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Yes, the analysis of Ho Chi Minh City's property market is included in our pack
Understanding all the taxes and fees involved in Ho Chi Minh City property transactions is crucial for making informed investment decisions.
The total cost of buying a property in Ho Chi Minh City extends well beyond the purchase price, with various taxes, registration fees, and ongoing expenses that can add up to approximately 12-13% of the property value in one-time costs.
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.
Property buyers in Ho Chi Minh City face a 10% VAT, 0.5% registration fee, and various other costs totaling around 12-13% of the purchase price.
Annual property taxes are relatively low at 0.03% of assessed value, while ongoing condo management fees typically range from 8,000-20,000 VND per square meter monthly.
| Fee Type | Rate/Amount | Example (3B VND Property) |
|---|---|---|
| VAT | 10% of purchase price | 300,000,000 VND |
| Registration Fee | 0.5% of property value | 15,000,000 VND |
| Notary Fees | 0.05-0.1% of property value | 1,500,000-3,000,000 VND |
| Maintenance Fund | 2% of purchase price (one-time) | 60,000,000 VND |
| Annual Property Tax | 0.03% of assessed value | 900,000 VND/year |
| Management Fees | 8,000-20,000 VND/m²/month | 6,720,000-16,800,000 VND/year |
| Capital Gains Tax | 2% of selling price | 60,000,000 VND (when sold) |
What is the VAT rate when buying property in Ho Chi Minh City?
The standard VAT rate for property purchases in Ho Chi Minh City is 10% of the sale price.
This VAT applies to all residential property transactions and is calculated based on the total purchase price listed in the sales contract. For example, if you buy an apartment for 3 billion VND, you will pay 300 million VND in VAT.
The VAT is typically paid during the property transfer process and must be settled before the ownership documents can be processed. This tax is separate from the registration fees and other administrative costs.
As of September 2025, this 10% rate has remained consistent across Vietnam's major cities, including Ho Chi Minh City. Foreign buyers pay the same VAT rate as Vietnamese nationals.
It's something we develop in our Vietnam property pack.
How much is the property registration fee in Ho Chi Minh City?
The registration fee for property in Ho Chi Minh City is 0.5% of the property's assessed value.
For a typical 3-billion VND apartment, this translates to 15 million VND in registration fees. The calculation is straightforward: 3,000,000,000 × 0.5% = 15,000,000 VND.
This fee covers the administrative costs of transferring ownership and updating the property records in the government database. The registration process typically takes 15-20 working days to complete once all documents are submitted.
The fee is paid to the Department of Natural Resources and Environment in the district where the property is located. Both the buyer and seller are jointly responsible for this fee, though in practice, the buyer usually covers it as part of the transaction costs.
What are the typical notary fees for property transactions?
Notary fees in Ho Chi Minh City typically range from 0.05% to 0.1% of the property's value.
For a 3-billion VND apartment, notary fees would range from 1.5 million VND to 3 million VND. The exact amount depends on the complexity of the transaction and the specific notary office chosen.
These fees cover the cost of having the sales contract officially notarized, which is a legal requirement for all property transactions in Vietnam. The notary verifies the identities of all parties and ensures the contract complies with Vietnamese law.
Some notary offices charge a flat fee structure, while others use a percentage-based system. It's advisable to compare fees from different notary offices, as prices can vary significantly within the allowable range.
What are the land use right certificate fees in Ho Chi Minh City?
The land use right certificate fees, commonly called "pink book" fees, are approximately 0.5% of the property value.
These fees are typically included in the overall registration fee structure, so buyers should expect to pay about 15 million VND for a 3-billion VND property. This covers both the registration and the issuance of the land use right certificate.
The pink book is the official document that proves your legal ownership of the property and land use rights. Without this document, you cannot legally sell, transfer, or use the property as collateral for loans.
The certificate processing time is usually 15-20 working days from the completion of all paperwork. Foreign buyers receive the same certificate as Vietnamese nationals, but with annotations indicating foreign ownership status where applicable.
Are there annual property taxes for property owners?
Yes, Ho Chi Minh City property owners must pay an annual non-agricultural land use tax of 0.03% of the assessed property value.
For a 3-billion VND apartment, this annual tax amounts to 900,000 VND per year. The tax is calculated based on the government's assessed value, which is typically lower than market value.
This tax applies to all types of residential properties, including condominiums, apartments, and houses. The tax is collected annually by the district tax department and can be paid in quarterly installments if preferred.
Payment notices are typically sent out in January each year, with the deadline usually falling in December. Late payments may incur penalties of 0.05% per day of the overdue amount.
Compared to many other countries, Vietnam's annual property tax rates are relatively low, making ongoing ownership costs quite manageable for most property investors.
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What is the personal income tax rate when selling property?
The personal income tax rate for selling property in Ho Chi Minh City is 2% of the selling price, not the profit.
This means if you sell a property for 3 billion VND, you will pay 60 million VND in personal income tax regardless of how much profit you made. The tax is calculated on the gross selling price rather than the capital gain.
This tax applies to all property sales by individuals, including both Vietnamese nationals and foreigners. The tax must be paid before the ownership transfer can be completed.
There are some limited exemptions available, such as for properties that have been owned for more than 20 years or primary residences in certain circumstances, but these exemptions have strict qualifying criteria.
The simplicity of the 2% flat rate makes it easy to calculate the tax liability when planning to sell, though it can result in higher effective tax rates for properties that have not appreciated significantly.
What are the typical condominium maintenance fees?
Condominium maintenance fees in Ho Chi Minh City are typically 2% of the sale price, paid once upon purchase to establish a maintenance fund.
