Consulting Foreigners For Renting Apartments in Vietnam

Nhung Kieu14/04/2022

FOREIGNERS CAN LEASE HOUSE IN VIETNAM

Renting an apartment in Vietnam by foreigners is a fairly common transaction. From the time of market opening, Vietnam allows foreigners to enter and conduct transactions of buying apartments, renting houses and land in the Vietnamese territory in accordance with the law.
So, to rent out your apartment in accordance with the law of the State of Vietnam, what obligations do foreigners need to fulfill:

Regulations on foreign ownership of houses in Vietnam

Foreigners are allowed to own houses in Hanoi / Viet Nam according to the provisions of Article 161 of the Law on Housing 2014), specifically as follows:

• Invest in building houses according to projects in Vietnam
• Foreign organizations and foreign individuals allowed to enter Vietnam are allowed to lease out no more than 30% of the number of apartments in an apartment building; if it is a separate house, including villas and adjacent houses, it is not allowed to own more than 250 houses.
• In case a foreign individual marries a Vietnamese citizen or marries a Vietnamese residing abroad, he/she is entitled to own a stable and long-term house and has the same rights as a homeowner as a citizen. Vietnam.
• If the rental house is an apartment building for living, it is not allowed to act as a representative office or branch as prescribed in Clause (11, Article 6 of the Law on Housing 2014).

Conditions for renting houses for foreigners in Vietnam

1. Conditions of housing when participating in rental transactions
   According to Article 118 of the 2014 Housing Law, when participating in a rental transaction, a house must meet the following conditions:

• Have a Certificate of Ownership as prescribed by law
  Not subject to a dispute, complaint, or claim about ownership; are in the period of house ownership in the case of house ownership with a definite term;
• Not being distrained for judgment enforcement or distrained to execute legally effective administrative decisions of competent state agencies;
• Not subject to a decision on land recovery or a notice of house clearance or demolition issued by a competent authority.
• The housing must also ensure quality and safety for the lessee, have an adequate electrical, water supply and drainage system, and ensure environmental sanitation.

2. Conditions for registration procedures: Foreign individuals shall carry out procedures for notifying the house lease with the housing management agency of the district where the house is located in accordance with the provisions of (Clause 2, Article 162 of the Law on Housing in 2004). 2014).

• Send a written notice of the house rental to the Division with the function of housing management at the district level where the house is available for rent.
• Contents of notice include Name of owner, address of the rental house, rental period, copy of the certificate of a rental house, the purpose of rental house use.
• Divisions with the function of housing management are responsible for notifying tax authorities for tax collection in accordance with tax laws and reporting to relevant agencies.

3. Set up housing rental contract

• The rental contract is made in writing between the two parties
• If the timeout subscribes to home from 06 months or more, you must have a certificate or authentication at a competent state agency.

4. Tenant conditions

• It is a fish in the water, must behave enough the performance of the people to do the transaction in the rule of the law and not start must have a register on stay in the home at the transaction;
• If is a fish water out, the Vietnamese residing abroad must have full capacity to administer civil acts to carry out transactions on housing in accordance with Vietnamese law.
• Subjects who own a house in Vietnam and are not required to register for temporary residence or register for temporary residence at the place where the transaction is located.

5. Pay tax according to the regulations of the State of Vietnam

• To declare and fully pay taxes according to the provisions of law. Including personal income tax, license tax, value-added tax. The tax rate more or less depends on the registered capital in the business license.
• For house rental services. The General File is applied is 10%. Individual income changes the attributes of each person.
• House rental transactions of foreigners in Vietnam are carried out in the spirit of the law in order to ensure the rights and interests of foreigners as well as respect the law of foreigners in Vietnam.

If you have questions about the content of the article or require legal advice related to transactions of foreigners in Vietnam, readers can contact Alphahousing.vn Company for support and advice. free of charge. Thank you.

*Note: The above advice is for reference only. Depending on different times and subjects, the above advice may no longer be appropriate.