Authored by the expert who managed and guided the team behind the Vietnam Property Pack
Everything you need to know before buying real estate is included in our Vietnam Property Pack
Buying property in Da Nang as a foreigner involves navigating strict legal restrictions, quota limits, and a complex registration process that requires careful verification at every step.
Foreigners can legally purchase apartments and some houses in Da Nang, but ownership is limited to 50-year leaseholds with specific quotas of 30% per condo building and 250 houses per ward. The purchase process involves multiple stages of document verification, legal contracts, money transfers through official banking channels, and property registration with the Da Nang Land Registration Office.
If you want to go deeper, you can check our pack of documents related to the real estate market in Vietnam, based on reliable facts and data, not opinions or rumors.
The property purchase process in Da Nang for foreigners involves 12 key steps from eligibility verification to final registration, with strict quotas limiting foreign ownership to 30% of condo units and 250 houses per ward.
Total costs typically include 10% VAT on new builds, 0.5% registration tax, 2% maintenance fund, and ongoing monthly fees of $50-200 for apartments, with the entire process taking 6-12 weeks from contract signing to registration completion.
| Purchase Stage | Key Requirements | Timeline & Costs |
|---|---|---|
| Legal Eligibility Check | Verify foreign ownership quotas and project approval status | 1-2 weeks, No cost |
| Developer Verification | Check government lists and developer licenses | 1 week, Legal fees $500-1,000 |
| Document Review | Pink Book, construction permits, seller ID verification | 2-3 weeks, Legal review $300-500 |
| Reservation Agreement | 5% deposit maximum for new builds, negotiable for resale | 1 day, 5% of property value |
| Sales Purchase Agreement | Notarized contract with payment schedule and protections | 1-2 weeks, Notary fees 0.05-0.1% |
| Money Transfer | Legal transfer through licensed banks with documentation | 3-5 days, Bank transfer fees |
| Property Registration | Submit documents to Land Registration Office for Pink Book | 4-6 weeks, 0.5% registration tax |
| Total Tax & Fees | VAT 10% + Registration 0.5% + Maintenance 2% + Legal fees | 12.5-13% of property value plus legal costs |
How do I check if foreigners are legally allowed to buy property in Da Nang?
Foreigners are legally permitted to purchase apartments and houses in Da Nang under Vietnam's housing law, but ownership is strictly regulated through a 50-year leasehold system rather than freehold ownership.
As of September 2025, the legal framework allows foreign individuals to buy residential properties in Da Nang, but you cannot own land directly. Instead, you hold a leasehold interest through the building's Land Use Rights Certificate for up to 50 years, which can be renewed upon expiration.
To verify your eligibility, you must check the official Da Nang Department of Construction website for the current list of approved projects that allow foreign ownership. Not all residential developments in Da Nang are open to foreign buyers, particularly those in areas designated as vital to national security or those that haven't received proper approvals for foreign sales.
You'll need a valid passport with Vietnamese visa and proof of legal entry into Vietnam to qualify for property ownership. The law requires you to maintain legal residence status throughout the ownership period, though you don't need to be a permanent resident.
It's something we develop in our Vietnam property pack.
What are the restrictions on the type of property I can purchase there?
Foreign property ownership in Da Nang is subject to strict quotas and property type limitations that you must understand before making any purchase decisions.
For apartments, foreigners can own a maximum of 30% of units in any single condominium building. This means if a building has 100 units, only 30 can be sold to foreign buyers. For houses, the limit is 250 properties per ward (administrative district) that can be owned by foreigners.
You can purchase apartments in high-rise buildings and landed houses, but only in officially designated commercial housing projects. Traditional Vietnamese houses in older neighborhoods or rural areas are typically not available for foreign purchase. The properties must be classified as "commercial housing" rather than social housing or other restricted categories.
Land ownership remains prohibited for foreigners - you cannot buy vacant plots or agricultural land. Your ownership is always tied to the building or structure on the land, not the land itself. This means you cannot demolish and rebuild from scratch, as that would require land ownership rights.
Before committing to any property, verify with the developer that the foreign ownership quota hasn't been filled and that the project has received proper approvals from Da Nang authorities for foreign sales.
