Overseas Vietnamese buying land plots in real estate projects

Overseas Vietnamese buying land plots in real estate projects is a right under current Vietnamese law. However, exercising this right requires strict adherence to legal conditions and procedures. These regulations clearly define eligible parties, forms of ownership, and specific limitations. This analysis by Long Phan Consulting Company details the legal requirements, processes, and essential considerations to ensure clients conduct a safe transaction.

Definition and Conditions for Land Plot Transactions

Current law does not provide a specific legal definition for a “land plot” (đất nền). In the real estate business, a land plot is understood to be a parcel of land without existing structures, maintained in its original state, that has been planned and subdivided within an investment project. The sale and purchase of a land plot is, in effect, a transaction to transfer land use rights.

In practice, land plots are classified by purpose and location into three main types:

• Project Land Plots: These are lots within a project approved by a competent state agency, featuring synchronized technical infrastructure, and planned for the construction of housing, urban areas, or other works.
• Residential Land Plots (Đất thổ cư): This is residential land within the non-agricultural land group, found in both rural and urban areas, used for building houses and structures serving daily life.
• Adjoining Land Plots (Đất nền liền kề): These are adjacent land parcels in the same planned area, often with similar areas and structures, forming a unified architectural whole.

For a land plot in a project to be eligible for transaction, the law sets out strict requirements. According to Article 31 of the Law on Real Estate Business 2023, the transfer of land use rights in a real estate project to an individual for self-construction of a house must meet the following conditions:

• Meet the requirements specified in Clause 1, Article 29 of the Law on Real Estate Business 2023.
• Possess a Certificate of Land Use Rights in accordance with land laws.
• The land use right is not subject to a dispute that has been accepted for resolution by a competent authority.
• The land use right is not under distraint for judgment enforcement.
• The land use right is not in a case where transactions are prohibited by law; not in a period of transaction suspension or temporary suspension according to legal regulations.
• The land is not in a ward of a special, type I, type II, or type III municipality; it is not a case of land use rights auction for housing project investment.
• The developer must have completed the investment in and construction of technical infrastructure according to the 1/500 detailed plan and project schedule.
• The developer must have a written notification and receive a written response from the provincial state management agency for real estate business confirming the land plot is eligible for transfer.

Fulfilling these legal conditions under the Law on Real Estate Business 2023 is a mandatory requirement for a project land plot to be legally transacted, creating a safe legal corridor for all participants.

Legal Framework for Overseas Vietnamese to Acquire Land

“Overseas Vietnamese” includes Vietnamese citizens residing abroad who still hold Vietnamese nationality, and people of Vietnamese origin residing abroad who no longer hold Vietnamese nationality. For Vietnamese citizens abroad, real estate rights are applied as they are for domestic citizens. For people of Vietnamese origin without Vietnamese nationality, real estate rights in Vietnam are more limited.

However, the Land Law 2024, effective from January 1, 2025, introduces new regulations that expand land access for people of Vietnamese origin residing abroad. These provisions create the legal basis for overseas Vietnamese buying land plots in real estate projects legally. Specifically:

According to Point h, Clause 1, Article 28 of the Land Law 2024, people of Vietnamese origin residing abroad who are permitted to enter Vietnam have the following rights:

• To purchase or lease-purchase houses attached to residential land use rights.
• To receive residential land use rights in housing development projects.
• To inherit residential land use rights and other types of land within the same parcel that has a house.
• To receive as a gift a house attached to residential land use rights from individuals in the line of inheritance as defined by civil law.

This regulation shows that Overseas Vietnamese can directly receive residential land use rights by purchasing a house in a housing development project. Although the law does not explicitly mention “buying a land plot,” the purchase of a house attached to land use rights in a project effectively includes the ownership of the use right for that plot. This is the legal mechanism that facilitates overseas Vietnamese buying land plots in real estate projects.

Furthermore, Clause 3, Article 27 of the Land Law 2024 stipulates that for land use right transfer contracts where one or more parties are a real estate business, notarization or authentication is performed at the request of the parties, creating transactional flexibility. This means when an Overseas Vietnamese buys a future housing product or an eligible land plot in a project from a developer, the transaction is conducted through a real estate business contract, consistent with the new regulations.

These progressive regulations in the Land Law 2024 have officially created a clear mechanism, allowing Overseas Vietnamese to legally own real estate attached to residential land in projects, removing previous legal barriers.

Requirements for the Transferor (Seller) When Selling Land Plots

To protect the buyer’s rights and ensure market transparency, the law requires the transferor (project developer) to meet strict conditions. A developer with sufficient legal and financial standing to conduct the transaction is a key factor for the client’s safety when purchasing a land plot.

