law and have not exceeded the maximum quantity/ratio allowed for foreign ownership in a given project. In cases where the foreigner does not belong to the subjects allowed to own housing/land in Vietnam, according to Clause 3, Article 44 of the 2024 Land Law, the foreigner will not be issued a Red Book but has the right to:

a) Authorize another person to sell/transfer that inherited estate portion to receive the entire value in cash.

b) Gift that inherited estate portion to the State or to eligible individuals or organizations in Vietnam.

c) Be named alongside other co-heirs in the Agreement on estate division but agree to receive the corresponding value instead of receiving the asset in kind.

4. PROCEDURES, PROCESSES, AND DOSSIERS FOR DECLARING INHERITANCE FROM ABROAD

Because they are living abroad, the heir is not required to fly directly back to Vietnam to carry out the procedures. Vietnamese law allows authorizing someone else in Vietnam to act on their behalf to conduct the procedure for declaring the inheritance.

4.1. Documents proving inheritance relations and ownership rights The basic dossier includes:

• Death certificate of the person leaving the estate;

• Documents proving the deceased's property ownership rights (Red Book, savings book, vehicle registration, etc.);

• A lawful will (if inheriting under a will);

• Documents proving the personal relationship between the person abroad and the deceased (Birth certificate, marriage certificate, old household registration book, etc.);

• Identity documents of the person abroad (Vietnamese passport, foreign passport, Certificate of Vietnamese origin, etc.).

4.2. Consular legalization and authorization procedures If the person abroad cannot return to Vietnam, the procedure is as follows:

• Step 1: Establish a Power of Attorney/Authorization Letter at the Vietnamese Diplomatic Mission (Vietnamese Embassy or Consulate) in the host country. This authorization document has direct legal validity in Vietnam without the need for further consular legalization.

• Step 2: If the authorization is made before a foreign Notary Public, that document must undergo consular legalization at the Vietnamese Embassy/Consulate in that country, and then be translated into Vietnamese and notarized.

• Step 3: The authorized representative in Vietnam brings the complete dossier to a Notary Office in Vietnam to establish a Document declaring inheritance or an Agreement on the division of inherited estate.

4.3. Tax and fee obligations related to receiving inheritance

• Personal Income Tax (PIT): According to the Law on Personal Income Tax, receiving an inheritance between: husband and wife; biological parents and biological children; adoptive parents and adopted children; parents-in-law and daughters/sons-in-law; grandparents and grandchildren; and biological siblings is exempt from PIT.

• Other inheritance cases (not belonging to the direct personal relationships above): Must pay a 10% PIT on the value of the estate exceeding 10 million VND.

• Registration fee: Exempt for inherited housing/land between persons with the aforementioned personal relationships; other subjects pay 0.5% of the real estate value.

5. PRACTICAL OBSTACLES AND WAYS TO RESOLVE LEGAL RISKS

In actual implementation, people residing abroad often encounter some common difficulties:

a) Discrepancies in personal information: The full name or date of birth on the foreign passport does not match the Birth Certificate or the Certificate of ownership in Vietnam. Solution: It is necessary to carry out procedures for vital records extraction or procedures to confirm that the two names belong to one person at a diplomatic/judicial agency.

b) Loss of documents proving personal relationships: Due to the passage of time or migrating decades ago. Solution: Need to request an extract from the old civil registration book or collect supplementary evidence (family household registration book, testimonies of other co-heirs).

c) Conflicts among co-heirs: Domestic co-heirs arbitrarily declare and appropriate the estate. Solution: The person abroad has the right to file a lawsuit requesting the competent People's Court to resolve the inheritance division dispute. The statute of limitations for initiating a lawsuit regarding inheritance is 30 years for real estate and 10 years for movable property from the time of opening the inheritance (Article 623 of the Civil Code 2015).

6. CONCLUSION

In summary, people residing abroad absolutely have the right to inherit property in Vietnam under both wills and the law. Vietnam's current legal framework (especially the 2015 Civil Code, the 2024 Land Law, and the 2023 Housing Law) has created very open conditions, maximally protecting the property rights of overseas Vietnamese and foreign individuals. However, to protect their legal rights quickly and optimally, people abroad should:

• First: Review and prepare early the documents proving nationality, Vietnamese origin, and the personal relationship with the person leaving the estate.

• Second: Proactively execute lawful authorization procedures for a reputable representative or law practice organization in Vietnam to handle notarization, tax payment, and estate name transfer procedures on their behalf.

• Third: Regularly update themselves on the new regulations of land and housing laws to correctly handle their inherited estate.

See more: How is inheritance divided when foreigners own real estate in Vietnam?