Can Foreigners Own Property in Vietnam? & Vietnam Property Ownership Law for Expats

📜 Foreign Ownership Explained: Can Foreigners Own Property in Vietnam? & Vietnam Property Ownership Law for Expats

The question, “Can foreigners own property in Vietnam?” is the most frequent query from international investors and expatriates looking to settle in Ho Chi Minh City (HCMC). The answer is Yes, but with significant stipulations.

Understanding the current Vietnam property ownership law for expats is essential before making any investment decision. Here is a comprehensive guide to the regulations governing foreign property ownership in Vietnam.

1. 🔑 The Legal Framework: What Can Foreigners Own?

The key distinction in Vietnamese law is between owning the building structure and owning the land it sits on.

The Quota System (Crucial Restriction)

Foreign ownership is subject to a strict quota system to limit foreign control over specific projects:

• Apartment Buildings: Foreign entities can own a maximum of 30% of the total apartments in any one condominium project.
• Landed Property (Villas/Townhouses): Foreign entities can own a maximum of 10% of the total number of houses in any one residential development.

2. ⏳ Duration of Ownership: The Leasehold Aspect

Unlike freehold ownership in many Western nations, property ownership for foreigners in Vietnam is typically granted for a fixed term, similar to a long-term lease.

• Standard Term: Foreign individuals are granted a maximum ownership term of 50 years, starting from the date the certificate is issued.
• Extension (Potential): This term may be eligible for a one-time extension of an additional 50 years, provided the owner meets certain conditions stipulated by the law at the time of renewal.
• Vietnamese Spouse/Permanent Resident: If the foreign owner marries a Vietnamese citizen or obtains permanent residency, they may be eligible for a longer-term or even perpetual land use right, similar to a local citizen.

3. 🎯 Who is Eligible to Buy Property in Vietnam?

The Housing Law specifies that the following foreign entities are eligible to purchase residential property:

1. Foreign individuals permitted to enter Vietnam (must hold a valid visa or temporary residence card).
2. Foreign investment funds, foreign banks, and Vietnamese branches of foreign banks.
3. Foreign enterprises operating in Vietnam.

4. 💰 Rights and Obligations of Foreign Property Owners

Foreign owners hold significant rights, provided they remain within the legal framework:

• Selling: Foreign owners can sell, lease, or gift their properties to other eligible entities within the remaining ownership term.
• Leasing: Property can be rented out for commercial purposes (subject to Landlord Tax in Vietnam obligations – typically 10% of gross revenue over the threshold).
• Inheritance: Property can be inherited by foreign or local heirs, subject to the remaining ownership term.

5. 🛑 Important Restrictions (What Foreigners Cannot Do)

• Cannot Own Land: As stated, direct ownership of the land plot is not possible.
• Cannot Own Property Outside of Projects: Foreigners generally cannot purchase individual houses or land plots outside of approved commercial housing projects (like an independent house in a local neighborhood).
• No Property Purchases for Diplomatic/Defense Use: Properties in areas designated for national defense and security are strictly prohibited from foreign ownership.

💡 Expat Investor Takeaway

While the framework may seem complex, the ability for foreigners to own property in prime HCMC locations (such as Thao Dien, District 1, or Thu Thiem) makes Vietnam an attractive investment destination.

The key to safe investment lies in:

1. Verifying that the project has not met its 30% foreign quota.
2. Understanding and tracking the 50-year ownership term.

📞 Need Legal Advice on HCMC Property?

Navigating the Vietnam property ownership law for expats requires specialized legal assistance. Contact us today for reliable referrals to property lawyers who can verify the legality and quota status of your potential HCMC investment.