For a 3-billion VND apartment, this one-time maintenance fund contribution would be 60 million VND. This money is held by the building's management board and used for major repairs and building upkeep over time.
In addition to this one-time payment, buildings may also charge periodic special assessments for major renovations or unexpected repairs. These assessments vary based on the building's age and condition.
The maintenance fund is managed by the building's management board, which is typically elected by the unit owners. Financial reports on the fund's usage should be provided to owners annually.
This system ensures that buildings maintain their value and common areas remain in good condition, which is particularly important for foreign investors concerned about long-term property values.
What are the ongoing management and service fees?
Ongoing management fees for condominiums in Ho Chi Minh City typically range from 8,000 to 20,000 VND per square meter per month.
For a typical 70-square-meter apartment, this translates to monthly fees of 560,000 to 1,400,000 VND, or annual costs of 6.72 to 16.8 million VND. The exact amount depends on the building's amenities and services provided.
These fees cover security services, common area maintenance, elevator maintenance, landscaping, and utilities for shared spaces. Higher-end buildings with gyms, pools, and concierge services typically charge at the upper end of this range.
Management fees are usually collected monthly and are separate from individual utility bills for electricity, water, and internet within your unit. Some buildings offer discounts for paying several months in advance.
It's something we develop in our Vietnam property pack.
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What are the rental income tax rates in Ho Chi Minh City?
Rental income in Ho Chi Minh City is subject to a combined tax rate of approximately 10% on gross rental income.
This consists of 5% VAT plus 5% personal income tax, but only applies if your annual rental income exceeds 100 million VND. For rental income below this threshold, different rates may apply.
The tax is calculated on the gross rental income, not on net profit after expenses. For example, if you collect 50 million VND in annual rent and exceed the threshold, you would pay approximately 5 million VND in taxes.
Property owners are required to register their rental activities with the tax authorities and file quarterly tax returns. Many landlords work with local accountants to ensure compliance with the various reporting requirements.
Foreign property owners are subject to the same rental income tax rates as Vietnamese nationals, with no additional penalties or fees for being non-resident.
Are there additional fees for foreign buyers?
There are no significant additional government fees specifically for foreigners buying property in Ho Chi Minh City.
Foreign buyers pay the same VAT, registration fees, and taxes as Vietnamese nationals when purchasing through projects that permit foreign ownership. The fee structure is identical regardless of nationality.
However, foreign buyers may incur additional costs for legal due diligence, document translation, and compliance verification. These services typically cost between 5-15 million VND depending on the complexity of the transaction.
Some developers or real estate agents may charge foreign buyers additional service fees for handling the extra paperwork required for foreign ownership documentation, but these are private fees, not government-imposed taxes.
The main restriction for foreigners is that they can only buy in buildings where foreign ownership does not exceed 30% of total units, but this doesn't affect the fee structure when purchases are permitted.
What are the typical bank-related mortgage fees?
Bank-related mortgage fees in Ho Chi Minh City typically include appraisal fees of 1-3 million VND and administrative fees of 0.1-0.2% of the loan amount.
| Fee Type | Typical Range | Example (2B VND Loan) |
|---|---|---|
| Property Appraisal | 1-3 million VND | 2 million VND |
| Legal Processing | 0.1-0.2% of loan | 2-4 million VND |
| Administrative Fees | 0.1% of loan | 2 million VND |
| Credit Check | 500,000-1 million VND | 750,000 VND |
| Insurance Processing | 200,000-500,000 VND | 300,000 VND |
Most banks also require property insurance and life insurance as conditions of the mortgage, which add to the overall financing costs. These insurance premiums are typically 0.1-0.3% of the loan amount annually.
Some banks offer package deals that bundle various fees together, while others itemize each cost separately. It's advisable to compare the total cost of borrowing across different banks, not just the interest rates.
Can you provide a complete cost breakdown for a 3-billion VND apartment?
Here's a comprehensive breakdown of all costs associated with buying a 3-billion VND apartment in Ho Chi Minh City as of September 2025.
| Cost Category | Rate/Basis | Amount (VND) |
|---|---|---|
| Purchase Price | Base amount | 3,000,000,000 |
| VAT | 10% of purchase price | 300,000,000 |
| Registration Fee | 0.5% of property value | 15,000,000 |
| Notary Fees | 0.05-0.1% of value | 2,250,000 |
| Maintenance Fund | 2% of purchase price | 60,000,000 |
| Total One-Time Costs | 12.6% of purchase price | 377,250,000 |
| Annual Property Tax | 0.03% of assessed value | 900,000 |
| Management Fees (70m²) | 12,000 VND/m²/month avg | 10,080,000 |
| Total Annual Costs | 0.37% of purchase price | 10,980,000 |
The total acquisition cost including all fees and taxes amounts to approximately 3.377 billion VND, representing a 12.6% premium over the base purchase price. Annual ongoing costs are relatively modest at about 11 million VND per year.
When selling the property, you would pay an additional 2% personal income tax on the selling price, which would be 60 million VND if sold for the same 3 billion VND purchase price.
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.
Understanding all the costs involved in Ho Chi Minh City property investment is essential for making informed decisions about your real estate portfolio.
While the total one-time costs of approximately 12.6% may seem substantial, the ongoing annual expenses are relatively manageable compared to many other international markets.
Sources
- Investasian - HCMC Condo Investment
- Vietnam Real Estate - Property Taxes for Foreigners
- Lawnet Vietnam - Registration Fee Rates
- Vietnam Law Magazine - New Registration Fee Rates
- Long Phan PMT - Financial Obligations for Property Sales
- Own Property Abroad - Vietnam Property Taxes Guide
- Vietnam Briefing - Rental Property Tax Obligations
- Russin Vecchi - Property Taxes in Vietnam