Vietnam (VN)
Vietnam is a dynamic, rapidly developing Socialist Republic stretching 1,650km down the eastern coast of the Indochinese Peninsula — a country of extraordinary geographical diversity, from the karst mountains of the north and the Red River Delta, through the stunning coastline of the Central region, to the vast Mekong Delta in the south.
Buying Property in Vietnam
The full buying process, transaction costs, mortgage, and legal requirements.
Under Housing Law No. 27/2023/QH15 (effective 1 January 2025), foreigners with a valid entry permit (including holders of tourist visas and e-visas) may purchase apartments and houses in Vietnam for a 50-year term, extendable once upon application. This is a significant liberalisation from previous rules. Land cannot be owned by individuals (land belongs to the State in Vietnam's socialist framework — all ownership is "land use rights"). Foreigners may NOT own land directly. Key quota limitations apply: foreigners may collectively own no more than 30% of apartments in one condominium building, and no more than 250 houses in a single ward (phường). Despite the liberalised framework, careful due diligence is essential — property fraud, title encumbrances and developer insolvency are real risks.
Rent vs. Buy
Renting is strongly recommended for the first 6–12 months in Vietnam before any purchase decision. Reasons: (1) Vietnam's expat residential areas are distinct from local areas — you need to experience different districts before committing. (2) Buying process requires significant legal and financial due diligence that is difficult to rush. (3) Resale liquidity for foreign-owned units can be limited — you may face difficulty selling at a fair price within the foreign quota. (4) Property values in HCMC (particularly District 2/Thảo Điền) and Hanoi (Tây Hồ) have appreciated strongly 2015–2023 but growth has moderated. (5) Rental yields are reasonable (3–5% gross), making the rent vs. buy calculation closer than in many markets. Exceptions: long-term residents (5+ years), investors with specific business reasons, and buyers of below-quota-limit properties in desirable buildings may find purchase worthwhile.
Buying Process — Step by Step
1. Identify Property and Verify Foreign Quota
1–2 weeksConfirm the specific building has not reached the 30% foreign ownership quota. Request written confirmation from the condominium management company or the developer. Check with the provincial Housing Authority (Sở Xây dựng) for official quota status. Without quota space, foreigners cannot complete purchase.
2. Conduct Title Due Diligence
1–3 weeksEngage a qualified Vietnamese property lawyer (not the developer's recommended lawyer). Verify: Red Book (Sổ Hồng) authenticity at the provincial TNMT office, absence of mortgages or encumbrances, seller's legal ownership and authority to sell, planning status and approved building use. For off-plan purchases: verify developer's Investment Registration Certificate, land-use right certificate and bank guarantee.
3. Negotiate Purchase Price and Terms
1–2 weeksNegotiate price (most transactions have negotiation room). Agree payment schedule (typically 30–50% deposit, balance on handover or staged). Confirm currency of transaction — must be VND for domestic transactions. Confirm furniture/fixtures included. Agree penalty clauses for delayed handover (critical for off-plan purchases).
4. Sign Preliminary Sale Agreement (Hợp Đồng Đặt Cọc)
1 day (after due diligence)Deposit contract (usually 10% of purchase price, non-refundable if buyer withdraws, doubled and returned if seller withdraws). Must be witnessed and signed by both parties. Have your lawyer review before signing.
5. Execute Notarised Sale Agreement
1–3 daysFull sale/purchase agreement must be notarised at a Vietnamese state notary office (phòng công chứng). Both parties must attend in person (or via Power of Attorney). Foreigner's documents must be translated and notarised. Payment of remaining purchase price completed per agreed schedule.
6. Pay Taxes and Registration Fees
3–5 business daysVAT on new properties: 10% of purchase price. Registration fee: 0.5% of purchase price. Seller pays PIT on capital gain: 2% of sale price (deducted from seller). Ensure all taxes are paid before title transfer application.
7. Apply for Sổ Hồng (Red Book) in Foreigner's Name
1–3 monthsApplication at the provincial Department of Natural Resources and Environment (Sở TNMT). Required documents: notarised sale agreement, tax receipts, passport/TRC, building's land use right certificate. Processing time: 30–90 days depending on workload and completeness of documents.
8. Receive Certificate of Land Use Rights and House Ownership (Sổ Hồng)
Upon processing completionThe Sổ Hồng issued in the foreigner's name specifies the 50-year ownership term with specific expiry date. Keep the original safely — loss or damage requires a replacement process. The 50-year term can be extended once by application to the same office before expiry.
