Rental property tax for individual owners (local and expat) in VN

The property market in Vietnam has been amazingly developed in the past few years.  Individuals (including local and expatriate) buying apartments, houses and then leasing them out under a standard lease agreement is getting more and more common in Vietnam. This practice raises tax implication for the rental income according to the current tax laws and regulations.  

Tax on property gains

Vietnam will impose a tax of 25 percent on capital gains in property transactions as it moves to curb skyrocketing prices and speculation, the National Assembly, or parliament, said.

The tax, in addition to a 2-percent transfer tax already in place, would be applicable from January 2009, the office of the one-party legislature said in a report seen on Wednesday.

What are main characteristics of Business Licence Tax (BLT) in Vietnam?


Similar to other business entities in Vietnam, FDI Enterprises are required to pay BLT on the annual basis at the beginning of a calendar year. The tax amount is based on each entity’s legal capital as follows:


Levels of BLT

Legal Capital (VND)

BLT amount (VND)

Level 1

over 10 billion


Level 2

5 billion – 10 billion


Level 3

2 billion – 5 billion


Level 4

below 2 billion