According to Article 32 of the Law on Real Estate Business 2023, the party transferring land use rights with completed technical infrastructure in a real estate project to an individual must:

• Be the project developer. Only a developer who has been allocated or leased land by the state to implement the project has the right to transfer land use rights within that project.
• Be an enterprise under the law on enterprises or a cooperative/union of cooperatives under the law on cooperatives, with a registered real estate business line.
• Not be under a ban, temporary suspension, or đình chỉ (suspension) of real estate business activities pursuant to a court judgment/decision or a decision by a competent state agency.
• Ensure the ratio of credit debt and corporate bond debt to owner’s equity is maintained.
• Meet capacity conditions: Must have owner’s equity no less than 20% of the total investment for projects under 20 hectares and no less than 15% for projects of 20 hectares or more. They must also prove financial capacity to ensure land use according to the project’s schedule.
• Have a certificate of land use rights and be within the land use term as prescribed by land law.
• Have fulfilled all financial obligations: The developer must have paid all land use fees, land rent, and other taxes, fees, and charges related to the land for the area being put into business.
• Comply with administrative penalty decisions (if any): If the developer has been penalized in fields such as investment, construction, land, housing, or real estate business related to the plot, they must have fulfilled the penalty decisions before signing the transfer contract.

Therefore, a thorough appraisal of the developer’s legal status and compliance is the first and most effective risk-screening step for any client before proceeding with a transaction.

Important Considerations for Purchasing Land Plots in Real Estate Projects

The transaction of purchasing a land plot in a real estate project carries many legal and financial risks. To ensure safety, clients should conduct a comprehensive appraisal and inspection before making an investment decision.

Project Legality

• Thoroughly check the investment license and project approval decision from the competent state agency.
• The project must have an approved 1/500 detailed plan and a land allocation or lease decision from the provincial People’s Committee.
• The developer must have the written notice sent to the provincial state management agency for real estate business regarding the eligibility of the land use right for transfer, per Clause 7, Article 31 of the Law on Real Estate Business 2023.
• Verify the project has been issued a certificate of land use rights for the entire project area.

Developer’s Capacity and Experience

• The developer must meet the capacity conditions as per Article 9 of the Law on Real Estate Business 2023.
• Overseas Vietnamese should research the developer’s operational history, completed projects, and market reputation.
• Check financial statements, charter capital, and financial capability to ensure the project will be deployed on schedule.

Project Implementation and Technical Infrastructure Progress

• According to Article 31 of the Law on Real Estate Business 2023, a land plot for transfer must have completed technical infrastructure. Clients should physically inspect the construction progress of infrastructure including roads, electricity, water, and drainage systems.
• Review the plan and progress for completing public utilities in the project such as parks, schools, and markets.

Review of Planning, Construction Permits, and Land Use Right Certificates

• According to Clauses 4, 6, 7 of Article 76 of the Land Law 2024, Overseas Vietnamese should check if the land parcel is subject to a land recovery plan.
• Check the detailed construction planning of the plot regarding construction density, building height, and building lines.
• Confirm whether the plot has been issued an individual certificate of land use rights.

Appraisal of Land Plot Value and Investment Profitability

• Overseas Vietnamese should compare the land plot price in the project with the market price in neighboring areas with similar infrastructure conditions.
• Assess the potential for future development in the area, such as transportation infrastructure planning, industrial parks, or commercial centers.

Review of Contract Terms

• Clients should carefully read the terms on transfer price, payment method, and payment schedule.
• Terms on the deadline for handing over the land and the certificate of land use rights must be clearly stated.
• Review contract penalty clauses for both parties and force majeure clauses.

Awareness of Dispute Risks

• According to Clause 1, Article 45 of the Land Law 2024, land without disputes, or with disputes that have been resolved, is a condition for transfer. Overseas Vietnamese should check the transaction history of the plot and verify there are no disputes.
• Consider the possibility of future planning changes affecting land use per Clause 4, Article 67 of the Land Law 2024.
• Be aware of cases where transfer is not permitted: Clause 8, Article 45 of the Land Law 2024 specifies cases where organizations or individuals may not receive a transfer of land use rights, for example, individuals not living in a protected forest area cannot receive a transfer of residential land in that area.

Completing these appraisal steps is not just a preventive measure but an effective legal tool to help clients protect their legitimate rights and interests throughout the investment process.

Investment Consulting Services for Land Plot Purchases at Long Phan Consulting Company

The process of overseas Vietnamese buying land plots in real estate projects is complex, requiring deep legal knowledge and practical experience. The changes in the Land Law 2024 and the Law on Real Estate Business 2023 bring both opportunities and challenges. Using a professional consulting service is an optimal solution to successfully navigate this legal environment.

Long Phan Consulting Company provides in-depth legal consulting services for investment and the purchase of land plots in real estate projects. We assist clients throughout the entire transaction process, from the initial appraisal stage to the completion of procedures for transferring the name on the Certificate of Land Use Rights.

