100% foreign-owned company rents and buys houses in Vietnamopens up strategic opportunities for establishing and expanding long-term business operations. By owning or leasing real estate, businesses can reduce office costs, stabilize operations and increase presence in the market. This is a step that helps businesses take advantage of Vietnam’s vibrant economic potential, while also creating a premise for developing sustainable relationships with local partners.
Regulations on 100% foreign-owned companies renting and purchasing housing in Vietnam
Conditions for a 100% foreign-owned company to lease and buy housing in Vietnam
Pursuant to point c, clause 2, Article 8 and Article 17, clause 2, Article 35 of the Law on Housing 2023, point b and c, clause 1, Article 3 of Decree 95/2024/ND-CP, 100% foreign companies can own Owning housing in Vietnam in the following forms:
Organizations specified in Point a, Clause 1, Article 17 of the Law on Housing 2023 may own housing through the implementation of housing construction investment projects in Vietnam;
Organizations and individuals specified in Points b and c, Clause 1, Article 17 of the Law on Housing 2023 may own housing through purchasing, renting and purchasing commercial housing from investors of housing construction investment projects, receiving donating or inheriting commercial housing in housing construction investment projects not in areas requiring national defense and security as prescribed in Article 16 of the Law on Housing 2023;
Organizations and individuals specified in Points b and c, Clause 1, Article 17 of the Law on Housing 2023 may own housing through purchasing or leasing housing from foreign organizations and individuals that already own housing according to regulations at point b of this clause.
Conditions for foreign organizations to own housing in Vietnam include:
For foreign organizations investing in housing construction projects in Vietnam, they must have an Investment Registration Certificate in accordance with the provisions of investment law;
For foreign organizations that do not invest in housing construction according to the project, they must have an Investment Certificate or Investment Registration Certificate or documents approved by a competent Vietnamese agency to operate or established in Vietnam and still valid at the time of signing the housing transaction (hereinafter referred to as the Investment Registration Certificate) issued by a competent Vietnamese state agency in accordance with the provisions of law.
How long does a 100% foreign-owned company lease and buy a house in Vietnam?
According to the provisions of the Law on Housing 2023, current law does not stipulate a maximum period for FDI enterprises to own housing in Vietnam. Specifically, businesses can own housing through forms such as buying and selling, renting, donating or inheriting. However, the ownership period cannot be longer than the period stated in the investment registration certificate that the organization has been granted, according to Point d, Clause 2, Article 20 of the Law on Housing 2023.
Housing ownership period in Vietnam for 100% foreign-owned company
Right to lease and purchase housing in Vietnam of 100% foreign-owned company
Pursuant to Clauses 1 and 2, Article 20 of the Law on Housing 2023, companies with 100% foreign capital that lease and purchase housing in Vietnam have the right to:
For companies investing in project-based housing construction in Vietnam:
Inviolability: There is an inviolable right to legally owned housing.
Residential use: Using housing for residential purposes and other purposes not prohibited by law.
Certificate: Certificate issued for legally owned housing.
Housing transactions:
Sell, lease, buy, donate, exchange, inherit, mortgage, contribute capital with housing.
Transfer of contracts for sale, lease, loan, stay, and housing management authorization.
In case of gifting or inheritance to a person who is not allowed to own a house in Vietnam, that person will only enjoy the value of the house.
Use of common facilities: Shared use of public facilities in the housing area.
Common ownership: If you are an apartment owner, you have the right to common ownership and common use of the common ownership portion of the apartment building.
Maintenance and renovation: Right to maintain, renovate, demolish and rebuild housing.
Property rights protection: Housing ownership rights are protected.
File a lawsuit: Have the right to complain, denounce, and sue for violations of legal property rights.
Other rights: Other rights as prescribed by law.
For companies that are not eligible to invest in housing construction projects in Vietnam:
Ownership rights like Vietnamese citizens: Foreign organizations have the same rights to own housing as Vietnamese citizens, but must comply with specific regulations.
Housing transactions: Allowed to buy, rent-purchase, receive gifts, and receive inheritance of housing according to the prescribed quantity.
Certificate: Certificate issued for housing that the organization owns.
Quantity restriction: If a foreign organization receives or inherits a house that exceeds the prescribed quantity or is located in an area that needs to ensure national defense and security, it will only enjoy the value of that house.
Ownership period:
Foreign organizations have the right to own housing according to the agreement in the transaction but not beyond the period stated in the investment registration certificate.
The ownership period is calculated from the date of issuance of the Certificate.
Right to donate or sell: Before the expiration of the ownership period, the organization can authorize another individual or organization to exercise the right to donate or sell the house.
Housing belongs to public property: If the ownership period expires without a donation or sale transaction, the house will belong to public property.
Rights for the receiving party: If the party receiving or buying the house falls under the regulations, that party will have rights according to the provisions of this Law.
Content of the right to lease and purchase housing in Vietnam of 100% foreign-owned company
Can a 100% foreign-owned company lease land for real estate business?
According to the provisions of Clauses 4 and 5, Article 10 of the Law on Real Estate Business 2023, Point c, Clause 2, Article 120 of the Land Law 2024, companies with 100% foreign capital are allowed to lease land for real estate business, for example: Use land to build social housing for rent.
Consulting services and support for 100% foreign-owned company renting and purchasing houses in Vietnam
A 100% foreign-owned company renting and purchasing real estate in Vietnam is not only feasible but also a smart strategy to increase business presence in the Vietnamese market. At Long Phan, we provide comprehensive consulting and support services, helping you carry out this process easily and effectively. Long Phan’s services will include:
Consulting on issues related to procedures for 100% foreign-owned company to lease and buy houses in Vietnam;
Consulting and support in applying for investment registration certificate and investment policy approval;
Consulting on conditions for renting and purchasing real estate in Vietnam for foreign businesses;
Consulting on forms of housing ownership in Vietnam;
Consulting on risky situations arising during the investment process in Vietnam;
Consulting and supporting you in the process of negotiating the terms of the lease purchase contract, ensuring the best benefits;
Guide and implement necessary administrative procedures.
100% foreign-owned companies rent and buy houses in Vietnam through many forms. Each form will require different procedures. With a team of experienced experts, Long Phan is committed to providing you with the highest quality service, helping you easily grasp investment opportunities in Vietnam. Contact Long Phan immediately via hotline: 0906735386for detailed advice and quick support!
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Luật sư Trần Tiến Lực
Lawyer Luc Tien Tran – a dedicated and deeply knowledgeable professional in the fields of construction consulting, real estate consulting, and intellectual property consulting. His expertise, experience, and profound understanding of related issues make him a reliable partner. Mr. Luc's professionalism and dedication will provide optimal solutions and help clients achieve their desired business outcomes.