Procedures for overseas Vietnamese to purchase real estate in Vietnam

In recent years, the demand among overseas Vietnamese (Vietnamese citizens residing abroad and people of Vietnamese origin living overseas) to purchase real estate in Vietnam has been steadily increasing. In response, the newly amended Land Law, recently passed by the National Assembly and set to take effect on January 1, 2025, introduces more relaxed regulations, facilitating property ownership for overseas Vietnamese. However, acquiring real estate in Vietnam comes with potential legal risks and administrative challenges. In this article, BKC Law addresses key questions regarding whether overseas Vietnamese are eligible to purchase property in Vietnam and how they can navigate the process successfully.

Upcoming regulations on overseas Vietnamese purchasing real estate in Vietnam

According to clauses 3 and 6, article 4 of the amended Land Law 2024:

*”Land users are those who are allocated land, leased land, or recognized for land use rights by the State; those who are currently using land in a stable manner and meet the conditions for obtaining a Land Use Right Certificate, a Certificate of Ownership of Residential Property and Land Use Rights, or other relevant certificates as stipulated by this Law, including:

3. Domestic individuals and overseas Vietnamese who are Vietnamese citizens (hereinafter referred to as individuals);

4. People of Vietnamese origin residing abroad.”*

How are the terms “overseas Vietnamese” and “people of Vietnamese origin” defined?

According to article 3 of the 2008 Nationality Law (amended in 2014):

*”Article 3. Interpretation of terms

In this Law, the following terms shall be understood as follows:

• ‘Overseas Vietnamese’ refers to Vietnamese citizens and people of Vietnamese origin who reside and have lived abroad for an extended period.

• ‘People of Vietnamese origin residing abroad’ refers to those who previously held Vietnamese nationality and whose nationality was determined based on the principle of bloodline at birth, including their children and grandchildren who are living abroad.”*

At the same time, article 7 of the 2014 Housing Law stipulates that eligible property owners in Vietnam include three groups:

“1. Domestic organizations, households, and individuals.
2. Overseas Vietnamese.
3. Foreign organizations and individuals as stipulated in clause 1, article 159 of this Law.”

The Land Law 2024 has clarified that land users include overseas Vietnamese who are Vietnamese citizens and people of Vietnamese origin residing abroad, along with detailed provisions expanding their land use rights and obligations. Therefore, it is completely legal for overseas Vietnamese to purchase real estate in Vietnam.

Risks associated with real estate transactions for overseas Vietnamese

Vietnam has one of the fastest urbanization rates in East Asia. Each year, an estimated 1 to 1.3 million people move into urban areas. As of September 2022, Vietnam’s urbanization rate had reached approximately 41.5%, with 888 urban areas nationwide. This has led to an unprecedented property boom, accompanied by numerous legal risks for buyers—especially overseas Vietnamese, who may face challenges in keeping up with regulations and overcoming language barriers due to prolonged absence from their homeland.

Potential risks include:

• Purchasing disputed property, which may result in inability to transfer land use rights or complete the transaction.

• Buying property located in planned development areas, which may be subject to government repossession or compensation at low prices.

• Facing forfeited deposits or contract disputes due to misunderstandings or failure to comply with signed agreements.

• Contracting with an ineligible seller. According to clause 1, article 188 of the 2013 Land Law, a land user is eligible to transfer land use rights if they meet the following conditions:

  • Possess a Land Use Right Certificate.

  • The land is not under dispute.

  • The land use rights are not subject to judicial seizure for debt enforcement.

  • The land is still within the legally designated usage period.

• Other risks include fake land title documents, fraudulent contracts, incorrect land location details, and mismatches between actual property conditions and official records, which can lead to difficulties in registration.

Procedures for overseas Vietnamese to purchase real estate in Vietnam

Step 1: Verify the property’s legal status

Before proceeding with a purchase, it is crucial to verify the legal status of the property to mitigate risks and avoid unwanted consequences. The property must meet the following conditions:

• Have a Land Use Right Certificate, Ownership Certificate for Housing and Other Assets Attached to Land(except for properties under future development).

• Not be involved in disputes, complaints, or lawsuits regarding ownership.

• Not be subject to judicial seizure or administrative enforcement actions.

• Not be located in areas designated for land repossession, demolition, or clearance by government authorities.

Step 2: Negotiate and finalize purchase terms

Once the property is confirmed as eligible for transfer, the buyer should negotiate the following terms:

• Transfer price

• Payment schedule

• Rights and obligations of both parties

• Personal income tax and registration fees

Step 3: Sign a deposit agreement for property transfer

A notarized deposit agreement should specify:

• The deposit amount

• The deposit period

• Penalties for default

This contract should be notarized at a competent authority to ensure legal protection.

Step 4: Complete property transfer procedures

The required transfer documents include:

• An application for a Land Use Right Certificate, Housing Ownership, and Other Assets Attached to Land(as per the prescribed form).

• A notarized purchase agreement.

• Proof of payment of taxes and fees.

• Documents proving eligibility to own property in Vietnam, including nationality and origin verification.

According to clause 2, article 5 of Decree 99/2015/ND-CP, overseas Vietnamese must provide:

*”2. For overseas Vietnamese, the following documents are required:

a) If holding a Vietnamese passport, it must be valid and bear an immigration stamp from the Vietnamese immigration authority.

b) If holding a foreign passport, it must be valid and bear an immigration stamp from the Vietnamese immigration authority, along with one of the following:

• Proof of Vietnamese nationality

• A certificate confirming Vietnamese origin issued by the Department of Justice or a Vietnamese diplomatic mission abroad.”*

The application must be submitted to the Department of Natural Resources and Environment or the Land Registration Office in the location where the property is being purchased. The buyer and seller may agree on who handles the legal procedures, whether they complete them personally or authorize a lawyer to process the transaction with Vietnamese authorities.

Legal services for overseas Vietnamese purchasing real estate in Vietnam

With an experienced team of lawyers, BKC Law is a trusted legal partner offering expert bilingual consultation and assistance for overseas Vietnamese purchasing real estate in Vietnam. If land disputes arise, BKC Law provides legal support while ensuring strict adherence to Vietnamese law.

Additionally, BKC Law offers services including:

• Litigation & dispute resolution

• Post-incorporation business services

• Comprehensive accounting & tax services

• Legal services for foreigners in Vietnam

For a free legal consultation at BKC Law, you can contact our lawyers using the information below:

Phone: 0901 3333 41
Email: info@bkclaw.vn

District 1 Office: 9th Floor, Diamond Plaza, 34 Lê Duẩn, District 1, Ho Chi Minh City
Binh Tan Office: 41 Tên Lửa, Binh Tan, Ho Chi Minh City

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