Our services include:

• Project Legal Appraisal: Reviewing all legal documents of the project, including approval decisions, 1/500 plans, construction permits, and the developer’s Certificate of Land Use Rights.
• Developer Capacity Verification: Assessing the reputation, operational history, and financial capacity of the developer to forecast risks.
• Contract Drafting and Review: Advising on and negotiating terms in deposit and transfer contracts to ensure fair, tight clauses that protect the buyer’s interests.
• Process Consulting for Overseas Vietnamese: Providing detailed guidance on the necessary legal procedures for Overseas Vietnamese to purchase and be named on the land use rights title in accordance with Vietnamese law.
• Procedural Representation: Acting on behalf of clients to carry out notarization and land registration procedures at competent state agencies.

With expertise and experience, Long Phan Consulting Company is committed to accompanying clients, turning complex legal regulations into safe and effective investment solutions in practice.

Frequently Asked Questions about Overseas Vietnamese Buying Project Land Plots

Key Difference in Land Purchase Rights Between Overseas Vietnamese With and Without Vietnamese Nationality under the New Law?

According to the Land Law 2024, both groups have the opportunity to own real estate attached to residential land in projects. However, those still holding Vietnamese nationality have a legal status equivalent to domestic citizens, while those of Vietnamese origin without nationality must be permitted to enter Vietnam and exercise their right through the mechanism of purchasing a house attached to land use rights.

Can I Buy a Completely Vacant Plot or Must I Buy it with a Pre-built House?

The Land Law 2024 allows Overseas Vietnamese to “receive residential land use rights in housing development projects.” This is often done by purchasing a house to be built in the future that is attached to that plot. Therefore, the transaction is not for a simple vacant plot, but for a property that includes both the right to use the land and the house that will be built on it according to the approved plan.

What Documents Do I Need to Prove My Identity and Eligibility for the Transaction?

Overseas Vietnamese need to provide a valid Vietnamese passport (if still a citizen) or a foreign passport accompanied by documents proving Vietnamese origin (such as a birth certificate, decision of renunciation of Vietnamese citizenship, or a certificate of Vietnamese origin issued by a competent authority) and a document confirming permission to enter Vietnam.

How to Verify the Developer’s Capacity and the Legality of the Land from Abroad?

You should request the developer to provide copies of core legal documents such as the project approval decision, 1/500 detailed plan, infrastructure construction permit, and the Department of Construction’s letter confirming the land plot is eligible for transaction. Additionally, you can hire a legal consulting firm in Vietnam to independently appraise these documents at state agencies.

What are the Main Taxes and Fees I Have to Pay When Receiving a Land Plot Transfer?

When receiving a transfer from a developer, the selling price usually includes Value Added Tax (VAT). Upon being issued the title (Sổ hồng – Pink Book), you will need to pay a registration fee (usually 0.5% of the property’s value) and other administrative fees related to registration and certificate issuance.

What Rights Do I Have Over This Property After Legal Ownership?

After being issued the Certificate of Land Use Rights, Ownership of Housing and Other Assets Attached to Land, Overseas Vietnamese have the rights of an owner, including the right to transfer (sell), gift, bequeath, or mortgage at credit institutions permitted to operate in Vietnam, in compliance with the conditions of current law.

Is it Possible for Overseas Vietnamese to Access Mortgage Loans from Vietnamese Banks?

Yes, many commercial banks in Vietnam have policies for lending to Overseas Vietnamese to buy real estate, provided they can prove a legal and stable source of income to repay the debt. The purchased property itself serves as collateral for the loan.

What Procedures Must be Followed to Transfer Money from Abroad to Vietnam for Payment?

The money transfer must be done through the banking system to ensure legality. You need to clearly state the purpose of the transfer is to pay for a house purchase in a specific project, and keep all transaction documents to prove the legal origin of the funds if required.

Does Owning Real Estate in Vietnam Make it Easier for Me to Reacquire Vietnamese Citizenship?

Owning real estate is a factor that shows attachment to Vietnam, but it is not a decisive condition or a direct priority mechanism in the process of reapplying for citizenship. The approval for reacquiring Vietnamese citizenship follows the separate regulations of the Law on Nationality.

How to Differentiate Between a “Deposit Agreement” and a “Purchase Contract”?

A deposit agreement is usually a preliminary document to confirm the intention to buy and “reserve” the plot, involving a small amount of money. The purchase contract is the official legal document, detailing all the rights and obligations of the parties, the transaction value, and the payment and handover schedules. The purchase contract has much higher legal value and is the basis for registering ownership later.

Conclusion

A land plot transaction in a project is a major investment decision. Correctly complying with legal regulations not only ensures the legality of the property but also helps clients avoid unnecessary disputes in the future. To ensure legal safety and optimize your rights, please contact Long Phan Consulting Company via hotline 1900 636 389 to receive in-depth and comprehensive support from our real estate investment consulting service for Overseas Vietnamese.