Vietnam » The Purchase Process

The purchase process in Vietnam is rather tricky because foreign nationals can not possess freehold property in Vietnam. In fact not even Vietnamese Nationals can be the sole owner of the property, because Vietnamese government follows the communist agendas and land is owned by the people but it is regulated by the state. The laws regarding buying and possessing property by the foreign nationals were really strict earlier. Before 2003 the foreigners could only rent property for living, but after 2003 certain reforms were adopted which gave some rights to foreign nationals regarding the ownership of the property. The international Property Brokers Guide to buying property in Vietnam is:

• However one of the leading estate agent company is Vietnam has introduced a scheme where the foreigners can hold a 50 years lease for the given property and land. The buyer gets the right to own the apartment for the next 50 years, and the lease could be renewed after the expiry of the term. This contract, gives the buyer many rights of ownership including the right to sub-let the given property.
• Forming a joint venture company with a Vietnamese partner or forming a wholly foreign owned company can also grant the foreign investor the right to invest in Vietnamese real estate.
• Foreign residents in Vietnam can own the house for living but they are not given the right to sub-lease these houses. If they leave the country more than 90 days, there contract is expired.
• One important fact about buying property in Vietnam is that all the transactions are carried out in pure gold. So the fluctuation in the gold rates plays a major role while buying property in Vietnam.
• The land registry process in Vietnam is varied everywhere, it could take 67 days and the cost of registry is the lowest in the world.

Fees and Taxes

The fees and taxes for real estate buying process in Vietnam are the lowest in the world. Approximately it will cost 6% of the actual cost of the property. The cots are given below:

VAT                          5%
Registration Fee        1%
Total Cost                  6%