Can foreigners buy and own land in Vietnam?

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

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 Ho Chi Minh City, Hanoi, and Da Nang. 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.

Trustworthiness 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.

What kinds of land can foreigners legally buy in Vietnam, and are there any categories that are strictly off-limits?

Foreigners cannot purchase land outright in Vietnam, but they can acquire land use rights for specific property types within approved commercial developments.

The Vietnamese government permits foreigners to obtain land use rights for apartments and condominiums in residential projects, with a maximum of 30% foreign ownership per building. For houses and villas, foreigners can purchase up to 250 units within a single administrative ward, but only within approved commercial housing projects.

Several land categories remain strictly prohibited for foreign ownership. Military zones, border areas, islands, and land near government or Party offices are completely off-limits to foreign buyers. Agricultural land, undeveloped plots, and any land outside approved residential or commercial projects cannot be purchased by foreigners under any circumstances.

The restriction system aims to protect national security while allowing controlled foreign investment in the residential sector. As of June 2025, these regulations remain firmly in place, with no indication of significant liberalization for agricultural or undeveloped land purchases.

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

Are there any ways for foreigners to fully own land in Vietnam, or is it always under leasehold or shared ownership?

Foreigners cannot achieve full land ownership in Vietnam under any circumstances, as all land belongs collectively to the Vietnamese people and is managed by the state.

The maximum foreigners can obtain is land use rights, typically granted for 50 years with the possibility of one renewal, extending the total period to 100 years. These rights allow foreigners to use, lease, transfer, or inherit the property, but not to own the underlying land permanently.

Foreign-invested enterprises and joint ventures represent the only exception, but even these arrangements involve long-term leases rather than outright ownership. Such arrangements are primarily designed for business purposes and require substantial investment commitments and government approvals.

The leasehold system means foreigners receive a "Pink Book" certificate confirming their land use rights, but this document explicitly states the time limitation and use restrictions. When the lease expires, the land reverts to state control, though renewal is typically possible if the foreigner still meets eligibility criteria.

What is the official process step-by-step for a foreigner to acquire land in Vietnam from start to finish?

The land acquisition process for foreigners involves eight distinct steps, typically taking 3-6 months to complete from initial property selection to certificate issuance.

First, verify your eligibility by ensuring you have a valid passport, legal entry stamp into Vietnam, and do not possess diplomatic immunity. Next, identify a suitable property within an approved residential project that meets foreign ownership requirements and falls within the 30% or 250-unit quotas.

Conduct comprehensive due diligence on the property's legal status, developer credentials, and project approvals. This step is crucial as it prevents future legal complications and ensures the property is eligible for foreign ownership.

Sign a notarized sales contract with the seller or developer, which can be done in person or through a legal representative with power of attorney. Transfer the purchase funds through approved banking channels, then submit your application for the Land Use Rights Certificate at the local Land Registration Office.

Complete all required tax payments including registration fees, VAT, and other applicable charges. Finally, receive your Pink Book certificate, which confirms your land use rights and serves as proof of your legal right to occupy and use the property.

What are the key documents and legal requirements you need to prepare before buying land as a foreigner?

Document Category	Specific Requirements	Purpose
Identity Documents	Valid passport with legal entry visa stamp	Prove legal status in Vietnam
Financial Documents	Proof of funds and source of funds documentation	Demonstrate legitimate purchase financing
Legal Contracts	Notarized sales contract with seller/developer	Establish legal purchase agreement
Property Documents	Developer's legal documents and project approvals	Verify property eligibility for foreign ownership
Registration Forms	Application for Land Use Rights Certificate	Initiate official ownership transfer process
Tax Registration	Vietnamese tax code registration	Enable payment of property-related taxes
Representative Authority	Power of attorney (if purchasing remotely)	Authorize legal representative for transactions

Can a foreigner purchase land in Vietnam remotely, or is physical presence in the country required at any point?

Foreigners can purchase property in Vietnam remotely through a licensed agent or legal representative holding power of attorney, eliminating the need for physical presence during most transaction stages.

The power of attorney must be properly notarized and legalized, either at a Vietnamese consulate in your home country or through apostille certification if Vietnam recognizes it. Your representative can handle property viewings, contract negotiations, and documentation submission on your behalf.

