Foreigners are allowed to own residential houses in Vietnam

Since 01 July 2015, Law on residential Houses 2014 will go in force, in which, a new prominent point is that foreigners who enter Vietnam legally are allowed to own houses in Vietnam.

Foreigners are allowed to own residential houses in Vietnam

Foreigners are allowed to own residential houses in Vietnam through the following forms: purchase, hire purchase, donation or inheritance commercial houses including apartments and residential houses in the housing construction projects, except for the area to ensure defense and security as stipulated by the Government.

Some quotas are placed to restrict the number of foreign owned house:

- Foreigners are allowed to own a maximum of 30 percent of apartments in a building and 250 residential houses in a given ward.
- The maximum period not exceeding 50 years from the date of issuance of the ownership certificate and can be extended under the provisions of the Government if required;

Some notes for foreigners who are allowed to own residential houses in Vietnam:

- Foreigners are allowed to own residential houses in Vietnam are persons who are not entitled to the privileges and immunities of diplomatic and consular prescribed by law.
- Where a foreigner marries with a Vietnamese citizen or oversea Vietnamese citizens, they will own a stable long term house and have the rights of house owner like Vietnamese citizens;
- Before the expiration of house ownership in accordance with the provisions of this law, the house owner can donate or sell this house for the subjects who are entitled to own house in Vietnam; if duration of house ownership is expired, but owner does not sell or donate the house, such house shall be owned by the state.

The obligation of the owner being foreigner who is allowed to own houses in Vietnam:

Foreigners being house owners in Vietnam will have the obligations like the house owners of Vietnamese citizens, but they must comply with the following regulations:
 a) For the house’s owner being foreigner is allowed to rent for use for purposes which are not prohibited by law, but prior to housing rental, the owner shall give a written notice of the housing rental to the management agencies of the district level of locality where the house locates as guidelines set by the Minister of Construction and pay tax from rental activities in accordance with the provisions of law.
 b) Where a foreigner marries with a Vietnamese citizen or oversea Vietnamese residing there are the obligations of homeowners in Vietnam as citizens;
 c) Payment for the purchase, lease-purchase of house through credit institutions operating in Vietnam.

Lawyervn.net