Buying and owning property in Da Nang as a foreigner

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Da Nang. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Vietnamese real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Da Nang, Ho Chi Minh City, and Hanoi. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can foreigners legally buy property in Da Nang?

Yes, foreigners can legally buy and own property in Da Nang under Vietnam's Housing Law of 2014.

Foreign ownership is structured as a 50-year leasehold with renewal options, allowing you to purchase apartments and houses (but not the underlying land). This system applies throughout Vietnam, including Da Nang's prime residential areas.

The ownership structure comes with specific limitations: foreigners can own up to 30% of units in any apartment building or a maximum of 250 landed houses per ward. These quotas are strictly enforced, so you must verify availability before making any purchase commitment.

As of September 2025, the legal framework remains stable and well-established, with thousands of foreigners successfully owning property in Da Nang. The leasehold system provides substantial ownership rights, including the ability to sell, rent, or transfer the property during the lease period.

It's something we develop in our Vietnam property pack.

Are there restrictions on property ownership based on nationality or residency?

No nationality-based restrictions exist for foreign property ownership in Da Nang - any foreigner with a valid passport can purchase property.

The restrictions are based on property type and location rather than your nationality. All foreigners face the same quotas: maximum 30% of apartment units in any building and up to 250 houses per ward for landed properties.

Certain areas remain off-limits to foreign ownership, including properties in national security-sensitive zones, near military installations, or in areas designated for strategic national interests. These restricted areas are clearly defined by local authorities and typically well-known to real estate agents.

Your residency status doesn't affect your ability to purchase property, but it may impact your tax obligations and ongoing responsibilities as a property owner in Vietnam.

What type of visas or residency permits do I need to buy property in Da Nang?

Any valid Vietnamese visa allows you to purchase property in Da Nang - there's no requirement for a specific visa type or permanent residency status.

Tourist visas, business visas, work permits, and temporary residence cards all qualify you for property ownership. The key requirement is having a valid legal entry status to Vietnam at the time of purchase.

Property ownership does not grant you any residency rights or path to permanent residence in Vietnam. Your visa status and property ownership remain completely separate legal matters.

If your visa expires, you retain full ownership rights to your property and can manage it remotely or through appointed representatives, though you'll need a valid visa to return and personally handle any legal matters.

Do I need to be physically present in Vietnam to purchase a property?

Physical presence is not mandatory for purchasing property in Da Nang - you can complete transactions remotely through a properly appointed representative.

To buy property from abroad, you must establish a Power of Attorney with a trusted local representative (typically a lawyer or licensed real estate agent). This document must be properly notarized and legalized through Vietnamese consular services in your home country.

Remote purchases involve additional risks, including potential miscommunication, limited ability to inspect properties personally, and increased reliance on third parties for due diligence. Many buyers prefer to visit Da Nang at least once during the transaction process to verify property conditions and meet key parties.

While legally possible, remote transactions require extremely careful legal oversight and thorough documentation to protect your interests throughout the purchase process.

What are the fiscal implications of owning property in Da Nang as a foreigner?

Property ownership in Da Nang involves several tax obligations and fees that foreign owners must understand.

Initial purchase costs include 10% VAT on new properties, 0.5% registration tax, and a 2% maintenance fund contribution for new apartments. These fees total approximately 12.5% of the property value for new purchases.

Annual property tax in Vietnam is minimal, typically ranging from 0.03% to 0.15% of the property's assessed value. This makes ongoing ownership costs relatively low compared to many Western countries.

If you rent out your property, rental income is subject to 10% tax on gross revenue. Capital gains tax applies when selling, typically structured as personal income tax at around 2% of the transfer price, though effective rates can vary based on your tax status.

Foreign property owners must maintain proper tax compliance and may need to file annual declarations depending on their income levels and residency status.

What is the step-by-step process for purchasing property in Da Nang, and what documents are required?

The property purchase process in Da Nang follows a structured seven-step procedure with specific documentation requirements.

