Colin H. Says:
I heard that foreigners cannot own property in Vietnam. Is this true?
IL Executive Editor Jennifer Stevens Says:
Hi Colin,
Vietnam has long been closed to foreign property investors, but the laws changed in 2015. Now foreigners who are in the country with a visa that is valid for at least three months can own property in Vietnam.
The term “ownership,” though, does not imply that a foreigner can own a property outright, unless they are a Vietnamese returning from overseas (Việt Kiều).
Instead, foreigners are able to purchase a 50-year lease on a property, which can be extended for an additional 50 years. That lease entitles the foreign purchaser to all the rights to that property that any Vietnamese citizen would have.
The property can be rented or subleased, sold for a profit, used as collateral, donated, or passed along to heirs. This includes any real estate—single-family houses, townhouses, villas, condominiums, or apartments.
Only properties that are located in a subdivision within an authorized project are available for foreign purchase. The majority of these eligible properties are in condominium complexes or resorts that are being constructed and marketed with foreign purchasers in mind. Most of these properties fall into the luxury category, though with a bit of searching, you can find some homes for sale for less than $100,000.
Since most available properties are located in resorts that have on-site management, vacationing in a purchased unit for a week or two each year and renting it out for the remainder of the year can be a good investment strategy. In some parts of the country, properties are expected to increase 10% per year in value, as well as having the potential to earn 7% or more per year in rental income.
Owning property does not qualify an individual for a long-stay visa. Property owners can stay in the country as long as they have a valid visa, but will still have to make regular visa runs.
You can read more about visas and residency in Vietnam on the dedicated page of our website here.
Another option for living in Vietnam is to rent your home rather than buy. Rental prices can be very reasonable compared to the U.S. Check out this story that appeared in IL magazine about a town where you can rent for less than $300 a month.
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