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Buying A Home in Vietnam

If you want to get a Vietnam home, you have to know some aspects and intricacies of owning it.

Can foreigners purchase Vietnamese real estate?

Foreigners frequently purchase primary market real estate directly from developers or from foreigners who have previously purchased it. However, you should be aware that there are limits on the secondary market for foreigners, since they are not permitted to purchase real estate from local people (Vietnamese) if the foreigner quota in that building has already been met (30 percent ).

When foreigners purchase property from a developer, they must get a certificate of ownership. One time, foreigners struggled to obtain a certificate of ownership in 2017, which caused some disappointment for obvious reasons.

What caused this to happen? The answer is simple: foreigners are not permitted to acquire real estate in areas designated for national defense and security under the legislation. Furthermore, it is up to the Ministry of National Defense and the Ministry of Public Security to determine whether the property is located in an area designated for national security protection. As a result, when purchasing a Vietnam home, you must exercise extreme caution.

The most critical paperwork to have when buying a home in Vietnam.

The pink book. This is the documentation of ownership of the property. The term is related to the color of the forms on which this document is printed. The pink book is a record of your property rights. This book grants you the right to lease your property and explains topics such as inheritance.

The red book. The possession of this document determines land ownership, not tangible constructions like houses and apartments.

Purchase agreement (SPA). This paper, I believe, requires no introduction; everyone is already familiar with it.

What to think about when buying a home in Vietnam.

Although its existence is not needed by law, the pink book is a more convincing proof of ownership. What is the purpose of the pink book, and what are its benefits? You must have a pink book if you:

  • If you may demolish, maintain, repair, or rebuild your home.
  • When you sell, mortgage, or rent a home.

Vietnam’s Land Use Rights (LUR).

Fortunately, Vietnam has a land regulation known as Land Use Rights (LUR) that lessens the risks of international investors operating in Vietnam. Even if the state has not increased the lease time of the land, you have the right to use it under the LUR.

It also grants you power over land leased or assigned by the Vietnamese government. Remember that you must first get a Certificate of Land Use Rights (LURC) from the Vietnamese government before leasing the land.

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The finest places in Vietnam to buy real estate

Vietnam is rapidly developing. The country has many opportunities for investment. In this article, we will tell you about a couple of cities that are popular among foreign investments.

Vietnam’s capital, Ho Chi Minh City (Saigon)

Ho Chi Minh City is Vietnam’s economic capital. This metropolis is one of Asia’s fastest developing cities, attracting investors from all over the world. One reason for this is that manufacturing in China is becoming increasingly expensive, thus many manufacturing plants are being shifted to Vietnam, notably near Ho Chi Minh City.

Another factor is that residents in Hong Kong and mainland China are eager for ho chi min apartment complexes because property prices in both areas have risen dramatically in recent years.

You may be confident that you will locate properties at 20-30% lower prices than in cities such as Shanghai, Singapore, Hong Kong, and Shenzhen.

Furthermore, not only are property prices rapidly rising, but rental yields are also high, particularly when compared to other Southeast Asian countries.

Personally, I enjoy Ho Chi Minh City because of its business atmosphere. The chances it provides, and its proximity to other Asian business centers such as Kuala Lumpur, Hong Kong, and Singapore.

Nonetheless, Ho Chi Minh City has conserved historic colonial-style structures that blend in with local culture as well as the most recent skyscrapers. All of this makes this city one of the most appealing areas to invest in the next few years.

Da Nang

With a population of one million people, Da Nang is Vietnam’s most populous holiday destination. Da Nang has the longest coastline in Vietnam. The City is also located in the heart of the country, with direct flights across Asia.

Da Nang attracts an increasing number of investments each year, particularly from Korea, Japan, and China. The city is known for its resorts and beautiful scenery.

Da Nang’s real estate prices are cheaper than those in Ho Chi Minh City and even lower than those in other, more established Asian countries. Da Nang has an abundance of world-class hotels and apartments, and more are being built all the time. The city boasts one of Vietnam’s best infrastructures and a good financial climate. Da Nang should be given special consideration while seeking a spot for a nice stay combined with commercial investment.

