Short answer: Foreign individuals who lawfully own an apartment in Vietnam may resell it, with three things to handle: (1) check sale conditions — remaining ownership term and buyer eligibility limits; (2) calculate personal income tax at 2% of the transfer price (payable even at a loss); (3) notarize the contract and register the ownership change within 30 days. Notably, from 1 July 2026, the 2% rate applies uniformly to both resident and non-resident individuals under the 2025 Personal Income Tax Law.
1. May foreigners sell apartments in Vietnam? What limits apply?
Foreign individuals permitted to enter Vietnam are eligible to own housing in Vietnam (Article 17 of the Housing Law 2023, No. 27/2023/QH15, effective 1/8/2024) — and the right to resell follows from ownership. Key limits at sale:
- Ownership term: a foreign individual may own housing as agreed in the sale contract but for no more than 50 years from the date of issuance of the ownership certificate, extendable once for no more than 50 years upon request; the term must be stated in the certificate — point c, clause 2, Article 20 of the Housing Law 2023 (article number verified against the original law text). Buyers price the apartment against the remaining term, so the later the sale, the lower the legal value.
- Project-level caps: foreign organizations and individuals may own no more than 30% of the apartments in one condominium building; for separate houses, no more than 250 units in an area with a population equivalent to a ward (Article 19 of the Housing Law 2023). This must be re-checked when selling to another foreign buyer.
- Eligible buyers: the buyer may be a Vietnamese citizen or another foreign individual or organization — but a foreign buyer must also satisfy the ownership conditions (permitted areas, payment through a credit institution per point c, clause 2, Article 21).
2. PIT on the sale: 2% of the transfer price — even at a loss
Under the 2025 Personal Income Tax Law (No. 109/2025/QH15, amended by Law No. 09/2026/QH16 effective 24/4/2026):
- A flat 2% on the transfer price applies equally to resident and non-resident individuals from 1 July 2026 (replacing the 25%-on-taxable-income option under the 2007 PIT Law). Even a loss-making sale is taxed on the stated sale price.
- Timing of taxable income follows Article 28 of the Law — verify at filing, as it determines when the declaration and payment obligation arises.
- Who files? Normally the seller declares and pays PIT using form 03/BDS-TNCN within the ownership-change dossier (Decree 101/2024/ND-CP, Articles 29 and 37) — parties may agree in the contract on who bears the tax, but the obligation to the tax authority must be settled before the title transfer.
Warning on “contract price” traps: if the contract price is abnormally below market value, the tax authority may reassess the taxable price. Understating the price to “save tax” is ineffective and legally risky.
Important note on the exemption: Article 4.2 of Law 109/2025 exempts income from transferring housing and residential land use rights where “the individual has only one house or one residential land plot in Vietnam” — the text does not distinguish resident from non-resident, but it is unclear how tax authorities will apply this to foreign individuals and no detailed guidance exists yet. This article does not assert that foreigners qualify; case-specific advice is required before relying on it.
3. Other financial obligations at transfer
- Registration fee (paid by the buyer): 0.5% on houses and land under Article 8.1 of Decree 10/2022/ND-CP — payable at title transfer.
- Notarization fee: housing transfer contracts must be notarized or certified; fees follow the statutory schedule based on contract value (Notarization Law 2024, No. 46/2024/QH15, effective 1/7/2025 — this article does not cite the 04/2026 notarization amendment as it is not yet effective).
- Other costs: dossier appraisal fees, surveying fees (if any), and the buyer own future tax if they resell later.
4. Transfer procedure: notarize, then register the change within 30 days
- Sign a notarized transfer contract: both parties sign at a notarial practice; the seller prepares the original ownership certificate, passport and marital-status documents (if any).
- Declare tax and fees: file PIT declaration form 03/BDS-TNCN and the registration-fee declaration; pay tax and fees per the tax authority notice.
- Register the change: within 30 days of the transfer, register the change at the Land Registration Office / One-stop unit (Article 133.3 of the Land Law 2024, effective 1/8/2024). Dossier: change-registration application form 11/DK, original certificate, notarized transfer contract, tax declarations and payment receipts (Decree 101/2024/ND-CP).
Missing the 30-day deadline may trigger administrative land penalties, and the buyer is not yet recognized as the lawful owner — affecting future mortgage or resale.
FAQs
Must a foreigner pay PIT when selling an apartment?
Yes. 2% of the transfer price, uniformly for residents and non-residents from 1/7/2026; payable even at a loss.
May the apartment be sold to another foreigner?
Yes, but the foreign buyer must also meet the housing-ownership conditions in Vietnam (eligibility, caps, permitted areas, payment via credit institution).
Does the “only house” exemption apply to foreigners?
Unclear. Article 4.2 of Law 109/2025 does not distinguish residence status, but no guidance on application to foreign individuals exists — seek case-specific advice; do not self-apply.
How long does the title transfer take?
The contract must be notarized; the change must be registered within 30 days of transfer. Processing at the Land Registration Office varies by locality, typically days to weeks.
What if the ownership term is nearly expired at sale?
The legal value declines with the remaining term; the seller may extend once for up to 50 years before selling to improve the transaction value.
Legal references
- Housing Law 2023 (27/2023/QH15, effective 1/8/2024): Articles 17, 19, point c clause 2 Article 20, point c clause 2 Article 21.
- Personal Income Tax Law 2025 (109/2025/QH15, effective 1/7/2026; amended by Law 09/2026/QH16, effective 24/4/2026): Articles 4.2, 14.1, 24.1, 28.
- Land Law 2024 (effective 1/8/2024): Article 133.3.
- Decree 10/2022/ND-CP: Article 8.1 (0.5% registration fee).
- Decree 101/2024/ND-CP: Articles 29, 37 (change-registration dossier).
- Notarization Law 2024 (46/2024/QH15, effective 1/7/2025).
Foreign individuals selling an apartment before leaving Vietnam should review their dossier, remaining ownership term and tax obligations before signing a transfer contract. Reach us via the Contact page of FLAT Law Firm.
The legal content of this article is reviewed by FLAT’s AI Legal Council and submitted to the owner for approval; it is not an opinion of a licensed lawyer and does not replace legal advice for specific cases.
For reference only, not legal advice.