Step	Process	Key Requirements
1. Property Selection	Choose property within foreign ownership quota	Verify quota availability and legal status
2. Due Diligence	Engage independent lawyer for legal checks	Property title verification and ownership history
3. Preliminary Agreement	Sign deposit agreement (maximum 5% for new builds)	Deposit receipt and preliminary terms
4. Sales Contract	Execute notarized, bilingual Sales & Purchase Agreement	Detailed contract terms and payment schedule
5. Payment Completion	Complete payment according to agreed schedule	Bank transfer records and payment confirmations
6. Pink Book Application	Apply for ownership certificate (Pink Book)	Completed application and supporting documents
7. Registration	Register ownership with local Land Office	Final registration and certificate issuance

Essential documents include your valid passport with Vietnamese visa, proof of funds through bank statements, the notarized Sales & Purchase Agreement, and additional identification documents if purchasing remotely through Power of Attorney.

Is it mandatory to hire a lawyer when buying property in Da Nang, or can I handle it on my own?

Hiring a lawyer is not legally mandatory, but it's strongly recommended for foreign property purchases in Da Nang.

Independent legal representation becomes crucial for conducting proper due diligence, verifying property titles, reviewing contracts, and ensuring compliance with foreign ownership regulations. Vietnamese property law contains numerous technical requirements that can trap unwary foreign buyers.

The risks of proceeding without legal counsel include purchasing properties outside foreign ownership quotas, buying from developers without proper licenses, or signing contracts with unfavorable terms or hidden clauses.

Legal fees typically range from $500 to $2,000 depending on transaction complexity, representing a small insurance cost against potentially devastating financial losses from legal mistakes.

For non-resident buyers or those purchasing off-plan properties, professional legal guidance becomes even more critical due to increased complexity and risk factors.

Which neighborhoods or areas in Da Nang are most popular for foreigners to settle in?

Three primary areas attract the majority of foreign residents and property buyers in Da Nang.

My An, Bac My An, and the broader Ngu Hanh Son District represent the most popular choice for expat living. These areas offer proximity to My Khe Beach, international schools, modern amenities, and well-established expat communities, making them ideal for both permanent residence and holiday rental investments.

Son Tra District appeals to those seeking quieter residential environments with access to beaches and natural areas. This peninsula location attracts digital nomads and long-term foreign residents who prioritize tranquility while maintaining reasonable access to city amenities.

Hai Chau District, Da Nang's city center, suits foreigners working in the city or preferring urban lifestyles. This area offers convenient access to business districts, dining, entertainment, and services, though with higher noise levels and less beachfront access.

It's something we develop in our Vietnam property pack.

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.

Which areas in Da Nang offer the best potential for rental income, capital appreciation, or both?

Ngu Hanh Son District delivers the strongest rental income potential due to high tourist and expat demand.

This beachfront area generates consistent rental income from both short-term vacation rentals and long-term expat tenants. Properties near My Khe Beach command premium rental rates, with annual yields reaching 5.7% for well-located apartments.

Son Tra District shows promising capital appreciation prospects as infrastructure development and amenity expansion continue. This area represents a growth investment, with property values likely to increase as the peninsula becomes more developed and accessible.

Hai Chau city center provides stable rental demand from business travelers and working expatriates, offering reliable but moderate returns. This area suits investors seeking consistent cash flow rather than high growth potential.

For balanced investment returns combining both income and appreciation, focus on properties in Ngu Hanh Son within walking distance of beaches but also accessible to city amenities and transportation.

How much do property prices vary in different parts of Da Nang, and what are the trends for the region?

Property prices in Da Nang vary significantly between central and peripheral locations, with clear trends emerging as of September 2025.

City center apartments in Hai Chau District average $1,835 per square meter, while properties outside the center average $1,059 per square meter - representing a 73% price premium for central locations.

Beachfront properties in Ngu Hanh Son command the highest premiums, often exceeding city center prices due to tourism demand and limited supply. Landed houses in desirable areas can reach $2,200-2,500 per square meter.

