Top considerations for buying a property abroad in Vietnam
If you are attracted to the beauty and culture of Vietnam, and you have also been thinking about investing in property abroad, this might be the right place for you to begin your search. While prices are affordable, the real estate market has also been seeing a rise in property values, so you might be able to get a great return on your investment in the long run.
As with so many other countries around the world, there are some restrictions in place that foreigners need to keep in mind when they shop for real estate in Vietnam. Check out our short guide below to get an idea of what you can and can’t do as a foreign property owner there.
What properties are available for purchase in Vietnam?
As a foreigner, you can choose from a variety of properties in the many amazing cities and towns throughout Vietnam. You can even find newly constructed real estate that you can invest in to enjoy modern features and amenities.
Whether you are in search of a place that puts you in the middle of the action in a bustling city, or you would prefer to enjoy a more low-key way of life near a lovely beach, there are plenty of options to consider.
Some of the more popular destinations for foreigners who are hoping to invest in property in Vietnam include:
- Hoi An
- Nha Trang
- Hanoi
- Da Nang
- Ho Chi Minh City
- Vung Tau
When performing your search, you will find that, as a foreigner, you might only be allowed to purchase real estate in a subdivision found in an officially approved project. For example, you can look in resorts or condo complexes that have luxury units for sale for foreigners, or you might try to narrow your search to more affordable properties that you can buy out in cash.
Pro tip: The great thing about purchasing a property in a resort is that it will typically feature on-site management. If you aren’t planning on living in Vietnam, this might be a smart investment if you can rent it out for most of the year when you aren’t personally using it.
Are there any restrictions for foreign property buyers in Vietnam?
There are some restrictions that need to be kept in mind as you shop for the perfect property in Vietnam:
You can’t buy land.That’s because the land in Vietnam actually belongs to the whole population, with the government managing it all. Translation: both citizens and foreigners aren’t allowed to own land.
You might be able to lease land. A foreign company might be able to buy the rights to a piece of land and build on it. This type of lease might be good for 50 years, with the potential option of renewing it.
You might be able to buy real estate. If you’re interested in buying a house or apartment, you might be able to do so in a few different ways:
- As an individual, provided that you’re a resident in Vietnam or have a visa. However, there might be restrictions on whether or not you will be able to rent out the property to others.
- By setting up a foreign-owned company in Vietnam.
- By setting up a joint venture with a shareholder in Vietnam.
Remember:
- If you are a foreign resident in Vietnam, you can buy and own a house, but you will not own the land that the property sits on (though you might have the ability to lease that land from the government).
- Even when you buy a property, there might be terms of ownership (such as for 50 years) that will need to be renewed just as you would renew a lease.
Note: In terms of the number of properties that you can own as a foreigner, there technically aren’t any limits. However, you are not allowed to own more than 30% of the units in a complex, more than 10% of the properties that are found in a landed project, or more than 250 houses in a division.
Will owning a property in Vietnam qualify you for a long-stay visa?
No, so it will be up to you to ensure you have a valid visa while you are in the country.
How to budget to buy property in Vietnam
The location of the property that you are interested in purchasing may play a big role in the price that you will pay. For example, if you are looking for a place in Ho Chi Minh City or in Hanoi, expect that prices will likely be a lot higher than they would be in other areas of the country.
In addition to budgeting for sale price, also consider that there are additional costs, such as:
- Stamp duty
- Notary fee
- Value Added Tax (VAT)
- Registration of Title
Use OFX to make payments on your property
Sending money to Vietnam to complete necessary payments on your property can be expensive if you opt to use a bank that will end up charging you excessive margins and fees. A smarter strategy would be to use OFX to move your money swiftly and securely, with the option to call the customer support team 24/7 if you need help at any point.
Also, when you use OFX, you have the option of taking advantage of helpful tools that make transferring your money even easier. These include currency charts, market news, and market rate alerts that you can receive via email or SMS.
Investing in property in Vietnam: a move that could really pay off
While the rules for investing in property in Vietnam can certainly be confusing, don’t be dissuaded. Once you get the hang of things, and once you receive help from experts who can guide you through the process of buying real estate in Vietnam, you will be able to make smart decisions that will pay off in the long run.
IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.