a. Ownership of Land and housing

- According to the Article 4 of the 2024 Land Law, foreigners are not eligible to own land in Vietnam. However, they are allowed to purchase houses (including condominiums and individual houses). This regulation is outlined in the 2023 Housing Law, which will take effect on January 1, 2025.

- Clause 1, Article 17 of the 2023 Housing Law states that foreigners eligible to own property in Vietnam must be “foreigner individuals permitted enter Vietnam”. Additionally, they must not be subject to diplomatic or consular as per Vietnam Law.

- The forms of house ownership (both condominiums and individual house) include:

+ Purchasing or leasing commercial housing (from investors in housing development projects).

+ Receiving housing as a gift or inheritance in commercial housing projects that are not located in areas critical for national defense and security.

+ Purchasing or leasing housing from foreign organization or individuals who already own housing in Vietnam

- The ownership period is limited to 50 years, with the possibility of one-time renewal for an additional 50 years if required.

- If a foreigner marries a Vietnamese citizen residing in Vietnam, they can own housing with the same rights as a Vietnamese citizen (clause 2, Article 20 of the 2023 Housing Law).

b. Renting property in Vietnam

- The conditions for parties involved in housing transactions are regulated under Article 161 of the 2023 Housing Law. Accordingly, the foreign tenant and the landlord must first meet the eligibility requirement to engage in civil transactions. Additionally, the foreign tenant must be eligible to purchase property in Vietnam (as mentioned in section a above) and is not required to register residence at the leased property. The specific conditions are as follows:

+ The tenant must be a foreigner with a valid passport and an unexpired visa or entry permit

+ The tenant must not be eligible for diplomatic or consular immunity

- A written lease agreement must be established between the tenant and the landlord. This contract should clearly outline rental duration, payment terms, rights, and obligations of both parties. It is advisable to notarize the contract at a public notary office to minimize legal risks.

- Important notes when renting a house:

+ The landlord must register the foreign tenant’s temporary residence with the local police within 24 hours.

+ The tenant must pay rent on time and comply with the lease agreement. Payments can be made in VND or foreign currency, preferably via bank transfer.

Thus, foreigners are fully eligible to purchase, rent, and own property in Vietnam, allowing them to live, work, and conduct business with the peace of mind for the long term.

For further consultation on tax policies, please contact MitoU Tax Agency for more details.