In this publication, Hai Phat Global will bring the comprehensive explanation of Vietnamese laws and regulations on Conditions for foreigner to own house legally in Vietnam and the real looks.
Article 160, Law on Housing 2014:
– For foreign individuals and entities investing in building residential project in Vietnam that have to get the investment certificate in advance and own house in that project.
– For foreign invested-capital enterprises, branches, representative office of foreign companies, investment funds, and branches of foreign bank, those are operating in Vietnam have to acquire investment certificate or relevant operational documents \ in Vietnam.
– For foreign individuals:
* Get a permit to entry into Vietnam: Valid passport and stamped the entry seal of Vietnam Customs
* Not given diplomatic immunity and privileges under the Vietnamese Laws.
With three subjects above, individual owning house is the most popular and the easiest, now.
Individual only needs to get a permit to entry into Vietnam, valid passport and not given diplomatic immunity and privileges.
For foreign enterprises, when investing in Vietnam to carry out real estate trading activities, they shall fall under the scope of the Investment Law of 2014 and in accordance with the provisions of this Law, foreign enterprise shall invest in Vietnam in the forms of: Implementation of investment project; establishment of economic organization; investment in capital contribution, share purchase, capital contribution of economic organization; BCC investment are required to apply for an investment certificate.
For foreign investors, who invest in establishing an economic organization in Vietnam, in addition to the procedures for applying for an investment certificate, the foreign investor also will have to implement the second step of establishing a legal entity under Provisions of the Enterprise Law 2014.
Legal perspective on real estate trading
At present, real estate transactions of foreign individual are dominated by the demand for housing of this subject is weighted as well as the dossier needs to provide is quite simple and easy to meet.
In fact, at the stage of signing the sales contract, transaction and payment of housing with the investor are not the problem, but at present, many cases are “holding” at the step of applying for Ownership certificate of housing for foreigner.
Currently, only the Department of Construction Hanoi publicizes the list of projects allowing foreigner to own properties, which is as the basis for the Department of Natural Resources and Environment Hanoi to carry out procedures for issuing certificates. Other localities, even Ho Chi Minh, have not publicized this list, yet. So, in some cases, the buyer is not issued the ownership certificate, yet.
Notes to investor
Prior to considering the proper project to purchase, foreign investors should request to see the approval for sale to foreigners and ownership issues.
In these cases, before giving any advice to the foreign investor, the estate agent should carefully examine the legality of the project beforehand.
Hai Phat Global always provides projects with the “perfect” legal status to foreign investors in addition to the condition of sales to ensure eligibility for the issuance of ownership certificate for housing.
In the coming publication, Hai Phat Global will provide info for the reader with a legal perspective on the basic rights of homeowner who are foreign individuals and organizations.