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 imposes clear-cut taxes on property resales that vary between 2% to 20% depending on your seller status and calculation method. Both Vietnamese residents and foreigners face identical tax obligations when selling residential property, with additional registration and notary fees adding approximately 0.6% to your total costs.
The most common scenario for individual sellers involves a straightforward 2% Personal Income Tax on the full sale price, making it easy to calculate your net proceeds before listing your property. Corporate sellers face a different structure with 20% tax on actual profits, while new proposed regulations may offer alternative calculation methods for some transactions.
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.
Individual property sellers in Vietnam typically pay 2% Personal Income Tax on the full sale price, while corporate sellers pay 20% on documented profits. Registration fees add 0.5% and notary costs contribute 0.05-0.1%, bringing total costs to approximately 2.65% of the sale price for most transactions.
Your net profit will be around 97% of the declared sale price after all taxes and fees, with VAT only applying to new property sales rather than resales on the secondary market.
| Seller Type | Main Tax Rate | Additional Fees | Total Cost (% of Sale Price) | Net Profit (% of Sale Price) |
|---|---|---|---|---|
| Individual (Personal Name) | 2% PIT on sale price | 0.65% (registration + notary) | 2.65% | 97.35% |
| Individual (Actual Gain Method) | 20% on documented profit | 0.65% (registration + notary) | Varies by profit margin | Depends on gain |
| Company/Corporate | 20% CIT on net profit | 0.65% (registration + notary) | Varies by profit margin | Depends on gain |
| Foreign Individual | 2% PIT on sale price | 0.65% (registration + notary) | 2.65% | 97.35% |
| New Property Sale (Any Seller) | 2% PIT + 10% VAT (buyer pays VAT) | 0.65% (registration + notary) | 2.65% (seller only) | 97.35% |
Are you a Vietnamese tax resident or a foreigner selling property?
Your tax residency status in Vietnam does not affect the core property transfer taxes you'll pay when selling real estate.
Both Vietnamese tax residents and foreign property owners face identical tax obligations on property sales, with the main Personal Income Tax rate of 2% applied uniformly regardless of your residency status. Tax residency primarily impacts your other income sources and overall tax filing requirements, but real estate transactions follow the same rules for everyone.
Foreign sellers must still comply with all Vietnamese tax regulations and cannot claim exemptions based on their non-resident status. The Vietnam Tax Administration treats property sales consistently across all seller nationalities, ensuring a level playing field in the real estate market.
You'll need to provide the same documentation and follow identical procedures whether you're Vietnamese or foreign, including proper contract registration and tax payment before the ownership transfer can be completed.
The only practical difference may be in documentation requirements, where foreign sellers might need additional paperwork like passport copies and translated documents for the transaction process.
What type of property affects your tax calculation?
The type of property you're selling determines specific calculation details but doesn't change the fundamental tax rates in Vietnam's residential market.
Land plots, apartments, houses, villas, and townhouses all fall under the same 2% Personal Income Tax rate for individual sellers, with the tax calculated on the full declared sale price regardless of property type. The Vietnam Tax Code treats all residential real estate categories uniformly for transfer tax purposes.
Apartments in high-rise buildings face identical tax treatment to standalone houses or land parcels, making the calculation straightforward across property categories. Your property's age, size, or location within Vietnam doesn't create different tax brackets or rates.
Commercial properties and industrial real estate fall outside standard residential tax treatment, but for individual property investors focused on apartments, houses, or land, the tax structure remains consistent. The declared value in your sales contract becomes the basis for all tax calculations regardless of whether you're selling a luxury villa in District 1 or a modest apartment in the suburbs.
It's something we develop in our Vietnam property pack.
When did you buy the property and what was your purchase price?
Your purchase date and original purchase price become crucial if you choose the alternative capital gains tax calculation method instead of the standard 2% flat rate.
For the most common tax approach (2% of sale price), your purchase date and original cost are irrelevant since the tax applies to the full selling price. However, if you opt for the 20% capital gains method, you'll need documented proof of your original purchase price, improvement costs, and holding period to calculate your actual profit.
Properties purchased before 2015 may have limited documentation, making the flat 2% rate more practical than trying to prove historical costs and improvements. The Vietnam Tax Administration requires original contracts, payment receipts, and renovation invoices if you claim the capital gains method.
Recent property purchases with clear documentation give you the option to compare both calculation methods and choose the lower tax burden. For example, if you bought an apartment for 8 billion VND and sell it for 10 billion VND, you could pay either 200 million VND (2% of sale price) or 400 million VND (20% of 2 billion VND profit).
Most sellers stick with the 2% method due to its simplicity and often lower total cost, especially for properties that have appreciated significantly since purchase.
How much are you selling the property for?
Your declared sale price in the official contract determines the tax calculation base for all government fees and Personal Income Tax obligations.
The Vietnam Tax Administration uses the contract value as the foundation for calculating your 2% Personal Income Tax, 0.5% registration fee, and notary costs. If you declare a sale price of 15 billion VND, you'll pay 300 million VND in Personal Income Tax plus approximately 97.5 million VND in additional fees.
