What Documents Are Required to Buy Property in Vietnam?
According to the 2014 Housing Law, foreigners purchasing property in Vietnam must present a valid passport and visa.
Types of Contracts
- Deposit Agreement (Hợp đồng đặt cọc)
Once a unit is selected and a deposit is paid, the buyer is typically required to make the first payment within 7–15 days. The developer will then issue a deposit contract including key details such as buyer information, project location, unit type, purchase price, unit size, payment schedule, and the date for signing the sales agreement. Promotional offers or other terms may vary depending on the developer. - Sales and Purchase Agreement (Hợp đồng mua bán or SPA)
This is the official legal document that certifies property ownership. It is signed once the developer has completed the foundation and surrounding infrastructure. - Long-Term Lease Contract (Hợp đồng cho thuê dài hạn or LTL)
This contract allows foreigners to lease property for 50 years when foreign ownership quotas (30% in apartments) are exceeded, or for types of real estate like townhouses, shophouses, or officetels that may not be eligible for foreign ownership. Risks include: no pink book (ownership certificate), developer insolvency, or the property being mortgaged or resold. It is advisable to work with financially strong developers or shorten the lease term to minimize risk.
Steps to Purchase a New Property from a Developer
1. Select Property and Pay Deposit
Once you’ve chosen a unit, a deposit of VND 50 million to VND 100 million is usually required to reserve it. This payment is made to the agent’s account, and the buyer must provide their passport and contact details. The agent will transfer the funds to the developer to secure the reservation.
2. Make First Payment and Sign Deposit Contract
Within 7 to 14 days of paying the deposit, the buyer must pay the first installment—typically 10% to 20% of the unit price. After payment, the developer will sign a deposit agreement with the buyer, outlining the terms and timeline for signing the sales contract.
3. Sign the Sales and Purchase Agreement (SPA)
Once the buyer meets the conditions of the deposit agreement (usually having paid 20%–30% of the unit price), the developer will invite the buyer to sign the SPA. This contract details buyer/seller information, property specifications, handover conditions, timeline, and payment schedule.
4. Make Progressive Payments
New projects in Vietnam typically take 2–3 years to complete. During this period, payments are made in stages. Local developers may collect up to 70% of the unit price before handover; foreign developers are limited to 50%. When the unit is ready, the buyer will be asked to pay up to 95% before handover.
5. Property Handover
At handover, the buyer must pay a maintenance fee equal to 2% of the property value. In some cases, a portion of the management fee must also be prepaid. The developer will require the buyer to sign a handover confirmation and documents for utilities transfer (e.g., electricity, water).
6. Apply for Ownership Certificate (“Pink Book”)
Typically 6–12 months after handover, the developer will request documents from the buyer to apply for the ownership certificate (pink book). The developer submits these to the relevant government authority. Once processed, the buyer pays the final 5% of the property price and receives the certificate.
Taxes and Fees
Value-Added Tax (VAT)
A 10% VAT applies when purchasing new property. Always confirm whether the listed unit price includes VAT to avoid unexpected costs.
Maintenance Fee
As required by Vietnamese law, a 2% maintenance fee (calculated on the pre-tax property price) must be paid upon handover. This fund is used for upkeep of shared areas in the building.
FAQs
When Will I Receive the Pink Book?
Generally, 6–12 months after handover, once all necessary documents are submitted and the final 5% payment is made.
Can I Pay in USD or Other Foreign Currencies?
No. All property payments in Vietnam must be made in Vietnamese Dong (VND). It is recommended to open a bank account in Vietnam (preferably with an international bank like HSBC, Standard Chartered, or Shinhan). Funds can be transferred from an overseas account into the Vietnamese account and then paid to the developer.
