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Taxes and Fees When Buying and Selling Real Estate in 2026: Who Pays What

"Who pays the tax — buyer or seller?" is the question in nearly every real estate deal. In 2026, with the new Personal Income Tax Law in force from 01/7/2026, the answer needs updating. This article breaks down every tax and fee in a house/land transfer: what they are, the rates, and who pays.

Table of contents

1. Personal income tax on real estate transfers

The taxpayer and the rate

Under the Personal Income Tax Law 2025 (effective 01/7/2026), income from real estate transfers is taxed at 2% of the transfer price (Articles 14 and 24) — the rate is unchanged from the previous law. Where the transfer price cannot be determined, tax is calculated on the provincial land price table.

Who actually pays?

By default, the seller (transferor) is the taxpayer. But the parties may agree otherwise in the transfer contract — and in practice, buyers very often agree to bear the tax. Whatever the arrangement, write it explicitly in the contract: "all taxes and fees arising from the transfer shall be borne by [party]" — vague wording breeds disputes at the tax office counter.

Timing

PIT is declared and paid when registering the transfer. The land registration office will not issue the new certificate until tax obligations are settled.

2. Registration fee

When the buyer registers ownership of the house / use rights of the land, a registration fee of 0.5% of the asset value applies. Normally the buyer pays. The asset value for the fee is based on the transfer price or the State's price table, whichever is higher per applicable rules.

3. Notary/authentication fees

Transfer contracts for houses and land use rights must be notarized or authenticated to be valid (except limited statutory exceptions). Notary fees follow the State's fee schedule, calculated on the contract value — the parties agree who pays (often split or borne by the buyer).

4. Certificate issuance and cadastral fees

  • Certificate issuance fee: per provincial People's Council rates — modest, paid on receiving the new certificate.
  • Cadastral measurement/extraction fee: where re-measurement is needed (splits, consolidations).

5. Exemptions and reductions

PIT exemptions prescribed by law include:

  1. Transfers between spouses; parents and children (including in-laws); siblings.
  2. An individual holding only one house / one land use right in Vietnam who transfers it in full — subject to statutory conditions (residency duration, ownership duration…).
  3. Other cases per law (policy beneficiaries…).

Registration fee exemptions/reductions apply in specific cases prescribed by law. Check eligibility before paying — refunds are harder than exemptions.

6. Declared price vs actual price: the tax risk

A persistent temptation: declare a low contract price to cut the 2% PIT and 0.5% registration fee. The risks:

  • The tax authority may reassess based on the land price table or market data and collect arrears plus penalties.
  • Deliberate under-declaration to evade tax may attract administrative penalties and, at sufficient scale, criminal liability for tax evasion.
  • A low declared price also weakens the buyer's position if the contract is later cancelled and the price must be refunded.

Always declare the true transaction price. The "saving" is never worth the risk.

7. Worked example

Apartment transfer price: VND 3 billion.

  • PIT (seller, 2%): VND 60 million.
  • Registration fee (buyer, 0.5%): VND 15 million.
  • Notary fee: per schedule on VND 3 billion (parties agree who pays).
  • Certificate issuance fee: per provincial rates.

Total statutory cost ≈ VND 75 million + notary/issuance fees — a figure both sides should factor into the negotiated price.

8. Declaration procedure step by step

In practice, the tax process runs together with the ownership registration:

Step 1 — Notarize the transfer contract. The notarized contract is the basis for everything that follows.

Step 2 — File the tax declaration. One party (as agreed) files the PIT declaration and registration-fee declaration with the tax authority — usually submitted together with the land registration dossier at the Land Registration Office or one-stop unit.

Step 3 — Receive the tax notice. The tax authority issues a notice stating the amounts payable.

Step 4 — Pay and keep receipts. Pay at the designated bank/treasury and keep the receipts — the dossier only moves to certificate issuance after payment is confirmed.

Step 5 — Receive the new certificate in the buyer's name.

Practical tip: when agreeing "who bears the tax," also agree who physically files the paperwork. Many transactions stall at this stage simply because each side waits for the other to go to the tax office.

9. Tax on gifts and inheritance of real estate

Not all real estate changes hands by sale:

  • Gifts: the recipient declares and pays PIT on the gifted property's value (at the statutory rate for gifts), except where the donor and recipient fall within exempt relationships (spouses, parents–children, siblings…).
  • Inheritance: heirs declare PIT on inherited real estate under the inheritance provisions, with similar family exemptions.
  • Registration fee still applies when the recipient registers ownership/use rights.

Because gift and inheritance valuations often reference the State price table rather than a negotiated price, the taxable value — and disputes about it — deserve early attention.

10. Late payment and penalties

Tax notified but not paid on time attracts late-payment interest accruing daily on the outstanding amount. Persistent non-payment can lead to enforcement measures. And as section 6 warned, deliberate under-declaration is worse than late payment: reassessment, administrative penalties, and potential criminal liability for tax evasion at sufficient scale.

