Procedures for Overseas Vietnamese to Purchase Real Estate in Vietnam

In recent years, the demand from overseas Vietnamese (Vietnamese citizens residing abroad and persons of Vietnamese origin residing abroad) to purchase real estate in Vietnam has been steadily increasing. Accordingly, the newly amended Land Law passed by the National Assembly, which will take effect from January 1, 2025, introduces more relaxed provisions to facilitate overseas Vietnamese in purchasing housing in Vietnam. However, owning real estate in Vietnam carries potential legal risks and administrative complexities. Within the scope of this article, BKC Law addresses key questions regarding whether overseas Vietnamese are eligible to purchase real estate and the procedures for doing so in Vietnam.

I. Upcoming Regulations on Overseas Vietnamese Purchasing Real Estate in Vietnam

Pursuant to Clauses 3 and 6, Article 4 of the amended Land Law 2024:
“Users of land allocated by the State, leased by the State, or recognized with land use rights; persons stably using land and eligible for the issuance of a Certificate of Land Use Rights and Ownership of Assets Attached to Land but not yet issued by the State with a Certificate of Land Use Rights, Certificate of Housing Ownership and Residential Land Use Rights, Certificate of Land Use Rights, Housing Ownership and Other Assets Attached to Land, or Certificate of Land Use Rights and Ownership of Assets Attached to Land; persons receiving land use rights or subleasing land in accordance with this Law, including: …
3. Domestic individuals and Vietnamese citizens residing abroad (hereinafter referred to as individuals);
6. Persons of Vietnamese origin residing abroad.”

How are the terms “Vietnamese citizens residing abroad” and “persons of Vietnamese origin” defined?
Pursuant to Article 3 of the Law on Nationality 2008 (as amended and supplemented in 2014):
“Article 3. Interpretation of Terms
In this Law, the following terms are understood as follows:

3. Vietnamese citizens residing abroad are Vietnamese citizens and persons of Vietnamese origin who reside and live long-term abroad.

4. Persons of Vietnamese origin residing abroad are persons who formerly held Vietnamese nationality, whose nationality at birth was determined by bloodline, and their children and grandchildren who reside and live long-term abroad.

At the same time, under Article 7 of the Housing Law 2014, eligible entities for housing ownership in Vietnam include three groups:
“1. Domestic organizations, households, and individuals.
2. Vietnamese citizens residing abroad.
3. Foreign organizations and individuals as specified in Clause 1, Article 159 of this Law.”

The Land Law 2024 more clearly defines land users who are Vietnamese residing abroad as including both Vietnamese citizens residing abroad and persons of Vietnamese origin residing abroad, with detailed provisions expanding their rights and obligations regarding land use and management. Therefore, overseas Vietnamese purchasing housing or land in Vietnam is fully lawful.

II. Risks Associated with Real Estate Transactions for Overseas Vietnamese Purchasing Property in Vietnam

Vietnam’s urbanization rate is among the highest in East Asia. Each year, Vietnamese urban areas gain an estimated 1 to 1.3 million residents. By September 2022, the national urbanization rate reached approximately 41.5%, with 888 urban centers. This has driven unprecedented demand for real estate ownership, accompanied by significant legal risks for buyers—particularly for overseas Vietnamese, who face limitations in staying updated with Vietnamese law and language barriers after long periods abroad.

Potential risks include:

• Risk of purchasing property under dispute, preventing title transfer or further sale.
• Property located in planned development zones, subject to potential recovery with minimal compensation.
• Risk of forfeiting deposits due to misunderstandings or non-compliance with contract terms.
• Ineligible contracting party. Specifically, under Clause 1, Article 188 of the Land Law 2013, land use rights may be transferred only if the following conditions are met: possession of a certificate; no disputes; rights not subject to enforcement measures; and within the land use term.
• Additionally, buyers may encounter numerous other risks, such as forged certificates, fraudulent contracts, incorrect property location, or discrepancies between the actual condition and the certificate, complicating registration.

III. Procedures for Overseas Vietnamese to Purchase Real Estate in Vietnam

Step 1: The first consideration when purchasing real estate is to verify the property’s status to minimize risks and avoid undesirable consequences. The property must meet the legal conditions for transfer, including:

• Possession of a Certificate of Land Use Rights, Housing Ownership, and Other Assets Attached to Land (except for off-the-plan properties).
• No ongoing disputes, complaints, or litigation regarding ownership; within the ownership term for time-limited properties.
• Not subject to seizure for judgment enforcement or administrative decisions.
• Not subject to land recovery decisions or demolition notices from competent authorities.

Step 2: After confirming eligibility for transfer, clearly agree on:
– Transfer price;
– Payment schedule;
– Rights and obligations;
– Personal income tax and registration fees.

Step 3: Execute a notarized deposit contract for the transfer of housing and land, specifying deposit amount, deposit period, penalties, and notarization at a competent authority to protect your interests.

Step 4: Proceed with the property transfer procedure.
The transfer dossier includes:

• Application for issuance of Certificate of Land Use Rights and Ownership of Housing and Assets Attached to Land (standard form).
• Notarized sale and purchase contract.
• Receipt of fees and charges.

Documents proving eligibility for housing ownership in Vietnam and Vietnamese nationality/origin. Pursuant to Clause 2, Article 5 of Decree No. 99/2015/ND-CP, overseas Vietnamese must prepare:
“2. For Vietnamese citizens residing abroad:
a) If holding a Vietnamese passport, it must be valid and bear an entry verification stamp from Vietnamese immigration authorities;
b) If holding a foreign passport, it must be valid with an entry verification stamp from Vietnamese immigration authorities, accompanied by documents proving continued Vietnamese nationality or confirmation of Vietnamese origin issued by provincial Departments of Justice, Vietnamese representative missions abroad, or authorities managing overseas Vietnamese, or other documents as prescribed by Vietnamese law.”

The dossier is submitted to the Office of Natural Resources and Environment or Land Registration Office in the locality of the property. Parties may agree on who performs the procedure, do it themselves, or authorize a lawyer to handle the transfer at the relevant administrative authority.

IV. Services Supporting Overseas Vietnamese in Purchasing Real Estate in Vietnam Provided by BKC Law

With a team of highly experienced lawyers possessing solid legal expertise and strong bilingual consultation capabilities, BKC Law is confident in being one of the best legal partners in the market to assist overseas Vietnamese in purchasing real estate in Vietnam. In any subsequent land disputes, BKC Law will provide maximum support to clients in strict compliance with the rule of law.

Additionally, BKC Law offers the following services:

• Litigation and Dispute Resolution
• Post-Establishment Corporate Services
• Comprehensive Accounting and Tax Services
• Services for Foreign Nationals in Vietnam

Phone: 0967 333 246
Email: info@bkclaw.vn
District 1 Office: 9th Floor, Diamond Plaza Building, 34 Le Duan, District 1, Ho Chi Minh City
Binh Tan Office: 41 Ten Lua, Binh Tan District, Ho Chi Minh City