How do I verify the developer or seller is legitimate and properly licensed?
Verifying developer legitimacy is crucial in Da Nang's property market, where unlicensed developers and fraudulent projects can cost foreign buyers significant money and legal complications.
Start by checking the official Da Nang Department of Construction website for the list of approved projects open to foreign ownership. Only developers listed on this official government database should be considered for purchase. Cross-reference the project name, location, and developer details exactly as they appear on official documents.
Request and verify the developer's business license, construction license, and investment certificate from Vietnamese authorities. A legitimate developer will readily provide these documents and allow you to verify them with the relevant government departments. Be suspicious of any developer who hesitates to provide official documentation.
Hire an independent Vietnamese lawyer - never use one recommended by the developer - to conduct due diligence on the company's financial standing, previous projects, and legal compliance history. Your lawyer should verify the developer's "Bao Lanh" (financial guarantee) status, which protects buyers if the project fails to complete.
Check the developer's track record by visiting their completed projects and speaking with previous foreign buyers about their experience. Look for signs of quality construction, timely completion, and proper handover procedures in their finished developments.
What documents do I need to review before signing anything?
| Document Type | What to Check | Why It's Important |
|---|---|---|
| Land Use Rights Certificate (Pink Book) | Owner name matches seller ID, no liens, correct property use designation | Proves legal ownership and right to sell |
| Construction Permit | Valid permits for the specific building and unit numbers | Ensures legal construction authorization |
| Completion Certificate | Official completion and safety approvals from local authorities | Confirms building meets safety standards |
| Developer Business License | Valid license for real estate development and sales | Verifies legitimate business operations |
| Investment Certificate | Government approval for the specific project | Confirms project is legally authorized |
| Seller Identification | Valid Vietnamese ID or business registration matching Pink Book | Prevents identity fraud and ensures authority to sell |
| Foreign Ownership Approval | Official confirmation project allows foreign buyers | Ensures you can legally purchase as a foreigner |
How do I confirm that the property has a clean land use right certificate?
The Land Use Rights Certificate, known as the "Pink Book," is the most critical document in any Vietnamese property transaction and requires thorough verification to avoid legal complications.
First, examine the Pink Book physically to ensure it's authentic - genuine certificates have specific watermarks, official seals, and security features that are difficult to counterfeit. The document should be in the seller's name exactly as it appears on their Vietnamese ID card or business registration certificate.
Visit the Da Nang Land Registration Office with your lawyer to cross-check the Pink Book details against their official database. This verification confirms the document's authenticity, current ownership status, and reveals any hidden liens, mortgages, or legal disputes attached to the property.
Check that the permitted use designation on the Pink Book allows for residential purposes and foreign ownership. Some properties may have use restrictions that prevent foreign purchase or residential occupation. The certificate should clearly state the property boundaries, area measurements, and any shared facilities or common areas.
Verify there are no outstanding property taxes, utility bills, or management fees attached to the property that could become your responsibility after purchase. Request payment records for the past 2-3 years to ensure all obligations are current.
It's something we develop in our Vietnam property pack.
What's the process of signing the reservation agreement and paying the deposit?
The reservation agreement is your first binding commitment to purchase, requiring careful attention to deposit terms and refund conditions to protect your interests.
For new construction projects, Vietnamese law caps deposits at 5% of the property value, but for resale properties, deposit amounts are negotiable between buyer and seller. The deposit demonstrates your serious intent to purchase and removes the property from the market for an agreed period, typically 30-60 days.
The reservation agreement must clearly specify the property details, purchase price, payment schedule, completion timeline, and conditions under which the deposit is refundable. Include specific clauses about what happens if the developer fails to obtain necessary approvals, construction delays occur, or financing falls through.
Payment should be made through official banking channels with proper documentation. Avoid cash payments or transfers to personal accounts, as these create tax complications and provide no legal protection. Request official receipts for all payments and ensure they specify the property address and purchase purpose.
Both parties can use Power of Attorney if unable to attend the signing in person, but this document must be notarized and translated into Vietnamese. Ensure your lawyer reviews the Power of Attorney terms to prevent unauthorized actions by the appointed representative.
