Before looking at Vietnam real estate, let’s see what this beautiful country has to offer.
As of 2015, Vietnam had the eighth largest population in Asia with about 91.7 million people. Its rapid economic growth can be connected to its unique geographical location which easily connects Vietnam to its surrounding countries. It is adjacent to northern China, northwest border Laos, southwest by Cambodia, southeast across the South China Sea and Malaysia.
The main industries of Vietnam include agriculture, fisheries, forestry, animal husbandry, and mining. Following its rapid industrial development, the Vietnam real estate market has been rising steadily as well.
Vietnam Real Estate Investment Guide
Being a communist country, Vietnam previously had incredibly strict rules and restrictions regarding foreign ownership of property. On July 1, 2015, the brand new Vietnam Land Housing Law was implemented. The new policy stipulates that all eligible individuals or businesses can purchase and own all types of properties in Vietnam, including apartments and independent houses (villas or townhouses). This means that Vietnam is finally opening its doors to foreign investors! Now, here’s what you need to know about how to invest in Vietnamese real estate:
What properties can I buy?
As long as you have legal foreign visas or documents (e.g. investment funds, banks, companies), you can purchase both personal and enterprise property in Vietnam. You can buy a house, apartments, and villas complete with land property rights. You are also allowed to sell or sub-lease your purchased Vietnam property investment.
Are there any restrictions when buying overseas property investments in Vietnam?
The only restrictions are:
- You can only own one housing property for up to fifty years (except if you’re married to a local which will allows you to own property permanently).
- If you purchase a residential apartment, you can’t have more than 30% of the total number of units.
What are the taxes included when I buy Vietnam property?
- Value-Added Tax (VAT): Any local or foreigner selling Vietnamese property is has an included 10% VAT.
- Ownership registration tax: The registration tax for the title certificate is 0.5% of the value of the property.
- Personal income tax (resale): If you earn personal income by transferring or reselling an apartment and a house, you must pay a personal income tax at 2% of the value of the transaction.
- Personal income tax (rental income): If you earn personal income by renting a house or an apartment, you must pay 5% VAT and 5% personal income tax. For a monthly rental of more than 150,000 Vietnamese dong (about 9 SGD), an annual fee of 1,000,000 Vietnamese dong (about 60 SGD) is required to pay a business license application fee.
With the Vietnam real estate policies for foreigners relaxing coupled with low prices in Vietnam, this country is surely on its way to further economic development. If you are looking for a suitable overseas real estate investment area, you should definitely consider getting it in Vietnam.