III. Conditions under which foreigners and foreign organizations conduct real estate business in Vietnam
1. Conditions for real estate business of foreigners and foreign organizations (foreign investors):
- Be an investor from a WTO member country or a country that has a free trade agreement with Vietnam without real estate trade restrictions (general provisions);
- Must establish a business in Vietnam with real estate business and real estate services in accordance with company objectives and goals. Real estate services in which FIEs are allowed to do business include: real estate brokerage, real estate trading floor, real estate consultancy, real estate management.
- Prohibit the transfer of land use rights in the form of “sell allocated land”;
- Prohibition to buy houses, constructions in sublet.
See part 1: Foreign individuals and organizations owning and carrying out real estate activities in Vietnam (P2)
2. Conditions for operating a property:
2.1 The houses and constructions put into operation must fully meet the following conditions:
- Have registered the ownership of the houses and construction works attached to the land in the land use right certificate. For existing houses and construction works within the framework of real estate investments and business projects, only a certificate of land use rights is required in accordance with the provisions of the Land Law;
- There is no dispute over land use rights, ownership of houses and construction works attached to the land;
- Not to be seized to ensure the execution of the judgment.
2.2 The types of land authorized to trade land use rights must fully comply with the following conditions:
- Have a certificate of land use rights in accordance with the Land Law;
- No dispute over land use rights;
- Land use rights are not restricted to secure the enforcement of judgments;
- During the land occupation period.
IV. Scope of foreign individuals and organizations to conduct real estate business in Vietnam
As mentioned above, foreign organizations and individuals engaged in real estate business must establish a business and have a line of business suitable for the intended business purpose. In addition, foreign-invested enterprises established by foreigners or foreign organizations have the scope of real estate business activities within the following limits:
- Renting of houses and subletting buildings;
- For land rented by the State, it is allowed to invest in the construction of houses for rent; invest in the construction of houses and constructions other than houses for sale, for rent or for rent-to-own;
- For land leased to organizations, households and individuals, they can invest in the construction of houses and constructions for rent depending on the good land use purposes;
- Receive the transfer of all or part of the real estate project from the investor to build houses, construction works for sale, for rent, for rent.
- For land allocated by the State, it is allowed to invest in the construction of houses intended for sale, rental or hire-purchase.
Some additional notes on property rights of foreigners and foreign organizations:
- Foreign individuals, organizations and enterprises with foreign capital cannot receive direct transfer of land use rights in Vietnam (Article 169.1 of the 2013 Land Law);
- Foreigners, foreign-funded enterprises, branches, representative offices of foreign enterprises, foreign investment funds and branches of foreign banks operating in Vietnam but not in the school. Investment in project housing construction is allowed to own houses in investment projects to build commercial houses in Vietnam, except for areas providing national defense and security, as prescribed Vietnamese law. But these entities will be limited in terms of ownership and the number of houses owned under the project;
- For foreigners, they are allowed to use and exercise the same rights as Vietnamese individual owners or lease them to others for the purposes permitted by law;
For foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign investment funds and branches of foreign banks currently operating in Vietnam, only residential houses can be used. to ensure that the people who work in this organization stay, and not to use the house for rental, office or other purposes.