The scenario: an overseas Vietnamese inherits land – must they return to Vietnam to sell?
Overseas Vietnamese who inherit houses or land in Vietnam typically face two big questions: must they return to Vietnam to complete the sale, and how much tax is due? The good news is that current law provides mechanisms for overseas heirs to sell inherited real estate without returning – provided the power of attorney and tax obligations are handled correctly.
No need to return: two power-of-attorney options from abroad
An overseas heir may authorize a person in Vietnam to sell the real estate on their behalf, under Articles 562-569 of the 2015 Civil Code (authorization contracts). The power of attorney may be executed in either of two ways:
- Option 1 – fast: notarize the power of attorney at a Vietnamese diplomatic or consular representative office in the country of residence. Under Article 73 of the Notarization Law 46/2024/QH15 (effective 01/7/2025, replacing Law 53/2014), Vietnamese representative offices abroad may notarize powers of attorney. A power of attorney executed there is treated as executed in Vietnam and needs no consular legalization;
- Option 2: notarize at a foreign notarial organization, then complete consular legalization under Decree 111/2011/ND-CP, translation into Vietnamese, and notarization of the translation.
Trap to avoid: Vietnamese representative offices abroad may not notarize sale, transfer, or donation contracts for real estate in Vietnam (Article 73 excludes these). A land transfer contract must be notarized at a notarial practice organization in Vietnam – the authorized person signs it in Vietnam on the heir behalf. Where the parties cannot appear before the same notarial organization, the procedure in Article 57 of Notarization Law 46/2024 applies.
Document note: do not cite Notarization Law 53/2014 (replaced) or Law 04/2026/QH16 amending the Notarization Law (effective 01/01/2027, not yet applicable).
Special case: selling without being granted a land certificate
Under Article 44(3) of the Land Law 31/2024/QH13 (effective 01/8/2024): where all heirs of land use rights or houses are foreigners or overseas Vietnamese not eligible to own houses in Vietnam, they shall not be granted a Certificate, but may transfer or donate the inherited land use rights. The heir stands as the transferor in the contract; if not yet transferred, they submit the inheritance dossier to the land registration organization to update the cadastral records.
In other words, “a foreign heir loses everything” is wrong – the law grants the right to sell, and the heir need not return to Vietnam to obtain a Certificate before selling. (Overseas Vietnamese permitted to enter Vietnam may also receive land use rights via purchase or hire-purchase of houses attached to residential land, or via inheritance – Article 28(1)(h); overseas Vietnamese may own houses in Vietnam under Housing Law 27/2023/QH13.)
Tax on the sale: 2% of the transfer price
Under the Personal Income Tax Law 109/2025/QH15 (effective 01/7/2026, replacing Law 04/2007):
- Article 14: personal income tax on real estate transfers by resident individuals = 2% of the transfer price;
- Article 24: non-resident individuals transferring real estate in Vietnam = transfer price x 2% (persons living abroad usually fall into the non-resident category).
Thus, whether resident or non-resident, the sale is taxed at 2% – only the applicable article differs.
Tax exemption at the inheritance stage: under Article 4(1) of Law 109/2025, receiving inherited or transferred real estate between spouses, parents and children, grandparents and grandchildren, or siblings is exempt from personal income tax at the inheritance stage. However, the subsequent sale remains subject to the 2% tax (except for other statutory exemptions). No further exemptions are inferred beyond this provision.
Additionally, upon registration of the ownership transfer, the buyer pays a 0.5% registration fee on the real estate value (Decree 10/2022/ND-CP).
Step-by-step checklist
- Establish heir status and complete inheritance declaration/testamentary procedures;
- Execute the sale power of attorney: notarize at a Vietnamese Embassy/Consulate abroad (no consular legalization needed) or via foreign notarization plus consular legalization, translation, and translation notarization;
- The authorized person in Vietnam signs the transfer contract, notarized at a notarial practice organization in Vietnam;
- Declare and pay personal income tax of 2% of the transfer price;
- The buyer pays the 0.5% registration fee and registers the transfer;
- For cases under Article 44(3) of the Land Law: the heir stands as transferor in the contract without a prior Certificate issuance procedure.
Disclaimer: This article is for general legal information only and does not constitute legal advice for any specific case. Laws and regulations may be amended; readers should consult a lawyer before acting. Reviewed by FLAW AI Legal Council.
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