All foreigners who are granted permission to enter Vietnam are allowed to buy and own residential properties within a property development project in the country (with the exception of foreigners entitled to diplomatic or consular immunities and privileges prescribed by law).
All legal entities like foreign investment funds, banks, Vietnamese branches and representative offices of overseas companies which are established in Vietnam are eligible to buy.
The new Residential Housing Law allows the eligible foreign entity and individual to buy and own all residential sectors including apartments and landed properties such as villas and townhouses (previously only applicable to apartments).
The rule of 30% cap for Condominiums, and 10% cap for Villas/Townhouses (previously an eligible foreigner could buy only one apartment in Vietnam).
- Foreign organization and individual ownership of units in an apartment building may not exceed 30% of total units in one apartment building. In the event of an area with geographical boundary equivalent to ward level with many apartment buildings for sale or lease purchase, then foreign organizations and individuals may own no more than 30% of the total units of each apartment building, and not more than 30% of the total units of all the apartment buildings.
- For housing projects which have separate houses for sale or lease purchase, the foreign organizations and individuals ownership must not exceed 10% of the total number of separate houses for each project. In the event of an area with geographical boundary equivalent to ward level with several projects where the number of individual houses are more than 2,500 units, then the foreign organizations and individuals ownership must not exceed 250 units.
The properties owned by foreigners can be sold, sub-leased, inherited and collateralized (previously only for owner occupying purpose.
NEW HOUSING DECREE 99
Under the new Housing Decree 99 issued on 20 October 2015, foreigners may apply for renewal of up to maximum of additional 50 years, for a total ownership period of up to 100 years.
Selling the unit to those permitted to own residential property in Vietnam:
- If to Vietnamese national or overseas Vietnamese individual, such buyer will be entitled to freehold tenure.
If to a foreign individual, such buyer will be entitled to remainder period of foreign ownership and any renewal right.
The tenure allowed to foreign individuals buying homes is 50 years from the date the authority issues the house ownership certificate to the relevant owner with renewal possibility upon expiration. Foreign individuals married to Vietnamese citizens are entitled to freehold tenure.
Eligible foreign entities shall have the tenure of ownership of apartment/house in accordance with the duration as stated in their business license/investment certificate.
WHAT ARE THE COMMON LEGAL TERMS?
SALES & PURCHASE AGREEMENT ("SPA")
The SPA is a legally binding contract between the buyer and developer to prove that a house or apartment is sold to the buyer by the developer. The SPA is also used as evidence of ownership of the house or apartment before the house ownership certificate has been granted to the owner. It is used for applying for house ownership certificate for the owner.
The template of the SPA is in accordance with the standard template as provided by the Ministry of Construction and is to be registered with Consumer Protection Bureau under the Ministry of Industry of Trade. As such, the SPA is a standard template which is not to be changed or amended.
The "House Ownership Certificate, which stands for "Certificate of land use rights or house and land- attached asset ownership" is the certificate granted by the State Authority to certify/recognize the ownership of an eligible individual/organization over his/her/their land or house. It is commonly referred to as the "ownership certificate" or "pink book".
The ownership term of foreigners is 50 years, from the day on which the ownership certificate is granted. They may apply to extend the term of ownership and it shall be subject to the approval of State Authority.
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