Foreign entities eligible for the homeownership in Vietnam

Foreign entities eligible for the homeownership in Vietnam (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. Foreign entities eligible for the homeownership in Vietnam in Vietnam

Foreign entities eligible for the homeownership in Vietnam include:

(i) Foreign entities who invest in project-based housing construction in Vietnam as prescribed in this Law and corresponding regulations of law;

(ii) 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);

(iii) Foreign individuals who are allowed to enter Vietnam.

(Clause 1, Article 159 of the Law on Housing 2014)

2. Forms of homeownership in Vietnam by foreign entities

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.

(Clause 2, Article 159 of the Law on Housing 2014)

3. Requirements pertaining to foreign entities eligible for the homeownership in Vietnam

- The foreign entity prescribed in (i) 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 (ii) 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 (iii) is required to have a permission to enter Vietnam and he/she is not granted diplomatic immunity and privileges as prescribed.

(Article 160 of Law on Housing 2014)

4. Rights of foreign entities as homeowners in Vietnam

- The foreign entity prescribed in (i) is entitled to exercise rights of homeowners as prescribed in Article 10 of Law on Housing 2014, 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 (ii) and (iii) 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 Law on Housing 2014 or exceeding the number of houses prescribed in Point a of Clause 2 Article 161 of Law on Housing 2014, 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;

dd) Before the time limit of the homeownership prescribed in Law on Housing 2014 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.

(Article 161 of Law on Housing 2014)

5. Obligations of foreign entities as homeowners in Vietnam

- The foreign entity prescribed in (i) has obligations of homeowners as prescribed in Article 11 of Law on Housing 2014.

- The foreign entity prescribed in (ii) and (iii) has obligations of homeowners similarly to Vietnamese citizens provided that he/she comply with following regulations:

+ If the homeowner is a foreign individual, he/she is entitled to lease house(s) for lawful purposes provided that he/she notifies the agency of district in charge of housing where the house is located of housing lease as prescribed in regulations of the Minister of Construction and pays taxes on housing lease as prescribed before leasing houses.

If a foreign individual gets married 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;

+ If the homeowner is a foreign organization, its house(s) is/are only provided for their employees but it is not allowed to use their house(s) for lease, offices, or other purposes;

+ They pay off the total amount through credit institutions operating in Vietnam.

(Article 162 of Law on Housing 2014)

Ho Quoc Tuan

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