FOREIGNERS BUYING HOUSES TO LIVE IN VIETNAM

1. Entities eligible for the homeownership in Vietnam

According to the provisions of Clause 1 Article 159 of the Law on Housing 2014 allows foreigners to buy houses in Vietnam, specifically the following foreign organizations and individuals:

• Foreign entities who invest in project-based housing construction in Vietnam as prescribed in this Law 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 (hereinafter referred to as foreign organizations);
• Foreign individuals are allowed to enter Vietnam.

2. Transactions of legitimate housing

Entities having legitimate housing through the following transactions:

• Investment in the construction of houses under projects in Vietnam by the Law on Housing 2014 and the law relevant laws;
• Purchase, lease, lease purchase, receipt of a gift, receipt of an inheritance, including apartment buildings and separate houses in housing construction investment projects, except for areas under management relating to national defense and security as prescribed in regulations of the Government.

Consequently, foreign organizations and individuals cannot buy land but can only own commercial housing (including apartment buildings and separate houses) in investment projects built commercial housing, except for areas under management relating to national defense and security as prescribed in regulations of the Government.

3. Eligible for the homeownership

According to Article 74 of Decree 99/2015/ND-CP guiding the Law on Housing, foreigners who fall into the above categories have the right to buy houses in Vietnam, but to own a house, they must have a valid license. proof sheet.

Case 1: For individuals or organizations investing in housing construction under projects

• Have an Investment Registration Certificate;
• Have houses that are built under a project as prescribed in this Law and corresponding regulations of law.

Case 2: Conditions for foreign organizations

An investment certificate or documents related to being allowed to operate in Vietnam issued by a competent Vietnamese state agency is still valid at the time of contract signing the house purchase agreement or house lease purchase.

Case 3: Conditions for individuals

• Having valid passports stamped with entry verification stamp of the immigration and exit management agency of Vietnam;
• Not granted diplomatic immunity and privileges as prescribed.

Foreigners only buy houses in housing construction investment projects and must satisfy all conditions on a case-by-case basis.

4. Time and percentage of ownership

           Article 161 of the 2014 Housing Law specifically stipulates that foreign individuals and organizations may not buy, rent and purchase, receive, inherit and own more than 30% of apartments in an apartment building; or more than 250 houses regarding separate houses including villas, row houses in an area whose population is equivalent to a ward-administrative division. In addition, foreign individuals can own a house for not more than 50 years, from the day on which they are granted the Certificate and they may be also granted an extension as prescribed in regulations of the Government; the duration of the homeownership must be stated in the Certificate.

If a foreign individual marries a Vietnamese citizen or an oversea Vietnamese, he/she qualifies for stable and long-term homeownership and has all rights of a homeowner similarly to Vietnamese citizens;

The foreign organization is eligible for the homeownership as agreed in agreements on housing sale, lease purchase, gifting, or inheritance for no longer than the duration stated in their Certificate of investment, including extension duration, the duration of the homeownership shall be determined from the day on which the organization is granted the Certificate and stated in such Certificate;

5. Procedures for buying a house

Step 1: Making a Housing agreement

The parties agree to make a written house sale and purchase contract with the main contents based on Articles 120 and 121 of the Law on Housing 2014.

Step 2: Notarization and authentication of a Housing agreement

Step 3: Request to apply for the Certificates

The contracting parties shall agree to choose a party to request the competent agency to grant the Certificate of housing; regarding housing that is bought or leased and purchased from the investor, the investor must complete the procedures for the Certificate issued to the buyer or the lessee by the competent agency, unless the buyer or the lessee wishes to complete the procedures themselves.