Under-declaring the sale price below market value can trigger government scrutiny and potential reassessment, where tax authorities may apply benchmark values based on comparable properties in your area. The risk of penalties and additional taxes makes honest declaration the safer approach for most transactions.
Your sale price also affects the buyer's costs, as they may face higher stamp duties and registration fees based on the declared amount. Coordination between buyer and seller on the declared price should consider both parties' tax implications while staying within legal boundaries.
As of September 2025, most successful property transactions in major Vietnamese cities declare close to actual market values to avoid complications during the transfer process and maintain clean ownership records for future sales.
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Will you declare the full market value or a lower amount?
Declaring the full market value protects you from government reassessment and potential penalties while ensuring a smooth property transfer process.
Vietnam's tax authorities maintain benchmark databases for property values in major cities like Ho Chi Minh City and Hanoi, allowing them to identify significantly under-declared transactions. When your declared price falls below 80% of comparable market values, you risk triggering an official review that can delay your sale and result in additional taxes.
The financial benefit of under-declaring is often minimal compared to the risks, since you save only 2% on the reduced amount while exposing yourself to penalties that can exceed your tax savings. For a property worth 20 billion VND, under-declaring by 5 billion VND saves only 100 million VND in taxes but creates substantial legal and financial risks.
Buyers may also resist transactions with artificially low declared values due to their own tax implications and financing concerns, potentially limiting your pool of qualified purchasers. Banks providing buyer financing typically require realistic property valuations that align with declared sale prices.
Most experienced property investors in Vietnam's major markets declare values within 90-100% of market estimates to balance tax efficiency with transaction security and legal compliance.
Is the property under personal or company ownership?
Property ownership structure determines whether you pay the 2% Personal Income Tax rate or the 20% Corporate Income Tax on actual profits.
| Ownership Type | Tax Rate | Tax Base | Documentation Required | Typical Use Case |
|---|---|---|---|---|
| Personal Name | 2% PIT | Full sale price | ID, sales contract | Individual investors, homeowners |
| Spouse's Name | 2% PIT | Full sale price | Marriage certificate, spouse consent | Joint ownership, tax planning |
| Vietnamese Company | 20% CIT | Documented net profit | Corporate records, expense receipts | Real estate developers, investors |
| Foreign Company | 20% CIT | Documented net profit | Investment license, corporate records | International real estate funds |
| Trust/Foundation | 20% CIT | Documented net profit | Trust documents, beneficiary records | Estate planning, wealth management |
Individual ownership under your personal name or your spouse's name qualifies for the simpler 2% flat rate system, making it the preferred structure for most property investors in Vietnam. The spouse ownership option can provide some flexibility in tax planning while maintaining the favorable individual tax rate.
Company ownership subjects you to the 20% Corporate Income Tax on net profits, which can be advantageous only if your property has minimal appreciation or if you can document substantial improvement costs to reduce taxable gains.
Is this your first property sale in Vietnam?
Your history of property transactions in Vietnam doesn't change the tax rates you'll pay, but it may influence government scrutiny levels during the approval process.
First-time sellers and experienced property flippers face identical Personal Income Tax rates of 2% on the sale price, with no penalties or surcharges for multiple transactions. The Vietnam Tax Administration applies consistent tax treatment regardless of whether this is your initial property sale or your tenth transaction.
Frequent property sales may attract additional documentation requests or closer review of your declared values, but this doesn't result in higher tax rates or special fees. Professional property investors with multiple annual transactions follow the same 2% rate structure as occasional sellers.
Your sales history becomes relevant primarily for record-keeping and potential future audits, where consistent accurate reporting builds credibility with tax authorities. Maintaining detailed records of all your Vietnamese property transactions helps streamline future sales processes.
Some real estate professionals suggest that frequent sellers might benefit from corporate ownership structures, but the 20% corporate tax rate typically exceeds the 2% individual rate unless profit margins are very low.
Will you pay 2% on sale price or 20% on actual profit?
The 2% flat rate on sale price offers simplicity and lower costs for most property sales, while the 20% capital gains option only benefits sellers with minimal profit margins.
Individual sellers can choose between paying 2% Personal Income Tax on the full sale price or 20% on documented profits (sale price minus purchase price and improvements). The 2% method requires no profit calculations or expense documentation, making it faster and more straightforward for most transactions.
The 20% profit-based method becomes advantageous only when your total gain is less than 10% of the sale price. For example, if you sell a property for 10 billion VND and your documented profit is only 500 million VND, you'd pay 100 million VND (20% of profit) versus 200 million VND (2% of sale price).
Most property investors in Vietnam's appreciating markets pay significantly less using the 2% method, especially for properties held longer than 3-5 years. Rising property values in Ho Chi Minh City and Hanoi typically create profits exceeding 10% of sale prices, making the flat rate more economical.
You must choose your calculation method before filing, and switching between methods during the same transaction isn't permitted under current regulations.
It's something we develop in our Vietnam property pack.
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Are there additional taxes beyond the main Personal Income Tax?
Registration fees, notary costs, and potential VAT charges add approximately 0.6-0.65% to your total selling expenses beyond the main 2% Personal Income Tax.
