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Housing regime for foreigners in Vietnam

1. The foreigners' house ownership right in Vietnam

Ownership is one of the most important and fundamental rights of every individual or organization. Owners have the right to possess, use and dispose of their properties. In particular, housing is a type of property. Therefore, the house owners of foreigners in Vietnam must be built base on the basis of property ownership regulations. The foreigners' house ownership right is the right of the owner performing their right to use, possess and dispose of their house according to the law provisions. Thus, the same with the owners of other properties, the owner of property being house still has all three powers: possession, use and disposition. However, the foreigners’ house ownership right is more limited than that of Vietnamese.

Forms of establishing legal house ownership include: investing in house construction, receiving house ownership by house transactions. However, according to Vietnamese laws, there is a clear difference in how to establish the Vietnamese’s and foreigners’ the ownership of houses[1]. Accordingly, foreigners are only entitled to buy, hire-purchase, receive as gifts, inherit commercial houses in housing construction projects being not in areas that ensure national defence and security. Moreover, foreigners can only receive the ownership of houses transfer from other people to commercial houses in housing development projects. In addition, the transaction is limited to four types of transactions (purchase, lease purchase, inheritance and donate to the home). Foreigners do not have the right to receive the transfer of land use rights to build houses like Vietnamese residing abroad, and do not receive houses through all civil transactions in housing as individuals in the country (such as not receiving capital contribution, exchanging of houses).

Although there are differences in the basis for establishing ownership and the way to create houses, the ownership of foreigners' houses is still defended by the law like Vietnamese people. In case of extreme necessity for national defence and security purposes; Socio-economic development for the sake of the nation, the public or in a state of war, a state of emergency, natural disaster prevention and control, the State decides to solicit, requisition, pre-purchase houses or clear houses For houses under the lawful ownership of organizations, households or individuals, the State shall pay compensation, support and implement the resettlement policy for house owners according to the provisions of law.

2. Conditions for foreigners to own houses in Vietnam

Subjects and conditions for owning a foreigners' house include[2]:
 
  • Foreigners invest in housing construction under projects in Vietnam: conditions for entities implementing housing projects are to establish enterprises. Then there is the transformation of the subject from the individual to the organization.
  • Foreign individuals are allowed to entry Vietnam.
Moreover, foreigners can only buy commercial houses in the project and separate houses. Accordingly, foreign individuals are entitled to own houses in Vietnam through the following forms: buying, renting, receiving, giving, inheriting commercial houses including apartments and separate houses in the project, housing construction investment projects, except areas with national defence and security requirements prescribed by the Vietnamese Government.

3. The number of houses that foreigners are allowed to own in Vietnam

Foreigners are only allowed to own a certain number of houses. The number and ratio of determining the number of houses in a housing construction investment project in Vietnam owned by foreigners are specified in Vietnamese law.

Foreigners are only allowed to buy, hire-purchase, receive as gifts, inherit and own no more than 30% of the number of apartments in an apartment building; In case of separate houses, including villas and adjacent houses, in an area with a population equal to a ward-level administrative unit, it is allowed to buy, rent-buy, donate, inherit and own only no more than 10% of the total number of houses.In cases where an area of the population equivalent to a ward-level administrative unit has many apartment buildings for sale or lease-purchase, foreigners may own no more than 30% of the apartments of each court apartment buildings and no more than 30% of the total number of apartments of all these apartment buildings[3].

An apartment building (including a mixed-use apartment building), foreigners may own no more than 30% of the total number of apartments for residential purposes of that building. In case an apartment building has multiple units or blocks of blocks sharing the same podium, foreigners may own no more than 30% of the total number of apartments with a purpose to stay off each block[4].

4. The house ownership term of foreigners in Vietnam

Except for the number of houses that foreigners are allowed to own, the house ownership term is also one of the regulations limiting the ownership of foreigners in Vietnam about terms of time. While domestic organizations and individuals, Vietnamese residing overseas are allowed to own houses for a long term, the unlimited number of years; foreigners can only own houses under agreements in transactions on house purchase, sale, hire-purchase, gifting or inheritance but for no more than 50 years, from the date the certificates are granted.

Upon expiration, if the owners wish, they may be considered and extended by the State according to the Government's regulations. The house ownership duration must be clearly stated in the certificate (except foreigners who marry Vietnamese, own houses stable, long-term and have the same rights as house owners being Vietnamese).

Before the expiration of house ownership under the Housing Law, the owner may donate or sell this house to subjects entitled to own houses in Vietnam; If past the prescribed time limit, the house owner does not sell or donate the house, then the state-owned house:
 
  • In case of selling or giving away houses to domestic organizations, households, individuals or Vietnamese residing overseas, the buyer or recipient of the house may own houses for a long and stable term.
  • In case of selling or giving a house to an organization or a foreigner eligible to own houses in Vietnam, the buyer or recipient of the house may only own the house for the remaining duration; upon the expiry of the remaining ownership duration but the owners wish to extend it, the State shall consider it.
Extension of house ownership term: Three months before the expiry of house ownership, owners (foreigners) may be granted an extension of the house ownership duration of foreigners in Vietnam. Except for the case when the first time of ownership expires, the foreigner is decided to leave the country or forced to terminate operation in Vietnam by a Vietnamese competent authority, it is not allowed to extend the ownership period as prescribed of Vietnamese law[5].
 
[1]Clause 2, Article 8 of the Housing Law
[2] Article 74 of the Housing Law
[3]Clauses 3 and 4 of Article 76 of Decree 99/2015/ND-CP
[4]Clause 2, Article 159 of the Housing Law
[5] Article 77 of Decree 99/2015/ND-CP
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