Can foreigners buy property in Vietnam?
Yes, in July 2015, the Vietnamese government passed the Residential Housing Act (LRH), which greatly facilitated the purchase of real estate by foreigners. In general, the changes can be seen on the infographic, but we will list the main innovations:
• Foreigners can buy property
• There is no limit on the number of objects you can buy
• Foreigners can buy no more than 30% of apartments in condominiums and cannot own more than 10% of real estate in land projects • Foreigners can buy houses, but not more than 250 houses in a quarter.
Can foreigners buy land in Vietnam?
Foreigners cannot buy land and own it, as in most other countries in Southeast Asia. The land of Vietnam is wholly and completely owned by the Vietnamese people, but is governed by the state.
As written in the national Land Act, foreigners and foreign organizations can rent land. The lease term is up to 50 years, but in exceptional cases up to 70 years, and in 2020 they promised to increase the term to 99 years. Even if the rules become less strict, you should be careful, as there is no guarantee that you can extend the lease term.
Should I buy secondary real estate from the Vietnamese?
Foreigners often buy property directly from developers in the primary market or from foreigners who have previously done so. This is due to the fact that there are restrictions on the secondary market: you cannot buy real estate from local citizens if you fill out a foreign quota (30%). And if you buy in violation of this quota, you will not be able to get a certificate of ownership.
Certificate of ownership in Vietnam, pink and red books
When you purchase property from a developer, you must obtain a Certificate of title, which is often referred to as just a pink book. The book proves your property and property rights. This will give you the right to rent and declare, for example, information on inheritance.
According to the law, foreigners cannot own property in areas reserved for the defense of national defense and security (briefly military). And it is the Ministry of National Defense and the Ministry of Public Security that must decide whether the property is in the right area or not. Before buying, you need to make sure that your potential property can belong to you as a foreigner, and that you can get a certificate of ownership. All real estate presented on our website is 100% suitable for acquisition by foreigners.
The Red Book is used for ownership of land, and not to physical structures such as houses and apartments. Thus, given the difficulty of buying land, the pink book is more common among foreigners who mainly invest in condominium projects.
You can own real estate (villas, apartments, condominiums, etc.), land (as a private person) – in fact it is impossible. The right to property is a pink book, having it you can:
• Use real estate as collateral for bank loans
• Use your home for residential and any other purpose.
• Allows you to dismantle, maintain, repair or rebuild your home (but you must comply with the conditions and procedures of construction laws).
• Allows you to rent / sell / mortgage a house or transfer it to the heir.