Coldwell Banker Vietnam > Legal Advisory > Q & A
Would you like to tell me whether the foreigner is currently entitled to purchase the residential house in Vietnam? If yes, so what are the conditions for this case?
In accordance with applicable laws of Vietnam, beside the local individuals and organisations, the foreign individuals and organisations are also the entities entitled to purchase and own the residential houses in Vietnam pursuant to Article 2 of Resolution no. 19/2008/QH12 on June 03, 2008 of the National Assembly on pilot permission for foreign organisations and individuals to purchase and own the residential houses in Vietnam and Decree no. 51/2009/ND-CP on June 03, 2009 of the Government guiding an implementation of some articles of Resolution no. 19/2008/QH12 on June 03, 2008 of the National Assembly.
Thereby, the foreign individuals desirous to purchase the residential houses in Vietnam must be living in Vietnam and permitted to reside in Vietnam for more than one (01) year and;
- make direct investment in Vietnam in accordance with law on investment or are hired to work as managers by enterprises operating in Vietnam or;
- make contribution to Vietnam, are conferred orders and medals by the President; have made special contribution to Vietnam as decided by the Prime Minister or;
- working in socio-economic domains and possess university or higher degrees and specialists in fields which Vietnam has demand for or;
- marry Vietnamese citizens;
As for foreign orgnisations, it is required to be foreign-invested enterprises operating in Vietnam in accordance with law on investment, but not engaged in real estate business, wish to purchase houses for its employees and granted its investment certificate or any documents expressing its investment by relevant authorities in Vietnam.
Please feel free to contact the customer services department of our company for further information and comprehensive consultancy relating to real estate.
In 2010, I bought an apartment from a real estate company in HCMC and now I would like to transfer it to my daughter, so do I have to pay personal income tax (PIT)?Do I need to pay any other taxes beside PIT?
In accordance with applicable laws, the transferor shall have to pay for PIT as stipulated in Clause 5, Part 2 of Circular no. 84/2008/TT-BTC on September 30, 2008 of the Financial Ministry guiding Decree no. 100/2008/ND-CP guiding some articles of Law on PIT upon implementation of real estate transfer (i.e purchase of residential houses, transfer of land use rights and other kinds of real estate).
In accordance with Article 4 of PIT Law in 2007, the income from real estate transfer exempted from PIT shall include the transfer transactions between wife and husband; between father, mother and child; between adopted father, adopted mother and adopted child; between father-in-law, mother-in-law and daughter-in-law/son-in-law; between paternal grandfather, paternal grandmother and paternal grandchild; between maternal grandfather, maternal grandmother and maternal grandchild; between siblings. Therefore, in this case, you do not have to pay PIT.
However, upon proceeding with house transfer, as agreed between a transferor and a transferee, the parties also pay registration fees and fees for issuance of house ownership certificate.
Please feel free to contact the customer services department of our company for further information and comprehensive consultancy relating to real estate.
I signed the capital contribution agreement with a real estate company to purchase an apartment. And this company handed over the apartment to me on May 01, 2011 and I am waiting for its residential house ownership certificate. Due to lack of money for my stuffs, I would like to transfer my apartment, so is this transfer permitted to proceed and how are the required procedures?
In order to proceed with the residential house transfer, it requires the certificate of residential house in accordance with applicable law.
In accordance with Item a, Clause 6, Article 8 of Circular no. 16/2010/TT-BXD, if the house is handed over by an investor, the procedures of house transfer shall have to be properly implemented as stipulated in Housing Law and Civil Law (it means that the transferor must have its house ownership certificate granted by relevant authorities, the parties have to prepare a house sale agreement and pay tax to the Government as prescribed);
Thus, since you are waiting for the certificate issued by relevant authority, you do not temporarily have enough conditions to transfer your house in accordance with applicable law.
Please feel free to contact the customer services department of our company for further information and comprehensive consultancy relating to real estate.