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Purchasing property in Vietnam is difficult for foreign entrepreneurs, due to complex and restrictive Vietnamese investment law. Below is information related to purchasing property in Vietnam, along with Healy Consultants' related independent services:

Since 1 January 2009 purchasing property in Vietnam has been easier for foreign investors when a new real estate law comes into effect. Under the legislation, international entrepreneurs are permitted to purchase real estate provided certain conditions are met. These conditions include: i) the individual already invests directly in Vietnam ii) the individual is married to a Vietnamese citizen iii) via a company.

Because land cannot be owned, purchasing property in Vietnam is done on a lease basis. Apart from apartments, foreigners residing in Vietnam can purchase a house but the land is leased from the government. Foreigners can also purchase property in Vietnam by forming i) a joint venture company with a local partner ii) a wholly foreign-owned company iii) a Build, Operate and Transfer (BOT) company or one of its variants.

As land in Vietnam cannot be owned by an individual, the process of purchasing property in Vietnam requires registrations of land use rights. Once contracts are exchanged, the buyer will receive the Land Use Rights Certificate (LURC), which gives the right over the land as well as the description of the land's property.

Foreign investors who do not reside in Vietnam are restricted to 70-year leaseholds on condominiums, with the ability to renew for another 70 years on expiry. Foreigners are also allowed to lease land for 50 years and to build property on it, however they do not have any title rights to the land.

A new capital gains tax could slow the property market, as potential investors are likely to be more hesitant.  The tax may seem complicated to investors as the tax can vary between different districts and also on a case-by-case basis. Capital gains is subject to a 25% tax when property ownership changes and if this figure can’t be calculated 2% of the total value of the transaction will be taken instead. While the initial stages could see some undervaluation of property to try and minimize the tax payable, the value of the capital gains tax may be in helping to stabilize the property market over the long term.

Property taxes are payable for purchasing property in Vietnam and selling property in Vietnam. Healy Consultants provides invaluable tax and accounting advice to investors to ensure all tax obligations are met. Property taxes include value added tax, land use right fees, income tax, withholding tax and capital gains tax, which is a flat rate of 25% for non-resident foreigners.

Based on requirements including location, size, budget, property facilities, proximity to supermarkets, transport and Vietnam schools, Healy Consultants provides clients with suitable options for purchasing property in Vietnam.

As the Vietnam market opens up more for foreigners, there are more options for financing property investment in Vietnam. ANZ is one bank that has an option of borrowing up to 60% of the property valuation. Healy Consultants will source competitive property finance for purchasing property in Vietnam. Our firm works with leading international banks including HSBC, ANZ Bank, DBS Bank and OCBC Bank.

Healy Consultants will appoint and supervise a local lawyer to ensure the legal matters associated with purchasing property in Vietnam are undertaken correctly. While government regulations have been tightened to help improve the transparency of the industry, a lawyer will assist in avoiding any problems in the transaction and protect the interests of the buyer.

Under new Vietnam real estate law, foreign investors will be permitted to purchase apartments only in approved developments with a 50-year lease, and the property owner must reside in the property, thereby making it unattractive for investors based outside Vietnam.

Healy Consultants works with international investors to efficiently manage all aspects in the process of purchasing property in Vietnam, and for selling property in Vietnam. Requirements can be for residential real estate or commercial real estate.

In addition to the purchasing and selling process, Healy Consultants assists international investors with other necessary aspects of property investment, including:

Organizing appropriate property insurance to ensure the structure and contents of their new asset is secure.

Finding reliable agents and contractors to undertake required property management activities such as property maintenance, refurbishments, property security, property valuations, and ad hoc problem solving.

Arranging the requirements such as immigration visas, relocation services, and country orientation information for clients who are migrating to Vietnam.

Contact Us

For further information on purchasing property in Vietnam, please contact us at our Singapore office at (+65) 67350120 or email us at email@healyconsultants.com

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