LAWS ON FOREIGNERS' OWNERSHIP OF APARTMENTS IN VIETNAM
Article by Legal Specialist at Dai Ha Thanh Law Firm - Nguyen Le Bao Khanh - Currently majoring in Law at Ho Chi Minh City University of Law.
The process of globalisation has driven cross-border labour mobility worldwide, including in Vietnam. Vietnam is not only a source of international migrant labor, but also a destination for many workers from other countries. As a result, the real estate market has become increasingly vibrant, with growing demand for housing ownership among foreigners. Apartments are one of the two types of housing that foreigners are legally allowed to own in Vietnam.
Through this article, Dai Ha Thanh Law Firm aims to present and clarify the legal issues related to the ownership of apartments by foreigners in Vietnam.
1. General Theoretical Issues
1.1. The Concept of Ownership under Vietnamese Law
Currently, Article 158 of the 2015 Civil Code defines ownership as follows: “Ownership rights include the right to possess, the right to use, and the right to dispose of property as prescribed by law.
Thus, ownership can be understood as the legal capacity of a subject, within a certain legal scope, to exercise the rights to possess, use, and dispose of their property by law.
1.2. The Concept of Foreigners and Apartments Owned by Foreigners
1.2.1. The Concept of Foreigner
Currently, there are various legal documents in Vietnam that define the term "foreigner." Specifically, according to Clause 1, Article 3 of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam 2014: "A foreigner is a person holding papers proving foreign nationality and a stateless person who enters, exits, transits, or resides in Vietnam." and Clause 5, Article 3 of the Law on Vietnamese Nationality 2008: “A foreigner residing in Vietnam is a foreign national or a stateless person who permanently or temporarily resides in Vietnam. Other legal documents include in their definition of foreigners both “foreign individuals” and “foreign-invested enterprises”.
1.2.2. The Concept of Apartments Owned by Foreigners
Currently, Vietnamese law does not provide a specific definition of the term “apartment owned by foreigners.” However, it can be interpreted as follows:
“Apartment buildings” refer to buildings with at least 02 storeys, multiple dwelling units, common staircases and common walkways, private property and common property, common infrastructures and amenities for use by households, individuals, and organizations, including apartment buildings built for residential purposes and apartment buildings built for mixed-use purposes (clause 3, Article 3 of the 2023 Housing Law).
The term "apartment" here is understood as a private ownership section within an apartment building, as defined in Clause 20, Article 3 of the 2023 Law on Housing.
"Apartment building owners", refers to the owners dwelling units and owners of areas other than dwelling units in apartment buildings (clause 19, Article 3 of the 2023 Law on Housing).
Foreigners are permitted to own houses in Vietnam, including individual houses and condominiums (clause 2, Article 17 of the 2023 Law on Housing).
Based on the aforementioned legal grounds, it can be understood that: An apartment owned by a foreigner is an apartment in a commercial condominium in Vietnam that a foreigner has legally purchased, leased-purchased, received as a gift, or inherited, and whose ownership rights have been recognized by the State in accordance with the Law on Housing and related guiding documents.
2. Legal Provisions on Apartment Ownership by Foreigners
2.1. Eligible Entities for Apartment Ownership
Foreigners are not eligible to own land in Vietnam and cannot be named on a Certificate of Land Use Rights and Ownership of Houses and Other Land-Attached Assets under current law. However, the following foreign organizations and individuals are permitted to own houses in Vietnam, including apartments and individual houses (Article 17 of the Housing Law 2023).
It can be seen that, compared to the 2014 Housing Law, current legal regulations have been significantly expanded in a more favorable direction for foreign individuals. Now, a foreigner only needs to meet one condition - being permitted to enter Vietnam - to be eligible to own housing in the country. At the same time, the 2014 Housing Law also removed previous restrictions that only allowed foreigners with special contributions to Vietnam or those possessing special expertise or knowledge to own houses. This change was made to ensure equal rights to housing ownership for all foreign individuals. In addition, the law continues to encourage and attract foreign investors to Vietnam through forms such as project-based housing development and capital investment in operating enterprises. When such investors meet the statutory conditions, they are also allowed to purchase and own apartments like other eligible foreign entities.
