Currently, many foreign individuals and organizations who are working or living in Vietnam have the need to own houses. What are requirements pertaining to foreign entities eligible for the homeownership in Vietnam?
Article table of contents
Requirements pertaining to foreign entities eligible for the homeownership in Vietnam (Source: Internet)
1. Foreign entities eligible for the homeownership in Vietnam and forms of the homeownership in Vietnam relating to foreign entities
1.1. Foreign individuals and organizations eligible for homeownership in Vietnam
According to Clause 1, Article 159 of the Law on Housing 2014, foreign entities eligible for the homeownership in Vietnam include:
- Foreign entities who invest in project-based housing construction in Vietnam as prescribed in this Law and corresponding regulations of law;
- Foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign-invested funds and branches of foreign banks operating in Vietnam (hereinafter referred to as foreign organization);
1.2. Forms of the homeownership in Vietnam relating to foreign entities
According to Clause 2, Article 159 of the Law on Housing 2014 stipulates that the foreign entities eligible for the homeownership in Vietnam if they:
- Invest in project-based housing construction in Vietnam as prescribed in this Law and corresponding regulations of law;
- Buy, rent and purchase, receive, or inherit commercial housing including apartments and separate houses in the project for housing construction, except for areas under management relating to national defense and security as prescribed in regulations of the Government.
2. Requirements pertaining to foreign entities eligible for the homeownership in Vietnam
According to Article 160 of the Law on Housing 2014, requirements pertaining to foreign entities eligible for the homeownership in Vietnam are as follows:
- The foreign entity prescribed in Point a Clause 1 Article 159 of this Law is required to have an Investment certificate and have houses which are built under a project as prescribed in this Law and corresponding regulations of law.
- The foreign entity prescribed in Point b Clause 1 Article 159 of this Law is required to have an Investment certificate or a Permission to run business in Vietnam (hereinafter referred to as Certificate of investment) issued by the competent agency in Vietnam.
- The foreign entity prescribed in Point c Clause 1 Article 159 of this Law is required to have a permission to enter Vietnam and he/she is not granted diplomatic immunity and privileges as prescribed.
3. Areas in which foreign entities may own houses in Vietnam
According to Clause 1, Article 75 of Decree 99/2015/ND-CP, the areas in which foreign entities may own houses are as follows:
Foreign entities may only own houses (including apartments and detached houses) of commercial housing construction projects, except for those in areas having national defense and security requirements prescribed by Vietnam’s regulations of law.
4. Rights of foreign entities as homeowners
- The foreign entity prescribed in Point a Clause 1 Article 159 of this Law is entitled to exercise rights of homeowners as prescribed in Article 10 of this Law, if his/her house is built on a piece of leased land, he/she is only entitled to lease that house.
- The foreign entity prescribed in Point b and c Clause 1 Article 159 of this Law is entitled to exercise rights of homeowners similarly to Vietnam citizens provided that he/she comply with following regulations:
+ He/she may not buy, rent and purchase, receive, inherit and own more than 30% of apartments in an apartment building; or more than 250 houses regarding separate houses including villas, row houses in an area whose population is equivalent to a ward-administrative division.
In case in an area whose population is equivalent to a ward-administrative division has multiple apartment buildings or regarding separate houses in a street, the Government shall provide guidance on number of apartments or number of separate houses that a foreign entity is entitled to buy, rent and purchase, receive, inherit and own;
+ In case the foreign entity receives or inherits house(s) not in accordance with Point b Clause 2 Article 159 of this Law or exceeding the number of houses prescribed in Point a of this Clause, he/she only receives the value of that house(s);
+ The foreign individuals are eligible for the homeownership as agreed in agreements on housing sale, lease purchase, gifting, or inheritance for not more than 50 years, from the day on which they are granted the Certificate and they may be also granted extension as prescribed in regulations of the Government; the duration of the homeownership must be stated in the Certificate.
If a foreign individual marries to a Vietnamese citizen or an oversea Vietnamese, he/she qualifies for stable and long-term homeownership and has all rights of homeowner similarly to Vietnamese citizens;
+ The foreign organization are eligible for the homeownership as agreed in agreements on housing sale, lease purchase, gifting, or inheritance for not longer than duration stated in their Certificate of investment, including extension duration, the duration of the homeownership shall be determined from the day on which the organization is granted the Certificate and stated in such Certificate;
+ Before the time limit of the homeownership prescribed in this Law expires, the homeowner is entitled to gift or sell their house(s) to entities eligible for the homeownership in Vietnam; if not, their house(s) shall be under ownership of the State.
(According to Article 161 of the Law on Housing 2014)
Quoc Dat
