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Everything you need to know before buying real estate is included in our Vietnam Property Pack
Yes, foreigners can legally buy property in Vietnam as of September 2025, but only under specific conditions and restrictions.
Vietnam allows foreign property ownership through leasehold arrangements for apartments, condominiums, houses, and villas in approved commercial housing projects, with ownership quotas and a maximum 50-year renewable lease term. Foreigners cannot own land directly, as all land remains state-owned, but they can own the structures built on leased land.
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.
Foreigners can purchase property in Vietnam through 50-year renewable leaseholds with ownership caps of 30% for condos and 10% for houses per project.
The process requires specific documentation, involves various taxes and fees, and offers strong investment potential with rental yields ranging from 3.3% to 8.3% depending on location.
| Property Type | Foreign Ownership Limit | Key Restrictions |
|---|---|---|
| Condominiums/Apartments | 30% of units per building | Must be in commercial housing projects |
| Houses/Villas | 10% per project or 250 per ward | Structure only, not land |
| Land | Not permitted | 50-year renewable leasehold only |
| Commercial Properties | Varies by project | Subject to local regulations |
| Registration Tax | 0.5% of property value | Paid at time of purchase |
| Rental Income Tax | Up to 10% of gross income | Combined VAT and personal income tax |
| Mortgage Availability | Very limited for foreigners | Requires residency and local income |
Can foreigners buy property in Vietnam?
Yes, foreigners can legally buy property in Vietnam as of September 2025, but only under specific conditions and restrictions.
Vietnam allows foreign property ownership through leasehold arrangements for apartments, condominiums, houses, and villas in approved commercial housing projects. Foreigners cannot own land directly, as all land remains state-owned under Vietnamese law.
The ownership structure works through a 50-year renewable lease system where foreigners own the building or structure but lease the land beneath it. This leasehold can typically be renewed for another 50-year period, providing a total potential ownership period of 100 years.
Foreign buyers must also comply with ownership quotas that limit the percentage of foreign ownership in any given building or residential project. These restrictions were established under Vietnam's Housing Law to balance foreign investment with domestic housing needs.
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What types of properties can foreigners buy in Vietnam?
Foreigners can purchase apartments, condominiums, houses, and villas in approved commercial housing projects throughout Vietnam.
Apartments and condominiums represent the most accessible property type for foreign buyers, available in most commercial developments across major cities like Ho Chi Minh City, Hanoi, and Da Nang. These properties typically offer the highest liquidity and rental potential for foreign investors.
Houses and villas are also available to foreign buyers, but only within designated residential projects that have received government approval for foreign sales. These properties often come with additional amenities like security, landscaping, and community facilities.
Some commercial project types such as serviced apartments, condotels, or officetels may be available to foreign buyers, though these are subject to project-specific regulations and local government approval. These hybrid property types can offer higher rental yields but may have different ownership restrictions.
Foreign buyers cannot purchase traditional Vietnamese houses in local neighborhoods or standalone properties outside of approved commercial developments.
Is there a limit on the percentage of foreign ownership in a building or area?
Yes, Vietnam enforces strict quotas limiting foreign ownership percentages in residential buildings and projects.
| Property Type | Foreign Ownership Limit | Application Level |
|---|---|---|
| Condominiums/Apartments | 30% of total units | Per building |
| Houses/Villas | 10% of total houses | Per project |
| Houses/Villas (Alternative) | Maximum 250 houses | Per ward (approximately 10,000 residents) |
| Mixed-use developments | Varies by component | Project-specific regulations |
| Serviced apartments | Project-dependent | Local government approval required |
| Commercial properties | No specific limit | Subject to investment regulations |
| Land ownership | 0% (prohibited) | Nationwide restriction |
Can foreigners buy land in Vietnam, or is it only possible to buy property on leased land?
Foreigners cannot directly own land in Vietnam under any circumstances, as all land is considered state property under Vietnamese law.
Instead, foreign property buyers receive a 50-year leasehold on the land beneath their property, which grants them exclusive use rights for the specified period. This leasehold can typically be renewed for another 50-year term, subject to government approval and prevailing regulations at the time of renewal.
The leasehold system means that while foreigners own the physical structure (apartment, house, or villa), they are essentially renting the land from the Vietnamese state for an extended period. This arrangement provides substantial property rights while maintaining state control over land ownership.
