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Foreigners can legally purchase apartments in Vietnam right now under specific regulations and ownership caps.
Vietnam allows foreign individuals to buy condominiums and houses through 50-year leaseholds, with up to 30% of apartment units in any building available to foreign buyers. However, land ownership remains prohibited, and buyers must navigate various taxes, fees, and legal requirements that differ significantly from domestic purchases.
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Foreign individuals can buy apartments in Vietnam through 50-year renewable leaseholds, with ownership capped at 30% of units per building.
Average apartment prices range from $2,547-$2,910 per sqm in Hanoi to $4,500-$5,000+ per sqm in Da Nang as of September 2025.
| City | Price Range (USD/sqm) | Rental Yield (%) | Foreign Ownership Limit | Leasehold Duration |
|---|---|---|---|---|
| Ho Chi Minh City | $3,362-$4,691 | 5-7% | 30% of units | 50 years, renewable |
| Hanoi | $2,547-$2,910 | 5-7% | 30% of units | 50 years, renewable |
| Da Nang | $4,500-$5,000+ | 8-10% | 30% of units | 50 years, renewable |
| Total Initial Costs | Purchase price + 12-15% | Includes VAT, fees, taxes | Cash payment required | No bank financing available |
| Ongoing Costs | Management: $50-200/month | Rental tax: 10% | Capital gains: 2% | Various maintenance fees |
| Resale Options | To foreigners or Vietnamese | Through licensed agents | Capital gains tax applies | Subject to quota availability |
Can foreigners legally purchase apartments in Vietnam under current laws?
Yes, foreigners can legally purchase apartments in Vietnam under current laws as of September 2025.
Vietnam's Housing Law allows foreign individuals to buy condominiums and individual houses in licensed commercial projects, but prohibits direct land ownership. Foreign buyers receive a leasehold title rather than freehold ownership, with land remaining under state control.
The legal framework permits foreign ownership through a structured system that includes ownership quotas, leasehold terms, and specific documentation requirements. Foreign buyers must purchase from licensed developers or through legitimate resale transactions with other eligible parties.
Only foreigners married to Vietnamese citizens may qualify for freehold property ownership, while all other foreign buyers operate under leasehold arrangements.
It's something we develop in our Vietnam property pack.
What types of properties can foreigners buy and what restrictions exist?
Foreigners can purchase apartments (condominiums) and individual houses or villas in commercial projects, but cannot own land outright.
The Vietnamese government restricts foreign buyers to properties within licensed commercial developments, excluding private land plots or traditional landed properties. Foreign buyers can purchase from primary developers or through resale from other eligible foreigners or Vietnamese citizens.
All foreign-owned properties come with leasehold titles, not freehold ownership. The state retains land ownership rights, and foreign buyers essentially purchase long-term usage rights for the property built on that land.
Restrictions also apply to location, with certain areas near military installations or sensitive borders potentially off-limits to foreign buyers.
How long does foreign ownership last and can it be renewed?
Foreign ownership in Vietnam operates under a 50-year leasehold system that can be renewed once for an additional 50 years, totaling up to 100 years maximum.
The initial 50-year term begins from the date of property registration and title issuance. Renewal for the second 50-year term requires government approval and is not automatically guaranteed, presenting a potential risk for long-term investors.
For foreign companies, ownership duration aligns with their Investment Registration Certificate period, which may differ from individual ownership terms. Company-based ownership can be more complex and subject to additional regulatory requirements.
The renewal process involves reapplication, potential fees, and compliance with regulations that may change over the 50-year period.
What percentage of apartments can be sold to foreigners?
Foreign buyers can own up to 30% of apartment units in any single condominium building or project.
This quota system ensures that Vietnamese citizens retain majority ownership in residential developments. Once the 30% foreign ownership cap is reached in a building, no additional units can be sold to foreign buyers until existing foreign-owned units are sold to Vietnamese citizens.
For landed houses and villas in residential developments, the limit is stricter at 10% of total units available to foreign buyers. These quotas are calculated per individual project, not across multiple buildings by the same developer.
Buyers should verify available foreign quota slots before committing to purchase, as popular developments may quickly reach their foreign ownership limits.
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What are the differences between buying as an individual versus through a company?
| Aspect | Individual Foreign Buyer | Foreign Company Buyer |
|---|---|---|
| Documentation Required | Valid passport and visa entry | Investment Registration Certificate |
| Property Usage | Personal residence or investment | Business operations only |
| Ownership Limits | Subject to 30% building quota | Higher limits if business-justified |
| Regulatory Scrutiny | Standard due diligence | Stricter government oversight |
| Land Ownership Rights | Leasehold only (50 years) | Aligned with investment certificate |
| Resale Flexibility | Can sell to individuals or companies | Must justify business purpose |
| Tax Implications | Personal tax rates apply | Corporate tax structure |
What do apartments cost in major Vietnamese cities right now?
Apartment prices in Vietnam's major cities vary significantly, with Da Nang commanding the highest prices as of September 2025.
Ho Chi Minh City apartment prices range from $3,362 to $4,691 per square meter, while Hanoi offers more affordable options at $2,547 to $2,910 per square meter. Da Nang represents the premium market with prices starting at $4,500 per square meter and exceeding $5,000 for beachfront properties.
Luxury developments in Ho Chi Minh City can exceed $15,000 per square meter in premium districts, while outlying areas may offer properties below $2,000 per square meter. These price ranges reflect completed, ready-to-move-in apartments in established developments.