2.2. Conditions for Foreigners to Be Eligible to Own Apartments in Vietnam
To be eligible for apartment ownership in Vietnam, foreigners must meet the conditions stipulated in Article 18 of the 2023 Housing Law, specifically:
1. For foreign-invested economic organizations as defined in Point a, Clause 1, Article 17 of this Law, they must be the investors of housing construction projects under this Law and the Law on Real Estate Business.
2. For foreign organizations as defined in Point b, Clause 1, Article 17 of this Law, they must possess a valid Investment Registration Certificate, Enterprise Registration Certificate, or other documents evidencing legal permission to operate or establish in Vietnam at the time of signing the housing transaction (collectively referred to as the "investment certificate"), issued by a competent Vietnamese authority following the law.
3. For foreign individuals as defined in Point c, Clause 1, Article 17 of this Law, they must not be subject to privileges and immunities under diplomatic or consular regulations.
In addition, foreigners (both individuals and organizations) seeking to own apartments in Vietnam must also comply with the documentary requirements outlined in Article 3 of Decree No. 95/2024/ND-CP dated July 24, 2024, issued by the Government to guide the implementation of certain provisions of the Housing Law.
2.3. Forms of Apartment Ownership
Clause 2, Article 17 of the 2023 Housing Law stipulates three forms through which foreigners may acquire ownership of apartments in Vietnam:
a) Foreign-invested economic organizations as defined in Point a, Clause 1 of this Article are allowed to own housing through the implementation of housing construction investment projects in Vietnam;
b) Foreign organizations and individuals as defined in Points b and c, Clause 1 of this Article may own housing through the purchase, lease-purchase of commercial housing from the investor of a housing construction project, or through receiving gifts or inheritances of commercial housing located within housing development projects that are not located in areas critical to national defense and security, as prescribed in Article 16 of this Law;
c) Foreign organizations and individuals as defined in Points b and c, Clause 1 of this Article may also own housing through the purchase or lease-purchase of housing from other foreign organizations or individuals who have already obtained ownership following Point b of this Clause.
2.4. Limitations on the Number of Apartments and Permissible Areas for Foreign Ownership
Foreign organizations and individuals are only permitted to purchase, lease-purchase, receive as gifts or inheritance, and own no more than 30% of the total number of apartments in a single apartment building. In cases where there are multiple apartment buildings for sale or lease-purchase within an area equivalent to the population of a ward-level administrative unit, foreign organizations and individuals may own no more than 30% of the apartments in each building, and no more than 30% of the total number of apartments in all such buildings within that area (Article 19 of the 2023 Housing Law).
In addition to the quantitative ownership limit, foreigners are not allowed to purchase housing located within areas designated as critical to national defense and security, as prescribed by Vietnamese law. According to clause 2, Article 16 of the 2023 Law on Housing, the Ministry of National Defense and the Ministry of Public Security are responsible for notifying provincial-level People's Committees of the specific areas requiring protection for national defense and security. These People's Committees must then publicly announce on their official portals the list of housing development projects in which foreign organizations and individuals are permitted to own housing.
2.5. Duration of Ownership
Foreign individuals are permitted to own housing in Vietnam for a maximum term of 50 years from the date of issuance of the Certificate of Ownership, and this term may be extended by government regulations if there is a legitimate need. In cases where a foreign individual marries a Vietnamese citizen, they are entitled to the same housing ownership rights as Vietnamese citizens. Similarly, if a foreign individual marries a Vietnamese citizen residing abroad, they shall enjoy the same housing ownership rights as overseas Vietnamese (point c, Clause 2, Article 20 of the 2023 Housing Law).