1. **Registration Fee (0.5% of sale price)**: Mandatory government fee for transferring property ownership, typically split between buyer and seller or paid entirely by one party as negotiated2. **Notary Fee (0.05-0.1% of sale price)**: Varies by location and property value, covering document authentication and legal verification services3. **Stamp Duty**: Minimal amount usually incorporated into notary fees, covering official documentation requirements4. **Administrative Processing Fees**: Small fixed amounts for various government departments involved in the transfer process5. **Translation and Certification Costs**: Additional fees for foreign sellers requiring document translation and authenticationThese additional costs are predictable and standardized across Vietnam, allowing you to calculate total selling expenses accurately before listing your property. Most sellers budget 2.65% of their sale price to cover all mandatory taxes and fees.
Some provinces or districts may have minor variations in notary fees, but the differences rarely exceed 0.02-0.03% of the property value. Urban areas like Ho Chi Minh City and Hanoi typically have standardized fee structures that are well-documented and transparent.
Does VAT apply to your property resale?
Value Added Tax (VAT) does not apply to secondary market property resales, only to new property sales from developers to initial buyers.
If you're selling a previously owned apartment, house, or land parcel to another individual or company, no VAT charges will apply to your transaction. The 10% VAT rate in Vietnam's real estate sector affects only first-time sales of newly constructed properties by developers.
This VAT exemption for resales significantly reduces the total tax burden compared to buying new properties, where buyers must pay both the property price plus 10% VAT. Secondary market transactions avoid this substantial additional cost for purchasers.
Foreign property investors benefit from this VAT structure when selling their Vietnamese properties, as they face only the standard Personal Income Tax and registration fees without additional consumption taxes. The absence of VAT on resales helps maintain liquidity in Vietnam's secondary property market.
Some complex commercial property transactions or properties with significant recent improvements might face different VAT treatment, but standard residential resales remain exempt from this tax.
What will your total costs be in Vietnamese dong?
Your total selling costs will typically amount to 2.65% of the declared sale price, with Personal Income Tax representing the largest component at 2%.
| Sale Price (VND) | Personal Income Tax (2%) | Registration Fee (0.5%) | Notary Fee (0.1%) | Total Costs | Net Proceeds |
|---|---|---|---|---|---|
| 5,000,000,000 | 100,000,000 | 25,000,000 | 5,000,000 | 130,000,000 | 4,870,000,000 |
| 10,000,000,000 | 200,000,000 | 50,000,000 | 10,000,000 | 260,000,000 | 9,740,000,000 |
| 15,000,000,000 | 300,000,000 | 75,000,000 | 15,000,000 | 390,000,000 | 14,610,000,000 |
| 20,000,000,000 | 400,000,000 | 100,000,000 | 20,000,000 | 520,000,000 | 19,480,000,000 |
| 30,000,000,000 | 600,000,000 | 150,000,000 | 30,000,000 | 780,000,000 | 29,220,000,000 |
These calculations assume the standard individual seller scenario with 2% Personal Income Tax on the full sale price. Corporate sellers or those choosing the 20% capital gains method will have different cost structures based on their documented profits and expenses.
Additional minor fees for document processing, translations, or legal services typically add 10-50 million VND to your total costs depending on transaction complexity and location.
How much net profit will remain after all taxes and fees?
You can expect to retain approximately 97.35% of your declared sale price after paying all mandatory taxes and fees in a standard Vietnamese property transaction.
For a property sold at 12 billion VND, your net proceeds would be approximately 11.68 billion VND after deducting 240 million VND in Personal Income Tax, 60 million VND in registration fees, and 12 million VND in notary costs. This predictable fee structure allows accurate financial planning before listing your property.
Your actual net profit compared to your original investment depends on your purchase price, holding costs, and any improvements made during ownership. The 2.65% selling cost is relatively low compared to many international property markets, supporting Vietnam's reputation as a liquid real estate investment destination.
Property investors who bought apartments in Ho Chi Minh City or Hanoi 3-5 years ago typically achieve net profits of 50-80% after all taxes and fees, reflecting strong appreciation in Vietnam's major urban markets. Recent market data shows average annual appreciation rates of 8-12% in prime locations.
It's something we develop in our Vietnam property pack.
The remaining net proceeds can be freely transferred abroad for foreign investors, subject to standard banking regulations and foreign exchange documentation requirements for amounts exceeding certain thresholds.
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's property resale tax structure offers clarity and predictability for both local and foreign investors, with the standard 2.65% total cost making it relatively affordable compared to many international markets.
The choice between 2% flat rate taxation and 20% capital gains calculation gives sellers flexibility to optimize their tax burden based on their specific profit margins and documentation capabilities.
Sources
- Vietnam Briefing - Rental Property Tax Obligations
- Own Property Abroad - Vietnam Property Tax Guide
- BambooRoutes - Ho Chi Minh City Property Taxes
- Vietnam Briefing - Property Tax Regime 2024
- Homebase Vietnam - Real Estate Tax Guide
- Dien Dan Doanh Nghiep - Personal Income Tax Transfers
- VCCI - Capital Gains Tax Investment
- Vietnam News - New Real Estate Sales Tax