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Foreigners can legally purchase apartments in Vietnam under the 2025 Housing Law regulations, but strict quotas and procedures apply.
The Vietnamese government allows foreign nationals to own up to 30% of apartments in any single building, with ownership periods limited to 50 years (renewable once). Property purchases must be in approved commercial developments, excluding restricted areas near military bases or government facilities.
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Vietnam permits foreign apartment ownership with a 30% quota per building and 50-year renewable ownership periods.
Buyers need valid passports, must purchase through approved developments, and face various taxes including 10% VAT and 0.5% registration fees.
| Aspect | Details | Requirements/Restrictions |
|---|---|---|
| Ownership Quota | 30% of apartments per building | Must verify availability before purchase |
| Ownership Duration | 50 years renewable once | Automatic renewal option available |
| Eligible Properties | Apartments in commercial developments | Excludes defense/security zones |
| Purchase Costs | Property price + 10% VAT + 0.5% registration | Additional legal fees 0.2-0.5% |
| Payment Method | Vietnamese Dong through local banks | Foreign currency payments not accepted |
| Financing Options | Limited mortgage availability | 9-12% interest rates for foreigners |
| Exit Taxes | 2% of sale price or 25% capital gains | PIT exemption for family transfers |
Can foreigners legally buy apartments in Vietnam?
Yes, foreigners can legally purchase apartments in Vietnam under the 2025 Housing Law regulations.
The Vietnamese government permits foreign nationals to own apartments in commercial residential developments, but not the underlying land. Foreign ownership operates under a leasehold system with a 50-year term that can be renewed once for another 50 years.
Eligible buyers must hold a valid foreign passport and cannot be subject to diplomatic privileges and immunities. The property must be located in approved commercial developments and cannot be in restricted areas designated for national defense and security purposes.
As of September 2025, the legal framework remains stable, making Vietnam an accessible market for foreign property investment compared to other Southeast Asian countries that completely prohibit foreign ownership.
What percentage of apartments can foreigners own in a building?
Foreigners can own up to 30% of the total apartments in any single building.
This quota applies per individual building, meaning if a residential complex has multiple blocks, each building has its own 30% foreign ownership limit. For example, if a building contains 100 apartments, only 30 units can be sold to foreign buyers.
The quota system operates on a first-come, first-served basis, making it crucial to verify availability before committing to a purchase. Once the 30% threshold is reached, no additional foreign buyers can purchase in that specific building.
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Developers must maintain detailed records of foreign ownership percentages and provide certification when processing new foreign purchases.
Are there restrictions on foreign ownership in specific areas?
Yes, significant geographical restrictions apply to foreign property ownership in Vietnam.
Foreigners cannot purchase apartments in areas critical for national defense and security, including border zones, islands classified as strategic locations, areas within 15 kilometers of military bases, and zones near government headquarters or sensitive installations.
Coastal areas may have additional restrictions, particularly those designated as economic zones or areas with military significance. Some tourist destinations like Ha Long Bay have specific regulations that limit foreign ownership in certain waterfront developments.
Urban centers like Ho Chi Minh City, Hanoi, and Da Nang generally have fewer restrictions, but even within these cities, specific districts or areas near government buildings may be off-limits to foreign buyers.
Always verify the location's eligibility through the local Department of Natural Resources and Environment before proceeding with any purchase.
Do you need to be physically present in Vietnam to buy an apartment?
Physical presence in Vietnam is not mandatory for purchasing an apartment, but it can simplify the process significantly.
Remote purchases are possible through legally authorized representatives or power of attorney arrangements. However, certain critical steps like contract notarization, bank account opening for payments, and final handover procedures typically require either your presence or a trusted local representative.
Many buyers choose to visit Vietnam for the initial property selection and final closing, while handling intermediate steps remotely. This approach allows for personal inspection of the property while minimizing travel requirements.
| Process Stage | Remote Possible | Requirements |
|---|---|---|
| Property Research | Yes | Online listings, virtual tours |
| Reservation Agreement | Yes | Digital signature, deposit transfer |
| Due Diligence | Yes | Legal representative, document review |
| SPA Signing | Partial | May require notarization in Vietnam |
| Payment Processing | No | Vietnamese bank account required |
| Final Handover | No | Physical inspection recommended |
| Pink Book Registration | Yes | Through authorized representative |
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What visa or residency status is required to purchase property?
