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Everything you need to know before buying real estate is included in our Vietnam Property Pack
Buying land in Vietnam as a foreigner involves navigating strict ownership laws where only leasehold rights are available, not outright land ownership.
Foreigners cannot own land directly in Vietnam since all land belongs to the state, but they can acquire long-term leasehold rights to properties built on that land, including apartments and houses in approved residential projects. The process requires understanding ownership quotas, lease terms of up to 50 years, and compliance with specific documentation requirements. As of June 2025, popular investment areas include Ho Chi Minh City, Hanoi, and coastal cities like Da Nang, with total costs including 10% VAT, 0.5% registration tax, and various fees that can add 12-15% to the property price.
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Foreigners can only acquire leasehold rights to property in Vietnam, never outright land ownership, with typical lease terms of 50 years renewable for another 50 years.
The process requires buying through approved residential or commercial projects with foreign ownership quotas, proper documentation, and total costs including taxes and fees ranging from 12-15% of property value.
| Land Type | Foreigner Access | Key Restrictions |
|---|---|---|
| Residential Land | Leasehold only (50 years) | Maximum 30% of apartments, 10% of houses in projects |
| Commercial Land | Via company lease | Must establish Foreign-Invested Enterprise (FIE) |
| Agricultural Land | Company lease only | No individual ownership, investment projects only |
| Industrial Land | Via company lease | Business registration required, specific zones |
| Tourism Land | Leasehold in projects | Resort developments, coastal areas restrictions |
| Urban Land | Leasehold in approved projects | City-specific quotas and zoning requirements |
| Suburban Land | Limited leasehold options | Fewer approved projects, longer approval times |
What types of land can foreigners legally purchase or lease in Vietnam?
Foreigners cannot purchase land outright in Vietnam since all land is state-owned under Vietnamese law.
Instead, foreigners can acquire long-term leasehold rights to residential properties like apartments and houses within approved residential projects. These leasehold arrangements typically last for 50 years with potential renewal for another 50 years subject to government approval.
For commercial and industrial purposes, foreigners must establish a Foreign-Invested Enterprise (FIE) to lease land directly from the state. This business structure allows foreign companies to lease commercial or industrial land for their operations, but individual foreigners cannot lease these land types personally.
Agricultural land remains completely off-limits to individual foreign ownership or lease, though foreign-invested companies may lease agricultural land for approved investment projects under strict government oversight.
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Are there restrictions on foreigners buying agricultural, residential, or commercial land?
Yes, significant restrictions apply to all land types for foreign buyers in Vietnam.
For residential land, foreigners face ownership quotas limiting them to maximum 30% of apartments in any building and 10% of houses in landed residential projects. These quotas are strictly enforced and once reached, no additional foreign buyers can purchase in that specific project.
Agricultural land is completely prohibited for individual foreign ownership or lease. Only foreign-invested companies with proper licenses can lease agricultural land for specific investment projects approved by provincial authorities.
Commercial and industrial land requires foreigners to establish a Vietnamese business entity with proper registration and licensing. Individual foreigners cannot directly lease commercial or industrial land without going through this corporate structure.
All land transactions must occur within government-approved projects that have received proper licensing for foreign participation, making due diligence on project credentials essential.
Can foreigners own land outright or is it always leasehold, and what are the typical lease terms?
Foreigners can never own land outright in Vietnam - all arrangements are leasehold only.
Standard leasehold terms are 50 years for all property types, with the possibility of renewal for another 50 years subject to government approval and compliance with current regulations at the time of renewal.
The only exception involves foreigners married to Vietnamese citizens, where the property can be registered under the Vietnamese spouse's name, effectively giving the couple freehold ownership rights through the Vietnamese citizen.
Lease renewal after the initial 50-year term is not guaranteed and depends on government policy at the time of renewal, property compliance with current regulations, and payment of applicable renewal fees.
These leasehold rights can be transferred to other eligible foreign buyers during the lease period, subject to the same ownership quotas and restrictions that applied to the original purchase.
What are the most common areas in Vietnam where foreigners are currently buying land?
Ho Chi Minh City leads foreign property investment, particularly in Districts 1, 2 (now part of Thu Duc City), and District 7.
