Requirements for foreigners to purchase residential properties in Vietnam

The Hanoi Times's Legal Advisors' provides detailed information on the conditions, procedures, and ownership rights for foreigners purchasing housing in Vietnam.

Question: I am a foreigner. What are the requirements to buy a house in Vietnam?

Answer: Foreigners do not have land ownership rights in Vietnam but can purchase commercial housing.

When purchasing a residential property in Vietnam, foreigners must be aware of the conditions, the permitted areas for purchase, the documentation requirements, the transaction procedures, and the regulations on the duration of ownership and its renewal.

1. Eligible foreign entity

According to Article 17(1) of Vietnam's 2023 Housing Law, the following foreign entities may own residential property in Vietnam:

• Foreign-invested economic organizations that develop housing projects in Vietnam in accordance with this Law and related regulations (Case 1).

• Foreign-invested economic organizations, branches of foreign enterprises, representative offices of foreign enterprises, foreign investment funds, and branches of foreign banks operating in Vietnam (Case 2).

• Foreign individuals who legally enter Vietnam (Case 3). 

2. Conditions for ownership

Even if eligible under Article 17, foreign individuals and organizations must meet additional conditions under Article 18 of Vietnam's 2023 Housing Law:

• Case 1: Entities must be the project investor under the Housing Law and real estate business regulations.
• Case 2: Entities must possess a valid Investment Registration Certificate or equivalent document issued by competent Vietnamese authorities.
• Case 3: Individuals must not be subject to diplomatic or consular privileges and immunities.

Evidence of eligibility and compliance with ownership conditions is detailed in Article 3 of Decree 95/2024/ND-CP:

• Foreign individuals must have a valid passport with an entry stamp or an equivalent legal document at the time of transaction.
• Foreign organizations engaged in property development must hold an Investment Registration Certificate. Organizations not developing housing projects must have a valid Investment Certificate or an official authorization to operate in Vietnam.

3. Types of real estate that foreigners can buy in Vietnam

Under Article 17(2) of Vietnam's 2023 Housing Law, foreign entities may own both condominiums and detached houses through:

• case 1 entities via housing development projects.
• case 2 and 3 entities by purchasing or leasing commercial housing from developers, receiving it as a gift, or inheriting it within designated commercial housing projects that are not subject to national defense or security restrictions (Article 16).
• case 2 and 3 entities may also acquire houses from other foreign owners under Article 17(2)(b).

Thus, foreigners can purchase detached houses but only within commercial housing projects. They are not allowed to buy street houses unless they are part of such projects.

4. Ownership duration for foreign entities

• For Foreign Organization: The term of ownership is based on the contractual agreements but cannot exceed the term stated in their investment certificate, including extensions. The term is counted from the date of issuance of the Certificate of Ownership (Article 20(2)(d)).
• For Foreign Individuals: The maximum period of ownership is 50 years from the date of issuance of the certificate of ownership, with a one-time renewal option for an additional 50 years (Article 20(2)(c)).

Foreign buyers must carefully review the terms of ownership, renewal conditions, and applicable regulations before purchasing real estate in Vietnam.