Removing barriers for foreigners to own properties in Vietnam

The Vietnam Association of Realtors (VARS) has proposed allowing foreigners to purchase and own houses, including private houses and apartments, in Vietnam during the time they work in the country.

VARS said it is necessary to specify the minimum remaining working time at the time of purchase, and supplement conditions when foreigners purchase a certain number of properties, to prevent speculation.

The property tax should be applied progressively, increasing based on the number of properties owned, and the tax rate may gradually rise if the property owner does not use the properties in business activities, the association said.

The Ministry of Construction, at the recommendations of the National Assembly (NA), has proposed new policies regarding foreigners’ ownership of houses and apartments in Vietnam.

According to the ministry, the policy allowing foreign organisations and individuals to purchase and own houses in Vietnam is stipulated in Resolution No 19/2008 of the NA.

According to the Ministry of Construction, since the Housing Law of 2014 came into effect, the number of houses purchased and owned by foreigners in Vietnam has been relatively low, at around 3,000 units, mainly condominiums in commercial housing projects, without affecting the housing demand of domestic citizens.

In addition, the draft amendment of the Housing Law has tightly regulated the types of houses and areas eligible for purchase, and the number of houses allowed to be purchased and owned in a housing project.

The ministry said the provision allowing foreigners to purchase houses does not affect the implementation of other housing policies of the State, such as social housing policies, resettlement housing, or affordable housing in urban areas.

On the other hand, Resolution 18 of the Party Central Committee does not mention regulations on foreign organisations and individuals purchasing houses in Vietnam, so the Ministry of Construction proposes to maintain this provision in the draft amended Housing Law.

Vietnam News/Asia News Network – August 3, 2023