How Can Foreigners Invest in Real Estate in Vietnam?
|Photo: Thanh Nien|
Foreign organizations and individuals, when conducting real estate service business, must establish an enterprise or a cooperative, register for real estate service business in accordance with law, and are not allowed to do real estate business on behalf of individuals.
Foreign individuals who want to set up a foreign-invested real estate business in Vietnam must carry out the procedures for issuance of an investment certificate in accordance with the law. The Law on Real Estate Business 2014 stipulates that real estate business needs the following conditions:
1. Conditions of real estate put into business
Houses and construction works put into business must fully meet the following conditions:
- Having registered ownership of houses and construction works attached to land in the certificate of land use right. For existing houses and constructions in real estate investment projects, only a certificate of land use right is required in accordance with the provisions of the law on land.
- There is no dispute over land use rights, ownership of houses and construction works attached to the land.
- Not being distrained to ensure judgment enforcement.
2. Conditions of types of land permitted to trade in land use rights
- Having a certificate of land use right in accordance with the law on land.
- There is no dispute over land use rights.
- The land use right is not distrained to secure judgment enforcement.
3. Conditions of organizations and individuals doing real estate business
- Organizations and individuals dealing in real estate must establish an enterprise or a cooperative (hereinafter referred to as an enterprise) and have a legal capital of not less than VND 20 billion (US$874,250), except for the case specified in Clause 2.
- Organizations, households and individuals that sell, transfer, lease, lease-purchase real estate on a small scale, infrequently, are not required to establish businesses but must declare and pay tax in accordance with law.
- The Government details this.
4. Real estate business form of foreign-invested enterprises
- The forms specified at Points b, d, h Clause 1 and Point b Clause 2.
- For leased land in industrial parks, industrial clusters, export processing zones, hi-tech zones, economic zones, it is permitted to invest in the construction of houses and construction works for business in accordance with the land use purposes.
Recently, at Grand Tchaikovsky Hotel (Russia), a Vietnamese enterprise held a presentation on the project of Multi Complex Building "6/3."
Authorities in the central city of Danang have listed 17 commercial housing projects in which foreign organizations and individuals are allowed to buy homes.
A noteworthy phenomenon of the real estate market in 2020 was that despite the impacts of the Covid-19 epidemic, housing prices still maintained strong growth, ...