Certain administrative tasks may require physical presence or additional documentation when completed remotely. Opening a Vietnamese bank account typically requires personal appearance, though some banks accept remote applications with extensive documentation. Similarly, notarization of key documents may require presence unless handled through diplomatic channels.

Remote purchases add complexity and cost to the transaction, including representative fees, international document authentication, and potential delays in communication. Many foreign buyers choose to visit Vietnam at least once during the process to inspect the property personally and meet key stakeholders.

What are the typical taxes, fees, and hidden costs involved in purchasing and owning land in Vietnam?

Property acquisition in Vietnam involves multiple taxes and fees that typically total 12-15% of the purchase price, with ongoing annual obligations for property owners.

The primary upfront costs include 10% Value Added Tax (usually included in the sale price), 0.5% registration fee, and 0.05-0.1% notary fees based on property value. Apartment buyers face additional maintenance fees of approximately 2% of the purchase price.

Annual ownership costs include land use tax ranging from 0.03% to 0.15% of the property's assessed value, varying by location and property type. Ho Chi Minh City and Hanoi typically charge higher rates than secondary cities.

Hidden costs often catch foreign buyers unprepared, including legal due diligence fees, currency conversion charges, agent commissions, and translation services. When selling, owners pay 2% capital gains tax on proceeds, while rental income is subject to 5% VAT plus 5% personal income tax.

Budget an additional 2-3% for professional services, unexpected administrative fees, and expedited processing charges that commonly arise during the transaction process.

Can foreigners pay for land in Vietnam using cash, or is it mandatory to go through a bank transfer or escrow process?

Bank transfers represent the most common and recommended payment method for foreign property purchases in Vietnam, offering better security and regulatory compliance than cash transactions.

Cash payments remain technically possible but are increasingly discouraged by Vietnamese authorities due to anti-money laundering regulations. Large cash transactions may trigger additional scrutiny and documentation requirements from banking and tax authorities.

International bank transfers can be sent directly from your home country to the seller's Vietnamese account or through your local Vietnamese bank account. This method provides clear transaction records and satisfies regulatory requirements for source of funds documentation.

Escrow services exist but are rarely used in Vietnamese real estate transactions, typically only available through specialized law firms or international real estate agencies. Most transactions rely on milestone payments tied to construction progress or legal documentation completion.

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

Are mortgages available to foreigners buying land in Vietnam, and if so, what are the interest rates, loan-to-value ratios, and eligibility tips?

Mortgage financing for foreigners in Vietnam is limited and primarily available to residents, those married to Vietnamese citizens, or individuals with strong local ties.

International banks operating in Vietnam, including HSBC, UOB, and Standard Chartered, offer the most accessible financing options for foreign buyers. Vietnamese banks like OCB also provide loans but with stricter eligibility requirements and documentation standards.

Typical loan terms include maximum 15-year repayment periods, loan-to-value ratios up to 80% with adequate collateral, and interest rates generally higher than those offered to Vietnamese citizens. Approval processes are significantly more complex and time-consuming for non-residents.

Alternative financing options include proptech companies like Homebase, which offer rent-to-own programs with more flexible qualification criteria. These arrangements allow foreigners to gradually acquire ownership while residing in the property.

To improve mortgage eligibility, maintain a Vietnamese bank account for several months, demonstrate stable income from Vietnamese sources, and consider using Vietnamese real estate as additional collateral. Having a Vietnamese spouse or long-term residency significantly improves approval chances.

Which regions or cities in Vietnam are most popular among foreigners for buying land, and why?

Ho Chi Minh City leads foreign property investment in Vietnam, attracting buyers with its economic dynamism, established expat community, and strong rental yields averaging 6-8% annually.

Hanoi ranks second in popularity, offering cultural richness, political stability, and growing demand for quality residential properties. The capital's international schools, diplomatic facilities, and business opportunities make it attractive for long-term foreign residents.

Coastal resort destinations including Da Nang, Nha Trang, and Phu Quoc appeal to lifestyle investors seeking vacation homes or rental properties targeting tourism markets. These locations offer beautiful beaches, developing infrastructure, and government support for tourism development.

