Since 2015 foreigners have been allowed to buy real estate in Vietnam. This sparked something of a stampede with investors and even big companies scrambling to buy property here. Not to mention people looking to retire in Vietnam. But what do you need to know about how to buy real estate in Vietnam?
The deal today is straightforward. Foreigners can buy land on a 50-year lease with the same rights as locals. The lease can be renewed after the 50 years is up. This means you can take out a mortgage, rent the property out, and also sell it. You can also buy as many properties as you like. Previously, foreigners were limited to one property.
An interesting fact for investors, is that you don’t need permanent residency to buy real estate. A tourist visa is enough.
There are a couple of restrictions in place though. These have been designed by the regulators, to prevent foreigners gaining a monopoly and manipulating the market. For example, foreigners cannot by more than 30% of the apartments in a tower block. Foreigners can buy no more than 10% of the properties in a neighborhood.
To be clear the percentages refer to foreigners as a whole not as an individual. If you want to buy an apartment, but 30% of the units are owned by other foreigners, you will be refused.
Another restriction is that foreigners must buy property either from another foreigner, or directly from a developer. This is to prevent foreigners from exceeding the percentage limits.
Some locations are off limits to foreigners. These are places that the Ministry of Defense have decided are important to national security. You are not allowed to buy real estate in these places. Check this in advance before handing over any money.
Certificate Of Ownership
When you buy a property, the seller must provide you with a certificate of ownership. This is otherwise known as the pink book and proves that you have ownership. It’s not actually a legal requirement, but it is proof of ownership. If there is ever any legal dispute, you will be very glad of having the pink book.
U.S. dollars can’t be used as currency when buying in Vietnam. Some people choose to pay part of the purchase in gold. This guards against fluctuations in the Vietnamese Dong. Getting a lawyer to assist with the purchase is always highly recommended. However if you are buying a new-build from a big developer it isn’t as important. We recommend being cautions though. As ever, find your own lawyer and don’t go with one recommended by the seller. Make sure all paperwork is in Vietnamese, the only language that is legitimate for contracts here.
How To Buy Real Estate In Vietnam: Things To Be Aware Of
Bureaucracy is slow in developing countries across the world, and Vietnam is no different. Construction times could take a lot longer than promised. Permits and disputes can add years onto completion dates.
Construction quality can vary from place to place. Make sure you check out some of the developers previous properties and see how they are holding up.
We hope you enjoyed this guide on how to buy real estate in Vietnam.