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| Foreigners seek information on housing projects in Ho Chi Minh City__Photo: https://baodautu.vn |
I am a foreigner working in Vietnam. I wish to buy a house for long-term residence in the country. What are the conditions for foreigners to own houses in Vietnam?
As per Article 17.1.c of the 2023 Housing Law (the Law), foreign individuals who are permitted to enter Vietnam may own houses in the country.
Specifically, foreign individuals may own houses, including apartments and independent houses, through purchasing or renting with the option to purchase houses under commercial housing investment projects, receiving houses given as donations, or inheriting houses under commercial housing investment projects not in areas subject to national defense and security requirements.
Or else, they may own houses through purchasing or renting with the option to purchase houses from the above-said entities.
Regarding conditions for foreigners to own real estate in the country, Article 3.2 of Government Decree 95/2024/ND-CP (Decree 95) stipulates that a foreigner must possess a foreign passport or another paper of equivalent legal validity with a Vietnam entry stamp and a written commitment of not falling into cases of eligibility for diplomatic or consular privileges or immunities. The passport must remain valid at the time of signing the housing transaction.
Worthy of note, there are other cases that you may concern. Under the Law, foreign nationals who are married to Vietnamese citizens currently residing in Vietnam may own houses and have the rights of house owners like Vietnamese citizens. Meanwhile, those married to Vietnamese citizens residing overseas and permitted to enter Vietnam may own houses and have the rights of house owners like overseas Vietnamese.
Are there any limitations applied to foreigners when buying houses in Vietnam?
It is important to note that Vietnam imposes caps on the number of apartments owned by foreigners in a condominium.
According to Decree 95, the number of apartments owned by foreign individuals in an apartment building, regardless of whether it is a residential or mixed-used building, must not exceed 30 percent of the total number of apartments for residential purpose. For an apartment building with multiple units or blocks sharing a basement, the quantitative cap of 30 percent will apply to each unit or block in the building;
For independent houses, the foreign holding cap is 250 houses for each area with a population of 10,000.
Specifically, if there is one housing construction investment project in an area with a population of 10,000, foreign entities may purchase at most 250 houses under such project. In case there are two or more housing construction investment projects, the allowable limit of houses owned by foreign entities at all these projects will still be kept at 250. In case the number of houses owned by foreign entities under housing development projects in such an area has reached the law-prescribed cap, foreigners may not purchase any more houses at other projects in this area.
Please keep in mind that housing transactions involving foreign entities under projects that have exceeded the foreign holding cap or are unqualified for sale of houses to foreign entities will be considered invalid and no certificate of land use rights and ownership of houses and/or other land-attached assets (Certificate) will be granted. In this case, the seller/lessor will have to compensate the purchaser/lessee for the damage incurred.
Is there any regulation on house ownership duration and if yes, may I apply for extension of house ownership duration?
Under Article 20.2.c of the Law, the house ownership duration of foreign individuals will comply with house purchase and sale, lease-purchase, donation or inheritance agreements which, however, must not exceed 50 years from the date of grant of the Certificate and be clearly stated in the Certificate. The house ownership duration may be extended once for another 50 years.
If you buy a house in Vietnam and the house ownership duration is going to expire, you will have to prepare a dossier of application for extension of the house ownership duration, comprising:
(i) An application for extension of the duration of house ownership in Vietnam;
(ii) A certified copy or a copy enclosed with the original for collation of the Certificate; and,
(iii) A copy of the applicant’s passport with the Vietnam entry stamp or another paper of equivalent legal validity, which must remain valid at the time of applying for extension.
The dossier must be hand-delivered, sent by post or submitted online to the People’s Committee of the province or city where your house is located at least three months before the house ownership duration expires.
Within 30 days after receiving your valid dossier, the provincial-level People’s Committee will check the dossier. In case you still meet the conditions for owning a house in Vietnam, you will receive a written approval for extension of the house ownership duration. The maximum extended duration will be 50 years, counted from the expiration date of the initial house ownership duration stated in the Certificate. In case you no longer meet the required conditions, the provincial-level People’s Committee will issue a written reply clearly stating the reason.
In the event of bad scenario, you are forced to leave or expelled from Vietnam when the initial house ownership duration expires, you will not have such duration extended.
The handling of a house unqualified for extension of ownership duration will be carried out on a case-by-case basis as follows:
(i) If the house ownership duration has yet to expire, the house owner may himself or authorize another person to sell or donate the house to a subject meeting the conditions for owning a house in Vietnam; past the expiration of the house ownership duration, if the owner still fails to sell or donate the house, it will become a public asset.
(ii) In case the house owner is forced to leave the country due to violations related to use of houses in the country, the handling of the house will be decided by relevant authorities.-
