The Purchase Process
Find out about the steps involved when buying a house or apartment in Vietnam…
People who satisfy all the requirements for buying property in Vietnam have relatively low closing costs. Registration fees and a Value Added Tax add approximately 6.5 percent to the final cost, based upon the total value of the property. Mortgage financing is theoretically possible but is very rare. Property is most frequently purchased in either US dollars or in gold.
Once the property is selected, an application for the Granting of Certificate of Ownership of Residential House and Land Use Rights, otherwise known as a “home ownership certificate,” is submitted to the Department of Construction, along with the additional supporting documents. These include:
- A copy of the applicant’s foreign passport that has been certified by the foreigner’s embassy or consulate
- A copy of the documents proving that the applicant is a qualified purchaser, translated into Vietnamese. These documents may include the applicant’s employment contract, work permit, licence for practising professionally, certificate of marriage and Vietnamese passport or the resident family record and identity card of the applicant's Vietnamese spouse
- A copy of the sale and purchase contracts, or documents relating to the donation or inheritance of the property
- A document proving the seller, donor or individual who gives the property through their will, is the true owner of the property
- Receipts documenting payment of taxes, fees, and charges
The applicant must pay fees for the issuance of the home-ownership certificate and sign the Register of Residential House Ownership from the Department of Construction in the locality where the home is located. If the applicant has authorised a proxy to receive the home-ownership certificate on his or her behalf, a power of attorney is required. The Department of Construction records the contents and submit the home-ownership certificate to the provincial People's Committee for their signature. The registration of the documents pertaining to the property purchase takes nine to ten weeks. The registration tax for obtaining the ownership certificate amounts to 0.5% of the apartment value.
Due to the complexity of the procedures involved in buying and selling property in Vietnam, hiring an attorney specialising in real estate and property law is strongly recommended.
Selling Property in Vietnam
Ten percent VAT is due on the sale of a property in Vietnam. Foreigners selling a property must pay two percent personal income tax on the transacted value.