Regional preferences vary by nationality, with Americans and Australians favoring Ho Chi Minh City's business environment, while Europeans often prefer Hanoi's cultural atmosphere. Asian investors frequently choose resort locations for their tourism potential and proximity to home countries.

Infrastructure quality, international connectivity, and expat services availability drive location choices more than property prices alone. Cities with established international schools, healthcare facilities, and English-speaking business environments command premium prices but offer better resale potential.

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 do foreigners typically use land for in Vietnam—residential homes, business, farming, or other purposes?

Residential purposes dominate foreign land use in Vietnam, with most foreigners purchasing apartments, condominiums, and houses for primary residences or investment properties.

Primary residence purchases account for approximately 60% of foreign property transactions, driven by expatriate employees, retirees, and individuals married to Vietnamese citizens establishing permanent homes. These buyers typically seek properties in established neighborhoods with good schools and amenities.

Investment properties represent about 35% of foreign purchases, with buyers targeting rental income from the growing expat community and rising middle-class Vietnamese population. Popular investment strategies include short-term vacation rentals in tourist areas and long-term leases to foreign professionals.

Commercial and business use comprises the remaining 5% of foreign property purchases, typically involving office space, retail locations, or hospitality ventures through corporate ownership structures. These transactions often require additional business licensing and investment approvals.

Agricultural and farming activities remain completely prohibited for foreign land use, with no exceptions under current Vietnamese law. This restriction applies even to foreign-invested enterprises unless they obtain specific agricultural investment licenses for large-scale projects.

What are the most common mistakes foreigners make when buying land in Vietnam, and how can you avoid them?

1. **Purchasing in restricted areas or non-approved projects** - Always verify that the property is within an approved commercial development and not in military zones, border areas, or agricultural land designated for Vietnamese citizens only.2. **Using nominee or trustee arrangements** - Avoid using Vietnamese citizens as proxies to circumvent ownership restrictions, as these arrangements lack legal protection and often result in complete loss of investment.3. **Inadequate due diligence on developers and projects** - Research developer credentials, project approvals, and construction progress thoroughly before committing funds, as many projects face delays or cancellations.4. **Ignoring foreign ownership quotas** - Verify that the building or ward hasn't reached its 30% foreign ownership limit for condos or 250-house limit for residential areas before making purchase commitments.5. **Underestimating total costs and ongoing expenses** - Budget for all taxes, fees, maintenance costs, and management expenses, which can add 15-20% to the initial purchase price and continue annually.

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

How is the land market in Vietnam expected to evolve long-term, and what are the current trends in land pricing for foreigners?

Vietnam's land market is experiencing gradual liberalization, with 2025 amendments to land laws clarifying foreign ownership rules and slightly expanding opportunities for overseas Vietnamese and foreign-invested enterprises.

Property prices in major cities continue rising, with Ho Chi Minh City apartment prices increasing 8-12% annually and Hanoi residential properties appreciating 6-10% per year as of mid-2025. Resort destinations like Phu Quoc and Da Nang show even stronger growth, driven by tourism recovery and infrastructure development.

Long-term market outlook remains positive, supported by Vietnam's rapid economic growth, urbanization trends, and increasing foreign investment. The government's infrastructure spending on metros, highways, and airports is expected to boost property values in connected areas through 2030.

Regulatory evolution may bring changes to foreign ownership quotas, tax structures, or eligible property types, but major liberalization allowing full land ownership appears unlikely given political considerations. The government balances attracting foreign investment with maintaining control over land resources.

As we reach mid-2025, market observers expect continued price appreciation in prime locations, though the government may implement cooling measures if speculation becomes excessive. Foreign buyers should focus on established areas with strong fundamentals rather than speculative emerging markets.

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. Vietnam Land Ownership for Foreigners - BambooRoutes
2. Vietnam Land Regulations - Embassy of Vietnam
3. Legal Guide for Foreigners Buying Land in Vietnam - iGuide
4. Buying Property in Vietnam - Emerhub
5. Property Buying Process in Vietnam - Vietnam Real Estate
6. Vietnam Housing Law Guidelines - Vietnam Briefing
7. Vietnam Real Estate Law - Baker McKenzie
8. Complete Guide to Buying Property in Vietnam - CVR
9. Buying Property in Vietnam - Wise
10. Foreign Property Investment Guide - Viet Tonkin Consulting