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
Vietnam maintains exceptionally low property taxes compared to most countries worldwide.
The standard residential property tax rate is just 0.03% of the official land value, making Vietnam one of the most affordable places for property ownership from a tax perspective. Foreign investors pay the same rates as Vietnamese citizens, with most annual property tax bills ranging from $30 to $100 for typical apartments in Ho Chi Minh City and Hanoi.
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.
Vietnam offers one of the lowest property tax burdens in Southeast Asia at just 0.03% of official land value for residential properties.
Annual property tax bills for typical apartments in major cities rarely exceed $100, making property ownership highly affordable for both locals and foreigners.
| Tax Type | Rate | Calculation Base |
|---|---|---|
| Residential Property Tax | 0.03% | Official land value (government-assessed) |
| Commercial Property Tax | 0.07-0.15% | Official land value (government-assessed) |
| Transfer Tax (Sale) | 2% | Transaction value or market price |
| Registration Fee | 0.5% | Property value |
| Rental Income Tax | 5% VAT + 5% PIT | Gross rental income above $4,000/year |
| Land Use Fee | Varies | Based on land type and location |
What is the current standard property tax rate for residential properties in Vietnam?
Vietnam's residential property tax rate is 0.03% of the official land value as of September 2025.
This rate applies to all residential properties nationwide and is calculated based on the government-assessed land value, not the market price or building value. The official land value is determined by provincial People's Committees and varies significantly by location, with prime areas in Ho Chi Minh City and Hanoi having higher assessed values than suburban or rural areas.
The 0.03% rate has remained stable for several years, making Vietnam one of the most affordable countries for property ownership from a taxation perspective. Commercial and industrial properties face higher rates ranging from 0.07% to 0.15%, but residential property owners benefit from this consistently low rate across all provinces.
It's something we develop in our Vietnam property pack.
How are property taxes calculated - on market value, purchase price, or land area?
Property taxes in Vietnam are calculated on the official land value set by local authorities, not on market value, purchase price, or building value.
The government assigns specific land values per square meter for different areas and zones within each province. These official valuations are typically much lower than actual market prices, which keeps property tax bills minimal. For example, while a property might sell for $200,000 in District 1 of Ho Chi Minh City, the official land value used for tax calculation might be valued at only $50,000.
The calculation focuses solely on the land component of your property. The building or improvements on the land are not included in the tax assessment. This means whether you own a basic apartment or a luxury penthouse on the same plot size, your property tax will be identical if the official land values are the same.
Local People's Committees review and adjust these official land values periodically, but changes are typically gradual and don't reflect the rapid market appreciation seen in Vietnam's major cities over recent years.
What is the typical annual property tax bill for apartments in Ho Chi Minh City and Hanoi?
Annual property tax bills for typical apartments in Ho Chi Minh City and Hanoi range from $30 to $100 for most residential properties.
For a standard 70-100 square meter apartment in popular districts like District 7 in Ho Chi Minh City or Cau Giay in Hanoi, owners typically pay between $40-80 per year. Premium properties in central districts like District 1 (Ho Chi Minh City) or Hoan Kiem (Hanoi) might see bills up to $150 annually, but this remains exceptionally low compared to international standards.
The exact amount depends on the official land value assigned to your specific location. For instance, an 80 sqm apartment in Thu Duc City might have an annual tax bill of around $35, while the same size unit in District 3 of Ho Chi Minh City could be $75 due to higher official land valuations in more central areas.
These amounts are significantly lower than what property owners pay in neighboring countries, where annual property taxes often exceed $500-1,000 for similar properties.
Do property tax rates vary between cities and provinces across Vietnam?
The property tax rate itself is uniform nationwide at 0.03% for residential properties, but the total tax amount varies significantly due to different official land values set by each province.
While every province applies the same 0.03% rate, local People's Committees determine the base land values used in calculations. Ho Chi Minh City and Hanoi generally have the highest official land values, followed by other major cities like Da Nang, Can Tho, and Hai Phong. Rural and less developed provinces maintain much lower official land valuations.
