What are the entities eligible for the homeownership recognition in Vietnam?

What are the entities eligible for the homeownership recognition in Vietnam? (Internet image)

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

1. What is housing?

According to Clause 1, Article 3 of the Law on Housing 2014, housing means any building in which households or individuals live.

2. Entities eligible for the homeownership in Vietnam

Entities eligible for the homeownership in Vietnam according to Article 7 of the Law on Housing 2014 include:

(1) Vietnamese organizations, households or individuals (hereinafter referred to as Vietnamese entities).

(2) Overseas Vietnamese.

(3) Foreign organizations and individuals (hereinafter referred to as foreign entities) prescribed in Clause 1 Article 159 of the Law on Housing 2014.

- Foreign organizations and individuals entitled to own houses 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);

+ Foreign individuals who are allowed to enter Vietnam.

- 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.

3. What are the entities eligible for the homeownership recognition in Vietnam? 

Entities eligible for the homeownership recognition under Article 8 of the Law on Housing 2014 are as follows:

* Vietnamese entities; overseas Vietnamese permitted to enter Vietnam; foreign entities prescribed in Article 160 of the Law on Housing 2014.

- The foreign entity prescribed in Point a Clause 1 Article 159 of the Law on Housing 2014 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 the Law on Housing 2014 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 the Law on Housing 2014 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.

* Entities having legitimate housing through following transactions:

- Vietnamese entities who invest in housing construction, purchase, enter into lease purchase agreements, receive gifts, receive inheritance, receive capital contribution, exchange houses, or make other transactions prescribed in regulations of law .

- Overseas Vietnamese who enter into agreements on commercial housing purchase, lease purchase with enterprises or cooperatives conducting real estate trading (hereinafter referred to as real estate enterprise);

Agreements on housing purchase, gifting, exchange, inheritance with households or individuals;

Agreements on residential land transfer in the project on commercial housing construction which is permitted to divide the piece of land into smaller lots/plots for sales as prescribed.

- Foreign entities who enter into agreements as prescribed in Clause 2 Article 159 of the Law on Housing 2014.

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