How Can Foreigners Invest in Real Estate in Vietnam?

[ASEAN NOW News]

Foreign individuals who want to set up a foreign-invested real estate business in Vietnam must carry out the procedures for issuance of an investment certificate.

 

Selling real estate has becoming a global business with many international realtors opening offices all over the world including Asia.

 

Foreigners often feel more comfortable dealing with a well-known agent, so foreign agents are taking a lot of the business from local competitors.

 

 

However, there are several steps to setting up shop overseas, especially here in Vietnam.

 

Foreign organizations and individuals, when conducting real estate service business, must establish an enterprise or a cooperative, register for real estate service business in accordance with law, and are not allowed to do real estate business on behalf of individuals.

 

According to vietnamtimes.org.vn, foreign individuals who want to set up a foreign-invested real estate business in Vietnam must carry out the procedures for issuance of an investment certificate in accordance with the law.

 

The Law on Real Estate Business 2014 stipulates that real estate business needs the following conditions:

 

1. Conditions of real estate put into business

Houses and construction works put into business, must fully meet the following conditions:

Having registered ownership of houses and construction works attached to land in the certificate of land use right.

For existing houses and constructions in real estate investment projects, only a certificate of land use right is required in accordance with the provisions of the law on land.

There is no dispute over land use rights, ownership of houses and construction works attached to the land.

Not being distrained to ensure judgment enforcement.

 

2. Conditions of types of land permitted to trade in land use rights

Having a certificate of land use right in accordance with the law on land.

There is no dispute over land use rights.

The land use right is not distrained to secure judgment enforcement.

Photo: baoxaydung

 

3. Conditions of organizations and individuals doing real estate business

Organizations and individuals dealing in real estate must establish an enterprise or a cooperative (hereinafter referred to as an enterprise) and have a legal capital of not less than VND 20 billion (US$874,250), except for the case specified in Clause 2.

Organizations, households, and individuals that sell, transfer, lease, lease-purchase real estate on a small scale, infrequently, are not required to establish businesses but must declare and pay tax in accordance with law.

The Government details this.

 

4. Real estate business form of foreign-invested enterprises

The forms specified at Points b, d, h Clause 1 and Point b Clause 2.

 

For leased land in industrial parks, industrial clusters, export processing zones, hi-tech zones, economic zones, it is permitted to invest in the construction of houses and construction works for business in accordance with the land use purposes.