How is the sales and purchase agreement structured, and what protections should I look for?
The Sales and Purchase Agreement (SPA) is your primary legal protection in a Da Nang property transaction and must include specific clauses to safeguard your investment and provide recourse if problems arise.
The SPA must be notarized in Vietnamese with an official English translation provided for your understanding. Key elements should include the exact property details, total purchase price, payment milestone schedule tied to construction progress, handover date with penalties for delays, warranty period typically 24 months, and detailed specifications for fixtures and finishes.
For off-plan purchases, demand progress reporting requirements, escrow arrangements for your payments, and developer financial guarantees ("Bao Lanh") that protect your money if the project fails. Include specific remedies for construction delays, quality defects, changes to project specifications, and clear compensation terms for each scenario.
The agreement should specify dispute resolution procedures, preferably through arbitration rather than Vietnamese courts, and include force majeure clauses that don't unfairly favor the developer. Ensure you have the right to inspect the property before final payment and reject completion if it doesn't meet agreed standards.
Include clauses about foreign ownership compliance, confirmation that quotas haven't been exceeded, and the developer's obligation to assist with property registration and Pink Book transfer. Without these protections, you could face significant delays or be unable to complete the purchase legally.
Don't lose money on your property in Da Nang
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What taxes, fees, and ongoing costs should I expect to pay?
Property purchase and ownership costs in Da Nang extend well beyond the purchase price, with total fees typically adding 12-15% to your initial investment plus ongoing monthly expenses.
Value Added Tax (VAT) of 10% applies to all new construction purchases, paid at the time of contract signing or in installments according to your payment schedule. Resale properties are generally exempt from VAT, making them potentially more cost-effective despite typically higher purchase prices.
Registration tax of 0.5% of the property's declared value is payable when transferring ownership to your name at the Land Registration Office. This tax is calculated on the official property value, which may differ from your actual purchase price. Notary fees range from 0.05% to 0.1% of the property value for document authentication and contract notarization.
A maintenance fund equal to 2% of the apartment purchase price must be paid upfront for apartment purchases. This fund covers major building maintenance and repairs over time, though the management and usage of these funds can vary significantly between developments.
Monthly management fees for apartments typically range from $50-200 depending on facilities and location, covering security, cleaning, elevator maintenance, and common area upkeep. Annual property tax is rarely enforced but technically ranges from 0.03% to 0.15% of property value. If you rent out the property, rental income tax is 10%, and capital gains tax on resale is 2% of the sale price.
How do I transfer the money into Vietnam legally for the purchase?
Legal money transfer for property purchase in Vietnam requires strict compliance with banking regulations and proper documentation to ensure you can later repatriate funds when selling the property.
All transfers must go through licensed international banks with full documentation of the transfer purpose and source of funds. Vietnamese authorities require anti-money laundering compliance, so be prepared to provide detailed documentation about your income source, bank statements, and employment verification.
When initiating the transfer, specify "property purchase in Vietnam" as the transfer purpose and include the property address, seller details, and contract reference number. Keep all transfer receipts, bank confirmations, and documentation as you'll need these to prove legal fund entry when registering the property and later for repatriating proceeds when you sell.
Currency conversion should be done through official banking channels rather than money changers or informal systems. Some banks may require advance notice for large transfers, particularly amounts exceeding $50,000, so plan your transfer timing accordingly to meet contract payment deadlines.
Consider using established international banks with branches in both your home country and Vietnam, as they often provide better documentation and can verify transfer legitimacy more easily with Vietnamese authorities. The transfer process typically takes 3-5 business days, so factor this into your payment schedule planning.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Vietnam versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What steps are involved in registering the property under my name after purchase?
Property registration is the final step that legally transfers ownership to your name and typically takes 4-6 weeks from document submission to receiving your Pink Book.
After making final payment, your lawyer will compile all required documents including the notarized Sales and Purchase Agreement, proof of payment, your passport and visa, bank transfer records, seller's Pink Book, tax payment receipts, and completed application forms for the Da Nang Land Registration Office.
