Property Ownership Rights for Foreigners in Vietnam

Property purchases in Vietnam by foreign citizens are regulated by the Law on Housing No. 27/2023/QH15 and the Law on Land No. 31/2024/QH15. Foreign individuals have an official legal right to acquire, lease, and resell real estate within the country.

However, the legal status of the property, ownership rights, and the tenure format (ownership under a Pink Book or long-term lease) directly depend on the type of real estate — whether it is residential or tourist property.

What you will learn from this article

• the differences between tourist apartments (Căn hộ du lịch) and residential property (Nhà ở thương mại);
• how the Certificate of Ownership Title ("Pink Book" / Sổ hồng) is issued, the 50-year term limit, and the extension procedure;
• what state foreign ownership quotas apply to property purchases;
• the rules governing property resales on the secondary market;
• under what circumstances real estate in Vietnam can be purchased remotely.

❗️ In Vietnam, all land is under the collective ownership of the people and managed by the State. Real estate relations are built on the foundation of Land Use Rights (LURs). Read more about land categories, tenure terms, and land legislation in the article "Land Ownership Rights in Vietnam".

Two Available Property Types for Investors

In the Vietnamese residential and resort development market, property available to foreigners is divided into two key categories:

Residential Property (Nhà ở thương mại)

Projects built on residential land. The transaction is executed through a Sale and Purchase Agreement (SPA), and after project delivery, government authorities issue an official Ownership Certificate — the "Pink Book" (Sổ hồng) — to the owner.

The ownership extension procedure for residential property is strictly defined in the Law on Housing No. 27/2023/QH15: the owner has a guaranteed right to extend the Pink Book for another 50 years by paying a fixed duty of 0.5% of the original contract price.

Tourist Apartments (Căn hộ du lịch / Condotel)

Tourist apartments are constructed on commercial and service land (đất thương mại, dịch vụ). The developer leases such land from the state for a specified term (typically 50 years), and the buyer acquires the right to use the unit under a long-term lease agreement (Leasehold) for the remaining duration of that term.

Regarding tourist property, it is important to understand three key legal and practical aspects:

1. How the extension mechanism works. Under the 2024 Land Law, upon the expiration of the 50-year term, the developer (or the property management company / homeowners' association) has the legal right to apply to state authorities for an extension of the land lease. If the property is operated according to its designated purpose and complies with the urban master plan, the state extends the land lease, which automatically extends the apartment lease agreements as well.
2. Lack of historical precedent. Tourist apartments and condotels are a relatively new asset class in Vietnam (the active construction boom began around 2015–2016). Physically, no project in Vietnam has yet reached the expiration of its initial 50-year land lease. Administrative and judicial practices regarding mass extensions of commercial land leases will be formed by the market closer to 2065–2070.
3. Absence of financial guarantees on construction: Tourist real estate is not subject to the mandatory bank guarantee requirement for construction (unlike residential property), and the developer has the legal right to request up to 100% of the property value even prior to commissioning the building. Read more about construction guarantees in the article "Off-Plan or Ready Property — What to Choose?".

Pink Book Mechanics: 50 Years, Extension, and Term Reset

When purchasing residential property with a Pink Book, a foreign national becomes a full legal owner of the property.

Ownership Term: The Pink Book is issued to a foreigner for 50 years from the date of issuance.

Extension Procedure: Legislation guarantees the right to a one-time extension of the Pink Book for another 50 years (up to 100 years in total).

Fixed State Duty: Initial issuance of the Pink Book costs 0.5% of the contract value of the apartment. Extension after 50 years occurs at the same fixed rate — 0.5% of the original contract price, regardless of the current market value of the land.

Term Reset Upon Sale to a Vietnamese Citizen: For Vietnamese citizens, the Pink Book grants perpetual ownership rights (freehold). If a foreign investor decides to sell their apartment to a Vietnamese citizen on the secondary market (even if 40 out of the 50 years have elapsed), the 50-year limit is reset, and the new Vietnamese owner receives the apartment under perpetual ownership. This ensures high liquidity: a foreign investor can sell their apartment both to a Vietnamese citizen and to another foreign investor.

Foreign Ownership Quotas in Vietnam

The volume of foreign participation in the real estate market is regulated by state quotas.

30% Quota for Apartments: Within a single apartment complex, foreign citizens may own no more than 30% of the total units.

10% Quota for Villas and Townhouses: In landed housing developments, foreigners may own no more than 10% of the houses in a project (or no more than 250 houses per administrative ward/district).

Buying and Selling Property on the Secondary Market

Buying: Strictly "Foreigner ➡️ Foreigner". On the secondary market, a foreign citizen can only acquire property from another foreign owner. This rule was introduced for state control over compliance with the 30% quota. While the developer monitors the foreign quota during the construction phase, a notary public handling a secondary market transaction cannot verify how many units in the complex are already owned by foreigners. Buying property from a foreign owner is the only way to guarantee that the unit was officially acquired within the foreign quota.

Selling: Unrestricted. A foreign owner has the right to sell their property to any buyer — whether a foreign national or a Vietnamese citizen.

Can Real Estate in Vietnam Be Purchased Remotely?

Requirements for physical presence in Vietnam and document signing procedures directly depend on the legal status of the selected property.

Residential Property

Physical presence is mandatory. The Sale and Purchase Agreement (SPA) for residential property cannot be signed remotely or via a power of attorney. The buyer must be physically present in Vietnam and hold legal immigration status (a valid entry stamp or visa) on the date of agreement execution. During the subsequent issuance of the Pink Book, state authorities verify the passport copy along with the visa valid specifically on the day the SPA was signed.

Tourist Apartments

Purchase from abroad is possible. A transaction to purchase tourist apartments (Căn hộ du lịch) under a long-term lease agreement can be completed entirely remotely. The developer sends the draft contract electronically; the buyer prints it, signs three original copies outside Vietnam, and returns the physical originals back to the developer via courier.

Secondary Market Transactions Between Two Foreigners

When purchasing any completed property on the secondary market, the foreign buyer must be physically present before a notary in Vietnam to execute the transaction. However, the foreign seller is not required to travel to the country and can sell the apartment remotely by executing a notarized Power of Attorney (POA) in favor of a real estate agency.

Summary

Buying real estate in Vietnam is a transparent and legally protected process, provided there is a clear understanding of property categories. The top priority for investment and capital preservation remains residential property (Nhà ở thương mại): it is acquired under a Sale and Purchase Agreement (SPA) followed by the issuance of a Pink Book for 50 years with the right of extension.

Tourist apartments suit specific investment strategies, but generally carry lower liquidity on the secondary market.

Need Help Selecting a Property?

Investing in Vietnamese real estate requires a systematic approach, an understanding of the local market structure, and knowledge of legal nuances. The VINPROP team helps investors make informed decisions based on independent market analysis, current analytics, and deep expertise in the legal framework.

How We Can Help:

Investment Consulting and Market Analysis: we select projects on the primary and secondary markets, align them with relevant investment strategies, calculate potential yields, taxes, and expenses, and assist in structuring ownership and exit strategies.

Comprehensive Legal Due Diligence and Support: we conduct independent verifications of title cleanlines, developer permits, and remaining foreign quota balances. We coordinate complete legal transaction support, including document preparation, notarization, and interaction with government authorities.

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