For foreign organizations, housing ownership is limited to the duration stipulated in the housing-related transaction agreements (purchase, lease-purchase, gift, or inheritance), but must not exceed the duration specified in their Investment Registration Certificate, including any extensions. (Under the 2014 Law on Investment, the investment term is 50 years, with a maximum possible extension up to 70 years). Additionally, foreign organizations owning housing in Vietnam are only allowed to transfer ownership (by sale or gift) to eligible entities under Vietnamese housing law during the valid ownership period. If the foreign owner fails to transfer the property before the expiration of the ownership term, the ownership of such housing shall revert to the State of Vietnam (point d, đ Clause 2, Article 20 of the 2023 Housing Law).
2.6. Payment Method
Foreigners purchasing or lease-purchasing housing in Vietnam are required to make payments through credit institutions operating within Vietnam and are not permitted to use cash for housing transactions (point c, Clause 1, Article 21 of the 2023 Housing Law). This regulation aims to control capital flows, ensure transparency in real estate transactions involving foreign elements, and facilitate the monitoring and verification of the origin of funds.
2.7. Procedures and Formalities
2.7.1. Verification of Legal Conditions of the Subject and the Apartment
Foreigners must prepare all necessary documents under the law to be eligible to own housing in Vietnam.
In addition, foreigners need to verify the legal documents related to the real estate. For the apartments in the project they intend to purchase, they should request the investor to provide the following documents:
- Business registration certificate and real estate business license;
- Investment license or official approval for investment policy;
- Land use right certificate (Certificate of land use rights) for the entire project area;
- Documents related to the investor's tax obligations and financial responsibilities;
- Construction permits and other relevant construction approvals;
- Project dossiers and construction design drawings approved by competent authorities.
2.7.2. Signing the Apartment Purchase Contract
The contract must be made in writing and include all essential contents prescribed by the 2023 Housing Law and the 2015 Civil Code (such as price, payment terms, handover schedule, rights and obligations, etc.) and must be notarized.
2.7.3. Declaration and Payment of Taxes and Fees
Foreigners purchasing housing must declare and pay taxes and fees as regulated by Vietnamese law, including:
- Registration fee (if purchasing from the previous owner);
- Personal income tax (if reselling the property later);
- Condominium management fees (as agreed).
2.7.4. Registration of Housing Ownership Rights
Step 1: The buyer applies to the Land Registration Office or the competent authority responsible for issuing the Certificate of Housing Ownership. The dossier includes:
- The apartment purchase contract;
- Valid passport and visa (certified copies);
- Proof of payment documents;
- Tax and fee payment papers;
- Official confirmation that the apartment is within the legally allowed ownership portion for foreigners in the project.
Step 2: The Land Registration Office reviews the dossier. If eligible, it will send cadastral information to the tax authority for financial obligations determination and issue a receipt with the date to receive the tax notification.
Step 3: On the scheduled date, the applicant collects the tax notification and fulfills the financial obligations (if any). The tax payment receipt is submitted back to the receiving office, which will schedule the issuance of the ownership certificate.
If the financial obligations are already fulfilled or exempted, within 3 working days from receiving the dossier and related proposal from the Department of Natural Resources and Environment, the Provincial People's Committee will sign and issue the Certificate of Ownership within its jurisdiction.
Step 4: Officials hand over the Certificate of Housing Ownership. The issuance period typically takes 15 working days from the date of receiving a complete and valid application.
After issuance, the owner holds full ownership rights such as using, leasing, transferring, bequeathing, or gifting the property, but must comply with the specific conditions applicable to foreign owners.
3. Actual Practice of Foreigners Owning Apartments in Vietnam
In recent years, Vietnam has become an attractive destination not only for foreign investors in manufacturing and services but also in the real estate sector, as the number of foreigners purchasing apartments in major cities such as Ho Chi Minh City, Hanoi, and Da Nang has been increasing. This trend partly reflects the openness of Vietnamese law in facilitating foreigners' access to and ownership of housing, and it also demonstrates that Vietnam is increasingly attractive in terms of living environment, investment, and long-term residence—especially after the 2014 Housing Law took effect, significantly expanding the rights of foreigners and foreign organizations to own housing.
