Ownership of Residential Houses by Foreign Organizations and Individuals

On 24 July 2024 the Government issued Decree No. No.95/2024/ND-CP providing for the implementation of the 2023 Law on Housing (“Decree 95”). Decree 95 has come into force from 1 August 2024.

Under Decree 95:

• Foreign organizations and individuals may own up to 30% of the residential apartments in a building, including mixed-use developments;

• For apartment complexes with multiple blocks sharing a common base, foreign ownership is capped at 30% of the units in each block;

• For standalone houses in designated areas with a specified population, foreigners can own no more than 250 units if only one housing development project exists, but in areas with two or more, they can distribute ownership across all projects and the total must not exceed 250 houses. 

Note that under the 2023 Law on Houses, the house ownership duration shall be clearly stated in the certificates. Generally, foreign individuals may own houses as agreed in house purchase and sale or rent-purchase or donation or inheritance transactions for no more than 50 years from the date they are granted the certificates and may enjoy the extension once for no more than 50 years if they wish so. Foreign organizations may own houses as agreed in house purchase and sale or rent-purchase or donation or inheritance transactions within the term stated in their investment certificates, including also extended duration. 

Upon expiry of the initial duration, the house owners may apply for extension of the duration by submitting an application to the provincial People’s Committee at least three months before the expiration date. The committee has 30 days to approve or reject the request, which can grant an additional 50 years of ownership.

According to the Ministry of Construction, about 4 million foreigners and overseas Vietnamese are expected to have demand for housing in Vietnam in the future.