Question: Are foreign organizations and individuals allowed to own housing in Vietnam? What are the relevant legal regulations?
Answer:
Foreign organizations and individuals are permitted to own housing in Vietnam, but they must comply with strict legal provisions to ensure proper management of real estate ownership and national security. The regulations concerning foreign ownership of housing in Vietnam are stipulated in the 2023 Housing Law and its guiding legal documents. Specifically:
- Foreign entities allowed to own housing in Vietnam include:
- Foreign-invested economic organizations that invest in housing construction projects in Vietnam;
- Foreign-invested economic organizations, branches, representative offices of foreign enterprises, foreign investment funds, and branches of foreign banks operating in Vietnam (collectively referred to as foreign organizations);
- Foreign individuals who are permitted to enter Vietnam.
- Forms of ownership: Foreign organizations and individuals may own housing through the following forms:
- Foreign-invested economic organizations that execute housing construction projects in Vietnam;
- Foreign organizations and individuals may own housing by purchasing or leasing commercial housing from the developer of a housing construction project, receiving housing as a gift, or inheriting commercial housing within a housing project that is not located in areas requiring national defense and security assurance;
- Foreign organizations and individuals may also acquire ownership by purchasing or leasing commercial housing from other foreign entities that already own such housing.
- Duration of ownership:
- The ownership duration for foreign individuals is not to exceed 50 years from the date the Certificate of Ownership is issued, with a one-time extension of up to 50 years if needed;
- For foreign organizations, the ownership duration is subject to the time specified in their investment certificate. In certain special cases, foreign organizations may be granted an extension of the ownership period.
- Limitations on the quantity of housing that foreigners may own:
- Foreigners are only permitted to own up to 30% of the apartments in a residential building.
- For individual houses, foreigners may own no more than 250 houses in a given administrative ward.
- Rights and obligations of foreign homeowners:
- Foreign homeowners enjoy the same rights as Vietnamese citizens in terms of buying, transferring, leasing, or gifting their property. However, foreigners are prohibited from using their housing for real estate business purposes (such as leasing commercial housing).
- Foreign homeowners must comply with regulations on housing maintenance, repairs, and fulfill their financial obligations (taxes, fees) in accordance with Vietnamese law.
- Restrictions on location:
- Foreigners are prohibited from owning housing in areas designated for national defense and security, or in other locations where the government restricts the sale of housing to foreigners.
Guiding legal documents: Decree 95/2024/ND-CP guiding the implementation of the 2023 Housing Law.
