Vietnam taxes property sales with elegant simplicity: 2% of the transfer price. No deductions, no cost basis, no holding-period math — at least under the law in force today.
The 2% rule
Personal income tax on real-estate transfers is 2% of the transfer price per transaction (Article 17, Circular 92/2015/TT-BTC amending Circular 111/2013/TT-BTC). The transfer price is the price stated in the contract at transfer. If the contract states no price, or a price below the provincial People’s Committee price list, the authority substitutes its own valuation. The seller is the taxpayer, though parties routinely agree otherwise.
When 2% becomes 0%
Two exemptions matter most: transfers between spouses, parents and children, and siblings; and a transferor who owns only one house or residential land plot in Vietnam at the time of transfer. File within 10 days of the contract taking effect if the seller declares directly.
A reform on the horizon — not yet law
A draft replacement Personal Income Tax Law proposes taxing the gain at 20%, or taxing the price at sliding rates by holding period (10%/6%/4%/2%). It is a draft. Price your exit on the 2% in force today, and watch the National Assembly’s calendar if your sale is years away.
Frequently Asked Questions
What is the tax rate when a foreigner sells property?
2% of the transfer price per transaction — calculated on the price, not on the profit (Article 17, Circular 92/2015/TT-BTC).
Does the seller or the buyer pay it?
The seller is the taxpayer by default, but the parties may agree that the buyer bears it. Whatever you agree, write it into the contract.
What if the contract price is below market value?
The tax authority substitutes the provincial price-list valuation. Under-declaring saves nothing and risks penalties for false declaration.
This article has been quality-reviewed by the FLAW AI Legal Council