Currently, the sale of houses by foreigners in Vietnam has become increasingly common. However, this process involves certain challenges and legal complexities. Foreigners selling houses in Vietnam must comply with legal regulations, tax obligations, and administrative procedures. This requires the seller to have a sound understanding of Vietnamese law and language. To ensure a smooth transaction, professional legal support and procedural guidance in Vietnam are highly recommended.
Currently, the sale of houses by foreigners in Vietnam has become increasingly common. However, this process involves certain challenges and legal complexities. Foreigners selling houses in Vietnam must comply with legal regulations, tax obligations, and administrative procedures. This requires the seller to have a sound understanding of Vietnamese law and language. To ensure a smooth transaction, professional legal support and procedural guidance in Vietnam are highly recommended.
I. Current situation of foreigners selling houses in Vietnam
In recent years, the number of foreigners buying and selling houses in Vietnam has significantly increased. With investment liberalization and legal provisions allowing foreign ownership of housing, there has been growing interest in the real estate market in Vietnam.
Vietnam has implemented legal frameworks to both attract and manage real estate transactions by foreigners. Accordingly, foreigners are permitted to own apartments and landed residential properties under Vietnamese law.
II. Legal regulations on foreigners selling houses in Vietnam
Property transactions (selling houses) in Vietnam must comply with legal procedures and conditions. Foreign sellers are encouraged to familiarize themselves with the applicable laws to ensure that the sale is conducted lawfully and properly.
1. Conditions for foreigners to sell houses in Vietnam
Although Vietnamese law does not explicitly state who among foreigners may sell houses in Vietnam, under Article 161 of the Law on Housing 2014, foreigners must meet the following conditions to legally sell property:
- Foreign individuals may only sell houses if they have legally recognized ownership.
- Entities and individuals allowed to own housing in Vietnam include:
+ Foreign organizations and individuals investing in housing development projects in Vietnam;
+ Foreign-invested enterprises; branches and representative offices of foreign enterprises; foreign investment funds; and foreign bank branches operating in Vietnam;
+ Foreign individuals legally permitted to enter Vietnam.
2. Who can purchase property (houses) from foreign sellers?
According to Clauses 2 and 3, Article 119 of the Law on Housing 2014, eligible buyers must fall into one of the following categories:
- Domestic individuals: Must have full legal capacity for civil transactions; they are not required to have permanent residency in the location of the property;
- Foreign individuals or overseas Vietnamese: Must have full legal capacity, fall under the categories eligible for property ownership in Vietnam, and are not required to have permanent or temporary residence at the property's location;
- Organizations: Must be legal entities regardless of business registration location. Foreign organizations must qualify for property ownership in Vietnam. If authorized to manage the property, organizations must be legally allowed to provide real estate services and be operating in Vietnam in accordance with real estate business laws.
3. Procedures for foreigners to sell houses in Vietnam
Under Article 120 of the Law on Housing 2014, the procedures for foreigners selling houses are as follows:
- Step 1: The parties agree to draft a property sale contract or a transfer document for a commercial housing sale contract that complies with Article 121 of the Law on Housing.
- Step 2: One party submits the application to the competent state authority for issuance of the Certificate of Ownership for such house.
- Step 3: Upon issuance of the ownership certificate and lawful transfer of land use rights, the buyer is officially recognized as the property (house) and land owner.
III. Questions on foreigners selling houses in Vietnam
Real estate transactions involving foreign sellers often face difficulties due to limited access to legal knowledge. Some common questions include:
1. Are foreigners limited in the number of properties (houses) that they can sell?
Currently, there are no specific legal limits on the number of houses that a foreigner can sell in Vietnam. However, under Article 76 of Decree 99/2015/ND-CP, the number of properties (houses) a foreigner may own is regulated depending on the project and location (each different case). Besides they meet the conditions under Article 161 of the Law on Housing 2014, foreigners are permitted to sell their properties legally.
Thus, the number of houses that can be sold varies depending on the specific situation. Clients need to carefully study the legal regulations on this issue or seek legal support from specialized units.
2. Can the Buyer of a House from a Foreign Seller Own the Property Long-Term?
Under Clause 4, Article 7 of Decree 99/2015/ND-CP, housing ownership terms vary as follows:
- If the property (house) is sold or donated to a domestic individual, organization, household or an overseas Vietnamese, the receiving party may own the property permanently;
- If the property (house) is sold or donated to a foreign individual or organization eligible for property ownership in Vietnam, they may own the property for the remaining duration of the permitted term. Upon expiry, the State may consider an extension under Article 77 of the same Decree.
IV. Legal consulting services for foreigners selling houses in Vietnam
The above article outlines the legal framework and procedures for foreigners selling property (house) in Vietnam. Should you need legal advice or assistance with document preparation, valuation, or real estate transfer procedures, please contact Ngoc Phu Law Firm (NPLaw) for further consultation:
