Vietnam is currently one of ASEAN’s fastest-growing economies. As a result, many foreign investors wish to invest and expand their business in Vietnam. This has led to an increasing number of foreigners coming to live and work in Vietnam, which in turn drives demand for residential properties. So, how can foreigners purchase a second-hand residential property in Vietnam? This article shares with you more detailed information.
1. Conditions and forms under which foreigners may purchase residential property in Vietnam
Pursuant to Articles 16, 17 and Clause 3 of Article 18 of the Housing Law 2023, foreign individuals may only own residential property in Vietnam if they are permitted to enter Vietnam, and are not entitled to diplomatic or consular privileges and immunities under the law, and may only own residential property through the following forms:
- By purchasing or lease-purchasing the residential property from a developer(not an individual) of a residential property construction investment project; or by receiving commercial residential property as a gift or inheritance in a residential property construction investment project that is not located in an area required to ensure national defense and security under Vietnamese law (such areas are publicly announced on the electronic portal of the provincial People’s Committee and the provincial housing management authority);
- By purchasing or lease-purchasing residential property from a foreign organization or individual who already owns residential property under the form above.
=> Therefore, under Vietnamese law, foreigners may purchase second-hand residential property only from a foreign organization or individual who already owns such property, or from the developer of a residential property construction project.
2. Important notes when foreigners purchase residential property in Vietnam
- The right to own residential property does not include the right to own the land-use rights attached to the residential property. Under Vietnamese law, foreigners are not eligible to be granted a “Certificate of Land Use Rights”; they are only entitled to own the residential property itself and can only be granted a “Certificate of Residential Property Ownership”.
- Under Article 19 of the current Vietnamese Law on Housing, eligible foreign individuals may purchase, lease purchase, receive gifts, inherit, and own up to 30% of total dwelling units in an apartment building or up to 250 single-family houses, including villas and row houses in an area with a population equivalent to that of a ward.
- The ownership period for foreign individuals is limited to a maximum of 50 years from the date the Certificate is issued and may be extended once for a period not exceeding 50 years if so requested.
- The payment for the purchase or lease purchase of residential property must be made through a credit institution or a foreign bank branch operating in Vietnam;
- Before the ownership period expires, the owner may personally or authorize another organization or individual to gift or sell the residential property to entities eligible to own residential property in Vietnam. If the ownership period expires and the owner has not sold or gifted the property, it shall become public property.
3. Documents required for the Certificate of Residential Property Ownership to foreigners
To be issued a Certificate of Residential Property Ownership, foreigners must prepare the following documents:
- The contract of Residential Property purchase must be made in a written contract and notarized/authenticated in accordance with the law.
- In addition, as the buyer is a foreigner, they must prepare documents proving eligibility to own residential property in Vietnam. Pursuant to Article 3 of Decree No. 95/2024/NĐ-CP (as amended by Decree No. 54/2026/NĐ-CP), a foreign individual must hold a valid foreign passport bearing an entry stamp into Vietnam (or equivalent legal documents confirming entry into Vietnam) at the time of signing the residential property contract, and must provide a written commitment confirming that they are notentitled to diplomatic or consular privileges and immunities.
4. Necessary legal procedures for foreigners to own residential property in Vietnam:
To be issued a Certificate of Residential Property Ownership, the following steps must be taken:
- Before signing the residential property purchase contract, check the information on the electronic portal of the provincial housing management authority where the residential property construction investment project is located. The project investor or the residential property seller may only sell residential property to foreign individuals in accordance with the prescribed quantity limits.
- Sign the residential property sale and purchase contract.
- Within a maximum of 03 working days from the date of signing the contract, the developer or the residential property seller is responsible for notifying (by email and in writing) the name of the buyer and the address of the sold, lease-purchased, or gifted residential property to the provincial housing management authority where the residential property is located, for publication on that authority’s electronic portal.
- Within a maximum of 03 working days from the date of receiving the information from the seller, the provincial housing management authority must verify and publish this information on its electronic portal.
- After verifying the information published by the provincial housing management authority, the competent state agency shall issue the Certificate of Residential Property Ownership.
5. Borrowing funds to finance residential property purchase transactions
Money is the first thing to think about when considering purchasing properties in a foreign country. Vietnam is a not a free economy where money can flow across borders without restrictions, but that said, Vietnam has pretty loose regulations in respect of foreign exchange control, esp in comparison to its neighbor, the People's Republic of China.
Pursuant to Circular No. 39/2016/TT-NHNN (as amended and supplemented by Circular No. 29/2026/TT-NHNN), foreigners are eligible borrowers when they meet the following conditions:
- The customer is an individual aged 18 years or older with full civil act capacity under the law, or aged from 15 to under 18 years who has not lost or had restricted civil act capacity under the law.
- The loan is intended for a lawful purpose.
- There is a feasible plan for the use of the loan. This condition is not mandatory for small-value loans.
- The borrower has the financial capacity to repay the debt.
Accordingly, under the above regulations, foreigners who meet the conditions to purchase residential property in Vietnam may still be considered for residential property loans. However, the decision to grant the loan ultimately depends on the bank. Currently, the legal framework governing loans to foreigners in Vietnam remains unclear and lacks specific provisions, while there are also potential risks related to debt repayment. As a result, very few loan transactions are conducted for foreigners in Vietnam.
6. Taxes applicable to residential property sale and purchase transactions
When purchasing residential property in Vietnam, foreigners are subject to the same taxes and fees as Vietnamese citizens, including registration fees (equivalent to deed tax), personal or corporate income tax (on the part of sellers), VAT (if the seller is an enterprise), notary fees, and administrative appraisal charges. The transferee must pay non-agricultural land use tax on an annual basis. Therefore, foreigners should discuss these matters with the seller and clearly stipulate in the contract which party is responsible for paying these amounts when carrying out the procedures for the issuance of the Certificate of Residential Property Ownership. Taxes in relation to real estate transaction are always a big concerns to foreign buyers, we will write new posts explaining taxes in various property transactions in Vietnam.
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