The cheapest tax strategy is also the simplest: declare the true price, pay on time, keep every receipt.

11. Registration fee in detail

The 0.5% registration fee deserves a closer look because its base is a frequent source of argument:

  • The base is the asset value — in practice the higher of the declared transfer price and the State's price table for the area. Declaring below the table does not reduce the fee; the authority applies the table.
  • Land vs house: for land, the table value per square metre times the area; for houses, the construction value per the regulated unit prices times floor area, adjusted for grade and remaining quality ratio.
  • Who pays: the buyer on registration — but like PIT, the parties may agree otherwise. State it in the contract.
  • Timing: declared together with PIT in the same filing; the registration office will not process the ownership transfer until both are settled.

Beyond taxes, budget for:

  • Notary fees: charged per the State's fee schedule on the contract value — the schedule is tiered, so the effective rate falls as value rises. The parties agree who pays; practice varies by locality (often the buyer, sometimes split).
  • Authentication alternative: in some cases the parties may authenticate at the commune People's Committee instead of notarizing — cheaper, but confirm the receiving land office accepts authenticated contracts for your case type.
  • Dossier and issuance fees: modest per-document charges at the land office.
  • Agent/service fees (if any): if you hire a service to run the paperwork, agree the fee and scope in writing — including who is responsible if the dossier is returned.

Add roughly 1–2% on top of the price for the full transaction cost picture — and negotiate the headline price with that number in mind.

13. Enterprise sellers: corporate income tax instead of PIT

Everything above concerns individual sellers. When the seller is an enterprise, the transfer is subject to corporate income tax (CIT) on the income from the real estate transfer — not the 2% PIT:

  • The enterprise declares the transfer as part of its taxable income; the CIT rate is the standard enterprise rate applied to the net gain (transfer price minus deductible costs including historical cost, construction investment and related expenses).
  • Cost documentation matters enormously: enterprises with poor historical cost records pay CIT on nearly the full price, while well-documented costs reduce the taxable gain.
  • VAT may also apply to certain real estate transfers by enterprises (e.g. transfers of investment properties, project transfers) — check the VAT treatment for your transaction type.
  • Losses from the transfer may be offset under the loss-carry-forward rules, subject to conditions.

Because enterprise transfers combine CIT, VAT and registration-fee considerations, they deserve dedicated tax structuring advice before the transfer contract is signed — restructuring after signing is usually too late.

A note on transaction costs for enterprises. Beyond CIT and VAT, enterprise sellers should model: registration fees on the buyer's side (which affect the negotiated price), notary fees on often large contract values, and the cost of the tax finalization dossier the enterprise must prepare. Build a full tax-and-fee model before agreeing the headline price — the "price" that matters is the net receipt after all obligations, not the number on the contract's first page. Run the model under both scenarios — buyer-bears-tax and seller-bears-tax — because the headline price that looks better may leave you worse off once the tax allocation is applied. And revisit the model if the deal timeline slips into a new tax year: rate or table changes can move the numbers. Keep the tax model together with the contract and payment vouchers in one transaction file — if the tax authority queries the declared price years later, that file is your defense. Finally, never backdate or split contracts to reduce declared value: the penalties and criminal exposure dwarf any short-term saving, and tax authorities compare declared prices against their own data. When in doubt about any figure on the return, ask the tax officer at the one-stop counter before filing — a five-minute question now prevents a reassessment later.

14. FAQ

Q: What is the personal income tax rate on real estate transfers in 2026?

A: Under the 2025 Personal Income Tax Law (effective 01/7/2026), the tax rate on income from real estate transfers remains 2% of the transfer price (Articles 14 and 24). Where the transfer price cannot be determined, the tax is calculated on the land price table.

Q: Who pays personal income tax — the buyer or the seller?

A: By default the seller (transferor) is the taxpayer. However, the parties may agree in the transfer contract that the buyer pays on the seller's behalf — common in practice. The agreement must be clear to avoid later disputes.

Q: What is the registration fee when buying real estate?

A: The registration fee for houses and land is 0.5% of the asset value, normally paid by the buyer when registering ownership/use rights.

Q: Are there exemptions from personal income tax on real estate transfers?

A: Yes, in cases prescribed by law — notably transfers between spouses, parents and children, and individuals holding only one house/land use right in Vietnam who transfer it in full, subject to statutory conditions.

Q: Can the transfer price be declared below market to reduce tax?

A: No. Declaring a price below the actual transaction value or the land price table to evade tax is a violation and may lead to tax reassessment, penalties and even criminal liability. Always declare the true price.

Need advice tailored to your situation? Contact FLAT Law Firm — hotline 0988424851.

References

  • Personal Income Tax Law 2025 (No. 109/2025/QH15, effective 01/7/2026).
  • Decree 253/2026/ND-CP detailing the PIT Law (issued 30/6/2026, effective 01/7/2026).
  • Land Law 2024 (No. 31/2024/QH15).

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