CAN FOREIGNERS BUY APARTMENTS IN VIETNAM?

As Vietnam integrates more into the global economy, the demand for long-term residence, employment, and investment from foreign individuals has increased. A key question is whether foreigners are allowed to purchase apartments in Vietnam.

Vietnam’s current laws provide specific regulations governing foreign individuals’ rights to purchase and own apartment units. These regulations establish a clear legal framework and ensure compliance with state management and national security requirements.

1. Can Foreign Individuals Purchase Apartments in Vietnam?

Under the Law on Housing 2023 (effective August 1, 2024), the Vietnamese government affirms that foreign individuals can own residential housing in the country. This policy aims to facilitate long-term residence and work for foreign nationals in Vietnam.

However, these rights differ from those of Vietnamese citizens. Foreign individuals must comply with certain restrictions, such as the type of housing, eligible ownership areas, the number of units allowed, and the duration of ownership. Understanding these conditions is essential for foreign individuals to ensure lawful transactions.

2. Conditions for Foreign Ownership of Apartments in Vietnam

Although allowed under Vietnamese law, foreign individuals must meet various conditions to legally own apartments in Vietnam. These conditions aim to ensure state control over the real estate market and reduce legal risks.

Conditions Relating to Legal Status of the Purchaser

Before considering financial factors, a foreign individual must demonstrate valid legal status to participate in civil transactions in Vietnam. This requirement ensures that the purchaser is lawfully residing or working in Vietnam. Specifically:

• The foreign individual must hold a valid passport bearing an entry verification stamp issued by the Vietnamese immigration authority;

• The individual must not be entitled to diplomatic or consular privileges and immunities in accordance with applicable laws;

• The individual must have full civil act capacity to enter into sale and purchase agreements under Vietnamese law.

Conditions Relating to the Form of Ownership

Vietnamese law distinguishes between “ownership of housing” and “land use rights” for foreign individuals. Foreigners can only purchase apartments in specific housing projects. They cannot buy detached houses linked to land use rights in existing residential areas.

Foreign individuals must choose projects that meet the legal requirements for foreign ownership. These projects must have completed all necessary legal procedures and cannot be in areas restricted from foreign ownership. Politically sensitive or national security areas are excluded from eligible projects.

Conditions Relating to Ownership Quotas and Duration

Unlike Vietnamese citizens, foreign buyers face limits on the duration and quantity of ownership to prevent excessive foreign influence.

Regarding ownership quotas, a foreign individual may own no more than 30% of the total units in a single apartment building. In areas with multiple buildings, foreign ownership must comply with government-prescribed ratios.

As for ownership duration, foreigners can own apartments for up to 50 years from receiving the Certificate of Housing Ownership. They can request an extension, provided they meet the necessary conditions. If a foreigner marries a Vietnamese citizen or a Vietnamese living abroad, the ownership term can become long-term and stable.

3. Procedures for Foreigners to Purchase Apartments in Vietnam

Real estate transactions involving foreign individuals require strict compliance with documentation requirements and payment procedures conducted through the banking system. Proper adherence to these procedures not only safeguards lawful rights and interests but also facilitates the timely issuance of the Certificate of Housing Ownership.

First, the purchaser must choose a legally eligible project and pay a deposit. Then, the following steps are required:

• Execution of the Sale and Purchase Agreement: The agreement must be in Vietnamese, with an accompanying translation if needed. It should clearly specify key terms, such as the area, purchase price, ownership term, and handover method.

• Payment via Banking System: All payments must go through credit institutions operating in Vietnam. Cash payments are not allowed and may prevent the issuance of the Certificate.

• Submission of Application for Issuance of the Certificate: After property handover, either the developer or the purchaser submits the application to the natural resources and environment authority. The dossier must include a valid passport, the sale agreement, handover minutes, and documents proving payment of taxes and registration fees.

• Issuance of the Certificate: After appraisal, the competent authority issues the Certificate of Land Use Rights, Ownership of Residential Housing, and Other Assets Attached to Land. The certificate will specify the ownership term.