Category: Vietnam Legal & Taxes

Vietnam Property Taxes: Foreign Buyer’s Guide

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No matter where you buy real estate, you need to have a good understanding of what property taxes to be paid when buying, holding, and selling. To many investors’ surprise, Vietnam has comparatively low real estate taxes, at least compared to many Western countries.

In this article, we review the taxes you have to pay when buying new properties on the primary market in Vietnam. Such properties are typically new condominium units bought directly from a developer, or with the help of an agent.

This is undoubtedly the most popular option among foreign buyers in Vietnam, due to existing foreign property ownership regulations.

What real estate taxes do I have to pay in Vietnam?

Below, you can find the taxes you have to pay when buying, holding, and selling property in Vietnam.

VAT (Value Added Tax)

If you buy a condominium unit on the primary market you have to pay a VAT of 10%. The VAT is multiplied by the purchase price and paid by both local and foreign buyers.

You pay the tax at the time of the purchase. Continue reading Vietnam Property Taxes: Foreign Buyer’s Guide

Regulations for Viet Kieu Buying Property in Vietnam

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Since Vietnam opened in 2015, increasingly more foreigners and Viet Kieu have invested or plan to invest in this rapidly growing economy. The country offers some of Asia’s highest rental yields at the same time as property prices have increased by double digits in places like Ho Chi Minh City.

At the same time, more and more overseas Vietnamese wonder how it works from a regulatory point of view when investing in Vietnam real estate. In this article, I explain the definition of a Viet Kieu, what ownership regulations that apply, what the benefits of buying property as a Viet Kieu are, and more.

What is the definition of a Viet Kieu?

Before we get started, we first need to understand the definition of a Viet Kieu. In short, Viet Kieu are overseas Vietnamese people who live outside of Vietnam in a diaspora. We can find the biggest community of Viet Kieu’s in the United States. Continue reading Regulations for Viet Kieu Buying Property in Vietnam

What is the pink book in Vietnam?

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Before you buy property in a foreign country, you should have a good understanding of the buying process and the documents involved. This is especially true for developing countries in Southeast Asia, like Vietnam.

Many readers have a little knowledge about the “pink book”, what it’s used for, and how important it is when buying a property in Vietnam.

In this article, we explain what the pink book is, which authority that issues the pink book, how much it costs, what documents you need to provide, and more. Let’s start and review what the pink book is.

What is the pink book used for?

The pink book is a legal document that you should secure as proof of ownership when buying real estate in Vietnam.

The document is legally called the “Certificate of Land Use Right and Ownership of House and Other Assets on the Land”, but most people just refer to the document as the “pink book”.

As you can hear by its name, this certificate of ownership allows homeowners to fully perform the rights from buying the property. For example, you have the right to lease your property or affirm information related to inheritance. Continue reading What is the pink book in Vietnam?

Vietnam Foreign Property Ownership Quota

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Vietnam opened to foreign property buyers in 2015 and foreign buyers have poured in. However, you can only buy property as long as you meet the foreign property ownership quotas stipulated by the government.

In this article, I explain what foreign ownership quotas are, why they are imposed in Vietnam, in which Asian countries you can find them, what disadvantages it brings when buying property, and more.

Let’s start and review what it means practically for overseas buyers who want to invest in Vietnam property and have to meet local ownership quotas.

What is a foreign ownership quota?

Foreign ownership quotas can typically be found in developing Asian countries to protect the social and economic development. While there are no foreign ownership quotas in East Asian countries, like South Korea and Japan, you can find the quotas in:

  • Vietnam
  • The Philippines
  • Thailand
  • Cambodia

Continue reading Vietnam Foreign Property Ownership Quota

Can Foreigners Buy Property in Vietnam?

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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. Continue reading Can Foreigners Buy Property in Vietnam?

7 Asian Countries Without Capital Gains Tax

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Investors often pay much attention to the taxes and fees they have to pay at the time of buying property.

Truth be told, stamp duties, VAT and real estate agent fees can become significant when added up.

But, to have a complete exit strategy, it’s equally important that you understand what taxes you need to pay when holding and selling property.

In most countries, sellers need to pay capital gains tax when selling property. The tax can be substantial, especially if the property has increased much in value.

In this article, I list Asian countries where you don’t have to pay capital gains tax.

First, let me explain what capital gains tax is and how it’s calculated.

What is Capital Gains Tax?

Capital gains tax, sometimes referred to as CGT, is collected by governments and charged to the profits made when selling assets. Might it be real estate, businesses or stocks.

In Asia, capital gains tax rates normally range between 0% to 20%, depending on where you buy. With rates that high, the tax can reduce your profits significantly.

Not to forget, you might even be subject to capital gains tax in countries where the tax is generally not charged.

Continue reading 7 Asian Countries Without Capital Gains Tax