Tax and Fee on Housing in Vietnam

In this article we highlight everything about tax and fee on housing in Vietnam that you should know.  The details in this article is up to date as of 2020. We will continue to update this article as there will be new laws and regulations. We also limit the scope of this article to residential property for individual investors, as this is, most of the time, the type of property you will deal with as a foreign buyer. If you you represent a company buying residential property, commercial property or industrial property, the taxes and fees will be different from those highlighted in this post. If it is your case, please contact us for more details, using the form at the end of this article

The Taxes and Fees for Buyers/Tenants

  • 10% Value Added Tax (VAT): this is included in the selling price, if you buy off-plan property, directly from the developer. You will pay this tax during the buying process, proportionally with the payment schedule. This tax, therefore, will also be included in the price of all the future transactions, i.e., when you will resell to another owner later on. During the buying
  • 0.5% Registration Fee: this is the fee paid to the Department of Natural Resources and Environment, a centralized government organization in Vietnam managing the property ownership. You will pay this fee upon receiving the certificate of ownership
  • 2% Maintenance Fee: similarly to the 10% VAT, this fee is also included in the selling price during an off-plan property purchasing. This fee will go into a general fund to maintain the residential internal facilities of the building after completion: swimming pool, elevators, garden, gym, BBQ area, children garden etc.
  • Management Fee: when a building will be completed and the residents move in, a committee will be organized to represent all the residents. The committee will decide to hire a dedicated company to manage a building, provide reception and perform the periodical maintenance. For some projects, the developer will assign the management company for the first years, after that it is up to the resident committee to decide to keep working with the current company or to find a new one. In any case, the management fee will be calculated based on the unit area and will be paid on a monthly basis. Typically, the fee can vary from $0.5-$1 per sqm. per month. When you will lease your apartment, the tenant is the one who will pay the management fee.
  • Most of the time, the buyer/tenant will not pay agent fee. It is a common practice in Vietnam that the agent fee is covered by the seller/leaser. In some cases, if you work with an agent who helps you to find a unit to buy or an apartment to rent, you may want to encourage by paying her a fee. But that is all according to your goodwill.

The Taxes and Fees for Sellers/Leasers

In this section we assume the case that you are an individual seller or leaser.

  • Personal Income Tax: 2% of the selling price when selling, and 10% of the rental when leasing.
  • Agent Fee: It is a common practice in Vietnam that the seller will pay the agent fee of 2%-3% for selling, and 1 month rental for leasing. The agent selling fee used to be 1%, and in fact it is still applicable now (2020) However, if you want the agent will be dedicated, and actively market your unit, not just normal listing it on various online listing platform, the 2% is more favorable. 3% rate should be used only when you want to sell really quickly, and you may want to set the time limit for this higher rate.

In an another article, we will come back to the topic of leasing, renting and reselling, as well as working with the agents on the secondary market.

Start Here

The housing market in Vietnam has been growing incredibly for the past few years, especially from 2015, when the new Law on Housing 2014 came into effect. The Law on Housing 2014 introduced significant improvements into foreign homeownership. This created attractive opportunities for foreigners buying house and investing in property market in Vietnam. Whether you just started to study, ready to buy or already owned a property in Vietnam, you can find here the most comprehensive guide and up-to-date analysis on housing market in Vietnam.

Considering Buying a House in Vietnam?

Can Foreigner Buy a House in Vietnam

From 2015, foreigners can buy house and invest in property in Vietnam. We explain in detail about the latest laws on foreign homeownership, as well as other regulations on buying and selling house in Vietnam

Which City to Buy a House in Vietnam

Choose the city to buy house and invest in property is the first important decision. Depending on your budget, investment style and buying purpose, you may find each city offer their own property type, potential growth, and rental yield.

Housing Market in Vietnam: Important Things to Know

The Pink Book (Certificate of Homeownership)

Pink book is the highest form of homeownership in Vietnam. What are the most essential things you need to understand about the pink book?

The Sell and Purchase Agreement (SPA)

­This is the legal document you work with each time you buy and sell your house in Vietnam.

Tax and Fee on Housing in Vietnam

Vietnam, as of 2020, maintains the same tax and fee system on homeownership and housing transaction for local and foreigners. The best thing is, while property capital growth contributes a large portion of investment income, there is still no tax on capital gain. Read this article on the latest up to date information about tax and fee on housing

Mortgage in Vietnam

While mortgage is still not available for foreigners in Vietnam, it is important to understand how the system works and how it influences the housing market.

The Process to Buy House in Vietnam

Buy House in Vietnam: The Primary Market

When you buy a house directly from a housing project developer, we call it a buying on the primary market. Most of the time, it will be an off-plan property. The buying process is standard and simple. Still, there are popular mistakes you should avoid.

Buy House in Vietnam: The Secondary Market

When you buy a house from another person, we call it a buying on the secondary market. The buying process is more complicated, required more efforts and procedures.

Transferring Money to Vietnam to Buy House

All the about choosing the bank, opening, and managing the bank account, how to transfer money to Vietnam to buy house, and transfer money back to your home country after selling your house.

Already Owned Your House in Vietnam?

Leasing Your House in Vietnam

Leasing is the naturally next step after buying your house. The rental yield varies from district to district. How to set the suitable monthly rental rate? How to manage your house when leasing? How to find good tenants in a shortest time? In this article we will cover these important questions as well as other things you should know when leasing your house in Vietnam

Selling Your House in Vietnam

You can sell your house to transfer money back to your home country, or to reinvest in another, more attractive property in Vietnam. Like leasing, here you also need to determine the right selling price. Setting the price too high makes it hard to find the buyers, while setting the price too low will affect negatively to your return on investment (ROI). You also need to find the best agent to sell your house, as well as how to fulfill your tax payment after selling.

Transferring Money Back to Your Home Country

Sooner or later, you will transfer money back to your home country. While this is the last step, you should prepare for it right from the beginning and keep track of all the documentation. Here we will describe the most popular misunderstandings and how to avoid the problems.

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