Are you a foreigner who desires to buy a house to live and work in Vietnam, but you do not know if Vietnamese law allows it? Let’s find out this issue with PL&Partners through this following article.
According to Clause 1, Article 159 of the Law on Housing 2014, one of the entities eligible for the homeownership in Vietnam includes: foreign individuals who are allowed to enter Vietnam.
♦ CONDITIONS FOR FOREIGN INDIVIDUALS TO BE ALLOWED TO ENTER VIETNAM
- Having a passport or an international travel document and a visa, apart from visa exemption. A foreigner who is eligible for visa exemption upon entry under an unilateral visa exemption scheme must have a passport that remains valid for at least 06 months;
- Not falling into the cases of suspension from entry:
- Those who do not meet the first condition above;
- Under-14 children who are not accompanied by their parents, guardians or authorized persons;
- Those who have forged papers or mad false declaration to obtain entry, exit or residence papers;
- Those who suffer mental diseases or infectious diseases which threaten the community’s health;
- Those who were expelled from Vietnam within the last 03 years, counted from the effective date of the expulsion decisions;
- Those who were compelled to leave Vietnam within the last 06 months, counted from the effective date of the decisions on compelled exit;
- For epidemic prevention and control;
- In circumstance of natural disasters;
- For national defense, security or social order and safety.
♦ CONDITIONS FOR HOMEOWNERSHIP OF FOREIGN INDIVIDUALS IN VIETNAM
- Foreign individuals who are allowed to enter Vietnam (specifically, a valid passport with entry verification of Vietnam Immigration Department);
- Not entitled to diplomatic and consular privilege and immunity under the Ordinance on the privileges and immunities relating to Diplomatic Mission, Consular Posts and Representative Offices of International Organizations in Vietnam.
♦ FORMS OF THE HOMEOWNERSHIP OF FOREIGN INDIVIDUALS IN VIETNAM
Clause 2, Article 159 of the Law on Housing 2014 and Decree 99/2015/ND-CP and Decree 30/2021/ND-CP stipulate that foreign individuals can only own houses (including apartments and separate houses) in the project for commercial housing construction and investment, except for areas under management relating to national defense and security as prescribed by Vietnamese law.
The Ministry of National Defense and the Ministry of Public Security have the responsibility to specify the areas having national defense and security requirements in each province and send a written notification to the People’s Committee of the province as the basis for directing the provincial Department of Construction to compile a list of commercial housing construction projects whose houses must not be owned by foreign entities
♦ QUANTITY OF HOUSES OWNED BY FOREIGN INDIVIDUALS IN VIETNAM
Pursuant to Article 161 of the Law on Housing 2014, Article 76 of Decree 99/2015/ND-CP and Article 29 of Circular 19/2016/TT-BXD, the quantity of houses that may be owned by foreign entities in Vietnam is specified as follows:
- For apartments:
Foreign entities may own up to 30% of the total number of apartments of an apartment building
In an area whose population is equivalent to that of a ward-administrative division, if there are multiple apartment buildings for sale or lease-purchase, foreign entities may own up to 30% of the number of apartments of each apartment building, and up to 30% of the total number of apartments of all these apartment buildings.
- For separate houses:
In an area whose population is equivalent to that of a ward-administrative division, if there is a commercial housing construction project, including separate houses for sale or lease-purchase, the quantity of separate houses that may be owned by foreign entities is specified below:
- Where there is one project that the quantity of separate houses of such project is fewer than 2,500, foreign individuals may own up to 250 houses of such project;
- Where there is one project that the quantity of separate houses of such project is equivalent to 2,500, foreign ndividuals may own up to 250 houses of such project;
- Where there are two or more projects in which the total number of separate houses does not exceed 2,500 houses, foreign individuals may own up to 10% of the houses of each project.