Purchase of Real Estate in Vietnam for foreigners
Purchase of real estate in Vietnam
Real estate is the most promising investment direction for foreigners in Vietnam. Prices of new commercial projects at the ground-excavation phase can be bought from 1 100 USD per square meter. These properties that are currently in the process of construction grow exponentially in price as they approach the date of commissioning. In a brand-new constructed compound, the prices of a fully furnished apartment start from 2 500 USD per square meter. Under the law of Vietnam, apartments less than 30 square meters can't be sold to foreigners. These apartments are not issued a certificate of ownership - "Pink Book". In my experience, the minimum size of a one-bedroom apartment is slightly more than 34 square meters.
Under Vietnamese law, foreigners become owners of a certain category of real estate for a period of 50 years (which can be extended). Since the law was adopted in 2015, we can’t reliably verify this statement. As such, I propose to consider a realistic scenario and look ahead no further than 50 years. During these 50 years, you are the owner of the purchased real estate, and possess a Certificate of Ownership (the so-called “Pink book”). In the event of the owner's death, all the rights and obligations of the owner (the right to own, use and dispose of your home, namely to live in, sell, buy, give, bequeath, exchange and reschedule, is given to their heirs.
Residential property in Vietnam is divided into several categories:
- Social housing - for low-income and large families, for veterans of war, etc;
- Housing for settlers - from areas with disadvantaged living conditions;
- Official housing;
- Commercial housing (projects with approved quotas for sale to foreigners. In each house, the number of apartments sold to foreigners can not exceed 30% of the total number of apartments in a compound).
Foreigners can buy objects under construction, or newly commissioned apartments. These are so-called commercial housing, where they become the first owner of the property. Sometimes in social buildings, apartments allocated specifically for sale to foreigners. In any case, foreigners can buy no more than 30% of the total number of apartments.
Deal - the process of purchasing real estate depends on a few factors:
You have to pay attention to pitfalls with purchasing real estate in Vietnam.
All owners of real estate in Vietnam pay expenses for housing maintenance and utility service.
In accordance with the provisions of Article 8 of the Law on Entry, Transit and Stay of Foreigners in Vietnam No. 47/2014 / QH2013 of June 16, 2014, and entered into force on January 1, 2015, the purchase of the real estate in Vietnam is not a basis for issuing and extending visas. It means that you can’t get a long-term visa on the basis of a Certificate of Property.
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