TAX ADVICE ON SELLING HOUSE OF FOREIGNERS IN VIETNAM

Under the provisions of the new Housing Law of Vietnam which allows foreigners, foreign entities to own houses in Vietnam. Therefore, in buying or owning houses in Vietnam, foreigners need to pay the costs related to the purchase and sale of housing is as follows:

I. Personal income tax from real estate: 2% of the transfer value

The payment of personal income tax in transaction of real estate, first agreed by the parties, in accordance with the law of Vietnam, the seller shall pay this tax. If the seller only owns a single house, he/she is not required to pay this tax. If the seller has 02 houses or more, he/she has to pay this tax in one of two ways:

  • The rate of personal income tax for the transfer of real estate is 25% on taxable income;

  • In case of failure to evaluate the original price and related costs: 2% of the value of the transfer, (this is usually applied);

  • The transfer value is the price stated in the contract for the transfer of housing for foreigners in Vietnam.

II. Registration fee: 0.5%

  • The payment of the registration fee is based on the first agreement by the parties, as stipulated by Vietnam law, the buyer pays this type of fee.

  • The method of calculating the registration fee = (area of the house) x (level of house) x (Fees)

  • Land area is calculated in m2 

  • The price of land is referred to the tariff of the State. 

  • Fees 0.5%

III. Notarization fee is calculated according to the value of house in transfer

To assist clients to ensure safety in the transaction, ensuring the value in investment of real estate, LVT Lawyers with a team of lawyers with many years of experience in legal advice about housing ownership for foreigners in Vietnam. Along with the enthusiasm and dedicated work, we assure we always put the interests of clients at the top to fit the motto "Our services, your success". LVT Lawyers provide consultancy services on legal advice about housing ownership for foreigners in Vietnam as follows:

  • Consult on legal issues related to housing transactions for foreigners in Vietnam as follows: legal conditions of housing, participants in real estate transactions, order and procedures for entering into legal agreements on housing ...

  • Review, evaluate, appraise the validity of the houses before conducting transactions related to housing for foreigners in Vietnam;

  • Represent clients in discussions, negotiations in the transaction related to housing for foreigners in Vietnam;

  • Draft contracts and documents related to housing for foreigners in Vietnam;

  • Implement procedures for notarization, authentication of housing transactions for foreigners in Vietnam;

  • On behalf of clients to implement legal procedures for housing transactions for foreigners in Vietnam at the authorized state agency;

  • Implement procedures for declaration and payment of taxes and financial obligations for housing transactions for foreigners in Vietnam;

  • Perform other issues related to housing transactions for foreigners in Vietnam.

Please contact LVT Lawyers to get your tax advice!