Transaction Costs
| Cost Item | Amount | Notes |
|---|---|---|
| Purchase Price | Market rate — HCMC District 2 apartments: USD 2,000–5,000/m². Hanoi Tây Hồ: USD 1,800–4,000/m². | — |
| VAT (new properties from developer) | 10% of purchase price | Applies to new-build purchases from developers. Resale market: no VAT — transfer cost only. |
| Registration Fee (Lệ Phí Trước Bạ) | 0.5% of purchase price | — |
| Notary Fee | VND 300,000–3,000,000 depending on property value | State notary office fee — not a private notary markup. |
| Seller PIT on Capital Gain | 2% of sale price (paid by seller) | Buyer should verify this is paid — unpaid taxes can affect title transfer. |
| Property Lawyer / Legal Due Diligence | VND 10,000,000–40,000,000 | Essential investment — do not skip for property purchases. |
| Building Management Fund Contribution | 2% of purchase price (new builds) | Under Housing Law 2023 — paid once to building management fund for communal area maintenance. |
| Annual Management Fee | VND 10,000–30,000/m²/month | Ongoing communal area management. Not a tax — condo-specific. |
| Translation and Notarisation of Buyer Documents | VND 2,000,000–6,000,000 | — |
The Notary — Mandatory for All Purchases
Vietnamese notary offices (phòng công chứng) authenticate signatures, certify translations and formalise contracts. Their role is procedural — they do not verify the content accuracy of documents or perform title searches. For property transactions: the notary is required for the sale agreement but does NOT replace the need for independent legal due diligence (title search at TNMT). State notary offices (Phòng Công chứng Nhà nước) are to be preferred over private notaries for property transactions.
Mortgage
Mortgages for foreigners in Vietnam are increasingly available but restricted. Vietnamese banks may lend to foreigners with valid TRC (Temporary Residence Card), stable employment, proven Vietnam-source income, and a work permit. Loan-to-value ratio: typically 50–70% of property value for foreigners (lower than for Vietnamese nationals at 70–80%). International banks (HSBC Vietnam) are marginally more accessible for qualifying expats.
30–50% of property value. Some developer financing programmes offer staged payment plans that effectively reduce upfront cash requirement but total purchase price is higher.
Foreign currency transactions: purchase agreements must be in VND. International fund transfers for property purchase must go through a licensed Vietnamese bank via SWIFT. Request a Foreign Currency Transfer Certificate (Xác nhận chuyển tiền từ nước ngoài) from your bank — required for proving foreign-origin funds and for the Sổ Hồng application. Keep all international transfer documentation permanently — needed for future resale and repatriation of proceeds.
Land Registry
Land and property registry in Vietnam is managed by the provincial Departments of Natural Resources and Environment (Sở TNMT) and district-level Natural Resources and Environment Offices (Phòng TNMT). Title searches: can be conducted at the district Phòng TNMT to verify ownership, encumbrances and mortgage registrations. Public access is available but may require a formal written request. Digital registry access is improving but not yet fully public-facing. Always conduct a title search at TNMT before paying any deposit — this is your most important due diligence step.
Taxes
Buyer's costs: VAT 10% (new properties), registration fee 0.5%. Seller's costs: Personal Income Tax 2% of sale price on transfer. Property transfer tax is final — no capital gains deduction for sellers in Vietnam (2% is charged on gross sale price, not net gain). Annual property holding tax: none currently — Vietnam does not charge annual property tax on residential property ownership (significant advantage vs. many other markets). For commercial/rental property: rental income from Vietnamese property is subject to 10% PIT withholding + 10% VAT (where applicable) on gross rental income.
New Build vs. Existing Property
New build (off-plan): lower price per m², choice of floor and unit, developer financing options, but: completion delay risk, developer insolvency risk, inability to inspect what you are buying. Mitigate with developer background check, bank-guaranteed payment milestone structure, and penalty clauses for delay. Existing (secondary market): inspect before buying, established management community, but: higher price than off-plan, potential hidden maintenance issues. Request building management financial statements and meeting minutes for the past 3 years before purchasing in an established condo.
Selling Property
Foreign owners may sell their property during the 50-year ownership term. Restrictions: can only sell to Vietnamese nationals, eligible foreigners, or Vietnamese-owned enterprises (not to other foreign individuals beyond the quota). Transaction process is the reverse: notarised sale agreement, tax payment, TNMT title transfer. Repatriation of sale proceeds: may be repatriated abroad through official banking channels. Retain documentation proving the funds are from a legitimate property sale (Sổ Hồng, sale contract, tax receipts, original purchase proof) for the bank compliance process.
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