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Sohaib Ikram
Sohaib Ikram serves as the Director of Emerhub in Malaysia.
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Andi Refandi
Andi serves as a Senior Account Executive on Emerhub’s global team.
Vietnam’s rapid urbanization in major cities such as Ho Chi Minh and Hanoi is driving the country’s housing demand. With the government’s effort to attract Foreign Direct Investments (FDIs), many expats are relocating to Vietnam from all over the globe.
Whether you want to invest in Vietnam’s real estate industry or purchase a condo for personal use, you must understand the country’s regulatory landscape. In this article, we will cover everything you need to know to buy a condo in Vietnam from property ownership laws to eligibility requirements.
Key Considerations for Buying a Condo in Vietnam
Condo Ownership Laws in Vietnam
Foreigners face specific restrictions that differ from local condo buyers in Vietnam. Current regulations restrict foreigners from owning land outright but allow them to own residential properties such as condos through buying, leasing, or inheriting commercial housing.
Leaseholding is the most common method used by foreigners for buying a condo in Vietnam. Foreigners can own up to 30% of the units within a condo building with a 50-year ownership period through leasehold ownership. There is an option to extend ownership for another 50 years when necessary.
If you are married to a Vietnam national, you can enjoy the same property ownership as a Vietnamese citizen through freehold ownership. You will get full ownership rights to the property indefinitely and no ownership limits. You can also use your condo as collateral for loans and get access to credit in Vietnam.
Popular Areas to Buy a Condo in Vietnam
Major cities like Ho Chi Minh City and Hanoi feature a diverse range of condos catering to different budgets and lifestyles. Condo prices in Vietnam vary widely depending on location, amenities, and property type. The most popular locations for condo purchasing are as follows:
- Ho Chi Minh City – Being the largest city in Vietnam, Ho Chi Minh City has plenty of options for both local and condo buyers. Here are key areas in the city:
- District 1 – The central business district is known for its vibrant lifestyle, luxury condos, and proximity to major attractions.
- District 2 (Thao Dien) – features modern infrastructure and is popular amongst expats.
- District 9 – seen as an emerging tech hub in the city with major offices and infrastructure developments.
- Hanoi – As Vietnam’s capital, Hanoi is a melting pot of culture and modern comforts. Here are some ideal condo locations in Hanoi:
- Hoan Kiem District – a historic area that offers a mix of traditional culture and modern living, with many high-end condos available.
- Dong Anh – With ongoing infrastructure improvements, this area is becoming increasingly popular for residential projects.
- Coastal regions in Vietnam – Aside from Hanoi and Ho Chi Minh’s bustling metropolis, Vietnam also has plenty of coastal locations:
- Da Nang – Known for its beautiful beaches and growing tourism sector, Da Nang is a hotspot for both local and foreign investors.
- Nha Trang – As a major tourist destination, Nha Trang attracts buyers looking for vacation homes or investment properties in the tourism sector.
- Phu Quoc – As a developing resort island, Phu Quoc is gaining attention for luxury condos and beachfront properties.
- Binh Duong and Long An – due to its proximity to Ho Chi Minh, these peripheral provinces have more affordable condos.
How to Buy a Condo in Vietnam
Setting up a Legal Entity in Vietnam
The most common way to buy a condo in Vietnam is to set up a legal entity in the country. You can establish a foreign-owned Limited Liability Company or a Joint Venture with a Vietnamese partner:
| Legal Structure | Details | Requirements |
| Foreign-owned LLC | – 100% foreign ownership in most sectors. – Can acquire leasehold rights for up to 50 years with the possibility of renewal. If you’re a sole owner, you have complete authority over your company’s operations and decisions regarding property management. | – Investment Registration Certificate (IRC) – Enterprise Registration Certificate (ERC) – Secure a valid office address – Appoint corporate officers or a general director currently residing in Vietnam – Submit necessary documentation (e.g., financial statements, ID) |
| Joint Venture Company | – Can hold property indefinitely through a local partner, enabling long-term investments and flexibility in property management. – Can facilitate real estate activities like residential development and property leasing allows access to larger projects unavailable to wholly foreign-owned entities. | – IRC and ERCSecure a valid office address – Joint venture agreement outlining roles and contributions – Submit necessary documentation (e.g., business registration from partners) |
How to Ensure Due Diligence When Buying a Condo in Vietnam
Conducting due diligence is crucial when entering into agreements with local partners to avoid potential liability risks. Alternatively, Emerhub can serve as a nominee company, offering you a local partner while establishing legal agreements to safeguard your rights as a business owner. Here are some best practices you should follow:
- Verify Ownership and Land Use Rights – Confirm the property title by obtaining the pink or red book, which serves as proof of ownership. Ensure the seller’s name matches the title and investigate for any undisclosed claims or mortgages.