During the leasehold period, foreign owners have the right to use, rent, sell, or transfer their property rights to other qualified buyers. However, they cannot alter the fundamental use of the land without proper permits and approvals.
Upon expiration of the 50-year lease, the property may revert to the state unless the lease is successfully renewed, making renewal negotiations a critical consideration for long-term ownership planning.
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What are the tax implications for foreigners purchasing property in Vietnam?
Foreign property buyers in Vietnam face several tax obligations throughout the ownership period, starting with a 0.5% registration tax on the property's value.
| Tax Type | Rate | When Applied |
|---|---|---|
| Registration Tax | 0.5% of property value | At time of purchase |
| Personal Income Tax (Resale) | 2% of resale price | When selling property |
| Rental Income Tax | Up to 10% of gross rental income | Monthly/quarterly on rental income |
| Annual Property Tax | 0.03% of assessed value (residential) | Annually |
| Land Use Fee | Usually paid by developer | Generally not applicable to buyers |
| Value Added Tax (VAT) | Included in rental income tax | On rental income |
| Withholding Tax | Varies by income source | On various income streams |
How much are the associated fees and costs when buying property in Vietnam?
Property purchase costs in Vietnam typically range from 1% to 2% of the property value, excluding the purchase price itself.
Notarization fees represent the smallest expense at 0.03% to 0.1% of the transaction value, covering the legal validation of documents and contracts. Registration fees account for approximately 0.5% of the property value and are paid to government offices during the ownership transfer process.
Additional costs include real estate agency fees (typically 1-3% of property value), legal consultation fees for due diligence and contract review, professional translation services for documents, and power of attorney services when buying remotely.
Foreign buyers should budget for bank transfer fees, currency conversion costs, and potential holding costs if the purchase process extends beyond the expected timeframe. Some developments may also charge additional fees for amenities, maintenance, or community services.
Remote purchases through power of attorney arrangements typically incur higher fees due to additional legal safeguards and document authentication requirements.
Can foreigners buy property without being in Vietnam?
Yes, foreigners can purchase Vietnamese property remotely by appointing a local representative through a notarized power of attorney arrangement.
The remote purchase process requires establishing a legally binding power of attorney document that grants a trusted local representative the authority to act on the buyer's behalf during property transactions. This representative can be a law firm, real estate agency, or trusted individual with legal capacity in Vietnam.
Remote transactions carry significantly higher risks compared to in-person purchases, including potential fraud, misrepresentation of property conditions, and difficulties in conducting proper due diligence. Buyers should engage reputable local legal counsel and conduct thorough background checks on their chosen representatives.
Essential safeguards for remote purchases include requiring detailed property inspections with photo and video documentation, obtaining independent legal review of all documents, and maintaining direct communication with sellers and relevant authorities.
While remote purchasing is legally possible, industry experts strongly recommend conducting on-site due diligence and property inspections before finalizing any significant real estate investment in Vietnam.
What documents are required for foreigners to purchase property?
Foreign property buyers must provide a comprehensive set of documents to complete the legal purchase process in Vietnam.
1. Valid passport with current Vietnamese visa and official entry stamp2. Proof of funds documentation including bank statements showing source and sufficiency of purchase funds3. Notarized sale and purchase agreement executed between buyer and seller4. Power of attorney documentation if purchasing remotely through a representative5. Professional translation of all foreign documents into Vietnamese by certified translators6. Official forms from the local Land Registration Office specific to the property location7. Financial statements or income verification if applying for financing8. Legal entity documentation if purchasing through a corporate structureThe document verification and processing period typically takes 15 to 30 days after submitting a complete set of properly authenticated documents to the relevant authorities.
All foreign documents must be properly legalized through the appropriate embassy or consulate and translated by certified Vietnamese translators before submission to government offices.
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.
What is the process for obtaining residency or citizenship through property ownership?
Property ownership in Vietnam can facilitate temporary residency applications but does not automatically guarantee permanent residency or citizenship.
Temporary residence cards valid for up to 10 years may be available to premium property investors who meet specific investment thresholds and maintain their property investments. These cards typically require minimum investment amounts and ongoing compliance with Vietnamese investment regulations.
After three years of continuous residency and maintained property investment, foreigners may become eligible to apply for permanent residency status. However, permanent residency approval requires meeting additional criteria beyond property ownership, including demonstrated integration into Vietnamese society and clean legal records.