No specific visa or residency status is required solely for purchasing property in Vietnam.
Foreign buyers only need a valid foreign passport and legal permission to enter Vietnam. Tourist visas, business visas, work permits, or temporary residence cards all qualify for property purchase eligibility.
However, having longer-term legal status in Vietnam can provide practical advantages, such as easier bank account opening, simplified payment processing, and better access to local legal and financial services.
Permanent residency or Vietnamese citizenship is not required, making property ownership accessible to a broad range of foreign investors and residents.
What are the step-by-step procedures to buy an apartment?
The apartment purchase process in Vietnam follows a structured five-step procedure that typically takes 3-6 months to complete.
1. **Property Identification and Reservation**: Research eligible developments with available foreign quota, conduct site visits, and sign a reservation agreement with a 5-10% booking deposit.2. **Due Diligence and Legal Review**: Verify the developer's licenses, check foreign ownership quota availability, review project approvals, and conduct title searches through legal representatives.3. **Sales and Purchase Agreement (SPA)**: Negotiate terms, sign the comprehensive SPA contract, and arrange payment schedules typically linked to construction milestones.4. **Payment Processing**: Open a Vietnamese bank account, convert funds to Vietnamese Dong, and make payments according to the agreed schedule through the local banking system.5. **Ownership Certificate and Handover**: Complete final payments, conduct property inspection, receive keys, and apply for the official ownership certificate (Pink Book) valid for 50 years.It's something we develop in our Vietnam property pack.
Is hiring a lawyer mandatory for property transactions?
Hiring a lawyer is not legally mandatory but strongly recommended for foreign property purchases in Vietnam.
The complexity of Vietnamese property law, language barriers, and strict compliance requirements make professional legal assistance crucial for avoiding costly mistakes. Many buyers attempt independent purchases but encounter issues with quota verification, contract terms, or payment procedures.
Experienced property lawyers provide essential services including due diligence verification, contract review, quota confirmation, payment guidance, and Pink Book application support. Legal fees typically range from 0.2% to 0.5% of the property value.
Reputable real estate agencies specializing in foreign buyers often provide comprehensive support that includes legal guidance, making the process more accessible while ensuring compliance with all regulations.
Where do foreigners typically prefer to settle in Vietnam?
Foreign buyers concentrate primarily in Vietnam's three major urban centers: Ho Chi Minh City, Hanoi, and Da Nang.
In Ho Chi Minh City, District 2 (Thu Duc City) and District 7 attract the highest foreign interest due to modern infrastructure, international schools, and expat-friendly amenities. District 1 remains popular for central location despite higher prices.
Hanoi's Tay Ho (West Lake) district dominates foreign preferences, offering lakeside living, established expat communities, and proximity to international businesses. Ba Dinh and Dong Da districts also attract foreign buyers seeking central urban locations.
Da Nang appeals to lifestyle-focused buyers with beachfront properties, lower living costs, and growing tourism infrastructure. Coastal areas in Nha Trang and Phu Quoc attract vacation home buyers and rental investment seekers.
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 offer the best investment prospects?
Ho Chi Minh City's District 2 and District 7 offer the strongest combination of capital appreciation potential and rental yields for foreign investors.
District 2 benefits from the Thu Duc City mega-project, Metro Line 1 completion, and continued infrastructure development, driving property values up 8-12% annually. Rental yields in modern developments reach 6-8% for quality apartments.
Hanoi's emerging districts like Long Bien and Gia Lam present high growth potential due to urban expansion and new transportation links. Established areas like Tay Ho provide stable rental income from expat tenants.
Da Nang's coastal developments offer lifestyle appeal and tourism-driven rental income, particularly in Son Tra Peninsula and My Khe Beach areas where vacation rental yields can exceed 10% annually.
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What are average property prices across Vietnamese cities?
