Selling Property in Vietnam: Tax and Fees for Foreign Owners

This article is part of Zagdim’s Vietnam property series. It sets out the taxes and fees a foreign owner pays when selling a Vietnam apartment, for anyone estimating the cost of a sale. For the full process of selling, see the main article on buyers, procedure, taxes, and repatriating funds.

Why Is This Tax So Easy to Get Wrong?

Three reasons. First, Vietnam changed its personal income tax law on July 1, 2026, and many articles online still cite the old law. Second, a 2025 draft proposal would have taxed 20% of profit instead, which left the impression the rate had already changed. Third, the conditions for the “sole residential property” exemption are detailed, and whether a non-resident foreign owner can use it is not clearly written into the law.

The Short Answer: What Does the Seller Pay?

The seller pays personal income tax equal to the transfer price multiplied by 2%, the same rate for residents and non-residents. The transfer price follows the contract price, but it cannot be set below the official provincial land price table and registration-fee valuation standards. A 0.5% registration fee is paid by the buyer who handles the ownership transfer. Notary fees are tiered by property value and paid by whichever party the parties agree on. Where an agent is involved, there is also an agent’s commission.

How Is the 2% Personal Income Tax Calculated?

The new Law on Personal Income Tax (Luật Thuế thu nhập cá nhân 109/2025/QH15) was passed on December 10, 2025, and took effect July 1, 2026. Its implementing rules are Decree 253/2026/NĐ-CP. Income from a property transfer is taxable income, calculated as follows:

• Rate: 2% of the transfer price for both residents and non-residents, based on the transaction price, not on profit.
• Transfer price: the price stated in the contract at the time of transfer. Where the contracted land price is below the provincial land price table (including any adjustment factor), or the building portion is below the registration-fee valuation standard published by the provincial People’s Committee, the official standard is used instead. In other words, the declared price for tax purposes cannot be lower than the official price table.
• Resident or non-resident: a person is a tax resident if they stay in Vietnam for 183 days or more within a year, or have a registered residence or a residence under a fixed-term lease in Vietnam; anyone meeting neither condition is a non-resident. An owner who stays in Vietnam for fewer than 183 days and has no such registered or leased residence is, by definition, a non-resident, and non-residents are taxed at the same 2% rate.
• When tax is calculated: if the contract does not specify that the buyer pays on the seller’s behalf, tax is calculated when the contract takes effect (when notarization is completed). If the contract specifies the buyer pays on the seller’s behalf, tax is calculated when ownership registration is processed, and the buyer declares and pays on the seller’s behalf.
• Co-owned property: tax is calculated separately according to each co-owner’s share; without documentation, shares are assumed equal, and co-owners may authorize one person to pay on their behalf.

There is one unresolved point for non-resident sellers. The implementing rules list “organizations and individuals paying income to non-resident individuals” as parties required to withhold tax in advance, but whether this means an individual buyer must withhold 2% in advance when buying an apartment from a non-resident is not explicitly stated in the current law and remains unconfirmed. Before signing, it can help to put in writing who will handle the tax filing and when.

Does the Sole-Residence Exemption Apply? What Are the Conditions?

Where an individual holds only one residential property or one plot of residential land in Vietnam, the gain on transfer can be exempt from tax. The conditions are:

1. Only this one property: the seller holds only this one residential property in Vietnam at the time of transfer. Holding an off-plan unit (nhà ở hình thành trong tương lai) in addition means the property no longer counts as the sole residence.
2. Held for 183 days or more: counted from the date the title was issued up to the date of transfer; where a title has been reissued or replaced, the count runs from the date the original title was issued.
3. Transferring the whole property: transferring only part of the property means that part does not qualify for the exemption.
4. Self-declared: the seller declares and takes responsibility for the declaration; a false declaration results in back taxes and penalties.
5. Co-ownership assessed separately: only a co-owner who holds no other residential property elsewhere qualifies for the exemption.

The exemption does not apply to the transfer of an off-plan unit itself.

The law’s wording refers to a sole residence “in Vietnam,” so a property in Taiwan or Hong Kong would not count against it under the literal text, though whether tax authorities apply it that way in practice is unconfirmed. The more significant question is this: the law grants the exemption to “individuals,” without restricting it to residents, yet the implementing decree’s Article 65, which addresses non-residents, cites only Articles 52 through 62 on calculating tax, not Article 19, which sets out the exemption conditions. Whether a non-resident foreign owner can claim the sole-residence exemption is not explicitly stated in the current law and remains unconfirmed; this can be confirmed with the Ho Chi Minh City tax authority or a tax advisor.

Whether this applies depends on whether the owner is a tax resident in Vietnam, and whether they hold any other Vietnam property.

How Are Registration Fees, Notary Fees, and Other Costs Calculated?

• Registration fee: under Decree 10/2022/NĐ-CP, the registration fee rate for housing and land is 0.5%, paid by whoever registers ownership with the authorities, which in a resale is the buyer. A 10% reduction measure running from August 15, 2026 to February 28, 2027 applies only to Vietnamese citizens filing online through a Level 2 electronic identity account, and does not apply to foreign buyers.
• Notary fee: under Ministry of Finance Circular 257/2016/TT-BTC, the fee is tiered by total property value: 0.1% for value between 100 million and 1 billion VND; 1 million VND plus 0.06% of the amount above 1 billion for 1 to 3 billion; 2.2 million VND plus 0.05% of the amount above 3 billion for 3 to 5 billion; 3.2 million VND plus 0.04% of the amount above 5 billion for 5 to 10 billion; 5.2 million VND plus 0.03% of the amount above 10 billion for 10 to 100 billion; and 32.2 million VND plus 0.02% of the amount above that for values over 100 billion, capped at 70 million VND per transaction. Whether a new fee schedule has been set since the 2024 notary law took effect is not explicitly stated in the current law and remains unconfirmed; the notary office’s quoted fee governs. A fee-reduction measure running from July 2025 to December 2026 does not include contract notarization fees among the items listed.
• VAT and the maintenance fund: the sources checked do not record any VAT owed when an individual resells their own apartment, or a second 2% maintenance fund contribution; the maintenance fund is paid once, at the first purchase from the developer. The VAT law text itself was not checked in this pass and remains unconfirmed.
• Agent’s commission: typically 1% to 2% of the sale price, usually paid by the seller, as agreed between the parties.