For example, a 100 sqm property might be assessed at $60,000 official land value in central Ho Chi Minh City but only $15,000 in a provincial city like Hue, resulting in annual taxes of $18 versus $4.50 respectively. The rate remains constant, but the base calculation changes dramatically.
Some provinces update their official land values more frequently than others, which can create variations in tax burden growth over time between different regions.
Don't lose money on your property in Vietnam
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Are there different tax rates for residential versus commercial properties?
Vietnam applies different property tax rates based on land use classification, with residential properties enjoying the lowest rates.
| Property Type | Tax Rate | Notes |
|---|---|---|
| Residential Land | 0.03% | Lowest rate for homes and apartments |
| Commercial Land | 0.07-0.10% | Shops, offices, retail spaces |
| Industrial Land | 0.10-0.15% | Manufacturing, warehouses, factories |
| Agricultural Land | 0.03% or exempt | Often has special exemptions |
| Unused/Idle Land | 0.15% or higher | Progressive penalties may apply |
| Mixed-Use Properties | Varies by usage | Calculated proportionally by area |
| Tourism/Resort Land | 0.10-0.15% | Higher rates in tourist zones |
Do foreigners pay higher property taxes than Vietnamese citizens?
Foreigners and Vietnamese citizens pay identical property tax rates with no discriminatory surcharges for foreign ownership.
Vietnam's property tax law treats all property owners equally regardless of nationality when it comes to annual land use taxes. Whether you're a Vietnamese citizen or a foreign investor from the United States, Japan, or anywhere else, you'll pay the same 0.03% rate on your residential property's official land value.
This equal treatment extends to all aspects of property taxation, including transfer taxes, registration fees, and rental income taxes. The government has maintained this policy to encourage foreign investment in Vietnam's real estate sector and avoid creating barriers for international buyers.
However, foreigners do face other restrictions in property ownership, such as the 30% foreign ownership cap in condominium buildings and limitations on land ownership rights, but these don't affect the tax burden once you legally own property.
It's something we analyze in our Vietnam property pack.
Are there property tax exemptions or reductions available?
Vietnam offers limited property tax exemptions, primarily for agricultural land and low-income rental properties, but no specific reductions for first-time buyers.
The main exemptions and reductions include:
- Agricultural land exemptions: Properties used for farming or agricultural purposes often receive full or partial exemptions from annual land use taxes
- Low-value rental exemption: Rental income below 100 million VND per year (approximately $4,000) is exempt from rental income tax
- Small property benefits: While not direct exemptions, smaller properties in less developed areas naturally pay less due to lower official land valuations
- Religious and cultural properties: Temples, churches, and cultural heritage sites may receive special exemptions
- Government and institutional properties: State-owned and certain institutional properties are typically exempt
There are currently no first-time buyer exemptions, owner-occupier discounts, or senior citizen reductions like those found in many Western countries. The government has considered introducing progressive taxation for multiple property owners or luxury properties, but these remain proposals rather than implemented policies as of September 2025.
How often are property taxes paid in Vietnam?
Property taxes in Vietnam are paid annually, typically in the first quarter of each year.
Property owners receive annual tax notices from local tax authorities, usually between January and March, detailing their land use tax obligations for the year. The payment deadline is generally within 30 days of receiving the notice, though specific dates can vary by province.
This differs from the one-time transfer taxes paid during property transactions. When you buy or sell property, you'll pay a separate 2% transfer tax based on the transaction value, but this is distinct from the ongoing annual property tax obligation.
Some provinces allow property owners to pay their annual tax in quarterly installments if they prefer, but the standard practice is a single annual payment. Late payment typically results in penalties and interest charges, so most property owners pay promptly when notices are issued.
How do Vietnam's property taxes compare to neighboring countries?
