In 2015, the Vietnamese government made it remarkably easier for foreigners to invest in Vietnam property thanks to the issuance of the Vietnam’s New Law to Foreign Ownership of Property.
Since then, many early investors have managed to earn remarkable profits from the Vietnamese property market as prices have increased by double digits yearly in places like Ho Chi Minh.
Besides, not only did Vietnam loosen its restrictions to foreigners in the real estate market. At the end of 2015, the Ho Chi Minh Stock Exchange (HOSE) removed all restrictions on foreign ownership.
That said, Vietnamese ownership regulations are stricter compared to countries like Thailand, Malaysia, and Cambodia.
Requirements for foreigners to buy property in Vietnam
After July 1st, 2015, you can purchase property as long as you’re allowed to enter Vietnam. Before that, foreigners had to work in Vietnam for at least 1 year (the same as it goes in China) and meet certain criteria. In short, buying real estate here was a completely different story and off the map for many investors.
Now, there are no restrictions for foreigners to have Vietnam as their domicile (like in Indonesia) or to stay there for a specific amount of time each year. Besides, you won’t need to meet any minimum investment requirements, like in Malaysia.
As you can see, drastic changes have been made to open Vietnam to the foreign market.
Foreign ownership regulations of Vietnam property
So, a lot of things have happened since July 2015. Let’s go into greater detail of how the ownership regulations have changed in Vietnam in the past years. Below you can find a comparison of what has practically changed after 2015.
Who can buy property in Vietnam?
Foreigners who can enter Vietnam. As mentioned, prior to 2015, you had to work in Vietnam for at least a year and meet certain criteria.
How many units can I buy?
Foreigners can buy 30% of the units in commercial (branded) condominium buildings, the remaining 70% have to be allocated to locals. Besides, foreigners can buy 10% of the houses in landed projects.
Before 2015, foreigners could only buy one condominium unit.
For how long can I lease my unit?
As foreigners cannot buy freehold property in Vietnam (unless you have a Vietnamese spouse) you can only get hold of property on a leasehold basis.
Foreigners can buy leasehold property on a 50 years basis, with a possibility to renew the lease for additionally 50 years, at the time of the contract-signing.
Before 2015, you could only lease for 50 years and with renewal possibility upon expiration.
For what purpose can I buy property?
You can sublease, mortgage, contribute as capital, gift, bequest, exchange, etc, the unit under certain limitations. Before 2015, you could only buy a unit for self-use.
Can foreigners buy condos in Vietnam?
As mentioned, foreigners can buy 30% of the condominium units in a project. The rest must allocated to Vietnamese citizens. With that said, you cannot buy local apartments, but only in branded projects.
Can foreigners buy houses in Vietnam?
Foreigners can buy 10% of the houses in a commercial (branded) project on a leasehold basis.
Can foreigners buy land in Vietnam?
No, foreigners cannot buy land as it’s theoretically ‘jointly owned’ by the people and controlled by the state.
Questions & Answers
Below you can find some commonly asked questions and our replies.
Do I have to be physically present to buy property in Vietnam?
You don’t have to be physically present in Vietnam until you sign the Sales & Purchase Agreement (SPA).
Can I pay in installments?
Yes, developers generally allow foreigners to pay up to 50% by installments. For Vietnamese citizens, the rate is 70%. You normally pay 1% to 2% every month.
Can I get an investment-visa in Vietnam?
Vietnam doesn’t have any investment visa for overseas property investors. Instead, you have to apply for a tourist visa or business visa.