What is the eligibility for foreign organizations and individuals to own houses in Vietnam under the Law on Housing 2023?
What is the eligibility for foreign organizations and individuals to own houses in Vietnam under the Law on Housing 2023?
Pursuant to the provisions of Article 18 of the Law on Housing 2023, the eligibility for foreign organizations and individuals to own houses in Vietnam from January 1, 2025 are as follows:
Eligibility for foreign organizations:
(1) Foreign-invested business organizations building houses in projects in Vietnam in accordance with Law on Housing 2023 and relevant law provisions must be developers of housing investment and construction projects in accordance with this Law on Housing 2023 and real estate laws.
(2) Business organizations with foreign investment, branches, representative offices of foreign enterprises, foreign investment funds, and foreign bank branches (hereinafter referred to as “FBB”) operating in Vietnam (hereinafter referred to as “foreign organizations”) must obtain investment certificate or investment registration certificate or documents relating to permission to operate or establish in Vietnam effective at the time of signing housing transactions (hereinafter referred to as “investment certificates”) issued by Vietnamese competent authority.
Eligibility for foreign individuals
Foreign individuals allowed to enter Vietnam do not benefit from diplomatic, consular privileges and immunities as per the law.
What is the eligibility for foreign organizations and individuals to own houses in Vietnam under the Law on Housing 2023?
Vietnam: What does house mean?
Pursuant to the provisions of Clause 1, Article 2 of the Law on Housing 2023, houses refer to structures serving residential purposes and daily activities of families and individuals. Houses serving both residential and non-residential purposes without being prohibited by the law are mixed-use houses.
What are the rights of house owners that are foreign organizations and individuals in Vietnam?
Pursuant to the provisions of Article 20 of the Law on Housing 2023, the rights of house owners that are foreign organizations and individuals are stipulated as follows:
Rights of house owners that are foreign organizations, individuals
1. Foreign-invested business organizations under Point a Clause 1 Article 17 hereof shall exercise rights under Article 10 hereof or only the right to lease houses that are built on rented land.
2. Foreign organizations, individuals under Point b and Point c Clause 1 Article 17 of this Law shall have ownership rights similar to those of Vietnamese nationals and comply with requirements below:
a) They may only purchase, lease-purchase, receive gifted, inherit, and own houses to the maximum number stipulated under Article 19 hereof and obtain certificate for these houses;
b) If foreign organizations, individuals receive or inherit houses that are not specified under Point b Clause 2 Article 17 hereof or own more than the maximum number of houses under Article 19 hereof or own houses in areas with strict national defense and security requirements under Article 16 hereof, they shall only benefit from value of these houses;
c) Foreign individuals may own houses in accordance with agreement via purchasing, lease-purchasing, gifting, inheriting houses for up to 50 years from the date on which the certificate is issued and request extension once for up to 50 years. Duration of ownership shall be specified in the certificate.
Foreign individuals marrying Vietnamese nationals and living in Vietnam may own houses and exercise rights of house owners similar to those of Vietnamese nationals.
Foreign individuals marrying overseas Vietnamese permitted to enter Vietnam may own houses and exercise rights of house owners similar to those of overseas Vietnamese;
d) Foreign organizations may own houses in accordance with agreement in purchase, lease purchase, gift, inheritance without exceeding the time limit, including extended time limit, in investment certificate issued to the organizations; time limit for housing ownership shall start from the date on which certificate is issued to the organizations and shall be specified on such certificate;
dd) Prior to expiry of time limit for housing ownership according to this Law, owners may, by themselves or by authorizing other organizations and individuals, to exercise the right to gift or sell these houses to entities eligible for housing ownership in Vietnam; if owners fail to sell or gift houses that they own before the expiry of time limit for housing ownership, the houses shall be public property.
If parties gifted with or purchasing houses are entities specified under Point a and Point b Clause 1 Article 8 of this Law, they shall have the rights detailed under Clause 1 Article 10 hereof.
Thus, house owners that are foreign organizations and individuals have the above rights according to the law. Accordingly, the above rights are clearly defined for two subjects:
- Foreign-invested business organizations building houses in projects in Vietnam in accordance with this Law and relevant law provisions;.
- Business organizations with foreign investment, branches, representative offices of foreign enterprises, foreign investment funds, and foreign bank branches operating in Vietnam and foreign individuals allowed to enter Vietnam.
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