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.