How Foreigners Can Buy Apartments in Vietnam: 2025 Legal Guide
Vietnam’s real estate market continues to attract foreign investors due to its strong economic growth, competitive property prices, and high rental yields. However, foreign ownership regulations differ from those in many other countries.
This 2025 legal guide provides an in-depth look at how foreigners can buy apartments in Vietnam, covering legal requirements, ownership limits, financial considerations, and investment strategies.
Table of Contents
Vietnam’s Property Ownership Laws for Foreigners in 2025
Can Foreigners Buy Property in Vietnam?
Yes, foreigners can buy apartments in Vietnam, but specific ownership rules apply under the Housing Law of 2014.
Key Legal Provisions for Foreign Buyers
- Property Type: Foreigners can only purchase apartments (condominiums) and houses in commercial developments but cannot own land. Land ownership in Vietnam operates under a leasehold system.
- Ownership Cap: Foreign buyers can own up to 30 percent of the units in a single apartment building or 10 percent of landed properties in a development project.
- Leasehold Duration: Foreign ownership is granted under a 50-year leasehold, with the possibility of renewal. Foreign investors married to a Vietnamese citizen may obtain freehold ownership.
Recent Updates for 2025
Vietnam is considering further relaxing foreign ownership laws to attract investment. Potential changes include:
- Extending leasehold periods beyond 50 years.
- Increasing foreign ownership limits in large developments.
Foreign investors should stay informed about legal updates and work with trusted real estate agencies like Realtique for professional guidance.
Step 1: Choose a Property and Verify Ownership
- Research properties in high-demand locations such as Ho Chi Minh City, Hanoi, and Da Nang.
- Ensure the developer holds the necessary land-use rights to sell to foreign buyers.
- Work with licensed real estate agents to confirm legal status and project approvals.
Step 2: Sign a Sales and Purchase Agreement (SPA)
- After selecting a property, sign a reservation contract and pay a booking deposit (usually 5 to 10 percent of the property price).
- Carefully review the sales and purchase agreement (SPA), which outlines payment schedules, handover dates, and penalties for contract breaches.
Step 3: Make Payments as Per the Contract
- Payments are typically made in installments based on the construction schedule.
- Foreign buyers must transfer funds via a Vietnamese bank in Vietnamese Dong (VND).
Step 4: Obtain Ownership Certificate (Pink Book)
- Once the property is fully paid for and handed over, apply for the Pink Book (Ownership Certificate), which confirms ownership rights for 50 years.
Best Cities and Areas for Foreign Apartment Buyers in Vietnam
Ho Chi Minh City – Vietnam’s Leading Investment Destination
- District 1 and District 3: Prime locations with strong rental demand and appreciation potential.
- Thu Thiem & Thao Dien (District 2): A rapidly developing luxury residential area with riverfront condominiums.
- Binh Thanh District: More affordable high-rise apartments near the city center.
Hanoi – The Capital’s Best Investment Areas
- Tay Ho (West Lake District): A preferred location for expatriates, featuring luxury apartments with lake views.
- Ba Dinh and Hoan Kiem: Central business districts with high demand and limited property supply.
- Cau Giay and Nam Tu Liem: New urban developments with modern facilities and growing infrastructure.
Coastal Investment Opportunities in Da Nang and Nha Trang
- Ideal for investors interested in vacation homes, Airbnb rentals, and beachfront properties.
- Strong tourism-driven rental demand and high capital appreciation potential.
Foreign investors should focus on locations with strong capital appreciation and rental yields for long-term profitability.
Financial and Tax Considerations for Foreign Buyers
Cost Breakdown for Foreigners Buying Apartments in Vietnam
- Property Purchase Price: Varies based on location, project, and amenities.
- Value Added Tax (VAT): 10 percent of the property price.
- Maintenance Fee: 2 percent of the apartment value (one-time payment).
- Rental Income Tax: 5 percent VAT plus 5 percent Personal Income Tax on rental earnings.
- Capital Gains Tax on Resale: 2 percent of the final sale price when selling.
Mortgage Options for Foreign Buyers
- Vietnamese banks do not offer mortgages to foreign investors.
- Most foreign buyers purchase property in cash or secure financing from overseas lenders.
- Some developers provide installment payment plans during construction.
Foreign investors should consult financial advisors and work with trusted banks for international transactions to comply with Vietnamese laws.
Tips for a Smooth Apartment Purchase in Vietnam
Work with a Reputable Real Estate Agent
- Choose licensed real estate agencies with experience in foreign property transactions.
- Realtique provides expert guidance on legal processes, market analysis, and premium property selections.
Verify Legal Documents Before Signing Any Agreement
- Ensure the developer has a Pink Book for the project.
- Hire a lawyer to review contracts and verify the property’s legal standing.
Understand the Resale Process
- Foreign investors can sell their apartment to another foreigner or a Vietnamese buyer.
- Selling to a Vietnamese buyer is often quicker and easier due to fewer legal restrictions.
Plan an Exit Strategy
- Select properties with high resale value and rental demand.
- Stay updated on changes in foreign ownership laws to maximize investment opportunities.
Vietnam remains one of the most attractive real estate markets in Southeast Asia, offering affordable property prices, high rental yields, and strong economic growth. While foreign ownership laws impose some restrictions, a well-planned investment in the right locations can generate substantial returns.
For expert advice on buying an apartment in Vietnam, contact Realtique today. Our team specializes in helping foreign investors navigate legal requirements, find the best properties, and secure profitable real estate investments in Ho Chi Minh City, Hanoi, and other prime locations.
Visit Realtique.net to start your investment journey in Vietnam’s booming real estate market.
