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Running a Homestay in Vietnam: Licenses, Conditions & 2026 Tax Rules

6 min readFLAT LAW FIRM
Wooden homestay cabins in the forest

Short answer: A homestay is a conditional business line in Vietnam — you cannot simply rent out rooms to tourists. Operators need business registration, a security and public-order eligibility certificate, fire-safety compliance, and minimum facility standards. On tax: from 2026, household businesses with annual revenue of VND 1 billion or less are exempt from VAT and personal income tax (PIT) under Decree 141/2026/ND-CP.

1. Homestays under tourism law

Under Article 48 of the 2017 Law on Tourism, a homestay (“a dwelling with rooms rented to tourists”) is a type of tourist accommodation establishment. Consequence: short-term rentals with tourist services are governed by tourism law, not treated as ordinary residential leasing.

Conditions for tourist accommodation business (Article 49(1) of the 2017 Law on Tourism):

  1. Business registration as required by law;
  2. Compliance with security/public order, fire safety, environmental protection, and food safety conditions;
  3. Minimum technical facility and service standards as prescribed.

Minimum conditions for dwellings with rooms rented to tourists are set in Article 27 of Decree 168/2017/ND-CP (amended by Decree 142/2018/ND-CP): common living areas, accommodation areas, kitchen, bathrooms/toilets; beds, blankets, pillows, towels; and linen must be changed for each new guest.

2. Three “hard” conditions: security, fire safety, change notifications

  • Security/public order: accommodation establishments must hold a Certificate of Eligibility for Security and Public Order under Decree 96/2016/ND-CP (amended by Decree 56/2023 and Decree 58/2026/ND-CP, effective 15 March 2026).
  • Fire safety: establishments fall under fire-safety management by scale, applying the 2024 Law on Fire Prevention, Fighting, Rescue and Salvage 55/2024/QH15 (effective 1 July 2025) and Decree 105/2025/ND-CP — operators should check the fire-safety management appendix to determine their specific obligations.
  • Change notifications (Article 53, Law on Tourism): any change of name, scale, address, or representative must be notified in writing to the provincial tourism authority. The word “star” or star symbols may be used in advertising only after official star-rating recognition.

3. Homestays in apartment buildings: prohibition and sanctions

Article 3(8)(c) of the 2023 Law on Housing strictly prohibits using apartment units for non-residential purposes. Daily/hourly rentals or homestay operations in apartment buildings without commercial/service functions violate this prohibition.

On sanctions: research indicates Article 59 of Decree 339/2026/ND-CP (issued 26 August 2026, replacing Decree 16/2022/ND-CP) provides fines of VND 100–130 million for organizations and VND 50–65 million for individuals (household businesses are fined at the individual rate) for using apartment units for non-residential purposes, plus mandatory cessation and restoration measures. Caveat: these figures are compiled from secondary research; verify the full text of Article 59 of Decree 339/2026 before applying them to a specific case.

4. Tax for accommodation household businesses from 2026: the VND 1 billion threshold

Decree 68/2026/ND-CP (5 March 2026) on tax policy and tax administration for household and individual businesses was amended by Decree 141/2026/ND-CP (issued 29 April 2026, effective from 1 January 2026). The key change:

  • Exemption threshold: VND 1 billion/year. Household/individual businesses with revenue of VND 1 billion/year or less pay no VAT and no PIT.
  • Above VND 1 billion: VAT is calculated on the entire revenue; PIT is calculated on the revenue exceeding VND 1 billion.
  • Households/individuals with revenue above VND 1 billion/year must use electronic invoices with the tax authority’s code or invoices from cash registers.
  • The business license tax (lệ phí môn bài) was abolished from 1 January 2026 (Article 10(7) of Resolution 198/2025/QH15).

On tax rates for accommodation services: Appendix I of Circular 40/2021/TT-BTC sets 5% VAT and 2% PIT on taxable revenue for accommodation services. Caution: whether Circular 40/2021 continues to apply alongside Decree 68/2026 has not been fully verified — re-check the text in force at the time of application before computing tax.

5. Mandatory distinction: accommodation services vs. pure residential leasing

The most consequential — and most confused — distinction:

  • (a) Household accommodation service business (homestay with services: housekeeping, meals, reception…): the tax regime in section 4 applies — VND 1 billion exemption threshold under Decree 68/2026 as amended by Decree 141/2026.
  • (b) Pure residential leasing (no accommodation services — merely handing over the house for the tenant’s use): may fall under a different tax regime. That regime is not settled here: the full text of Personal Income Tax Law 109/2025/QH15 must be reviewed before asserting any threshold or rate. Pure lessors should not self-apply the VND 1 billion threshold from regime (a).

In short: whether accommodation services are included determines which tax regime applies — do not merge “renting a house” and “accommodation business” into one.

FAQ

Do I need a license to run a homestay? Yes. Homestays are a conditional business: business registration + security/public-order eligibility certificate + fire-safety compliance + minimum facility standards (Articles 48, 49(1) of the Law on Tourism; Article 27 of Decree 168/2017).

At what revenue must a homestay pay tax from 2026? Above VND 1 billion/year — then VAT and PIT apply under Decree 141/2026 (VAT on entire revenue; PIT on the excess over VND 1 billion). VND 1 billion or less is exempt from both.

Can I run a homestay in an apartment building? No, if the building lacks commercial/service functions. The 2023 Law on Housing prohibits non-residential use of apartment units; violations may be sanctioned under Decree 339/2026.

Does the VND 1 billion threshold apply to plain long-term house rentals? Not confirmed. Pure residential leasing may fall under a different tax regime — review PIT Law 109/2025 before applying.

Legal sources

  • Law on Tourism 09/2017/QH14 — Articles 48, 49, 53 (effective 1 January 2018).
  • Decree 168/2017/ND-CP (amended by Decree 142/2018/ND-CP) — Article 27.
  • Decree 96/2016/ND-CP (amended by Decrees 56/2023/ND-CP and 58/2026/ND-CP — effective 15 March 2026).
  • Law on Fire Prevention, Fighting, Rescue and Salvage 55/2024/QH15 (effective 1 July 2025); Decree 105/2025/ND-CP.
  • Decree 68/2026/ND-CP (5 March 2026); Decree 141/2026/ND-CP (issued 29 April 2026, effective from 1 January 2026).
  • Law on Housing 27/2023/QH15 (effective 1 August 2024); Decree 339/2026/ND-CP (issued 26 August 2026).
  • Law on VAT 48/2024/QH15 (effective 1 January 2026); Law on Tax Administration 108/2025/QH15 (effective 1 July 2026); Resolution 198/2025/QH15.

See also: FLAT Law Firm’s [Corporate Legal Services](/en/corporate-legal-services-en/) updates on business conditions and tax obligations for household businesses.

Need help opening a homestay or accommodation establishment? [Contact FLAT Law Firm](/en/contact/) for an assessment of conditions, tax obligations, and a roadmap for your specific case.

Disclaimer: This article is for general information only and does not constitute legal advice for any specific case. Regulations may change; always verify against the original legal text in force at the time of application.

Transparency note: This article was reviewed for quality and legal accuracy by FLAT Law Firm’s AI Legal Council; it has not been reviewed or approved by a human lawyer of FLAT Law Firm.

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