District 1 attracts foreign buyers seeking central business district locations with established infrastructure and proximity to international businesses. District 2 appeals to expatriate families with international schools, modern amenities, and newer residential developments. District 7 offers high-end residential projects with shopping centers and improved transportation links.
In Hanoi, Tay Ho District remains the top choice for foreign buyers due to its expat community, international schools, and lakeside properties. Hoan Kiem District attracts those seeking historical charm and central location, while Ba Dinh District appeals to diplomatic and business communities.
Coastal cities like Da Nang and Nha Trang see significant foreign investment in resort and holiday properties, driven by tourism potential and lifestyle appeal. Da Nang particularly benefits from its international airport and growing expat community.
Phu Quoc Island has emerged as a new hotspot following recent policy changes allowing foreign ownership in specific tourism projects, though options remain limited compared to mainland cities.
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What are the exact steps in the process of acquiring land as a foreigner in Vietnam, from research to registration?
The land acquisition process follows eight mandatory steps that typically take 3-6 months to complete.
- Market Research and Project Selection: Identify approved residential or commercial projects with available foreign ownership quotas and verify developer credentials through official government databases.
- Legal Due Diligence: Engage a Vietnamese real estate lawyer to verify project licenses, land use rights certificates, and foreign ownership availability within the specific project.
- Property Selection and Reservation: Choose specific unit and sign reservation agreement with deposit (typically 2-5% of property value) to secure the property while completing paperwork.
- Document Preparation: Gather required documents including passport, visa, proof of funds, and any additional certificates required by the specific project or location.
- Sales and Purchase Agreement: Sign the official SPA with all terms clearly defined, including price, payment schedule, and handover timeline, typically requiring 10-30% down payment.
- Payment Completion: Complete remaining payments according to the agreed schedule, ensuring all funds are properly documented and traced for legal compliance.
- Ownership Registration: Submit application for the Pink Book (Certificate of Land Use Rights and House Ownership) through local authorities with all required documentation and fees.
- Final Handover: Receive keys, final documentation, and complete any remaining administrative requirements with the developer or management company.
What documents and identification are required to buy land in Vietnam as a non-citizen?
Foreign buyers must provide specific documentation that proves identity, legal status, and financial capacity.
Essential identity documents include a valid passport with at least 6 months remaining validity and a valid Vietnamese visa or temporary residence card. If documents are signed outside Vietnam, they must be properly notarized and legalized for use in Vietnam.
Financial documentation requires bank statements showing sufficient funds for the purchase, proof of income source, and for large transactions, additional documentation may be required to comply with anti-money laundering regulations.
Transaction-specific documents include the signed Sales and Purchase Agreement, reservation agreement, proof of deposit payment, and the developer's project licenses and land use rights certificates.
Additional requirements may include a Certificate of Eligibility to purchase property (obtained from local authorities), translation of foreign documents into Vietnamese by certified translators, and in some cases, a Certificate of No Criminal Record from the buyer's home country.
Can a foreigner buy land in Vietnam without being physically present in the country, and how?
Yes, foreigners can complete property purchases remotely through proper legal representation.
The process requires appointing a Vietnamese lawyer or legal representative with a notarized Power of Attorney that specifically authorizes them to act on your behalf in property transactions. This POA must be prepared according to Vietnamese legal requirements and properly legalized.
All documents signed outside Vietnam must be notarized in the buyer's home country, then legalized by the Vietnamese consulate or embassy in that country. The appointed representative handles all local procedures including document submission, payment processing, and registration completion.
Remote buyers must still provide all required documentation and maintain communication throughout the process to approve major decisions and authorize payments. Video conferences for document review and electronic fund transfers are commonly used.
However, physical presence is recommended for final inspection and handover, though not legally required if the buyer trusts their legal representative to complete these final steps.
Is buying land in Vietnam a path to residency or citizenship, and what are the conditions?
Property ownership in Vietnam does not provide any path to residency or citizenship.
Vietnam does not offer investor visas or residency programs based on real estate investment, unlike some other Southeast Asian countries. Foreign property owners must obtain visas and residence permits through separate channels such as employment, marriage to Vietnamese citizens, or business investment that meets specific criteria beyond property ownership.
The government has discussed potential investor residency programs but as of mid-2025, no official program exists that grants residency rights based on property investment alone.
Long-term residence options include the 5-year temporary residence card for certain categories of foreigners, but these require meeting specific employment, marriage, or exceptional contribution criteria that are separate from property ownership.
