We often get this question from our Clients “Can foreigners buy a house in Vietnam?”. There seems to be some confusion about this point. Maybe it has to do with Vietnam’s Constitution, which provides that the land is public property. Meaning all the people of Vietnam own it, and the State uniformly manages it. But for houses, the story is quite different: under certain conditions foreigners can indeed buy and own houses in Da Nang.
So called foreign entities
According to the Vietnamese Law on Housing No. 65/2014/QH13 dated 25 November 2014, so-called “foreign entities” are eligible for home ownership in Vietnam. They can either invest in project-based housing construction. Or they can buy, rent and purchase, receive or inherit commercial housing (apartments or separate houses). This goes for housing construction projects, except in areas of national defense and security.
The Law further divides foreign entities into: (i) foreign companies who invest in project-based housing construction. (ii) foreign-invested companies, branches, and representative offices, foreign-invested funds and branches of foreign banks, and (iii) foreign individuals.
In fact, there are several ways in which a foreign individual or company can own one or more houses in Vietnam / Da Nang. One way is to set up a foreign-invested company. If you are interested to read more about this, you can have a look at our recent article about how to open a cafe or restaurant in Vietnam.
Other options include setting up a real – estate company, or entering into a joint – venture with a Vietnamese partner. We can elaborate on those options another time. But for now we will focus on how to buy a house in Da Nang as a foreign individual.
The legal requirements
First of all, the foreign individual must have a valid passport with an entry stamp from the Vietnamese immigration authorities. He or she cannot enjoy diplomatic immunity or privileges. Secondly, foreigners in Vietnam can only own houses that belong to commercial housing construction projects. These cannot be in areas of national defense and security.
Thirdly, the law stipulates that foreign owners may exercise the same home ownership rights as Vietnamese citizens. As long as foreigners do not own more than 30% of apartments in an apartment building, or not more than 10% or 250 houses in a ward – sized area. And finally, foreign individuals can only use their homes for non – commercial purposes.
Ownership, but for how long?
The limit for foreign home ownership by individuals in Vietnam is currently an extendable period of 50 years. This period is calculated from the issuance date of the ownership certificate (the so-called “pink book”). This period is longer in case a foreigner is married to a Vietnamese citizen.
Please note that if a foreign sells or offers the house before the expiration of the ownership period to a Vietnamese organization, household, individual, or a Vietnamese citizen residing overseas; the buyer or recipient will acquire a long-term ownership of the house. On the other hand, if the house is sold or offered to a foreign organization or individual; the buyer or recipient is only allowed to own the house for the remaining period of the 50 years.
Contact us for more information
Don’t forget to contact us if you have any questions!
We can advise you about the possibilities and restrictions of your plans. And we can guide you through each step of the process to realizing them.
The Bizlen™ Team can help you to find residential properties, commercial spaces, and offices Da Nang and Hoi An. Being affiliated with Bizlen Leasing, Landbiz and QT Design & Build, we can explore investment opportunities in real estate. Together with our trusted legal partners, we can advise and support you with your business and legal proceedings. For example, company set – up, business licensing, contract drafting and reviewing, and legal research.
Send us an e-mail with your plans and inquiries, or give us a call to make an appointment at our office!
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