|New regulations on real estate for foreign individuals and entities|
Transactions of real estate are regulated by two laws: Law on houses No. 65/2014/QH13 and Law on real estate trading No. 66/2014/QH13. The both laws are issued on 25 November 2014 and effective from 1 July 2015.
There are changes in regulations for foreigners, in details:
Foreigners having home ownership in Vietnam
Foreign individuals, organizations in Vietnam; foreign individuals and organizations investing in building house projects in Vietnam can have home ownership in Vietnam.
Foreign individuals and organizations investing in building house projects in Vietnam have similar rights and obligations as domestic ones. However, there are still limits in the right and obligations for other foreign individuals, organizations:
Foreigners trading real estate and real estate services
According to the Law, overseas Vietnamese and FDI firms are allowed to trade real estates and provide real estate services, meanwhile other foreign individuals and entities are only allowed to provide real estate services.
Real estate trading
Foreign individual/ entity having large-scale and regular real estate trading must establish a company with minimum charter capital of VND 20 billion deposited and confirmed by a commercial bank operating in Vietnam.
Overseas Vietnamese people are entitled to the following types of real estate trading:
Foreign entities, on the other hand, are entitled to similar types of trading, except for investment in land rented from organizations, households or individuals and land granted by the State.
Before sale or finance lease of off-plan property, investor’s financial obligations must be guaranteed by a competent commercial bank in case of the investor’s failure to hand over the property to clients on schedule. A list of 33 competent banks was issued by the State bank of Vietnam, with absence of some large ones such as Sacombank, VIB, and Eximbank.
Provision of real estate services
Real estate services include real estate brokerage, real estate exchange, real estate consultancy, and real estate management.
The conditions for real estate brokerage service providers are speficic for individuals and entities, irrespective of their nationalities:
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