2022 is a promising year for the Vietnamese real estate market. Foreign investment remained relatively stable throughout the fourth quarter amidst COVID-19 of 2021.
Especially after Vietnam announced its border-reopening policies, the housing market is once again thriving with opportunities.
With this in mind, let’s go through the property purchasing process for a foreigner in this article!
Who can buy houses in Vietnam?
The new housing law starting in 2015 lifted some barriers to owning for overseas buyers. Now, you can buy almost every type of property in Vietnam with some requirements applied:
Eligibility: Individuals who do not have diplomatic privileges
For foreign individuals or organizations that would like to invest in housing projects:
- Obtain an investment certificate.
- Own project-based residences in accordance with Vietnam’s Housing Law, excluding builds in regions important to national defense and security.
Rights and Obligations for Owning a House in Vietnam
According to the Housing Law in Vietnam, foreigners or foreign entities must adhere to certain obligations for owning a house in Vietnam. They are also eligible for specific rights as homeowners.
- Foreigners or foreign corporations are not permitted to possess more than 250 dwellings, including row houses and villas, or to rent/buy/inherit/receive more than 30% of apartment units in the same apartment complex.
- Homeownership for foreign persons is only valid for 50 years, according to the agreement, beginning on the day they acquire the homeownership certificate.
- If a foreigner marries a Vietnamese citizen, he or she is entitled for permanent residence.
- The rights of foreigners as homeowners are identical to those of Vietnamese nationals.
- Foreign entity home ownership is only valid for the time specified on their investment certificate, beginning on the day the investment certificate is issued.
How to Buy a House in Vietnam
Here are the main steps for foreign individuals or foreign entities to purchase a house in Vietnam:
- Step 1: Select a property and sign a reservation contract. Before signing, it is best to have a professional check your reservation agreement.
- Step 2: Make a deposit payment to the property seller.
- Step 3: Engage the services of a due diligence professional to do a background check. Examine the seller’s identification, registration certificate, property certificate, ownership certificate, and other documents.
- Step 4: Sign a house contract to finalize the sale. Before signing, have a Vietnamese translator review the contract’s text.
- Step 5: Fees and taxes must be paid at the local tax office where the property is located. The income tax will be paid by the seller, and the registration cost will be paid by the buyer.
Step 6: Request a certificate of ownership.
Buy a house in Vietnam today
Purchasing property in Vietnam as a foreigner is not easy, especially if you’re not familiar with the real estate market here. Luckily, there are companies that cater to the overseas buyers with more flexible owning plans.
Homebase is a possible alternative. The organization provides various ownership choices for both local and foreign investors/buyers, allowing you to purchase property with as little as a 10% down payment. Even for local homeowners, most banks in Vietnam require at least 30% down. Homebase is able to give such a high level of assistance because it is funded by some of the most well-known and prominent global funds in the world, including Y Combinator, Iterative VC, VinaCapital, and others.
Interested in purchasing? Contact Homebase now.