Nha Trang

Nha Trang was once considered the most prominent tourist resort in Vietnam. The majority of Vietnamese say that the climate here is the best.

Nha Trang is placed between two megacities: Ho Chi Minh City and Da Nang, and it is a famous tourist destination for Russian, Chinese, Korean, and Australian. The European neighborhood of Nha Trang contains many shops, restaurants, and pubs with signs in Russian and Chinese.

The majority of hotel personnel, locals, and even street vendors speak Chinese or Russian, but many also know English.…

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Tips for buying a home in Hanoi.

Hanoi is Vietnam’s capital, albeit it is significantly smaller than the country’s business center, Ho Chi Minh City.

As a political and cultural center, Hanoi does not draw as many investors as Ho Chi Minh City, and it is also far less well-publicized in the media. The Chinese and Koreans make their biggest investments in Hanoi, preferring it to the noisy and dusty Ho Chi Minh City.

Here we will list a couple of tips for buying a home in this beautiful city.

Transferring funds to Vietnam for the purpose of purchasing a home in Hanoi.

There are three general payment options:

  • Create an account with any Vietnamese bank, such as “Vietcombank,” “VietinBank,” or “Military Bank.” Before coming to Vietnam, send an email to one of the banks with your request and carefully examine the offers on the banks’ websites (all of them have English versions of the websites).
  • Make a direct money transfer from your home country to a Vietnamese bank branch. For this purpose, international banks such as HSBC exist.
  • Money (VND) can be transferred straight to the seller’s personal account.

It is critical to understand that any amount of money in excess of $5,000 must be declared when entering the Vietnamese border.

Foreigners can get a mortgage in Vietnam.

Obtaining a mortgage in Vietnam was extremely difficult, if not impossible, for foreigners prior to 2016. There are still very few occurrences of foreigners’ mortgage loans, but they are nevertheless available. Banks such as OCB, HSBC, and Standard Chartered are the most convenient places to receive a real estate loan for a Hanoi home.

As a foreigner (if you are married to a Vietnamese spouse), you can benefit from the “OBC” in the following ways:

  • The loan covers up to 80% of the property’s value.
  • Has a 15-year term (the so-called loan term).

You must produce the following documents in order to obtain a loan: B. Evidence of savings in your account as well as the presence of real estate that you now possess.

Vietnam has property taxes.

You’re going to have reasonable property taxes on your Hanoi home. The following is a list of all the taxes that must be paid when purchasing a home on the Vietnamese primary market.

VAT. When purchasing condominiums on the primary market, the VAT is 10%.

Depreciation Fund / Maintenance Fee. The buyer is also responsible for the 2% service charge.

Registration charge. For that, the buyer has to pay 0.5 percent.

Rental income taxation. If you acquire a property in Vietnam with the intention of renting it out, you must pay 5% sales tax and 5% personal income tax. As a result, your rental income is taxed at a total rate of 10%.

Capital gains. Even if there is no capital gains tax, in theory, you will have to pay a personal income tax of 2% when you sell a property.

Property taxation. In most circumstances, foreigners cannot purchase land. However, for general information, the tax rate is 0.03-0.15 percent. Contact your broker or attorney if necessary to understand how to correctly process tax payments.


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What does buying a home in Vietnam look like?

Before you want to buy a Vietnam home, you need to know the buying process. You don’t want any surprises or hidden expenses, do you? That’s why it’s worth learning the whole process. I’ve developed a list of the top considerations while buying.

1. You have to buy a home in the local currency, the Dong.

This is the first and most crucial step. Are you contemplating a cash purchase, a home loan, or both? Due to the volatility of the Vietnamese dong, locals used to pay for real estate in gold. Now you may pay for real estate with the Vietnamese dong, one of the world’s most stable currencies.

2. Where in Vietnam do you want to buy a house?

If you are seeking a profitable property that will increase in value, then the rapidly developing neighborhoods of Ho Chi Minh City or Hanoi may be suitable as investments.