- Review Agreements – Examine purchase and lease agreements for compliance with Vietnamese law. Ensure that all terms are clear and reasonable, including dispute resolution mechanisms like arbitration clauses to handle potential conflicts.
- Investigate Liabilities – Conduct a thorough review of any outstanding debts associated with the property, such as taxes, utility bills, or service charges. This helps avoid inheriting financial obligations post-purchase.
It is highly recommended to work with local experts when establishing property contracts in Vietnam. Emerhub’s property team can help you conduct thorough due diligence as well as review legal documentation to ensure that you protect your property assets in Vietnam.
Buying a Condo without a Legal Entity
You can also buy a condo in Vietnam without the need to establish a legal entity. Foreign ownership of a condo is still considered a leasehold arrangement for a maximum of 50 years. Here’s what you need to buy a condo without a legal entity:
- Valid passport and visa
- Proof of funds or bank statements
- A notarized sale and purchase agreement
- Registration certificates for ownership and land use.
Before you sign an agreement with the property owner, do your due diligence and include extension clauses and other favorable terms on the contract. Emerhub’s advisors are available to assist you in negotiating favorable terms in your agreement.
Do you need a Visa to Buy a Condo in Vietnam?
Recent amendments to land ownership laws and government efforts encourage foreign investment, making it easier for foreigners to buy property in Vietnam. With a valid passport and short-term entry visa, you can easily buy a condo in Vietnam.
Securing a residential property in Vietnam is also an essential step if you are planning to relocate to the country. After buying a condo in Vietnam, Emerhub can help you obtain long-term visas by using your condo address as proof of accommodation while in Vietnam.
Here’s how we can help you through the process:
- Our experts will prepare all the necessary documents required for a visa application
- We handle the submission of documents to the Vietnamese Immigration Department on your behalf.
- After your visa is approved, we will arrange its delivery either at the Vietnamese Embassy or upon arrival in Vietnam.
Whether it’s for your accommodation or business, buying a condo in Vietnam requires intricate knowledge of the legal landscape. Fill out the form below and get ready to buy your dream home!
FAQs About How to Buy a Condo in Vietnam
You can buy a condo in Vietnam with cash. Foreigners have the option to make cash payments directly into the seller’s bank account or deposit the funds into their own Vietnamese bank account before transferring them to the seller. However, it’s important to note that if you bring more than $5,000 in cash into Vietnam, you must declare it upon entry to comply with local regulations.
If you decide to sell your condo in Vietnam while still under a leasehold, you need to make sure you have all the necessary documentation. This involves proof of ownership or “pink book” or a Sales and Purchase agreement, along with your valid passport. You also need to obtain a tax code from the local tax office to execute the property transfer legally.
After negotiating new terms, the ownership transfer must be conducted at a local notary office, where the transaction is officially recorded. After notarization, it’s essential to submit the transfer confirmation to the property developer for their records. Keep in mind that selling property in Vietnam as a foreigner may involve certain taxes, including a personal income tax on the sale price and potential notary fees.
As a foreigner, you can rent out your condo in Vietnam. It is important to notify the relevant local authorities about the rental agreement and to pay any applicable taxes on the rental income.
When renting out your condo, it’s advisable to draft a clear lease agreement that outlines the terms of the rental, including duration, payment schedules, and maintenance responsibilities. While notarization of the lease contract is no longer mandatory, both parties must register the rental agreement with local authorities within 24 hours of signing.