Vietnamese apartment prices vary significantly by city and district, with Ho Chi Minh City commanding the highest premiums as of September 2025.
| City/Area | Price Range (USD/m²) | Typical Apartment Size |
|---|---|---|
| HCMC District 1 | $4,000-$6,500 | 60-100m² |
| HCMC District 2 | $2,800-$4,500 | 70-120m² |
| HCMC District 7 | $2,500-$4,000 | 80-130m² |
| Hanoi Tay Ho | $2,300-$3,600 | 75-110m² |
| Hanoi Ba Dinh | $2,800-$4,200 | 65-95m² |
| Da Nang Center | $1,800-$2,800 | 70-120m² |
| Da Nang Beachfront | $2,200-$3,500 | 80-140m² |
What are common mistakes foreigners make when buying apartments?
The most frequent and costly mistake is failing to verify foreign ownership quota availability before committing to a purchase.
Many buyers sign reservation agreements without confirming that the 30% foreign quota hasn't been exceeded, leading to purchase cancellations and lost deposits. Always demand written confirmation of quota availability from the developer before any financial commitment.
Currency and payment errors constitute another major pitfall, as some buyers attempt to pay in foreign currency or through unauthorized channels, violating Vietnamese banking regulations and potentially invalidating the transaction.
1. **Quota verification failure** - Not confirming 30% foreign ownership availability2. **Restricted area purchases** - Buying in defense or security-sensitive zones 3. **Payment method violations** - Using foreign currency instead of Vietnamese Dong4. **Inadequate due diligence** - Skipping developer license and project approval verification5. **Contract term misunderstanding** - Confusion about leasehold vs. freehold ownership rights6. **Hidden cost surprises** - Underestimating taxes, fees, and maintenance charges7. **Financing assumptions** - Expecting easy mortgage availability for foreignersAre mortgages available to foreigners and what are the conditions?
Mortgage availability for foreigners in Vietnam is extremely limited, with most purchases requiring full cash payment.
Only a handful of Vietnamese banks offer foreign buyer mortgages, typically requiring Vietnamese residency, stable local income documentation, and substantial down payments of 30-50%. Interest rates for foreigners range from 9% to 12% annually, significantly higher than rates offered to Vietnamese citizens.
Loan terms are restrictive, usually limited to 15-20 years with strict income verification requirements. Some banks require borrowers to maintain significant deposit balances or provide additional collateral beyond the purchased property.
Most foreign buyers utilize cash purchases, either from savings or by securing financing in their home countries through refinancing existing properties or obtaining international investment loans.
What taxes and fees apply when buying and selling apartments?
Comprehensive transaction costs for foreign apartment purchases typically add 11-12% to the property price.
Purchase costs include 10% Value Added Tax (VAT) on new properties, 0.5% registration fee, 0.2-0.5% legal and notary fees, and up to 2% maintenance fee collected by developers upon handover. Some developments also charge additional fees for utilities connections and facility access.
Resale taxation applies Personal Income Tax (PIT) at 2% of the sale price or 25% of capital gains, whichever method the seller chooses. Capital gains calculation considers the original purchase price, improvement costs, and transaction fees.
| Cost Type | Rate | Timing |
|---|---|---|
| VAT (new properties) | 10% | At purchase |
| Registration Fee | 0.5% | At ownership transfer |
| Legal/Notary Fees | 0.2-0.5% | During transaction |
| Maintenance Fee | Up to 2% | At handover |
| PIT on Resale | 2% or 25% capital gains | At sale |
| Annual Property Tax | 0.03-0.15% | Yearly |
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.
Vietnam's foreign apartment ownership market offers legitimate opportunities but requires careful navigation of complex regulations and quota systems.
Success depends on thorough due diligence, professional legal support, and realistic expectations about financing limitations and transaction costs.
Sources
- Mitou Legal - Foreign Real Estate Purchase Vietnam 2025
- Realtique - Foreigners Buying Apartments Vietnam Legal Guide
- Vietnam Law - Foreign Ownership Limit Apartment Buildings
- Vietnam Briefing - Housing Law Foreign Property Ownership
- Vietnam Law Magazine - Foreign Ownership Cap Realty Market
- Vietnam News - Foreign Ownership Restrictions Property Market
- Visreal - Foreigners Buy Property Vietnam Latest Regulations
- Vietnam Real Estate - Property Prices Purchasing Process