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How can foreigners buy land in Vietnam: A complete guide for 2024

Vietnam’s rapidly growing economy has made it an increasingly attractive destination for investors. As the country continues to open its doors to international investment, many foreigners are curious about the possibility of purchasing land. However, navigating the complex legal landscape surrounding foreign property ownership in Vietnam can be challenging. This article will discuss how foreigners can buy land in Vietnam.

buying land in vietnam as a foreigner

Can foreigners buy land in Vietnam?

Foreigners face significant restrictions when buying land in Vietnam. According to the Vietnam Housing Law, land is considered communal property of the Vietnamese people and is under state control. As a result, foreign individuals and businesses are not permitted to buy or possess land outright. Instead, they are offered the option to lease land for periods typically up to 50 years, with some cases allowing for extended leases of 70 or even 99 years. However, foreigners must be attentive, as regulations can change unexpectedly and often without warning. The duration of lease periods and overall eligibility are heavily influenced by current political and social conditions, making it essential for foreign investors to stay informed and adaptable when considering land use in Vietnam.

Types of land available for foreigners

Understanding the different types of land is crucial for making informed investment decisions while navigating the country’s complex property laws and regulations. Here are the three types of land available for foreigners:

  1. Residential land: This type of land is designated for building houses and residential purposes. Foreigners can lease residential land typically for up to 50 years, with the possibility of extension, allowing them to construct homes for personal use or investment.
  2. Commercial land: This type of land is intended for business or development purposes, such as building offices, factories, or retail spaces. Foreigners can lease commercial land typically for up to 50 years, providing opportunities for business expansion and investment in Vietnam.
  3. Agricultural land: This type of land is primarily used for farming, forestry, and other agricultural activities. While foreigners face restrictions on owning agricultural land, they may be able to lease it for specific agricultural projects or investments, subject to government approval and regulations.

How to buy land in Vietnam

The process of purchasing land in Vietnam can be complex for foreigners. However, with careful planning, thorough due diligence, and professional legal assistance, foreign investors can successfully navigate the Vietnamese property market and secure long-term land use rights for their projects. Below are the four steps on how to buy land in Vietnam.

Step 1: Research and choose the right location

Selecting the perfect location is crucial when purchasing land in Vietnam. The right choice can significantly impact the long-term value of your investment. As a foreigner, it is essential to understand that ownership restrictions exist in certain areas, particularly those deemed sensitive for national security reasons. When researching locations, consider factors such as proximity to urban centers and amenities, future development plans, infrastructure projects that may increase land value, and environmental factors and natural hazards.

Step 2: Secure a leasehold agreement

As a foreigner, you cannot own land outright in Vietnam. Instead, you will need to secure a leasehold agreement. Typically, these agreements offer a 50-year lease term with renewal options. This arrangement allows you to use the land for an extended period without owning it. Key terms to include in your leasehold agreement are the duration of the lease, renewal options and conditions, land use rights and restrictions, payment terms and schedules, and provisions for transferring the lease to another party. Ensure that you fully understand the terms of the leasehold agreement before proceeding.

Step 3: Conduct due diligence

Conducting thorough due diligence is crucial before finalizing any land transaction in Vietnam. This process helps protect your interests and ensures a smooth transaction. Key aspects of due diligence include checking the land title and legal ownership, ensuring the land is eligible for foreign leasehold, and verifying zoning laws and land use regulations. Verify that the seller has the legal right to lease the land and that there are no outstanding disputes or claims. Confirm that the specific plot of land you’re interested in can be leased to foreigners under Vietnamese law. Check local zoning laws to ensure your intended land use is permitted. This step is particularly important if you plan to develop the land for commercial or residential purposes.

