Buying Property and Land in Vietnam Through a Company

Companies can buy eligible property in Vietnam, including certain residential and commercial buildings, with Vietnamese and foreign-invested companies subject to different ownership rules.

Companies cannot privately own land in Vietnam; they can instead hold legally recognized land-use rights while owning buildings and other assets attached to the land.

Key Takeaways

• Companies can own eligible buildings and other property, but land is held through land-use rights.
• Foreign-invested companies face specific ownership limits and eligibility requirements.
• Property costs can include VAT, registration fees, corporate income tax and land-related charges.
• The purchase requires checks on company eligibility, property status and land-use rights.

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The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.

Is property ownership allowed in Vietnam for companies?

Companies can own qualifying property in Vietnam, but they do not privately own the land underneath it.

Vietnamese companies generally have broader property and land-use rights, while foreign-invested companies face additional conditions under Vietnam's housing, land and investment laws.

A company can own buildings and other assets attached to land and can hold land-use rights where permitted by law.

The precise rights depend on how the land was allocated or leased and the company's legal status.

Foreign-invested economic organizations can also own certain residential properties, including eligible housing in commercial housing projects.

They must satisfy the applicable requirements and remain within foreign ownership limits.

The distinction between property ownership and land-use rights is fundamental when purchasing through a company.

What property can a company own in Vietnam?

A company can own residential, commercial and other qualifying buildings in Vietnam, although foreign-invested companies face additional restrictions.

Residential Property

Eligible companies can acquire apartments and certain single-family houses in permitted housing projects.

Foreign organizations are subject to ownership limits, including a general limit of 30% of the apartments in an apartment building and a limit of 250 single-family houses in an area with a population equivalent to a ward, subject to the applicable rules and location restrictions.

Commercial Property

Companies can acquire commercial buildings and other property used for business purposes where the transaction is legally permitted.

A company intending to operate a real estate business may also need to satisfy additional requirements under Vietnam's real estate legislation.

Property Attached to Land

Companies can own buildings and structures attached to land while holding the relevant land-use rights or lease rights.

The rights attached to the land must be reviewed separately from ownership of the physical structure.

Land-Use Rights

Companies acquire land-use rights rather than private ownership of land.

The available land-use rights depend on the company's status, the intended use of the land and whether the land is allocated or leased under the applicable legal framework.

Foreign company vs Vietnamese company: Property ownership differences

Vietnamese companies generally have broader property and land-use rights than foreign-invested companies.

A foreign-invested economic organization must comply with additional requirements under Vietnam's investment, housing and land laws.

For residential property, the company must also have the required documentation showing that it is legally established or operating in Vietnam.

Buying property through a company vs buying personally in Vietnam

In Vietnam, the key difference is that corporate ownership can accommodate business and investment uses, while personal ownership follows individual eligibility rules. Neither structure provides private ownership of the underlying land.

A company structure is particularly relevant when the property is being acquired for business premises, an investment project or employee accommodation.

The property is held by the legal entity rather than an individual, allowing it to form part of the company's business assets.

Personal ownership is more directly suited to property acquired by an individual for personal use or private investment.

The buyer holds the property in their own name rather than through a separate legal entity.

For foreign buyers, the choice also determines which legal framework applies to the acquisition.

Foreign organizations are subject to the rules governing foreign corporate ownership, while foreign individuals are subject to the rules governing individual housing ownership.

How much are property taxes in Vietnam for companies?

Property transactions in Vietnam can involve costs of around 0.5% in registration fees, 10% VAT on applicable property transactions, and 20% corporate income tax on taxable real estate gains, with additional land-related and administrative charges.

The main costs to consider are:

• Registration fee: generally 0.5% of the applicable value for registration of land-use rights or ownership of assets attached to land.
• VAT: generally 10% on applicable real estate transactions, although the taxable base can exclude the land value calculated under the applicable rules.
• Corporate income tax: generally 20% on taxable gains from a company's real estate transfer.
• Non-agricultural land-use tax: generally calculated at rates ranging from 0.03% to 0.15%, depending on the land and its use.
• Other costs: land-use payments, notarization, certificate issuance and appraisal charges may also apply.

These figures shouldn't be added together as a single purchase tax, because they apply to different parts or stages of the transaction.

The actual cost is based on whether the company is buying, holding, renting or later selling the property.

How to buy property or land in Vietnam through a company

Buying property or land in Vietnam through a company involves verifying the company's eligibility, the property's legal status and the land-use arrangement before completing the transaction.

1. Confirm the company's eligibility

Determine whether the buyer is a Vietnamese company or foreign-invested economic organization and establish what property rights apply.

For a foreign-invested company, review its investment registration and corporate documents before selecting a property.

2. Select an eligible property

Confirm that the property can legally be acquired by the company.

For foreign organizations purchasing housing, verify that the project is open to foreign ownership and that the applicable foreign ownership quota has not been reached.

3. Check the land-use rights

Review the property's land-use certificate and confirm:

• Land-use purpose
• Land-use term
• Existing mortgages or encumbrances
• Planning restrictions
• Construction approvals
• Transferability of the relevant rights

This determines what the company is actually acquiring alongside the building.

4. Conduct legal due diligence

Verify the seller's rights, the property's legal status and any restrictions affecting the transaction.

For developments, check the project's approvals and eligibility for sale to the intended buyer.

5. Sign the purchase agreement

The agreement should identify the property, purchase price, payment schedule, tax responsibilities, handover conditions and registration requirements.

6. Complete payment and taxes

Complete the purchase payments through the appropriate channels and settle the applicable taxes and fees.

Foreign-invested companies should ensure that the transaction also complies with applicable foreign-exchange and corporate accounting requirements.

7. Register the ownership or land-use rights

Complete the required registration and obtain the relevant documentation establishing the company's ownership of the property and its rights over the land.

8. Meet ongoing obligations

After the purchase, maintain the company's tax, accounting, corporate and property records and comply with any requirements associated with leasing or using the property for business purposes.

Conclusion

For companies considering Vietnamese property, the key issue is not simply whether the purchase is permitted but what legal rights the company will actually receive.

A building may be commercially valuable, yet its underlying land-use term, permitted use or foreign ownership status can materially affect that value.

For foreign investors in particular, the corporate structure should be established around the intended use of the property rather than chosen solely as a way to acquire real estate.

Checking the property's legal status and the company's permitted activities before committing funds can also reveal restrictions that may not be apparent from the purchase price alone.

FAQs

Does Vietnam allow foreign investment?

Vietnam allows foreign investment, subject to market access restrictions and the rules applicable to the relevant business activity.

Foreign investors can establish companies and invest in Vietnamese businesses, while qualifying foreign-invested enterprises can acquire certain property and land-use rights under Vietnam's property laws.

What are the steps involved in buying property in Vietnam as a foreigner?

The key preliminary step is confirming that both the buyer and the specific property are eligible for foreign ownership.

Foreign buyers should establish their legal eligibility, check the property's foreign ownership status and quota, and verify the underlying land-use rights before committing to the transaction.

Can a foreigner own a company in Vietnam?

Yes, foreigners can establish or invest in companies in Vietnam, subject to the country's investment and market access rules.

Can a business buy a house for employees in Vietnam?

Yes, a business can acquire qualifying housing for employee accommodation, subject to the rules applicable to the company's status and the property.

Vietnam's housing framework allows qualifying foreign organizations to own housing for use by their employees, provided the property satisfies the applicable foreign ownership requirements.

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