Property owners still need to maintain valid visas for any stays in Vietnam and cannot use their property ownership as justification for extended stays or residence rights.
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What taxes, legal fees, commissions, or other costs should a foreign buyer expect when purchasing land in Vietnam?
Total transaction costs typically range from 12-15% of the property purchase price, with specific taxes and fees mandated by law.
| Cost Type | Rate/Amount | Paid By |
|---|---|---|
| Value Added Tax (VAT) | 10% of property value | Buyer |
| Registration Tax | 0.5% of property value | Buyer |
| Maintenance Fee | 2% of selling price | Buyer |
| Notary Fees | 0.05-0.1% of property value | Buyer/Seller (negotiable) |
| Legal Fees | 1-2% of property value | Buyer |
| Real Estate Agent Commission | 2-3% of property value | Seller (typically) |
| Property Tax (annual) | 0.03-0.15% of assessed value | Owner |
Is it possible to buy land in Vietnam with cash, and what are the rules or risks associated with doing so?
Cash purchases are permitted but subject to strict anti-money laundering regulations and documentation requirements.
For transactions exceeding $15,000 USD equivalent (approximately 350 million VND), buyers must provide detailed proof of funds source, including bank statements, income documentation, and in some cases, tax records from their home country.
Vietnamese banks and authorities closely monitor large cash transactions and may require additional documentation or investigation if the source of funds appears unclear or suspicious.
Risks of cash purchases include lack of transaction traceability if proper documentation isn't maintained, potential delays in processing due to additional verification requirements, and difficulty in proving legitimate source of funds for future transactions or visa applications.
Most foreign buyers use international wire transfers rather than physical cash to ensure proper documentation trail and compliance with both Vietnamese and international banking regulations.
Can foreigners get a mortgage to buy land in Vietnam, and if so, under what terms and which banks offer it?
Mortgage availability for foreigners is extremely limited, with most Vietnamese banks not offering home loans to non-residents.
A few international banks including HSBC, UOB, Standard Chartered, and OCB may consider mortgage applications from foreigners who are married to Vietnamese citizens, but requirements are strict including minimum age limits, substantial income verification, and significant down payments of 30-50%.
Alternative financing options include rent-to-own programs offered by companies like Homebase, which allow foreigners to make installment payments over time while building equity toward eventual ownership.
Most foreign buyers finance their purchases through cash, home equity loans from their home countries, or personal loans from international banks in their home jurisdictions.
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What are the common mistakes foreigners make when buying land in Vietnam and how can they avoid them?
The most critical mistake is attempting nominee arrangements where property is registered under a Vietnamese friend's or partner's name, which offers no legal protection for the foreign buyer.
- Insufficient Due Diligence: Avoid by thoroughly verifying developer credentials, project licenses, and available foreign ownership quotas before making any payments or commitments.
- Ignoring Ownership Quotas: Always confirm available foreign ownership slots in the specific building or project before proceeding, as quotas can fill up during the sales process.
- Inadequate Legal Representation: Engage qualified Vietnamese real estate lawyers from the beginning rather than trying to navigate the process independently or relying solely on developer representatives.
- Misunderstanding Leasehold Terms: Clearly understand the 50-year lease terms, renewal conditions, and what happens to the property if renewal is not approved by authorities.
- Poor Financial Planning: Budget for all transaction costs (12-15% of purchase price) and ongoing expenses including management fees, property taxes, and maintenance costs.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Buying land in Vietnam as a foreigner requires understanding that only leasehold rights are available, never outright ownership, with strict quotas and documentation requirements that make professional legal guidance essential.
As we reach mid-2025, the Vietnamese property market continues attracting foreign investment despite ownership restrictions, with Ho Chi Minh City and Hanoi leading demand in approved residential projects.
It's something we develop in our Vietnam property pack.
Sources
- Wise - Buying Property in Vietnam
- Realtique - Leasehold vs Freehold Vietnam
- Realtique - Vietnam Property Ownership Laws
- Own Property Abroad - Buy House Vietnam
- Vietnam Law Magazine - Foreign Owned Farms
- Emerhub - Buying Property Vietnam
- CVR Law - Complete Guide 2024
- ANT Lawyers - Real Estate Taxation Vietnam