Guide to Selling Property in Vietnam: Steps and Legal Requirements

Guide to Selling Property in Vietnam: Steps and Legal Requirements

As you stand at the crossroads of selling property in Vietnam, envision the intricate steps and legal intricacies that lie ahead. Navigating through the process of property sales in a foreign land like Vietnam can be as challenging as it is rewarding.

But fear not, for understanding the nuances of selling property in Vietnam, especially in bustling cities like Ho Chi Minh City, can be your key to a successful transaction. Understanding the legal requirements and steps involved is crucial to ensuring a smooth and fruitful property sale experience.

With more than 10 years experience in the field, I believe in order to succeed in reselling a residential property in Vietnam requires decent preparation. Sometimes, you don’t need to go through all of them or must get all of the details of the flow as it can’t be easy to comprehend, delegating the job to real estate agent will solve everything.

Foreigner’s Guide to Selling a Residential Property in Vietnam Ho Chi Minh City

Looking to sell your residential property in Ho Chi Minh City as a foreigner? Selling real estate in Ho Chi Minh City can be a lucrative opportunity, but as a foreigner, there are specific steps and legal requirements you need to be aware of.

First, ensure that you have all the necessary documentation in order, including your valid passport and relevant property ownership papers. Sometimes, your passports are expired and you need to make new ones. Do keep the old ones with you as they will be needed to show the notary together with the new ones for the reselling.

Additionally, as a foreigner selling property in Ho Chi Minh City, you’ll need to obtain a tax code from the local tax office. This code is essential for completing the property transfer and ensuring compliance with Vietnamese tax laws. By following these steps and seeking professional guidance, you can successfully sell your property in this vibrant city.

What is the process for selling residential property in Ho Chi Minh City as a foreigner?

To sell residential property in Ho Chi Minh City as a foreigner, you must ensure compliance with specific legal requirements and follow a structured process. Firstly, it’s essential to obtain a Certificate of Land Use Rights and Ownership of Houses and Assets on Land (also known as a pink book) to prove your ownership of the property. However, most of the cases, foreigners will not have these, but will just hold the Sales and Purchase agreements which will be just fine.

Next, you should engage a reputable real estate agent or lawyer who understands the local market and regulations to assist you in the selling process. Lawyers will like an over kill for this as working with a decent real estate agent already can make the job done. At Realtique, with years of experience in assisting foreigners reselling properties, we surely can give you a hand, just email or call us, we will answer.

Once you have a buyer interested in your property, both parties need to negotiate and agree on the terms of the sale. A sales and purchase agreement should be drafted, outlining the conditions, price, and payment method.

After signing the agreement, you’ll need to transfer the property ownership rights to the buyer at the nearest local Notary Office, updating the transfer of ownership to the new owner. At this stage, you can collect all of the payment of the resell.

After that, the transfer confirmation from the notary office will be needed to submit back to the developer in order to let the developer update the new owner name. 

For the last owner, bringing required documents to tax department to pay the transfer tax will be the last step. This will help you have the ticket to transfer the money out of Vietnam successfully.

What are the costs a foreigner has to pay when selling a home in Ho Chi Minh City?

When selling a home in Ho Chi Minh City as a foreigner, you’ll incur various costs associated with the transaction. Firstly, there’s a personal income tax of 2% on the selling price, which is typically split paid by the seller.

Additionally, you may need to pay a real estate agent commission, usually from 2% of the property’s selling price. Another cost to consider is the notary fees for certifying documents, which can range around 500USD. If the property has Pink Book, 0.5% will need to be paid to update the new owner name on this book, which is typically paid by the buyer.

Moreover, if there are outstanding fees on the property, such as utility bills or property tax, you’ll be responsible for settling these before the sale can proceed. It’s also essential to account for any capital gains tax that may apply if the property has appreciated in value since its purchase.

Being aware of these costs upfront will help you plan your finances effectively when selling your home in Ho Chi Minh City.

How to collect payment and move sale proceeds out of Vietnam?

You can transfer the sale proceeds out of Vietnam by following specific legal procedures and requirements. To do this, you must open a bank account in Vietnam. Once the property sale is completed, the buyer will transfer the funds to this account. Ensure that all taxes and fees related to the property sale are settled before initiating the transfer.

After receiving the funds in your bank account, you can request a transfer of the proceeds to your overseas bank account. You’ll need to provide documentation proving the legality of the funds, such as the sales contract, proof of tax payment, and a certificate of inheritance (if applicable). The bank will then process the transfer based on the information provided.

In my opinion, as a foreigner, choosing the right local bank will be very important as these bankers are more familiar with working with foreigners and can speak English well. Some recommendations for banks in Vietnam will be HSBC Vietnam, Standard Chartered Vietnam, UOB Vietnam… Do drop us an email or text for better guidance on which bank can match you well.

It is crucial to comply with Vietnamese regulations regarding the repatriation of funds to avoid any legal issues. Consulting with a legal expert or financial advisor can help ensure a smooth and compliant transfer of the sale proceeds out of Vietnam.

Conclusion

In conclusion, selling a property in Vietnam as a foreigner may seem daunting, but with the right guidance and understanding of the legal requirements, it can be a smooth process.

By following the necessary steps, preparing the required documents, and being aware of the costs involved, you can successfully sell your residential property in Ho Chi Minh City.

Don’t forget to carefully plan how to collect payment and move the sale proceeds out of Vietnam to complete the transaction.