The Da Nang property market is recovering from the 2022-2023 slowdown, with beachside and tourism-driven areas showing the strongest price recovery. New urban mixed-use developments continue attracting investor interest, though buyers should scrutinize off-plan projects carefully.

Market trends indicate continued growth in areas with strong tourism infrastructure and expat communities, while properties in purely residential areas without tourism appeal may see more modest appreciation.

What are the common mistakes and pitfalls to avoid when purchasing property in Da Nang?

Foreign property buyers in Da Nang face several common pitfalls that can result in significant financial losses.

1. **Quota violations**: Attempting to purchase properties in buildings or areas that have already reached their foreign ownership limits2. **Unauthorized land purchases**: Trying to buy land directly or houses that aren't part of approved commercial projects 3. **Developer due diligence failures**: Not verifying the developer's legal status, financial stability, and track record4. **Contract oversights**: Signing agreements without proper legal review, especially regarding leasehold renewal terms and inheritance provisions5. **Remote purchase risks**: Buying off-plan or sight-unseen without adequate legal representation and property inspection

The most expensive mistakes involve purchasing properties that cannot legally be owned by foreigners or from developers who lack proper licenses and approvals.

Many buyers also underestimate the importance of understanding leasehold expiration and renewal procedures, which can affect long-term property values and transferability.

Inadequate contract review often leads to disputes over maintenance fees, renovation restrictions, or unexpected costs that weren't clearly disclosed during initial negotiations.

Are mortgages available for foreigners in Da Nang, and what are the conditions, rates, and tips for securing one?

Mortgages for foreign property buyers in Da Nang are extremely limited and difficult to secure through Vietnamese banks.

Most Vietnamese banks require borrowers to have work permits or long-term residency status, effectively excluding tourist visa holders and many foreign investors. When available, foreign mortgages typically require minimum 50% down payments with interest rates ranging from 8% to 12% annually.

International banks operating in Vietnam may offer slightly better terms for qualified clients, but loan approval remains challenging and often requires substantial income documentation and assets held within Vietnam.

The vast majority of foreign buyers use cash purchases or secure financing from their home countries, using their existing property or assets as collateral for overseas loans.

For those determined to pursue local financing, establishing a long-term relationship with a Vietnamese bank through business activities or employment can improve approval chances, though terms remain less favorable than those available to Vietnamese nationals.

It's something we develop in our Vietnam property pack.

What taxes, fees, and costs should I expect when purchasing and reselling property in Da Nang?

Property transactions in Da Nang involve multiple costs that buyers and sellers must budget for carefully.

Cost Category	Rate/Amount	Applied To
VAT	10%	New properties only
Registration Tax	0.5%	All property purchases
Maintenance Fund	2%	New apartments only
Annual Property Tax	0.03% - 0.15%	Property assessed value
Rental Income Tax	10%	Gross rental revenue
Capital Gains Tax	~2%	Sale transaction value
Legal/Notary Fees	$500-2,000	Per transaction

Total upfront costs for new property purchases typically reach 12.5% of property value, while resale properties avoid the VAT component, reducing costs to approximately 2.5% plus legal fees.

When selling property, expect to pay capital gains tax structured as personal income tax, typically around 2% of the transaction value, though rates can vary based on your tax residency status and length of ownership.

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.

Sources

1. Realtique - Vietnam Property Ownership Laws for Foreigners
2. Juwai Asia - Foreign Property Investment in Vietnam
3. Vietnam News - Foreign Ownership Restrictions in Vietnamese Property Market
4. BambooRoutes - House Vietnam Foreigner Guide
5. Vietnam Teaching Jobs - Can Foreigners Buy Property in Vietnam
6. DB Legal - List of Apartments Foreigners Can Own in Da Nang
7. Themis Partner - Buy Real Estate Legal Guide Vietnam
8. Wise - Buying Property in Vietnam Guide