Foreigners Buying Property in Vietnam: What You Can Buy & What You Need to Qualify

Legal Framework: Which Laws Allow Foreigners to Buy Property?

Since 2015, Housing Law No. 65/2014/QH13 formally opened the door for foreigners to own residential property in Vietnam. In 2023, the National Assembly passed Housing Law No. 27/2023/QH15 (effective from 1 August 2024), which maintains this right with certain adjustments to eligibility conditions and procedures. You can read the full text at Thu Vien Phap Luat (Legal Library).

In addition, Real Estate Business Law No. 29/2023/QH15 and its implementing decrees set out detailed rules governing residential property transactions involving foreign individuals.

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Who Is Eligible? Conditions That Must Be Met

Not every foreigner is automatically entitled to buy property. Under current regulations, eligible parties include:

• Foreign individuals who are permitted to enter Vietnam (holding a valid passport with an entry stamp) — a long-term temporary or permanent residence card is not required.
• Foreign-invested enterprises (FDI companies) that have been granted an Investment Registration Certificate in Vietnam, and wish to purchase housing for their employees.
• Overseas Vietnamese (Việt kiều) who have rights to own property equivalent to domestic citizens, provided they hold documents confirming their Vietnamese nationality or Vietnamese origin.

Conditions under which property cannot be purchased:

• Foreigners who are barred from entry or restricted under security regulations.
• Individuals who have not been granted entry permission or who have been deported.

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What Types of Property Can Foreigners Buy?

This is a critically important point that many foreigners misunderstand:

Property Type	Can Foreigners Buy?
Apartment units in commercial residential projects	Yes
Standalone houses (townhouses, villas) within a project	Yes (subject to quantity limits)
Land plots (land-use rights)	No
Standalone street-front houses outside a project	No
Resort/hospitality property (condotel, officetel)	No clear ownership regulations; high legal risk

In short: foreigners may only purchase residential property within commercial residential projects that the developer is legally authorised to sell. Holding land-use rights independently is not permitted.

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Quantity Limits: The 30% and 250-Unit "Quota"

The law imposes two types of limits:

1. Per-building limit for apartment blocks: Foreigners may not own more than 30% of the total number of units in any single apartment building.
2. Per-ward limit for standalone houses: In any one ward (phường), the total number of standalone houses (townhouses, villas) that foreigners may own must not exceed 250 units.
3. Security and defence zone restrictions: Foreigners may not purchase property in areas designated as sensitive for national security or defence, as determined by the Ministry of National Defence and the Ministry of Public Security.

When looking to buy an apartment in Ho Chi Minh City, always ask the developer or sales agent about the remaining foreign quota for each project before placing a deposit. See newly launched projects in Ho Chi Minh City for up-to-date quota information.

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Ownership Term: 50 Years and the Right to Renew

Unlike Vietnamese citizens (who enjoy perpetual ownership), foreigners own residential property for a term of 50 years from the date the Certificate of Land Use Rights and House Ownership (the "pink book" / sổ hồng) is issued. Upon expiry:

• The term may be renewed for a further 50 years, provided the owner wishes to do so and meets the legal conditions applicable at the time of renewal.
• If the term is not renewed, the property will be dealt with in accordance with the parties' agreement or applicable law.

A Vietnamese-citizen spouse of a foreign buyer may hold title on a permanent basis — an option commonly adopted by mixed-nationality families.

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The Practical Buying Process for Foreigners in Ho Chi Minh City

Here are the key steps:

1. Identify a project with remaining foreign quota that fits your budget.
2. Verify your own legal eligibility (valid passport and visa/temporary residence card).
3. Sign a Deposit Agreement with the developer or seller (have a lawyer review it first).
4. Sign the Sale and Purchase Agreement (the Vietnamese-language version is the original; you may request a bilingual copy).
5. Make staged payments in accordance with the payment schedule in the contract.
6. Notarise the contract at a public notary office (mandatory).
7. Submit the title-transfer application to the Land Registration Office.
8. Receive the Certificate of Land Use Rights and House Ownership (sổ hồng) issued in the foreigner's name.

For a detailed breakdown of each step, see: The Property Buying Process in Vietnam.

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Costs and Taxes When Buying Property

Foreigners are subject to the same fees as Vietnamese citizens:

Fee Type	Applicable Rate
Registration tax (stamp duty)	0.5% of the apartment value (or the State's assessed price, whichever applies)
Contract notarisation fee	Per the fee schedule; typically ranges from a few million to tens of millions of đồng
Title-transfer registration fee	From a few hundred thousand to a few million đồng
Personal income tax on resale	2% of the transfer price (payable if the property is later sold)
Agent/brokerage commission	Typically 1%–2% of the transaction value (negotiable)

For further information on taxes and fees, refer to the Ministry of Finance.

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Can Foreigners Take Out a Bank Loan to Buy Property?

This is a question many people ask. The current situation is:

• The majority of Vietnamese commercial banks do not offer standard mortgage products specifically designed for foreigners buying residential property.
• Some joint-venture banks or foreign banks operating in Vietnam may consider lending, subject to stricter conditions (stable income in Vietnam, long-term employment contracts).
• In practice, the vast majority of foreigners purchase property using their own funds or by transferring money from abroad.

For credit and foreign exchange policies, refer to the State Bank of Vietnam.

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Popular Neighbourhoods for Foreigners in Ho Chi Minh City

Ho Chi Minh City is the primary market attracting foreigners to buy and rent. Notable areas include:

• Thảo Điền (former District 2, now Thủ Đức City): Large expat community, numerous international schools, premium apartments and villas. View properties in Thảo Điền.
• Phú Mỹ Hưng (District 7): A well-planned township with a modern living environment, popular with Korean and Japanese families. View properties in Phú Mỹ Hưng.
• District 1 (City Centre): Prime location, higher prices, well-suited for buy-to-let investment. View properties in District 1.
• Bình Thạnh: Convenient connectivity, more affordable pricing, rapidly developing. View properties in Bình Thạnh.

To learn more about each neighbourhood, see the Expat's Guide to Living in Thảo Điền.

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Risks to Be Aware of and How to Protect Yourself

Buying property in Vietnam as a foreigner carries certain risks you should know about in advance:

• Project quota exhausted: Some projects have already reached the 30% foreign ownership quota but are still being marketed by agents. Always obtain written confirmation of available quota directly from the developer.
• Condotels and officetels: These property types do not yet have a stable sổ hồng issuance framework and their legal status remains disputed. It is advisable to avoid them or consult a lawyer beforehand.
• Nominee ownership: Having a Vietnamese national hold title on your behalf is illegal and carries an extremely high risk of asset loss.
• Unclear contracts: Always request a bilingual version of the contract and have it reviewed by an independent lawyer (not the developer's own lawyer) before signing.
• Verify the project's legal standing: Confirm that the developer holds all required approvals to sell off-plan (including a bank guarantee as required by law).

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