Buy House/Apartment In Vietnam
Who can buy?
- Foreign entities who invest in project-based housing construction in Vietnam as prescribed by Law on housing and corresponding regulations of law;
- Foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign-invested funds and branches of foreign banks operating in Vietnam;
- Foreign individuals who are allowed to enter Vietnam.
What are the requirements?
- A foreign individual has an unexpired passport bearing the entry seal of the Vietnam’s immigration authority;
- A foreign organization has investment registration certificate or a permission issued by a Vietnam’s competent authority for operation in Vietnam, which is still unexpired at the time of housing transactions;
What are restriction?
Foreigners may only own houses (including apartments and detached houses) of commercial housing construction projects with the permissible quantity of house. In areas having national defense and security requirements, they cannot own houses.
What are the fees and tax for transferring house?
- The notarial fee: is fixed by law and organizations/ individuals that request notarization of contracts, transactions will pay notarial service fees. Normally, this fee will be paid either by the buyer or the seller or split between the two depending on their agreement.
- The registration fee: the buyer will pay and the registration fee is 0.5% X base price of buildings/Land.
- Personal Income tax or Enterprise Income tax:
+ If the seller is individual, they need to pay personal income tax. The personal income tax = 2% X the
+ If the seller is an enterprise, The income tax to be paid by the enterprises for transfer of real estate is equal to the income from the transfer of real estate multiplied (x) at the tax rate of 20%.
What are steps?
(i) When you choose a property, you will have to due diligence of the transaction of this property.
The property need the Certificate, except for transactions in off-the-plan housing sale or mortgage. There is no dispute, complaint, or proceedings for homeownership; the term of homeownership has not expired if the house is under a term contract on housing; The house is not distrained; There is no decision on land revocation, notification of housing clearance or demolishment issued by the competent agency, etc.
(ii) The next step is to sign a reservation agreement (can ignore)
The buyer and seller may sign the reservation agreement (we recommend this contract may certify by the notary. The buyer needs to pay a deposit to the seller. It prescribes that if the buyer changes his mind, he will lose the deposit, and if the seller changes his mind, he will have to pay twice.
(iii) After that, signing the contract of housing transfer:
Make sure the buyer or seller understand the contract. In case you are a foreigner, you can ask a translator to help examine its content during signing the contract at the notary.The contract must be in Vietnamese.
( iv) Paying taxes and fees.
According to law, the buyer pays the registration fee and the seller pays income tax and normally, the buyer and seller can make a deal.
(v) The last step is to apply for a certificate changing the name of the buyer.
The buyer brings the application for changing their name in the red book from the seller to the competent agencies.
DB Legal is a professional legal consultant based in Da Nang, Viet Nam. We bring enormous experience to real estate transactions for both local and foreign parties in Central Viet Nam, mainly areas in Da Nang, Hoi An, Nha Trang, Hue, Quy Nhon ,etc., including negotiations, deal documentation and advising on risk.
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