Investing in Vietnam: FAQ
Investing in Vietnam: FAQ
Are you thinking about investing in real estate in Vietnam? Here is our top frequently asked question about investing in Vietnam.
1. What is Rex Vietnam ?
Rex Vietnam provides complete services for your real estate investments in Ho Chi Minh City (Saigon), the economic capital of Vietnam.
Hélène Triffault, Olivier Mourgue d’Algue, and Daniel Howald, co-founders of Rex Vietnam, were amongst the first in the country to sell properties to foreigners, under the new Law on Housing of July 1st, 2015. >> Learn more about us
2. How does it work ?
We offer a free consulting session to:
- Learn what kind of investment you are considering,
- Evaluate your average budget,
- Define your investment timeline.
If you decide to go through with your property purchase project in Vietnam, we handle the selection of properties, the negotiation and the review of contract both in English and in Vietnamese.
We also provide you with interior design and decoration, as well as property management services for renting out your apartment.
3. How do we communicate together ?
Whether you live abroad or in Vietnam, we adapt to your preferences for our daily communications: email, phone, Skype, WhatsApp, or else.
4. Where can I buy ?
We specialize in Ho Chi Minh City (Saigon), Vietnam, where we developed a strong network of professionals, from real estate developers and agents to interior designers and building contractors.
However, we can reach out to our partners in the region upon request for your real estate investments outside of Saigon.
5. Do I need to travel to Vietnam ?
Yes, you will need to travel to Vietnam at least once, for half a day minimum.
However, you can travel to Vietnam before you make your purchase decision.
All the rest can be done online, including the signing of the contract.
We assist you through every step and give you detailed guidelines so you can plan accordingly.
6. What is the legal framework to buy real estate in Vietnam ?
The Housing Law (Law on Housing No. 65/2014/QH13), effective as of July 1st, 2015, allows foreigners to purchase property in Vietnam, with the only condition of entering Vietnam legally (stamp of arrival on passport).
However, like in Thailand for instance, the law sets a quota for apartments purchased by foreign owners (30% per building), and foreigners can own properties for a maximum of 50 years (renewable).
More importantly, foreigners enjoy the same rights as Vietnamese citizens to lease, transfer, or sell their property.
Yet, there are essential steps to follow that usually require legal counsel: conducting due diligence on the property, preparing the mandatory documents for both the buyer and the seller (ID, invoices, sales contract, minutes of handover…), signing a reservation agreement, going through the contract or the sales and purchase agreement (SPA) in Vietnamese language.
We handle everything for you with our in-house lawyers and our team of real estate experts.
7. Can I sell or rent out my property easily ?
Yes, you can sell or rent out your property at any time with our Property Management and Sale mandates.
We follow every legal step and guideline for your property purchase operation to guarantee the mobility of your capital.
When you decide to, you can easily sell, rent out, and transfer all or part of your capital out of the country.
8. How much does it cost ?
Investing in real estate in Vietnam remains much less costly than in Western countries or even compared with other similar countries in the South-East Asia region.
High-end properties are estimated from $2,500 to $5,000 per square meter in the heart of Ho Chi Minh City (Saigon), the economic capital, well below Bangkok where equivalent properties cost up to $10,000 per square meter.
9. What taxes and fees must I pay ?
The tax environment is particularly favorable in Vietnam for real estate investments.
There is no property tax, as opposed to Singapore, and no capital gains tax, as opposed to France or the UK.
Also, notary fees are practically non-existent (no notary fee for new developments, and negligible for second-hand market). Whereas in France, for instance, notary fees account for about 8% of the property price.
Buyers must only pay a registration tax when buying the property. In addition, there is an annual land tax for your properties portfolio, but practically non-existent.
Yet, if you rent out your apartment you need to pay annual taxes (10% of the rental price).
Once you decide to sell your property, there is a 2% income tax applicable to the total selling price. However, some exemptions exist.
We manage every step, from filling out paperwork to paying all taxes and fees for you.
And we give you complete cost structures to estimate easily your return on investment.
The information, opinions, and thoughts posted to this site are of a casual nature and may have changed since the time of publication. While we intend to make every attempt to keep the information on this site current, Rex Vietnam Ltd. makes no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site. Please contact us directly for the most updated information.