More Property Ownership for Foreigners in Vietnam
Starting from July 1, 2015, foreigners will be allowed to buy houses in Vietnam.
With 77.46 percent of "yes" votes after the approval of the amended Law on Housing at the ongoing eighth session of the 13th National Assembly (NA) of Vietnam on Tuesday, the country officially removes restrictions over house ownership of foreigners in Vietnam.
Accordingly, foreign organizations, enterprises, investment funds and foreign bank branches, as well as foreign individuals that are allowed to enter Vietnam, are all eligible to buy houses in Vietnam.
Foreigners are able to buy apartments and separate houses, excluding those in the areas of defense security following government's regulations, according to the amended law.
Importantly, foreigners may now lease their property for any “purposes that is not banned by law” but must also inform the provincial house management agency before leasing the property.
Foreigners' housing ownership in Vietnam is not exceeding 50 years since the date of ownership certificate issuance, but the duration can be extended under government's regulations. Details will be provided at a later date.
Foreigners are also allowed to buy or own no more than 30 percent of the apartments in a condominium building, and less than 250 villas and separate houses in an area with a population equal to that of a ward-level administrative unit in Vietnam, according to the law.
According to the amended law, foreign individuals and entities will only be allowed to buy, receive, or inherit apartments and houses in commercial projects and not in areas that limit or ban foreigners.
According to Peter Frieske, Managing Director of CVR-Central Vietnam Realty, the no.1 real estate company in Danang and Central Vietnam, the accepted changes will positively affect the market and speed up the growith of interest in houses, villas and condominiums Danang. He adds that: "We are looking forward to the implementation of the law as only practice with successful transactions will unlock the full potential of foreign buyers."