Which documents do I need to buy property in Vietnam?

  1. Valid Passport
  2. Purchase agreement
  3. Title deed or registration of ownership with government authority
  4. If the ground floor of the building has not been completed at development, a deposit agreement will need to be signed

Property developers will assist with notarization and administration of all documents.

What is the classification of ownership for a foreign buyer?


  • 50-year ownership for residential units
  • Owners have the option of a 20 year extension once 50 year period expires
  • Upon renewal of existing lease/ownership no additional amount will be paid to renew

Commercial and retail:

  • Units are legally classified as a 50-year lease contract
  • An extension can occur before the contract expires
  • Upon renewal of existing lease/ownership no additional amount will be paid to renew

What happens if the property is sold for reasons beyond my control?

If the building has to be sold due to political reasons, for example, a pro rata share of the proceeds will be distributed to the owners.

What are the average annual rental yields on property?

Yields in Vietnam have historically been around 6% – 8% gross per annum, on average.

Which sectors of the market may I purchase as a foreign investor?

You will be able to purchase:

  • Condominiums
  • Villas
  • Apartments
  • Townhouses
  • Retail space
  • Office space

May I sub-lease my property?

Yes, properties owned by foreigners may be sub-leased, inherited and collateralized.

Is there a limit on the number of units a foreigner can buy within a specific project/building?

There is technically no limit, although the total number of units owned by foreigners must not exceed 30% of the total units in a specific complex.

May I obtain a mortgage locally?

Yes, but you would have to be married to a Vietnamese citizen. Most banks will be able to issue fixed and floating rate loans.

What property purchase costs are involved?

Applicable to apartments and condominiums:

  1. Registration fee of 0.5% of purchase price per year paid by buyer to relevant district department of taxation, which is equivalent to a property tax.
  1. When the building is complete there will be a management fee decided upon collectively by owners of units within a project, which is on average around 2% of purchase value per year.

What is the rental income tax  in Vietnam?

Rental Income:

  • Non-residents: liable to pay withholding tax on their Vietnamese-sourced income at a flat rate of 20%.
  • Residents (individuals in possession of temporary resident cards or who are in the country for more than 183 consecutive days): liable to pay taxation according to progressive tax rates, more information on progressive rates click here   

Capital Gains:  

  • Residents: Net gain from transfer of real estate is taxed at a flat rate of 20% and   a 2% tax on   the value of total sales proceeds
  • Non-Residents: 2% of value of sales proceeds
  • With standard VAT of 10% on all transactions

May I sell my property on the secondary market?

Yes, the developer’s agent will be able to find a buyer for a fee of 1% of the sales price.  Additional fees will be charged for notarizing documents and other administrative expenses.

What are the details on Novaland Developments and Sanctuary?

These developments are popular with property investors in Vietnam.

What units are available?


  • One bedroom
  • Two bedroom
  • Three bedroom
  • Office tel/ residential

What are the area sizes of the units and SQM rate?

  • 60sqm to 110sqm
  • Residential +/- $2,500
  • Office tel +/- $2500-$2800

What areas are these developments found in?

  • D7
  • Tan Binh
  • D4
  • D2
  • Phu Nhuan

Who can offer a mortgage?

  • Commonwealth
  • Standard Chartered

Who is responsible for title deeds?

  • Novaland has full responsibility on delivering to the buyer.

Any extra costs?

  • 2% maintenance fee on sale price
  • Management fees
  • 0,5% fee on price for the ownership
  • Offer guarantee for money back up to ground floor, with interest

Typical timeline of sale

  1. Submit deposit form
  2. Basement and ground complete
  3. Sign deposit contract
  4. After ground floor completion- sign sale contract
  5. If a unit is bought once construction is complete, the full price will need to be paid in order for keys to be handed over
  6. The apartment itself is a skeleton finish while Novaland outsource interior designers to finish off the apartments for an additional fee

For professional advice about buying property in Vietnam, get in touch with TPIM for your private wealth management: http://tpim.co/contact-us/.

Please share and like us:

Leave a Comment

Your email address will not be published. Required fields are marked *