Vietnam has significantly lower property taxes than most neighboring Southeast Asian countries.
| Country | Typical Annual Property Tax Rate | Calculation Base |
|---|---|---|
| Vietnam | 0.03% | Official land value (below market) |
| Thailand | 0.02-0.1% | Assessed value (closer to market) |
| Cambodia | 0.1% or less | Market value (limited enforcement) |
| Singapore | 0.16-0.28% | Annual value (rental-based) |
| Malaysia | 0.035-0.6% | Annual rental value |
| Philippines | 0.25-0.5% | Fair market value |
| Indonesia | 0.1-0.3% | Taxable value |
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 additional property-related taxes and fees should owners expect?
Beyond annual property taxes, Vietnam property owners face several additional taxes and fees during purchase, ownership, and sale.
Purchase-related fees:
- Registration fee: 0.5% of property value paid when registering ownership
- Notary fees: Usually $100-300 depending on transaction complexity
- Administrative processing fees: Typically $50-150 for various paperwork
- Legal due diligence costs: $500-2,000 for foreign buyers using lawyers
Ownership period taxes:
- Rental income tax: 5% VAT plus 5% personal income tax on gross rental income above $4,000 annually
- Land use fee renewals: Varies by property type and location
Sale-related taxes:
- Transfer tax: 2% of transaction value or market price (whichever is higher), paid by seller
- Capital gains considerations: Currently minimal for most residential sales
These additional costs are generally reasonable compared to international standards, but they should be factored into your total cost of ownership when evaluating Vietnam property investments.
What recent changes have occurred in Vietnam's property tax policies?
Vietnam's property tax rates have remained stable in recent years, but the government has been actively debating reforms to address speculation and housing affordability.
Key developments from 2024-2025 include:
- Transfer tax stability: The government maintained the 2% flat transfer tax rate after dropping controversial proposals for a 20% capital gains tax following public backlash
- Progressive tax discussions: Ministry of Finance proposals for higher rates on luxury properties, multiple property ownership, and speculative holdings remain under consideration
- Official land value updates: Some provinces have gradually increased official land valuations, leading to modest increases in annual tax bills
- Speculation deterrent measures: Pilot programs in Ho Chi Minh City and Hanoi are testing higher rates for unused or underutilized properties
- Foreign ownership monitoring: Enhanced tracking of foreign property ownership, but no changes to tax rates for foreign buyers
Most proposed increases target speculative activity rather than genuine homeownership, suggesting that primary residence owners will continue enjoying low property tax burdens.
We cover these policy changes in our Vietnam property pack.
What direction are Vietnam's property tax reforms heading?
Vietnam is likely to implement gradual property tax increases focused on luxury properties and speculation rather than broad-based residential tax hikes.
The government's probable reform direction includes:
- Progressive taxation introduction: Higher rates for properties above certain value thresholds, likely starting with homes worth over $500,000
- Multiple property penalties: Additional taxes for owners of multiple residential properties to discourage speculation
- Idle land charges: Significantly higher rates for unused or underdeveloped properties in major cities
- Official value alignment: Gradual increases in official land valuations to bring them closer to market values, but likely over 5-10 year periods
- Regional differentiation: Possible variations in rates between high-demand urban areas and other regions
However, the government remains committed to keeping property ownership affordable for Vietnamese citizens and maintaining Vietnam's attractiveness for foreign investment. Major increases in basic residential property tax rates are unlikely in the next 2-3 years, with reforms more likely targeting speculative activity and luxury segments.
Most experts expect any changes to be implemented gradually with advance notice to minimize market disruption and allow property owners to plan accordingly.
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 offers one of the world's most favorable property tax environments for real estate investors and homeowners.
With annual residential property taxes typically under $100 and equal treatment for foreign buyers, Vietnam presents exceptional value for property ownership from a taxation perspective.
Sources
- Vietnam Property Taxes and Fees Guide
- Vietnam's Property Tax Regime 2024
- Property Taxes in Vietnam
- Property Tax Under Consideration
- Real Estate Taxation in Vietnam
- Tax Policy on Personal House Rental
- Vietnam Drops Proposed 20% Property Tax
- Invest Vietnam Property Guide
- Vietnam Property Taxes and Costs
- Buying Property in Vietnam