Purchase a house in Vietnam
Purchase a house, a villa (with a land plot) in Vietnam, if you are in Vietnam:
- Make an objective assessment of your financial capabilities. When you're going to buy a house or villa in a new commercial low-rise housing project, you can rely on step-by-step payments. You can follow the payment schedule, which is approved by the developer (in each project in different ways), or immediately make a full payment. On the one hand, installment is certainly convenient, because even if you currently do not have enough money to buy an apartment, then you pay the first installment, which is usually 10-30% (depending on the stage of development), and you have about 12-15 months for the remaining payment. On the other hand, full payment guarantees that the price will remain the same at any stage of payment.
- Carefully study the proposals: location of the project, what includes in the price, and find out how many houses at the date of your request remained in this project for purchase by foreigners.
- To visit a notary and sign a Purchase Contract. I would like to specifically underline, according to the Law, only a transaction certified by a notary is considered legal. Only notarized Purchase Contract immediately transfers to the Register Department by Developer. It's clear that if the Purchase Contract is signed between you and the Developer without a notary, it can turn out that in the end, you won’t be able to get a Certificate of Ownership - the “Pink book” since your place will be occupied by those who assured the contract from a notary because only 250 villas in one Project can be sold to foreigners.
- Documents of ownership of the Developer According to the Law on housing:
- Approve the draft of the Project issued by the competent Authority.
- A lease agreement for a land plot.
- Drawings of the villa plan for sale.
- The handover protocol of a Villa includes provisions for the administration and administrative fees.
- Purchase taxes:
- Personal Income tax - 2% - if you buy an apartment for 100,000 USD - the tax will be 100,000 * 2% = 2000 USD (actually, this tax is paid by the Seller, but it may be that the Seller will pass this duty on you. Not why, just so)
- Registration fee - 0.5% of the price of the apartment, if you buy an apartment for 100.000 USD - the registration fee will be 100.000 * 0.5% = 500 USD
- 10% VAT, if you buy a villa for 100.000 USD - the tax will be 100.000 * 10% = 10.000 USD. As a rule, this fee is paid by the seller, and your price already includes VAT. It is necessary to specify with the Seller.
- The notarization fee is not more than 150 USD (about 0.09% of the value of the Contract)
So, if you buy a Villa for 100 000 USD the cost of the transaction ownership at the best way - 0,59% or 650 USD, and the other way if you pay income tax and VAT - 12,59% or 12 650 USD.
Buying a villa pay attention that you also buy a land plot. So, if the Purchase Contract provides for the price of land, then the above costs are correct, if the land price calculates separately it means the Income Tax and the Registration Fee for the land value are added.
Leadership TSC provides services of property search and support of transactions.
Contact us now for all questions about buying real estate in Vietnam.