Market conditions in September 2025 show continued price appreciation, particularly in central districts of major cities where foreign buyers typically focus their purchases.
What taxes and fees do foreigners pay when buying apartments?
Foreign buyers face total initial costs of 12-15% above the purchase price when buying apartments in Vietnam.
The main upfront costs include 10% VAT on primary market purchases, 0.5% registration tax, 2% maintenance fee for apartments, and 0.05-0.1% notary fees. These mandatory fees cannot be avoided and must be paid during the transaction process.
Ongoing costs include monthly management fees of $50-200, 10% tax on rental income if the property is rented out, and 2% capital gains tax when selling the property. Property maintenance and insurance costs add to the annual ownership expenses.
Foreign buyers should budget approximately 15% above the listed purchase price for all transaction costs, plus ongoing monthly expenses of $100-300 depending on the property size and location.
It's something we develop in our Vietnam property pack.
Can foreigners get mortgages or must they pay cash?
Foreigners generally cannot obtain mortgages from Vietnamese banks and must pay cash for property purchases.
Vietnamese banks typically require legal residency, a local work permit, and documented Vietnamese income to qualify for property loans. Most foreign buyers do not meet these stringent requirements and must finance purchases through cash payments or loans from international banks.
Some foreign buyers arrange financing through banks in their home countries or international lending institutions, but this requires significant documentation and often results in higher interest rates than local mortgages.
The cash requirement means foreign buyers need full liquidity for both the purchase price and additional transaction costs, typically requiring 115% of the listed property price in available funds.
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 legal documents are required to complete a purchase?
Foreign buyers need specific documentation to complete property purchases in Vietnam, starting with a valid passport and appropriate visa or entry stamp.
- Valid passport with current Vietnamese visa or entry documentation
- Notarized Sales and Purchase Agreement with the seller
- Proof of funds source, typically bank statements showing money origin
- Pink Book (Certificate of Ownership) application and supporting documents
- All foreign documents translated into Vietnamese by certified translators
The Pink Book serves as the official ownership certificate and must be obtained through the local Department of Natural Resources and Environment. This document proves legal ownership and is essential for future transactions.
Company buyers additionally need their Investment Registration Certificate and corporate documentation. All paperwork must be properly notarized and translated, adding time and cost to the transaction process.
Working with experienced legal counsel is essential to ensure all documentation meets current requirements and avoid transaction delays.
Are there risks of policy changes affecting foreign ownership rights?
Yes, significant policy risks exist that could affect foreign ownership rights in Vietnam over the coming years.
The renewal of 50-year leaseholds depends on government approval and is not automatic, presenting the primary long-term risk for foreign property owners. Government policies toward foreign ownership may shift based on economic conditions, political changes, or national security considerations.
Foreign ownership quotas could be adjusted downward, potentially affecting resale values and market liquidity for foreign-owned properties. Defense-sensitive areas may face additional restrictions or complete foreign ownership bans.
Vietnam's evolving regulatory environment means property laws may change significantly over a 50-year ownership period. Foreign buyers should consider these political and regulatory risks when making long-term property investments.
What options exist for reselling apartments later?
Foreign property owners can sell to other foreigners (subject to quota availability) or to Vietnamese buyers without restrictions.
Sales to other foreign buyers depend on the building's remaining foreign ownership quota - if the 30% limit is reached, sales must go to Vietnamese citizens. Sales to Vietnamese buyers face no restrictions and often command better prices due to larger buyer pool.
All resale transactions must be completed through licensed real estate agents and notarized through proper legal channels. Sellers pay 2% capital gains tax on the sale price, regardless of buyer nationality.
The resale market for foreign-owned properties remains relatively liquid in major cities like Ho Chi Minh City and Hanoi, but may be more challenging in secondary markets where fewer foreign buyers operate.
It's something we develop in our Vietnam property pack.
How do rental yields compare between major Vietnamese cities?
Da Nang offers the highest rental yields for foreign investors at 8-10%, while Ho Chi Minh City and Hanoi provide more moderate returns of 5-7%.
Da Nang's beachfront location and growing tourism industry drive higher rental rates, particularly for short-term vacation rentals and business travelers. The city's premium positioning attracts both domestic and international renters willing to pay higher rates.
Ho Chi Minh City and Hanoi offer steady rental markets with consistent demand from expatriate workers, business travelers, and affluent local tenants. These markets provide more stability but lower yields compared to Da Nang's tourism-dependent rental sector.
Foreign investors should account for 10% rental income tax and monthly management fees when calculating net yields. Actual returns after taxes and fees typically run 2-3 percentage points below gross rental yields.
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 operates under clear legal frameworks but involves significant costs, restrictions, and risks that differ substantially from domestic property markets.
Success requires thorough due diligence, professional legal guidance, and careful consideration of the 50-year leasehold limitations and renewal uncertainties that affect long-term investment value.
Sources
- Global Referral Group - Foreign Property Ownership Laws in Vietnam
- Veles Club - Vietnam Property Investment Guide
- Realtique - How Foreigners Can Buy Apartments in Vietnam 2025
- Realtique - Vietnam Property Ownership Laws for Foreigners
- Visreal - Can Foreigners Buy Property in Vietnam
- AN Law Vietnam - Foreigners Buying Houses in Vietnam
- Vietnam Briefing - Housing Law Guidelines on Foreign Property Ownership
- BambooRoutes - Average House Prices in Vietnam
- BambooRoutes - Vietnam Foreign Property Ownership Guide
- Global Property Guide - Vietnam Buying Guide