Gold for Payment in Real Estate Transactions Legal

Gold for Payment in Real Estate Transactions Legal is a method that has appeared quite commonly in practice, especially in traditional civil agreements. However, replacing Vietnamese Dong with gold in real estate payments raises many issues regarding contract validity, financial obligations, and risks. The following article by Long Phan Consulting Company will clearly analyze whether using gold for payment in real estate transactions is legal and highlight important notes that parties need to understand.

Is it legal to use gold as payment when buying or selling real estate?

According to Article 19 of Decree 24/2012/ND-CP (amended by Clause 12 Article 1 of Decree 232/2025/ND-CP), violations of laws in gold business activities include:

1. Producing jewelry/fine arts gold without a Certificate of Eligibility from the State Bank.
2. Trading gold bars without a license; exporting/importing raw gold or gold bars incorrectly.
3. Individuals carrying gold upon exit/entry exceeding the prescribed limit without a license.
4. Using gold as a means of payment.
5. Producing gold bars contrary to Decree 24/2012/ND-CP.
6. Other gold business activities without permission/license.
7. Violating other regulations of this Decree and relevant laws.

Accordingly, using gold as a means of payment is determined to be a violation of regulations on gold business activities. Therefore, using gold for payment in real estate transactions is illegal and not recognized as lawful.

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What are the penalties for using gold for payment in real estate transactions legal?

Based on Clause 1 and 2, Article 28 of Decree 340/2025/ND-CP (effective from Feb 9, 2026), the penalties for using gold for payment in real estate transactions legal are:

1. Warning:

• Buying/selling gold bars with unlicensed credit institutions/enterprises.
• Using gold as a means of payment.

2. Fine from 10,000,000 VND to 20,000,000 VND (for individuals):

• Buying/selling gold bars with unlicensed entities (repeat/multiple violations).
• Using gold as a means of payment (repeat/multiple violations).
• Failure to make gold purchase/sale payments via bank accounts as prescribed.

Note: For organizations, the fine is 2 times the level applied to individuals (20 – 40 million VND for repeat violations).

What are the responsibilities of gold-producing businesses?

According to Article 6 of Decree 24/2012/ND-CP (amended by Clause 5 Article 1 of Decree 232/2025/ND-CP):

1. Stamp codes and gold content on products; announce applied standards and product weight; be responsible for announced standards and weight.
2. Be responsible for standards/weight of products hired for processing.
3. Comply with accounting, invoicing, and voucher regulations.
4. Ensure safety in production, environmental protection, and fire prevention.
5. Maintain production conditions under Clause 1 Article 5 Decree 24/2012/ND-CP.
6. Issue electronic invoices when selling raw gold purchased from enterprises/commercial banks; store transaction data; connect information to the State Bank.
7. Comply with other relevant regulations.

>>> See more: Overseas Vietnamese Real Estate Contract Guide

Real estate transaction consulting services at Long Phan Consulting Company

Real estate transactions are high-value transactions with potential risks if not checked and executed correctly. To ensure the legal rights and interests of clients, Long Phan Consulting Company provides comprehensive consulting services in real estate trading and transfer with a professional process. We structure our support into the following key areas:

• Advising on transfer pricing agreements, payment methods, and payment timing; assessing compliance with monetary and banking regulations.
• Propose a method for converting gold payments to Vietnamese Dong payments through the banking system; provide guidance on correctly recording the payment value as stipulated in the contract.
• We will guide and represent you in working with the bank regarding value conversion, payment, and confirmation of payment documents for notarization and transfer of ownership of real estate.
• Assess the likelihood of the contract being declared void due to violations of payment method regulations; analyze the consequences and options for preserving the legitimate rights and interests of the customer.

Frequently Asked Questions about Gold for Payment in Real Estate Transactions Legal

The following are frequently asked questions regarding Gold for Payment in Real Estate Transactions Legal; please refer to them:

Is a deposit contract using gold bars considered invalid?

Yes. Using gold as a means of payment or deposit in civil transactions is a violation of the prohibition. Therefore, a gold deposit agreement is at high risk of being declared invalid by the Court due to violation of the law’s prohibition, leading to the parties having to return to each other what they have received.

(Legal basis: Article 19 of Decree 24/2012/ND-CP and Article 123 of the 2015 Civil Code.)

Can individuals state the selling price of real estate in gold in a notarized contract?

No. No transactions or contracts in Vietnam are permitted to list prices or specify payment terms in gold or foreign currency, except in certain special cases stipulated by the State Bank of Vietnam. Listing prices in gold will result in the notary public refusing to process the transaction or the contract being deemed invalid.

(Legal basis: Article 19 of Decree 24/2012/ND-CP.)

What is the maximum fine for an organization that uses gold as payment for land transactions?

The fine for organizations is twice the fine applied to individuals. For the act of using gold as a means of payment in cases of repeated offenses, organizations may be fined up to 40,000,000 VND.

(Legal basis: Point b, Clause 2, Article 28 and Point a, Clause 3, Article 5 of Decree 340/2025/ND-CP.)

Besides the fine, will the gold used for payment be confiscated?

Yes. According to the new regulations, the additional penalty is the confiscation of the items used to commit the administrative violation, specifically the gold used to make illegal payments in real estate transactions.

(Legal basis: Point c, Clause 2, Article 5 of Decree 340/2025/ND-CP.)

Is bank transfer mandatory for payments when buying and selling gold bars at businesses?

Yes. According to the new regulations, parties involved in gold transactions must make payments through bank accounts. Failure to comply with this payment method will result in a fine of VND 10,000,000 to VND 20,000,000 for individuals.

(Legal basis: Point c, Clause 2, Article 28 of Decree 340/2025/ND-CP.)

What obligations do gold businesses have when selling raw gold to commercial banks?

Businesses must issue and use electronic invoices in accordance with the law; store complete and accurate data on transactions for the sale of raw gold; and connect and provide information to the State Bank of Vietnam as prescribed by the Governor of the State Bank of Vietnam to monitor the flow of raw gold.

Legal basis: Clause 5a, Article 6 of Decree 24/2012/ND-CP (amended by Decree 232/2025/ND-CP).

Why does Vietnamese law prohibit the use of gold as a means of payment?

This regulation aims to implement a policy against the “goldization” of the economy, ensuring that the Vietnamese Dong remains the sole means of payment within the country, helping the State Bank of Vietnam control inflation and stabilize national monetary order.

(Legal basis: Article 19 of Decree 24/2012/ND-CP.)

>>> See more: Consulting services for real estate for overseas Vietnamese

Conclusion

Using Gold for Payment in Real Estate Transactions Legal carries high risks and potential confiscation under new regulations. Clients should prioritize using Vietnamese Dong via bank transfer for protection.

For support, contact Long Phan Consulting Company via hotline 1900636389