Step 4: Sign the agreement and pay fees

Once you’ve completed due diligence and are satisfied with the terms of the leasehold agreement, it’s time to move forward with signing and payment. The signing process for land use rights in Vietnam typically involves drafting and reviewing the final agreement, signing the agreement in the presence of a notary public, and registering the leasehold with the local land office. Be prepared for various taxes and fees associated with the land transaction, including legal fees for document preparation and review, notary fees for authenticating the agreement, registration fees for recording the leasehold, and taxes, such as the land use rights tax.

Taxes and fees for foreigners buying land

Knowing the various taxes and fees involved is essential for foreigners buying land in Vietnam. Here are the taxes and fees for foreigners buying land:

  • Land use rights tax: This tax is assessed on non-agricultural land and uses progressive rates ranging from 0.03% to 0.15%. The specific rate depends on the land’s location and usage, with higher rates applied to urban areas and commercial properties.
  • Transfer tax: Buyers must pay a transfer tax, typically around 2% of the property value. This tax is calculated based on the official value of the property being transferred.
  • Registration fee: Buyers must pay a registration fee to register ownership of the property officially. This fee is usually around 0.5% of the property value and is essential for legally recognizing ownership when buying land in Vietnam.
  • Legal fees: It is highly recommended that you hire a local lawyer to navigate the property purchase process in Vietnam. While fees vary, they typically range from 1% to 2% of the property value.

Struggling to buy land in Vietnam as a foreigner? We’re here to help!

Buying land in Vietnam as a foreigner can be a complex process, from navigating legal restrictions to finding the right property and setting up a company. Our team of experts is ready to guide you through every step, ensuring that you fully understand the legal requirements and make informed decisions. Whether you need help with the entire process or specific aspects, we’re here to offer personalized support. Leave your details below, and we’ll reach out to assist you, or email us directly at [email protected] for more information.

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Our experienced team is here to assist you with buying land in Vietnam, from understanding legal requirements to finding the right property. Leave your details below for personalized support.
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Frequently Asked Questions (FAQs)

Can you buy land in Vietnam?

You cannot buy land in Vietnam, but you can lease land for extended periods, typically up to 50 years, with some cases allowing for longer leases of 70 or 99 years.

How much does land cost in Vietnam?

Land costs in Vietnam vary widely, ranging from ₫ 1.92 million ($76.80) per square meter in Binh Duong to ₫167.24 million per square meter in Ho Chi Minh City.

What are the legal requirements for foreigners to lease land in Vietnam?

The legal requirements for foreigners to lease land in Vietnam are to establish a Foreign-Invested Company (FIC) and lease directly from the government or sublease from an existing FIC that has already paid the full land rental term and developed infrastructure on the property.

Is land a good investment in Vietnam?

Land is a good investment in Vietnam, as evidenced by the average 4.12% Compound Annual Growth Rate (CAGR) in property values over the past decade and the country’s robust GDP growth of 6.7% in 2024. Still, potential investors should consider factors such as location, legal restrictions on foreign ownership, and market changes before making any decisions.

What taxes and fees are involved when buying land in Vietnam?

The taxes and fees involved when buying land in Vietnam include a land use rights tax of 0.03% to 0.15%, a transfer tax of around 2%, a registration fee of about 0.5%, and legal fees of 1% to 2% of property value.

Can Americans buy land in Vietnam?

Americans cannot buy land in Vietnam but can lease land for long periods, typically up to 50 years, with some exceptions allowing for longer leases of 70 or 99 years.

How long can foreigners lease land in Vietnam?

Foreigners can lease land in Vietnam as long as 50 years, with some exceptions allowing for longer leases of 70 or 99 years in certain cases.

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Get expert help with buying land in Vietnam
Our experienced team is here to assist you with buying land in Vietnam, from understanding legal requirements to finding the right property. Leave your details below for personalized support.
Your complete guide to buying property in Vietnam.

Valuable insights and practical advice, distilled from years of expertise and real-world experience.

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Your complete guide to buying property in Vietnam.

Valuable insights and practical advice, distilled from years of expertise and real-world experience.

property investment guide Vietnam cover