It is advisable to put who pays each tax and fee in writing in the transfer contract.

Will the 20% Profit Tax Still Happen?

As of October 8, 2026, no. In July 2025, the Ministry of Finance proposed in a draft to tax 20% of the gain on each transaction instead, falling back to 10% to 2% based on holding period where the purchase price could not be determined. On August 2, 2025, the National Assembly’s own newspaper reported the draft would keep the 2% transaction-price basis; by September of that year, the version submitted for review formally withdrew the 20% proposal, with the Ministry of Finance saying it would revisit profit-based taxation once population and land data had been digitized. The law passed in December 2025 kept the 2% rate, and no new profit-tax proposal appeared between August and October 8, 2026.

A separate note: some articles from 2024 still describe this 2% tax by reference to Circular 111/2013/TT-BTC; from July 1, 2026 onward, the new law and Decree 253/2026/NĐ-CP govern instead.

What to Check Next

Confirm three things first: whether you are a tax resident or non-resident in Vietnam, whether you hold any other residential property or off-plan unit in Vietnam, and whether the contract price is at or above the official price table. Declaring the contract price accurately also matters later, since documentation is needed to repatriate the sale proceeds. For the buyer, procedure, and authorization steps, see the main article on selling property in Vietnam as a foreigner.

FAQ: Vietnam Property Sale Tax

I live in Hong Kong. Is the tax rate the same as for an owner living in Vietnam?

Yes. The personal income tax on a property transfer is 2% of the transfer price for both residents and non-residents. The difference is in the sole-residence exemption: whether a non-resident foreign owner can use it is not explicitly stated in the current law and remains unconfirmed.

Can I lower the contract price to pay less tax when selling in Vietnam?

No. The tax cannot be calculated below the official standard. Where the contracted land price is below the land price table, or the building portion is below the registration-fee valuation standard, the tax authority uses the official standard instead. Under-declaring the contract price can also leave a gap in the documentation needed later to repatriate the sale proceeds.

Does the seller always pay the notary fee in Vietnam?

Not necessarily. Regulations require the person requesting notarization to pay the fee, but in practice buyer and seller agree between themselves, usually with the seller paying. The rate is tiered by property value under Circular 257/2016/TT-BTC, capped at 70 million VND per transaction.

Glossary

• Law on Personal Income Tax (Luật Thuế thu nhập cá nhân 109/2025/QH15): Vietnam’s personal income tax law, in effect from July 1, 2026.
• Decree 253/2026/NĐ-CP: the implementing rules for the Law on Personal Income Tax.
• Non-resident: a person who stays in Vietnam fewer than 183 days in a year and has no registered residence or fixed-term leased residence there.
• Land price table: the land prices published by provincial governments, used as the floor for the declared tax price.
• Registration fee (lệ phí trước bạ): the fee paid when registering ownership.
• Off-plan unit (nhà ở hình thành trong tương lai): a future property not yet built, which does not qualify for the sole-residence exemption.

About This Information

This article was compiled by Zagdim research. The legal provisions have been checked by Zagdim against the source texts (Verified by Zagdim); market practices are noted separately. Data was checked as of October 8, 2026. The Law on Personal Income Tax and Decree 253/2026/NĐ-CP are referenced from their English translations, with Vietnam’s official current regulations taking precedence. The following points are not explicitly stated in the source texts and remain unconfirmed: whether a non-resident foreign owner can claim the sole-residence exemption; whether a buyer must withhold tax in advance for a non-resident seller; whether a property in Taiwan or Hong Kong affects sole-residence status; whether Circular 257/2016/TT-BTC’s fee schedule still applies following the new notary law; and whether VAT applies to an individual’s resale. The history of the 20% profit-tax proposal is drawn from Vietnamese media reporting; the commission and fee-sharing figures are practitioner accounts from law firms.

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

References

• LuatVietnam – Law on Personal Income Tax No. 109/2025/QH15 (English translation)
• LuatVietnam – Decree No. 253/2026/ND-CP (English translation)
• hethongphapluat.com – Decree 10/2022/ND-CP (registration fee)
• Tạp chí Kinh tế – Tài chính – Từ 15/8 miễn nhiều khoản phí, lệ phí cho công dân có tài khoản định danh điện tử mức 2
• LuatVietnam – Ministry of Finance Circular 257/2016/TT-BTC (notary fees)
• LuatVietnam – Ministry of Finance Circular 64/2025/TT-BTC (fee reductions)
• Apolat Legal – Foreigners purchasing resale condominium apartments in Vietnam
• VnExpress – Đề xuất tính thuế 20% trên lãi từng lần chuyển nhượng bất động sản
• Báo Đại biểu Nhân dân – Bước lùi cần thiết
• Mekong ASEAN – Bỏ đề xuất tính thuế 20% trên lãi từng lần chuyển nhượng bất động sản
• LuatVietnam – Muốn bán chung cư, người dân cần biết gì?

Important Notice

This article is general information and does not constitute individual legal or tax advice. Data was checked as of October 8, 2026. Tax laws and rates may change; Vietnam’s current regulatory announcements take precedence, and a qualified tax professional should be consulted where necessary.