As of the end of the third quarter of 2023, after more than eight years of the 2014 Housing Law being in effect, over 3,035 foreigners have purchased condominiums in Vietnam, mainly in projects located in major provinces and cities. Among them, Hanoi accounts for more than half with 1,765 apartments, Ho Chi Minh City 850 apartments, Bac Ninh 110 apartments, Binh Duong 210 apartments, Ba Ria – Vung Tau 50 apartments, etc. Most buyers come from China, South Korea, Singapore, the United States, Australia, Japan, and Malaysia. In the first half of 2024, foreigners purchased more than 1,000 apartments in Hanoi, according to statistics from the Ministry of Construction.
Regarding housing demand in Vietnam, the Ministry of Construction estimates that nearly 4 million foreigners and overseas Vietnamese have a demand to purchase houses in Vietnam.
Data from CBRE Vietnam shows that over nearly 10 years, with almost 5,000 transactions conducted by CBRE, 45% were by foreign customers, with the highest demand coming from clients from Hong Kong, Taiwan, South Korea, Singapore, followed by Europe and the United States.
However, current legal regulations still have many gaps, contradictions, and a lack of synchronization, causing difficulties in practical application. Specifically:
First, regarding the number of houses foreigners can purchase. Current law limits foreigners to owning no more than 30% of the total apartments in a condominium. This ownership ratio can create barriers for foreign investors when the number of apartments allowed to be owned reaches its limit, especially in projects nearing the 30% threshold. This makes it difficult for foreigners to find suitable apartments in the market.
Second, concerning the ownership duration for foreigners. Foreigners cannot own apartments indefinitely, which raises concerns about stability and long-term investment planning. Although ownership terms can be extended, the transfer of ownership rights is not always feasible. In cases where foreigners cannot complete the extension procedure or cannot sell the property to another party, they risk losing their home. Moreover, it becomes more difficult for organizations and individuals wanting to buy in such cases because they may not have enough time to complete the extension procedures with competent state authorities after purchasing, directly affecting both the current owner and the prospective foreign buyer.
Furthermore, before the expiration of ownership, foreign individuals or organizations can sell or gift the property to eligible buyers in Vietnam. If the buyer or recipient is a Vietnamese citizen or an overseas Vietnamese, they enjoy stable and long-term ownership rights. However, if the buyer or recipient is another foreign individual or organization allowed to own housing in Vietnam, they can only own the property for the remaining ownership term.
Third, regarding areas where foreigners are not permitted to own houses. By law, projects located in areas ensuring national defense and security are restricted from foreign ownership. The Ministry of Public Security and the Ministry of National Defense have the responsibility to notify the provincial People’s Committees about such areas. The provincial authorities must identify and publicly announce on their official websites and housing management agencies the list of housing projects where foreigners are allowed to own property. However, in practice, foreigners may worry that apartments they transact in might later be zoned as defense or security areas, raising concerns about how their properties will be handled in such cases.
Fourth, the current legal procedures remain quite complicated and require foreigners to have a clear understanding. This can pose challenges, especially for first-time buyers or small-scale investors.
In summary, although Vietnam has opened up and facilitated foreign ownership and leasing of houses to attract investment and economic development, in reality, foreigners still face many difficulties related to ownership limits, complex legal procedures, legal and financial risks, and unsynchronized regulations. To attract more foreign investors and long-term foreign residents, it is necessary to continue improving the legal framework, increasing transparency, simplifying administrative procedures, and balancing national interests with foreigners' rights.
The above is the full legal analysis provided by Dai Ha Thanh Law Firm regarding the issue of foreign ownership of apartments in Vietnam. Please contact us if you have any questions or concerns about this matter.
REFERENCES
1. Civil Code 2015
2. Law on Housing 2023
3. Law on Housing 2014
4. Decree No. 95/2024/ND-CP dated July 24, 2024, of the Government stipulating a number of articles of the Law on Housing
5. Tran Son Bach (2016), Right to Housing Ownership of Foreigners in Vietnam, Master's Thesis in Law, Hanoi Law University
6.https://vneconomy.vn/tao-dieu-kien-thuan-loi-cho-nguoi-nuoc-ngoai-duoc-so-huu-nha-o.htm, accessed on June 3, 2025