Important Update on New Real Estate Taxes in Ho Chi Minh City
Some important changes regarding real estate taxes in Ho Chi Minh City, which have taken effect as of August 1, 2024. These new regulations are crucial for foreign investors to understand, as they impact real estate transactions in Vietnam.
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The key points of the new policies:
The new tax policies in Vietnam introduce several significant changes aimed at increasing transparency and regulating the real estate market. First, real estate transactions must now reflect the actual selling price, ensuring accurate tax calculations and preventing undervaluation. Second, certain property transactions are required to be made via bank transfer, which enhances accountability and reduces the potential for tax evasion. Additionally, the old land price framework has been eliminated, with annual land prices now determined based on current market values, making land taxes more reflective of real-time economic conditions. Finally, real estate brokers are no longer allowed to operate independently; they must work under a registered agency, a move intended to professionalize the industry and ensure accountability.
Good News
The HCMC People’s Committee has just allowed the continued use of the current land price framework to calculate taxes for any applications submitted after August 1, 2024. This temporary measure will remain in place while the new land pricing framework is being finalized.
In addition, a backlog of 8,808 property tax applications that have been on hold for over a month and a half are expected to be processed shortly. This is welcome news for both buyers and sellers who have experienced delays in recent transactions.
The area with significantly increasing property prices
The resale price of real estate in central areas is still on the rise, particularly in locations adjacent to the upcoming metro station. Properties in these areas continue to see significant demand as infrastructure developments advance. Below, a snapshot of house prices that Realtique recorded:
