Vietnam Property Law for Foreign Buyers: What You Can and Cannot Buy

Who This Is For

Vietnam’s property system is fundamentally different from that of most other countries, and that difference is exactly where foreign buyers most often trip up.

Land in Vietnam is owned by the whole people and managed by the state; foreigners cannot hold permanent title to land, and can only buy specific types of commercial housing, subject to a holding-term limit, a foreign-ownership quota, and area-based restrictions.

This guide is for anyone planning, researching or already in the process of buying property in Vietnam as a foreign individual — whether in Hanoi, Ho Chi Minh City or Da Nang, and whether the purpose is living there, buy-to-let, or overseas asset allocation.

It sets out the core official rules so you understand exactly what ownership rights you can actually get before making a purchase decision, and helps you avoid acting on outdated or incomplete information.

The Legal Basis

Vietnam’s foreign-buyer rules have been updated several times. The most current framework took effect on 1 August 2024, under the 2023 Law on Housing (27/2023/QH15), the 2023 Law on Real Estate Business (29/2023/QH15), the 2024 Land Law (31/2024/QH15), and their implementing Decree 95/2024/ND-CP. Where an older source disagreed with this newer framework, the newer, law-referenced version is used below, with the difference noted in this article’s notes file.

The Core Principle: Foreigners Buy the Building, Not the Land

This is the first thing every foreign buyer needs to understand, and it is the biggest difference between Vietnam and most other property markets.

Land in Vietnam is owned by the whole people and managed by the state. A foreign individual cannot obtain permanent land ownership (freehold), and cannot apply for or hold land-use rights on their own. The land-use-rights system is reserved for Vietnamese citizens and specific eligible institutions — it has nothing to do with foreign buyers.

What a foreign buyer legally holds is ownership of the building itself — that is, the apartment, villa or townhouse within a commercial housing project. This right is confirmed through the official Certificate of Land and Attached Asset Ownership (commonly known in the industry as the “Pink Book”), which states a fixed holding term rather than permanent ownership.

Ownership of Vietnamese property is neither the same as freehold in Western countries or elsewhere in Southeast Asia, nor a straightforward equivalent of British-style leasehold. When reading developer materials, agent marketing or other online information, keep this distinction in mind to avoid being misled.

By contrast, a Vietnamese citizen who buys property generally holds freehold ownership with no fixed term, but can only resell to another Vietnamese citizen.

Who Qualifies to Buy Property in Vietnam

Under Article 17(1)(c) of the 2023 Law on Housing, a foreign individual qualifies to buy property in Vietnam if they meet two basic conditions at the same time:

• Hold a valid passport and have been lawfully admitted into Vietnam
• Do not hold diplomatic or consular immunity

The law only requires “lawful entry” and does not specify a particular visa category. Vietnamese lawyers commonly interpret this to mean that an ordinary lawful entry visa — such as a tourist or business visa — meets the basic requirement (this reading has also been supported by industry practice since the property market opened to foreigners in July 2015, allowing entry on a standard tourist or business visa without residing or working locally). But this is an industry interpretation rather than an explicit statutory list, so it is advisable to have a qualified Vietnamese property lawyer confirm your personal eligibility before signing anything.

Eligibility does not require a work visa or long-term residence permit. Whether a bank or notary requires additional supporting documents during the transaction is a separate matter, decided case by case.

A special distinction: overseas Vietnamese (Việt kiều) are not the same as “foreign individuals.” Overseas Vietnamese are a separate category under the 2023 Law on Housing, with their own dedicated set of purchase rights that are completely different from the rules for ordinary foreign individuals — the two should never be confused. If you hold Vietnamese nationality or overseas-Vietnamese status, consult a lawyer separately to confirm which rules apply to you.

What Foreigners Can and Cannot Buy

Property Types Permitted

Under Article 17(2) of the 2023 Law on Housing, a foreign individual may only buy property within a legally licensed commercial housing project, specifically:

• A residential unit in a high-rise apartment building
• A villa or townhouse (a standalone-housing type) within a planned project

This applies to both new and resale transactions:

• Buying a new unit directly from a licensed developer
• Buying a resale unit from another eligible foreign individual or foreign entity who already holds the property

Property Types Generally Off-Limits

• Privately self-built housing. Housing built on land held by a Vietnamese individual outside a licensed commercial project is not open to foreign buyers at all.
• Property in restricted national-security zones. Housing located in a military, border-defense or other security-controlled area cannot be bought by foreign capital.
• Condotels and officetels. These are built on commercial-service land and, under the legal definition, do not fall within “residential housing” — so they cannot be purchased under the residential-ownership framework at all.

Vietnamese law does not explicitly state “condotels/officetels are prohibited” — the restriction instead follows from how the land-use type and the legal definition of “housing” are drawn. There is some room for interpretation here, and market practice on this point remains mixed. If you are evaluating this type of property, it is essential to confirm the current legal and enforcement position with a lawyer before proceeding.

This is a genuine gray area across sources: some older market guidance describes condotels and officetels as eligible for a capped, non-renewable Pink Book, while the framework in force since August 2024 treats them as falling outside the legal definition of residential housing altogether, and therefore not purchasable under the foreign home-ownership regime. The newer, law-referenced position is treated as authoritative here; anyone considering this property type should get current legal confirmation before relying on either account.

Two Hard Gates Every Purchase Must Pass: the Ownership Quota and Restricted Zones

Even if the property type itself qualifies, that alone does not guarantee you can buy it. Every foreign purchase must also clear two further checks — the ownership quota and the zone restriction — and both must be satisfied.

The Foreign Ownership Quota

Under Article 19 of the 2023 Law on Housing and Article 5 of Decree 95/2024/ND-CP, the combined holdings of foreign individuals and foreign entities are capped as follows:

• Apartment buildings: foreign ownership in a single building cannot exceed 30% of that building’s total units
• Villas and townhouses (standalone housing): total foreign ownership within a single ward (phường)-level administrative area cannot exceed 250 units
• If a given ward has only one standalone-housing project, an additional sub-cap applies — no more than 10% of that project’s total units — with 250 units as the overall ceiling

A key reminder on checking the quota: provincial housing authorities publish the projects open to foreign buyers and their remaining quota on an official electronic platform, and developers are required to update this data within three working days of completing a sale. Before signing, always verify the remaining quota yourself on the official platform — never rely solely on a developer’s or agent’s verbal assurance. Once a quota is filled, any further foreign purchase application will be rejected outright, with no way to appeal.

Restricted Security Zones

Under Article 16 of the 2023 Law on Housing and Article 4 of Decree 95/2024/ND-CP, any commercial housing located in an area designated by Vietnam’s Ministry of National Defense or Ministry of Public Security as security-controlled is entirely off-limits to purchase by foreign individuals or entities. Restricted areas include:

• Border zones
• Islands
• Areas around military installations
• Other designated control zones

There is currently no single, publicly available national list of restricted zones — you cannot determine eligibility simply by knowing the city or province. Each specific project needs to be checked individually, either through the official platform or with a lawyer.

Ownership Term, Renewal, Resale and Inheritance

Maximum Term: 50 Years, Renewable Once

A foreigner’s ownership of Vietnamese residential property runs for a maximum of 50 years. The term is counted from the date the Pink Book (ownership certificate) is issued — not the contract signing date, the payment date or the handover date — and the exact expiry date is printed on the certificate itself.

Renewal: One Renewal Only, for Up to Another 50 Years

When the term is due to expire, as long as you still meet the foreign-buyer eligibility conditions, you may apply once for renewal, for up to another 50 years, counted from the day the first 50-year term ends. Multiple renewals are not currently supported.

In practice, the renewal application is submitted to the local People’s Committee (the district- or province-level government body where the property is located), and generally involves the following steps:

1. Confirm the original sale and purchase agreement and the ownership certificate, checking the registered term and the property’s designated use.
2. Submit the renewal application to the People’s Committee where the property is located.
3. The local government reviews whether the property’s use complies with planning rules and whether there is any record of unauthorized use.
4. Pay the applicable administrative fee, and — for certain property types such as land-attached villas — a further land-use charge, if applicable. Renewal does not require repurchasing the property or paying the purchase price again.
5. Once approved, the authority issues an updated certificate reflecting the new term.

Renewal is not automatic — the local People’s Committee reviews it case by case, based on local planning policy and the property’s own compliance record, and there is no guarantee of approval. It is advisable to apply well ahead of expiry — ideally three to five years before the term ends, and by law, at least three months before expiry at the latest — and to work with a lawyer or local advisor to prepare the application in advance. Some sources note that approval has tended to be smoother and more transparent in major cities such as Ho Chi Minh City and Hanoi than in smaller or more sensitive areas, though this can vary by project and is not a guaranteed rule.

If the term expires without renewal or resale, the property’s land-use rights revert to state management. This does not mean instant confiscation, but the property’s value is significantly affected, and current sources do not clearly establish whether any compensation applies in that scenario — this is a genuine open question that anyone holding property long-term should track and plan around.

Resale: Foreigners Can Freely Trade With Each Other

An eligible foreign owner may freely resell their property to a Vietnamese citizen, or transfer it to another eligible foreign individual or foreign entity — in other words, a foreigner buying a resale unit from another foreigner is entirely lawful. The buyer in such a transaction does not need to already own property in Vietnam; they simply need to meet the four basic conditions: lawful entry, no diplomatic immunity, sufficient remaining quota, and the property not being in a restricted zone.

One point worth noting for anyone weighing resale timing: if a foreign owner sells to a Vietnamese citizen, the ownership term reverts to unlimited (freehold) in the new owner’s hands under Vietnamese law — a detail that can affect pricing and buyer demand as a property’s remaining term runs down.

Inheritance and Gifts: Not Always the Physical Property

If a property is received through inheritance or as a gift, the recipient may not receive the physical unit itself in any of the following situations, and instead receives only a cash payment equivalent to the property’s market value:

• The property does not fall within the types foreigners are permitted to buy
• The recipient’s total holdings would exceed the foreign ownership quota
• The property is located in a restricted security zone

An Exception for Marriage

If a foreign individual marries a Vietnamese citizen who resides in Vietnam, the arrangement for the ownership term may differ, potentially under the exception in Article 20(2) of the 2023 Law on Housing. The specifics depend on individual circumstances and should be confirmed with a lawyer.

Buying as an Individual vs. Through a Company

Most foreign buyers purchase as individuals, but a company structure is sometimes used instead, particularly for commercial, industrial or office premises.

Buying as an individual. Any foreigner holding a valid visa and passport can buy an apartment, standalone house or mixed-use property, and sign a usage-rights contract typically running 50 years, renewable as described above. On top of the purchase price, a buyer should budget for VAT of around 10% (usually already built into the quoted price), a registration/stamp duty of around 0.5%, and a maintenance-fund contribution of around 2%; if using an agent, budget an additional 2%–3% agent fee. A foreign owner may rent their unit to either foreign or Vietnamese tenants, which is a notable difference from a Vietnamese owner, whose unit may only be rented to Vietnamese tenants. On resale, a transaction tax of around 2% applies.

Buying through a company. Setting up a Vietnamese company to hold property is mainly suited to commercial, industrial or office use, and in some cases can bring industry-specific tax incentives, or sidestep the individual ownership quota. But the company route involves a more complex process and higher costs — company registration capital, registration fees, agent fees and ongoing filings all add up — and, as with individual ownership, is still limited to specific permitted uses rather than general residential letting. A fuller breakdown of what a foreign-invested company can and cannot hold under Vietnamese law is covered separately.

Payments, Off-Plan Purchases and Common Pitfalls

Payment Channel Requirements

Under the 2023 Law on Real Estate Business and the 2023 Law on Housing, all property payments must flow through a properly licensed Vietnamese credit institution or a licensed foreign bank branch in Vietnam — private, informal cash settlement between buyer and seller is not permitted. This rule governs how funds must move; it does not require settlement in Vietnamese dong specifically, nor does it ban foreign-currency payment outright. Specific currency conversion and international transfer rules should be confirmed with your bank in advance, following the latest regulations from the State Bank of Vietnam (SBV) — do not assume past experience still applies.

Off-Plan Payment Caps

Buying a property still under construction (“off-plan”) is subject to strict, staged payment limits. Local developers and foreign-invested developers are held to different ceilings:

If a developer has not yet completed its legal pre-sale documentation, none of the above legal protections apply to any deposit or down payment already made — the payment risk is high, so always verify the developer’s qualifications before paying anything.

Quota Verification Is a Mandatory Step in Registration

Before issuing a Pink Book, the licensing authority must check the official platform’s foreign-ownership quota records to confirm sufficient quota remains before approving registration. The quota data is updated within three working days after title registration is completed. This is a mandatory legal step that cannot be skipped — checking the quota yourself in advance is the best way to avoid the serious loss of signing and paying only to find the transaction cannot be registered.

Buying Property Does Not Grant Residency

This is the point most often misunderstood by buyers: buying property in Vietnam does not automatically come with a visa, residency or work permit.

Property ownership and immigration status are two entirely separate legal systems that do not connect to each other. Buying a property only gives you ownership of that property — it has no bearing on your right to stay in the country. If you need to stay in Vietnam long-term after buying, you will need to separately research immigration policy and apply for the appropriate visa or residence permit.

If you have questions about a visa, long-term stay or entry status connected to your property plans, ask Zagdim to tell us your situation — we can help you work out which public rules to check, which authorities to approach, and whether you need a Vietnamese property lawyer’s help.

FAQ

Q1: How long can a foreigner own an apartment in Vietnam? Can it be extended?

A: The maximum ownership term is 50 years, counted from the date the ownership certificate is issued, with the exact expiry date stated on the certificate. If you still qualify, you can apply once for renewal before the term ends, for up to another 50 years; repeated renewal is not currently supported.

Q2: Can a foreigner buy a condotel or officetel?

A: These property types sit on commercial-use land and do not fall within the legal definition of “residential housing,” so they cannot be registered under the residential foreign-ownership framework and generally cannot be bought that way. A small amount of gray-area market activity exists, but it carries real risk — anyone considering this route should get current legal confirmation first.

Q3: How is the foreign ownership quota calculated, and where can I check it?

A: For an apartment building, total foreign ownership (individuals plus entities combined) cannot exceed 30% of that building’s units. You can check a project’s remaining quota directly on the relevant provincial housing department’s official electronic platform — never rely on a developer’s or agent’s verbal claim.

Q4: Can a foreigner resell their property to another foreigner? Are there conditions for the buyer?

A: Yes, resale between foreigners is lawful. The incoming buyer only needs to meet four basic conditions — lawful entry, no diplomatic immunity, sufficient quota remaining, and the property not being in a restricted zone — and does not need to already own property in Vietnam.

Q5: What are the payment-stage caps when buying off-plan?

A: The deposit is capped at 5% of the price; the first payment (including the deposit) is capped at 30%. Before handover, cumulative payment cannot exceed 70% of the contract price for a local developer, or 50% for a foreign-invested developer.

Q6: Are there restrictions on how I pay for a Vietnamese property?

A: Yes. All payments must go through a licensed Vietnamese bank or a licensed foreign bank branch in Vietnam — private cash settlement is not allowed. Foreign-currency payment, currency conversion and international transfers should be confirmed with your bank in advance under the State Bank of Vietnam’s current rules.

Q7: If I inherit or am gifted a property, am I guaranteed to receive it?

A: Not always. If the property is an ineligible type, exceeds the foreign ownership quota, or sits in a restricted zone, the recipient cannot take physical ownership and instead receives a cash payment equal to the property’s market value.

Q8: Does buying property let me live in Vietnam long-term?

A: No. Property ownership carries no visa or residency rights of any kind. Staying in Vietnam long-term requires a separate immigration application under Vietnam’s visa and residence rules.

If You Have a Specific Question

Vietnam’s property system involves multiple checkpoints, and some details — such as the exact boundaries of a restricted zone, or a project’s remaining quota — need to be verified with the relevant provincial authority in real time. This article is general information, not legal, investment or financial advice, and every purchase decision should be confirmed with a qualified Vietnamese property lawyer beforehand. If you have a specific question about your own situation, ask Zagdim and let us know — we can help you work out which official information to look for, which authorities to approach, and whether you may need a Vietnamese property lawyer’s help.

Have a question about this guide? Leave a comment below, or ask Zagdim directly.

Sources

• Vietnamese government legal gazette — Laws 27/2023/QH15, 29/2023/QH15, 31/2024/QH15, 43/2024/QH15, and Decree 95/2024/ND-CP; English-language versions via LuatVietnam.vn
• Freshfields Bruckhaus Deringer — Vietnam Land Law 2024: Key Changes from M&A/Foreign Investment Perspectives
• Allen & Gledhill — Clarifying Rules on Foreign Ownership and Raising Capital Under the New Law on Residential Housing
• Vietnam Investment Review — Clarifying Rules on Foreign Property Ownership
• Vietnam Briefing — Vietnam Housing Law Draft Decree: Guidelines on Foreign Property Ownership
• Baker McKenzie — Global Corporate Real Estate Guide: Vietnam; Vietnam Real Estate Legal Updates 2024
• HM Legal — Foreigners in Vietnam: Everything About Foreign Apartment Ownership
• LawNet Vietnam — Cases for Reissuing Land Use Right Certificates in Vietnam (2024)
• Frasers Vietnam — Legal Updates on Land Use Rights (2024)
• D’Andrea & Partners Legal Counsel — Real Estate 2024: Can Expats Own Properties in Vietnam?
• ADK Lawyers — Major Changes in Land Use Right Certificate Regulations (2024)