Selling Vietnam Property as a Foreigner: Capital Gains Tax, Buyer Eligibility, and Money Transfer Abroad

Updated: October 2024

Yes, foreigners can legally own residential property in Vietnam, though ownership is structured as a 50-year leasehold rather than a permanent freehold for non-citizens. Under the Housing Law 2023 (Law No. 27/2023/QH15) and Decree 95/2024/ND-CP, this 50-year term is renewable upon expiration if the structure remains compliant with safety standards. Notably, when a foreign owner sells their property to a Vietnamese national, the title automatically converts to a permanent freehold, creating a reliable exit path for international capital.

How does foreign property ownership work in Vietnam?

Foreigners are legally permitted to purchase apartments and units within commercial residential projects, but you cannot own landed property, such as standalone houses, villas, or vacant land plots. Each commercial project is subject to a strict 30% foreign ownership cap per building. Before paying a deposit, you must verify the remaining quota directly with the developer’s legal department. Your ownership is evidenced by a Certificate of Land Use Rights and Ownership of Houses (the "Pink Book"), which explicitly states the expiration date of your 50-year term.

What are the rules for moving money in and out of Vietnam?

Repatriation of profit relies on the "capital account" method. You must transfer your investment funds through an official bank account registered with a bank licensed by the State Bank of Vietnam. Investing via personal, non-registered accounts creates significant obstacles when attempting to move proceeds offshore. Maintain a comprehensive file containing your Sale and Purchase Agreement (SPA), tax payment receipts, and original bank wire transfer confirmations to satisfy potential audits by the General Department of Taxation.

What are the tax and financial obligations for non-residents?

Real estate investment in Vietnam is best approached as a 5-to-10-year strategy.

• Resale Tax: You must pay a 2% Personal Income Tax (PIT) calculated on the total contract value of the property transfer.
• Rental Yields: Investors typically see net yields ranging from 3% to 5% annually in high-occupancy areas like Thu Duc City (Ho Chi Minh City) or Binh Duong.
• Financing: Local Vietnamese banks rarely approve mortgage loans for non-residents lacking a valid local work permit or documented domestic income. Most foreign buyers operate on a cash-payment basis or utilize developer-led installment plans, which often allow for payments of 5% to 10% every few months during the construction phase.

Why is legal verification essential for your investment?

While the Housing Law 2023 provides a stronger legal framework than previous iterations, provincial Departments of Construction may interpret regulations with slight local variations. Never commit funds based on developer marketing brochures. Engaging a licensed real estate lawyer to perform due diligence on the developer’s land use certificate and construction permit is a standard, non-negotiable cost of doing business in the Vietnamese market.

Frequently Asked Questions

Can I buy a house or landed property? No. Foreign ownership of landed property is strictly prohibited. Your investment must be within a state-approved commercial condominium project.

What happens when my 50-year lease expires? According to the Housing Law 2023, you have the legal right to apply for an extension. If the building is deemed structurally sound by local authorities, an extension is typically granted, allowing you to retain the asset.

Is my property investment liquid? Yes. You have the right to lease, sell, or bequeath your property. Because your property converts to a permanent freehold when sold to a Vietnamese citizen, your units often command higher demand in the secondary market.

Availability This content is available in English, Traditional Chinese, and Korean to support our international investor community.

Sources:

• Housing Law 2023 (Law No. 27/2023/QH15): [https://thuvienphapluat.vn/van-ban/Xay-dung/Luat-Nha-o-2023-568321.aspx](https://thuvienphapluat.vn/van-ban/Xay-dung/Luat-Nha-o-2023-568321.aspx)
• Decree 95/2024/ND-CP: [https://thuvienphapluat.vn/van-ban/Xay-dung/Nghi-dinh-95-2024-ND-CP-huong-dan-Luat-Nha-o-613589.aspx](https://thuvienphapluat.vn/van-ban/Xay-dung/Nghi-dinh-95-2024-ND-CP-huong-dan-Luat-Nha-o-613589.aspx)
• State Bank of Vietnam, Circular 06/2019/TT-NHNN regarding foreign exchange for investment.

Reviewed by Nguyen Van Minh, licensed Vietnamese real-estate attorney.