The Land Registration Office will verify all documents, confirm foreign ownership quotas haven't been exceeded, check tax payments are current, and ensure the seller has clear title to transfer. During this period, officers may contact you or your representative for additional information or document clarification.
Once approved, you'll receive a new Pink Book (Land Use Rights Certificate) with your name as the registered owner. For apartments, this shows your specific unit number and shared interest in common areas. For houses, it shows the building footprint and designated land use area, though you don't own the underlying land.
The new Pink Book serves as your proof of ownership and is required for future transactions, rental agreements, mortgage applications, or property sales. Keep the original in a secure location and maintain certified copies for routine transactions and documentation needs.
What common mistakes do foreigners make when buying in Da Nang, and how do I avoid them?
- Buying from unlicensed developers: Always verify the developer appears on the official Da Nang Department of Construction list of approved projects for foreign ownership. Never rely solely on agent or developer claims about project approval status.
- Using seller-recommended lawyers: This creates a conflict of interest where your legal representative may prioritize the seller's interests. Always hire an independent, bilingual lawyer who works exclusively for you and has no relationship with the seller or developer.
- Misunderstanding ownership rights: Foreigners don't own land but hold leasehold interests through the building's Land Use Rights Certificate. Don't expect the same ownership rights as in Western countries, and understand that major renovations may require additional approvals.
- Ignoring quota restrictions: Foreign ownership quotas can fill up quickly in popular developments. Verify that foreign ownership slots remain available before paying any deposits, as quota limits are strictly enforced by Vietnamese authorities.
- Poor deposit contract terms: Many foreigners sign vague reservation agreements without clear refund conditions. Ensure your deposit agreement specifies exact circumstances for refund, timeframes for decision-making, and penalties for seller default.
- Inadequate Pink Book verification: Trusting photocopies or not verifying Pink Books at the Land Registration Office can lead to purchasing properties with liens, disputes, or ownership problems. Always verify authenticity and clear title through official channels.
- Informal money transfers: Using unofficial channels or cash payments creates tax problems and prevents legal fund repatriation when selling. All payments must go through official banking channels with proper documentation.
Which parts of the process are most confusing or often misunderstood, and what should I double-check before committing?
The most commonly misunderstood aspects of Da Nang property purchases center on legal restrictions, ownership rights, and the complex web of approvals required for foreign buyers.
Foreign ownership quotas are frequently misunderstood - many buyers don't realize that the 30% apartment limit and 250 houses per ward restriction are actively monitored and can be filled without notice. Always confirm current quota availability directly with the Da Nang Department of Construction before making any financial commitment, as developers may not have updated information.
The leasehold versus freehold distinction confuses many Western buyers accustomed to land ownership. Your 50-year leasehold gives you usage rights but not land ownership, affecting your ability to make structural changes, subdivide property, or pass inheritance rights to heirs. Understand exactly what rights you're purchasing and their limitations.
Payment and registration documentation requirements are complex and strictly enforced. Vietnamese authorities require extensive paper trails proving legal fund entry, tax compliance, and proper approvals. Double-check that every payment goes through official banking channels with proper documentation, as informal payments can prevent property registration or future fund repatriation.
Project approval status changes frequently, and what's approved today may not be approved when you're ready to register. Before signing any agreement, verify the project's current approval status for foreign ownership, construction permits, and completion certificates directly with Da Nang authorities rather than relying on developer representations.
It's something we develop in our Vietnam property pack.
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 property in Da Nang requires careful navigation of Vietnam's foreign ownership laws, strict verification procedures, and complex registration processes that can take several months to complete.
Success depends on working with independent legal counsel, verifying all documents through official channels, and maintaining proper documentation throughout the purchase and ownership period.
Sources
- Juwai - Vietnam Property Ownership Guide
- DB Legal - Foreign Ownership Apartments Da Nang
- Realtique - Vietnam Property Ownership Laws
- Lawyers Vietnam - Real Estate Law Firm
- Alpha Housing - Property Purchase Guide
- ANT Lawyers - Property Transaction Protection
- Themis Partner - Buying Land Vietnam
- Themis Partner - Real Estate Legal Guide
- Homebase - Deposit Agreement Guide
- BambooRoutes - Vietnam Foreign Property Ownership