How to buy a house in Vietnam?

Foreign individuals/ Companies who satisfy the above conditions can buy house in Vietnam with one of the 3 following ways:

#1 Set up a 100% foreign-owned company

The first way to acquire property in Vietnam is to set up a fully foreign-owned company. By establishing a foreign-invested company (“FIC”), you can purchase either homes or apartments. In this case the purpose should be to provide housing to company founders, members, and employees.

You have the option to construct commercial buildings, factories and warehouses on leased land. You do not have the right to buy and sell property in the sense that a real estate business might. Specifically registered real-estate trading companies can construct residential and commercial property for sale and lease to third parties.

An alternative path is to lease land directly from the government or an industrial park. In these cases, you will be able to build for commercial use. This still requires your commercial activity to adhere to the business line of your company. For example, as a trading company, you will be permitted to build a warehouse. As a manufacturing company, you can build a manufacturing facility.

How to register a foreign-owned company in Vietnam

The process of company registration in Vietnam is generally the same for all foreign investment companies. It takes approximately 4-6 weeks without additional licenses.

The first step is to acquire an Investment Registration License from the Department of Planning and Investment (DPI). This certificate allows you to start doing business in Vietnam.

The second step of incorporation in Vietnam is to obtain a Business Registration Certificate. Once you have received a business registration certificate from the DPI, you have 90 days to make your full capital contribution.

Depending on your business, you may also need additional licenses. For example, if you plan to sublease your property, you need a different permit for each use case. This often adds time to the company registration process. 

If your company is planning on buying property in Vietnam, get in touch with us by 0374.330.935 or 0969.186.179 ( Whatsapp / Zalo)  We will assist you in processing the extension and help you keep your company in compliance.

#2 Form a joint venture in Vietnam

A second option to buy property in Vietnam is to form a joint venture with a Vietnamese shareholder. 

Locally-owned companies and Vietnamese citizens can buy:

• Households
• Buildings for sale, lease, or lease-purchase
• All or part of a real estate project to construct buildings for sale, lease, or lease-purchase

The term of the agreement for Vietnamese citizens is indefinite. Local Vietnamese companies can hold ownership of property until the termination of the company.

If forming a joint venture, it’s important to use a trustworthy and capable nominee, as choosing an unreliable one can lead to serious problems later.

#3 Buy as an individual

Foreign citizens in Vietnam can purchase homes for dwelling without forming a legal entity. The term of ownership for a housing sale agreement can not be longer than 50 years for the first contract.

This type of an agreement is a common practice in Vietnam. It is the closest available arrangement to the concept of private ownership. 

Such an individual purchase agreement can be renewed for another 50 years by adding an extension clause to the agreement. It is recommended to negotiate terms in the agreement with the seller that protect the precise renewal terms, such as:

• Renewal of the contract does not come with additional charges
• Renewal of the contract does not come with advance rent collection for the next lease period
• Processing of the extension is not subject to additional fees
• If the law on foreign ownership changes, the transfer of ownership to you will not incur additional charges

As an individual, you can also sub-lease your house or an apartment after registering it with the local tax authority.

Where to buy?

1. Invest in project-based housing construction in Vietnam

Procedures for investment in construction of commercial housing projects as prescribed in Vietnamese law are carried out according to the following steps:

• Step 1:  Submit a dossier to request the competent authority of Vietnam to approve the policy on the housing project.
• Step 2:  Apply for a Certificate of land use right and  Construction Permit for the project.
• Step 3:  Deploy and build housing projects in Vietnam.

Basically, the procedure to build a project in Vietnam will include the above steps. However, this is very complicated so foreigners are able to build a housing project. Furthermore, the scale and cost of the investment project is also very large compared with the purchase and sale of apartments.

2. The Foreigner buys a house in a commercial housing project.

The homeownership Conditions for foreigners in Vietnam will be simple if they choose to buy houses in projects. Vietnamese law stipulates that commercial housing construction projects are sold to foreigners at a rate of no more than 30% of the apartments. With the current number of commercial housing projects, foreigners can be assured of the supply of apartments.

Buying and owning houses in such projects by foreigners will be much simpler and more convenient than building housing projects. Although projects can be bought by foreigners, it is necessary to exclude projects with risks of affecting national defense and security. The Ministry of National Defense, the Ministry of Public Security, and the People’s Committees of provinces and cities in Vietnam will have specific regulations on this issue.