Vietnam is one of the most powerful emerging markets in Southeast Asia. From 2014 to 2016, Vietnam’s economy recovered, with GDP growth of 5.4%, 6.0% and 6.7% respectively, all thanks to the implementation of policies. money efficiency. The positive signals of the economy and the newly revised land law have led to a sharp increase in supply from foreign buyers wishing to own property in Vietnam.

1. How foreigners can own real estate in Vietnam?

♦ Current Law: effective from July 2015

♦ Subjects of application: foreign individuals are allowed to enter Vietnam

♦ Real estate: apartments and detached houses in housing construction investment projects
→ No more than 30% of the number of apartments in an apartment building
→ Not more than 10% of the number of projects (villas or detached houses) in construction investment projects or no more than 250 houses in a ward administrative unit

♦ Time of application: foreign individuals can own houses for no more than 50 years from the date of issuance of the certificate; Upon the expiration of the house ownership period indicated in the certificate, if the owner wishes to have an additional extension, the State shall consider and further extend it.

♦ Ownership form: housing, rental, inheritance, gifts, donations

2. Open a bank account in Vietnam

Foreign investors should open an account in Vietnam when they need to pay the investor. Homebuyers should open accounts at international banks with branches in Vietnam such as ANZ, Citibank, HSBC and Standard Chartered.

3. Taxes to know in the process of buying real estate:

Foreigners can directly or authorize a third party (by authorization) to file and pay taxes at a tax office in the county where the property is located.

♦ Purpose:

• Value added tax: 10% value added tax on any transaction of a Vietnamese or foreign homebuyer
• Administrative costs: official fee related to the process of granting the Lanh use registration certificate when receiving a real estate ownership certificate according to current law
• Registration fee: 0.5% The value of the apartment is for registration fee when registering a home ownership certificate
• Maintenance fee: This is a shared fund contributed by the buyer for the maintenance of shared parts of the project. Currently, the maintenance fee is 2% of the pre-tax selling price of an apartment

♦ Resale:
Personal income tax: Personal income tax is 2% of the transaction value for the transfer of an apartment.

♦ For rent:

Personal income tax: The tax on income earned from renting a home is 5% personal income tax and 5% value added tax.

For the income obtained from the rental in excess of 100 million VND per year, a business tax is 1 million VND per year.

According to Savills Vietnam