When someone passes away, handling inheritance is never simple. But things become even more complicated when borders are involved - for example, when the heir lives abroad or the property itself is outside Vietnam. In today’s globalized world, this situation is increasingly common. Many Vietnamese families have children studying, working, or settling overseas, and others have invested in real properties or businesses abroad. So, what happens legally when inheritance crosses borders?
1. What Law Applies?
This is the first and foremost question in cross-border inheritance, and the answer often dictates different outcomes as to who gets what in the end.
Under Article 680 of the 2015 Civil Code, the law applicable to inheritance involving foreign elements is determined as follows:
- The inheritance of movable property is governed by the law of the country where the deceased had his or her last nationality.
- The inheritance of immovable property is governed by the law of the country where that property is located.
This means that if a Vietnamese citizen passes away but owns an apartment in France, French law will likely govern the inheritance of that apartment, even if the heirs are all Vietnamese.
Conversely, for property located in Vietnam, Vietnamese law applies, regardless of where the heirs live. For example, if a daughter resides in the U.S. but her parents leave her a house in Hanoi, the inheritance of that house will be distributed according to Vietnamese inheritance law under Articles 609–662 of the Civil Code.
Often in the process of completing inheritance in Vietnam, local Vietnamese laws may also be applied in deciding on the scope of the estate. For instance, whether the entirety of a piece of land registered only in the name of the deceased parent is his or her estate shall be determined according to the applicable matrimonial property law in Vietnam if the parents are both domiciled in Vietnam.
2. The Paperwork Challenge
When heirs live abroad, documentation for the purpose of inheritance of Vietnamese estates is often the hardest part.
For instance, a son residing in Australia to inherit a piece of land in Da Nang will need to provide:
- Proof of identity and family relationship (e.g., birth certificate, passport) including documents to prove the old Vietnamese identity and post-immigration foreign identity;
- Legalized and translated documents if they were issued overseas, in accordance with Decree No. 196/2025/NĐ-CP on consular legalization;
- A power of attorney if he authorizes someone in Vietnam to handle the process, as required by Article 138 of the Civil Code, which shall be notarized, apostilled and legalized as mentioned above
Each step can take time because Vietnamese authorities will only accept foreign documents that have been consularly legalized and officially translated.
3. Taxes and Fees
Taxes are of another practical concern.
Under Article 4.4 of the Law on Personal Income Tax (2007, amended), inheritance between close family members (parents, children, spouses, siblings) is exempt from personal income tax in Vietnam.
However, if the inherited property is located abroad, the heir may be subject to tax obligations under the local law of that country. In some cases, both Vietnam and the foreign country could claim taxes. To avoid double taxation, it’s important to check whether a Double Taxation Agreement (DTA) exists between Vietnam and that foreign jurisdiction.
It shall be noted that both Vietnamese income tax and possible foreign income tax or capital gain tax may be triggered when the foreign heirs who have inherited estates in Vietnam cash in on such inherited assets, as this often happens to heirs or beneficiaries from the USA.
Foreign exchanges law may also impact repatriation of sale proceeds generated from selling Vietnamese inheritances by foreign heirs or beneficiaries, and this is something critical to consider at the very beginning as well. We won't delve into this point in this article.
4. Practical Tips for Families
- Make a will earlier
If you own property in more than one country, consider drafting a separate will for each jurisdiction. This approach aligns with Article 681 of the Civil Code, which allows wills to comply with either Vietnamese law or the law of the country where the will is made. - Keep documents ready
Heirs living abroad should keep their birth certificates, marriage certificates, and identification documents updated and accessible. These are essential for inheritance claims and may need legalization. - Seek local legal advice.
Don’t assume Vietnamese law will apply everywhere. Always consult a local lawyer in the country where the property is located to understand its inheritance rules and formalities.
Final Thoughts
Cross-border inheritance cases are emotionally and legally complex. Families often face delays, high costs, and confusion simply because there is no estate planning in place.
If your family spans across countries, it’s wise to prepare: make wills, keep documents in order, and seek professional advice before the unexpected happens. That way, when the time comes, your loved ones can focus on honoring family, transferring wealth across generations peacefully and smoothly instead of fighting in legal battles.
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