Vietnamese citizenship requires a minimum of five years of continuous legal residency, demonstrated Vietnamese language proficiency, cultural integration, and significant contributions to Vietnamese society. Citizenship applications are evaluated on a case-by-case basis, with some exceptions for major investors or individuals with extraordinary contributions to Vietnam.
Property investment alone is insufficient for citizenship applications; applicants must demonstrate comprehensive integration and meet all legal requirements established by Vietnamese immigration authorities.
Is it possible to get a mortgage as a foreigner in Vietnam, and what are the terms and conditions?
Mortgage financing for foreign property buyers in Vietnam is extremely limited and generally not available through Vietnamese banks unless specific conditions are met.
Vietnamese banks typically require foreign borrowers to have legal residency status, valid work permits, and documented local income sources before considering mortgage applications. Even with these qualifications, loan approval rates for foreigners remain very low due to strict lending policies.
Alternative financing options include securing loans from foreign banks in the buyer's home country, using existing assets as collateral for international financing, or establishing a Vietnamese corporate entity that may have better access to local financing options.
Most foreign property buyers in Vietnam use cash purchases due to financing limitations, making adequate financial preparation essential before beginning the property search process. Some developers offer limited payment plans or installment options, but these typically require substantial down payments.
Buyers considering mortgage financing should consult with international banking specialists and Vietnamese legal experts to explore all available options before committing to property purchases.
What are the typical yields and average property prices in popular areas for foreigners?
Vietnamese property markets offer varying investment returns depending on location, with Ho Chi Minh City and Hanoi leading in both property values and rental yields.
| Location | Average Price per m² | Median Condo Price | Gross Rental Yield |
|---|---|---|---|
| Ho Chi Minh City | â‚«86.22 million ($3,362) | â‚«4.3 billion ($167,505) | 8.3% |
| Hanoi | â‚«72 million ($2,836) | Data varies by district | 3-8% |
| Da Nang | â‚«50-100 million ($2,000-4,000) | Data varies by project | ~3.3% |
| Nha Trang | â‚«40-80 million ($1,600-3,200) | Market data limited | 4-6% |
| Phu Quoc | â‚«60-120 million ($2,400-4,800) | Resort-focused market | 5-7% |
| Can Tho | â‚«30-60 million ($1,200-2,400) | Emerging market | 4-6% |
| National Average | Varies significantly | â‚«2-5 billion ($80,000-200,000) | 3.3% |
What is the long-term forecast for the real estate market in Vietnam?
Vietnam's real estate market outlook remains positive through 2025 and beyond, driven by rapid urbanization, foreign investment, and expanding middle-class demand.
Hanoi property prices are projected to increase by 6-8% annually through 2025, supported by infrastructure development and government investment in the capital region. Ho Chi Minh City is expected to see more moderate growth of 3-5% annually as the market stabilizes after previous rapid appreciation.
Strong economic fundamentals including GDP growth, foreign direct investment, and demographic trends continue to support long-term real estate demand across major Vietnamese cities. The government's infrastructure investment plans, including new airports, highways, and urban development projects, are expected to boost property values in target areas.
Potential market risks include regulatory changes affecting foreign ownership, short-term economic shocks such as international trade disputes, and possible market corrections in overheated segments. However, fundamental drivers remain solid with continued urbanization and economic development.
Tourist-focused markets like Da Nang and Phu Quoc show particular promise as international travel recovers and Vietnam's tourism industry continues expanding, though these markets may experience higher volatility than residential-focused cities.
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.
Foreign property ownership in Vietnam offers significant opportunities for international investors, with clear legal frameworks and strong market fundamentals supporting long-term growth.
Success in the Vietnamese property market requires thorough preparation, proper legal guidance, and realistic expectations about ownership structures and market conditions.
Sources
- Vietnam Foreign Property Ownership - BambooRoutes
- Can Foreigners Rent or Purchase Real Estate in Vietnam in 2025 - Mitou
- Can Foreigners Buy Property in Vietnam Latest Regulations - VisReal
- Vietnam Housing Law Draft Decree Guidelines - Vietnam Briefing
- Can Foreigners Buy Real Estate in Vietnam - Savills
- Vietnam Real Estate Tax Guide for Foreign Investors - Global Law Experts
- Property Taxes in Vietnam - Russin Vecchi
- Buy Land Vietnam - BambooRoutes
- Foreigners Buy Houses in Vietnam - ANLaw Vietnam
- Vietnam Golden Visa - CitizenX