How is the Inheritance Divided When a Foreigner Owns Real Estate in Vietnam?

I. Civil relations involving foreign elements are civil relations that fall into one of the following cases:

• a) At least one of the participating parties is a foreign individual or a foreign legal entity;

• b) The participating parties are all Vietnamese citizens or Vietnamese legal entities, but the establishment, modification, implementation, or termination of such relation occurs abroad;

• c) The participating parties are all Vietnamese citizens or Vietnamese legal entities, but the subject matter of such civil relation is located abroad.

II. Determination of applicable law to civil relations involving foreign elements

According to the provisions of Article 664 of the Civil Code on determining the applicable law to civil relations involving foreign elements:

1. The law applicable to a civil relation involving foreign elements shall be determined in accordance with international treaties to which the Socialist Republic of Vietnam is a member or in accordance with Vietnamese law.

2. Where an international treaty to which the Socialist Republic of Vietnam is a member or Vietnamese law provides that the parties have the right to choose, the law applicable to a civil relation involving foreign elements shall be determined by the choice of the parties.

3. Where the applicable law cannot be determined under Clauses 1 and 2 of this Article, the applicable law shall be the law of the country that has the closest connection with such civil relation involving foreign elements.

III. Inheritance

According to the provisions of Article 680 of the Civil Code on Inheritance:

1. Inheritance shall be determined in accordance with the law of the country of which the estate leaver holds nationality immediately before their death.

2. The exercise of inheritance rights to real estate shall be determined in accordance with the law of the country where such real estate is located.

Conclusion: Therefore, the exercise of inheritance rights regarding real estate is determined in accordance with the law of the country where such real estate is located. This means that if the deceased leaves an estate that is real estate in Vietnam, Vietnamese law will apply to execute the inheritance rights for that real estate in Vietnam.