Da Nang or Nha Trang are wonderful choices for beach resorts to buy Vietnam home. Da Nang’s property values have grown dramatically recently, and the city is rapidly expanding.

Thousands of people visit Haiphong every day to experience one of Vietnam’s greatest attractions, Halong Bay.

3. Lawyer or real estate agent in Vietnam

I recommend employing a professional lawyer in Vietnam for significant deals and land purchases. The Vietnamese market is still relatively new to foreigners, therefore there may be some roadblocks.

But when buying apartments on the primary market, foreigners rarely utilize lawyers or brokers. Real estate developers like Novaland and CapitaLand focus on new condo buildings in Ho Chi Minh City and Hanoi. There are also many other foreign property developers in Vietnam who create buildings and residential complexes above international quality standards.

4. Make a down payment in Vietnam

Once your broker has found the project you like, you must pay a non-refundable VND 100 million (about $ 4,500) deposit. The deposit agreement specifies that the deposit can be paid by credit card or bank transfer.

The non-refundable deposit is usually VND 100 million, but this can vary depending on the contract design.

5. First installment payment

The buyer must pay the first installment within 14 days. They accept bank transfers. A contract must be signed after the first installment is paid. The contract’s other installments must be paid.

6. Sale contract (SPA)

Next, the foreign ownership rights document, the SPA, should be formed.

7. Service tax

Before completing the transaction, you must pay a service fee of 2%. In addition to the service cost, you must pay the operation tax (0.5%) a one-year advance fee.

8. Get the pink book

If the purchase and sale contract is already completed and you are aware of your financial commitments, you must submit the documentation for the pink book application.

9. Closing

Make the final payment within 14 days of obtaining the pink book. That’s it, you’re now a proud Vietnamese property owner.


I hope now you understand how to buy a Vietnam home. If you have any more questions, ask them in the comments section.…

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Is it a good thing to invest in Vietnam?

This article is aimed at individuals wishing to relocate to Vietnam (or travel there on a regular basis to work). For everyone else, this article about real estate in Vietnam, and specifically Hanoi, will be a pushing incentive to act. It’s never too late to think outside the box and do Vietnam investment!

Vietnam opened up to foreign investors to its fullest only in 2015. Since then, Vietnam has been bombarded with cash from a variety of enterprises, individual companies, ordinary visitors, and property buyers, all of which wanted a piece of the pie in this industry.

Personally, I believe that Vietnam is one of the most intriguing areas in Asia to invest in real estate right now. One square meter in one of Vietnam’s newest residential complexes, for example, costs just between 1200 and 1600 dollars in the country’s economic heart. After Japan and Korea, the rental yields in Vietnam’s major cities are among the highest in Asia.

However, before investing in Vietnam, it is critical to familiarize yourself with the dangers and trifles of the market. Also analyze all of the theory and witness practical instances of purchasing property in Vietnam as a foreigner.

In this post, I’ll cover foreign ownership regulations.

Can foreigners buy property in Vietnam?

Before, few foreigners have been able to invest in real estate in Vietnam. The main reason for this was the adverse real estate market conditions and the Vietnamese government’s tight regulations on foreign ownership.

However, in July 2015, Vietnam enacted the housing law (LRH), making it easier for foreigners to own real estate. In Vietnam, anyone (including foreigners) can currently purchase an infinite number of real estate units.

Previously, however, there was a restriction: a condominium could only have one unit. As a result, the laws for foreign property ownership in Vietnam have altered dramatically in recent years. However, foreigners should be aware that “purchasing” real estate in Vietnam constitutes a “lease” for a duration of 50 years with the option to renew.

Briefly about the new law regarding foreign ownership of property in Vietnam.

  • Foreigners can buy real estate in Vietnam if they have a tourist visa;
  • Foreigners are not allowed to buy more than 30% of the apartments in a residential complex and more than 10% of the real estate in a land project;
  • The rental period for foreigners in Vietnam is 50 years, but it can be extended;
  • If you have a Vietnamese spouse, you can acquire the right to own real estate.