Hello Lawyer. I run a rental business. Recently, a group of foreigners came to my place to inquire about the intention of renting a house for 4 months. Of course, I agree. Since this is my first time renting a house to a foreigner, I am very confused about the procedure. So, I came here to ask a lawyer: is there any difference between renting a house to foreigners and renting a house to domestic people? What is the experience for foreigners to rent a house to note? Ask for an answer from a lawyer. Thank you.
Thank you for sending your questions to Lawyer X. We are pleased to answer your questions through the article below:
Legal grounds
Civil Code 2015
Housing Law 2014
Definition of tenancy in law
Housing rental is considered a form of real estate business. At the same time, according to Article 117 of the Law on Housing 2014, renting is also one of the forms of housing transactions.
Article 117. Types of housing transactions
Housing transactions include forms of housing purchase, sale, lease, lease purchase, transfer of commercial housing purchase and sale contracts, donation, exchange, inheritance, mortgage, capital contribution, loan, etc to stay and authorize housing management.
Housing conditions for foreigners to rent
Under Clauses 2 and 3, Article 118 of the Law on Housing 2014:
Houses for foreigners to rent must meet the following conditions:
– Firstly, has been granted a Certificate of House Ownership
– Must be a detached house or self-contained apartment
– Thirdly, ensuring safety and quality for tenants
– Ensure the supply of electricity, and water, ensure environmental sanitation as well as other essential conditions
– There is no dispute about the ownership, or right to use at the time of rental.
Conditions for foreigners to rent
Article 119 of the Law on Housing 2014:
For the lessor
The lessor must be the owner or the person authorized by the owner to perform the transaction by the law. The lessor – if it is an individual, it must have full civil act capacity to carry out transactions on housing according to the provisions of civil law, if it is an organization, it must have legal status, except for legal entities. Organize donations for houses of love and gratitude houses.
For the lessee
The lessee is a foreign individual who must have full civil act capacity to conduct housing transactions by the law of our country. required to have registration of temporary or permanent residence in the place where the house is traded.
Experience for foreigners to rent a house to note
In addition to the basic notes on the above-mentioned rental conditions, the procedures for renting to foreigners are also stricter than those of domestic tenants. Therefore, it is necessary to pay attention to each case to lease according to the provisions of the law.
The difference between procedures for domestic and foreign tenants
If renting a house with 5 or fewer rooms to domestic people, the landlord only needs to notify the registration of temporary residence or temporary absence in the locality without having to carry out business procedures. Meanwhile, if renting a house to foreigners, even if it’s only 1 room, the landlord still has to carry out business registration procedures.
At that time, the landlord needs to bring his/her identity card and proof of home ownership to the People’s Committee where the rental house is located to register. After that, the homeowner will have to pay a license tax and declare a tax identification number as a basis for the tax agency to control business activities. After the rental contract is signed, the landlord must go to the police station to complete the procedures for declaring temporary residence for the tenant. Landlords must also pay personal income tax as required by law.
Necessary documents and documents when renting a house to foreigners
Records proving that you are the legal owner
Firstly, the lessor needs to have documents proving that he is the lawful owner, specifically as follows:
– In case the place used as a business establishment for foreigners to rent a house in your house, your house must have been granted a certificate of land use rights, ownership of houses, and other land-attached assets.
– In case the place used for business is rented by the lawful land user at present, in the Contract you sign with the land user, you must have the right to sublease.
Drafting a tenancy agreement
According to the provisions of the Civil Code 2015, and the Housing Law 2014, the rental contract of the parties must make in writing, which must contain all the contents as prescribed by law. Specifically:
– Names and addresses of the parties
– Describe the characteristics of the rental house
– Rent and payment method
– House rental term, house delivery time
– Rights and obligations of the parties
– Commitment of the parties
– Other agreements such as contract termination, penalty clause for breach of contract
– Place and time of signing the contract
– Signatures of the parties (if it is an organization, it must be stamped and clearly state the position of the signer)
The registration process for foreigners to rent a house
Step 1: Conduct business registration for house rental activities
Renting a house to foreigners is also considered a type of business that you need to register. People who have houses for foreigners to rent need to go to the People’s Committee of the district where the house is located to conduct business registration. Before you go, you need to prepare the following documents for quick procedures:
– Proof of identity card, legal identity card as prescribed by law.
– Papers proving your ownership of the house for which you conduct rental business (Pink book or notarized real estate sale and purchase contract).
Step 2: Business people who rent houses to foreigners declare the apartment tax code and pay a license tax
The law stipulates that the house rental business must pay the license tax and declare the tax code of the apartment for rent. This is a necessary job so that the tax authorities can control the business activities of the rental households. In addition, paying taxes by regulations is an obligation and responsibility that each citizen must perform.
Accordingly, when conducting tax code declaration and license tax payment, you need to prepare some documents in advance such as:
– Proof of identity card, legal identity card as prescribed by law.
– House rental business registration certificate made above.
– License tax declaration and tax code declaration for rental apartments.
Step 3: Register at the District/District Police Headquarters
This is a step for the competent authorities to grasp the situation and control the foreigners’ residence and stay in Vietnam. From there, you can be more proactive in handling the situation if problems arise. If you conduct business for foreigners and skip this step, you will be administratively sanctioned if you are found.
Step 4: Proceed to register temporary residence for foreigners to rent a house
Registering temporary residence for foreigners or anyone staying at a rental business is always a very important step. Help the authorities to quickly verify and proactively handle if there is a problem. For example, a foreigner who rents a house has a violation of the law.
Step 5: Proceed to pay personal income tax
Paying personal income tax is the final step of the registration procedure for foreigners. The person who has a rental business will go to the district tax office to conduct a tax declaration. Consists of:
– The rental agreement has confirmed by you and the tenant.
– Declare tax payable for house rental business.
Please see more
- Procedures for renting houses for foreigners in Vietnam
- Regulations on the issuance of red books for apartment houses in Vietnam
- Procedures for selling apartments to foreigners in Vietnam
Frequently asked questions
No matter how long the rental contract is, how long is the rental period, what is the purpose of the lease, how much is the contract value, etc., it is not required to notarize or authenticate the contract unless the two parties want to notarize it.
After receiving the confirmation of the tax amount to be paid from the tax department. House rental business people will go to the state treasury and pay taxes to the state budget.
Some types of documents to be prepared when registering for security and order at the District Police include:
The business registration for the house rental business has been done in the first place.
An application form for a certificate of eligibility for information security to do conditional business lines.
Background declaration of the business household owner.
Lawful identity card and identity card as prescribed by law.
Certificate of registration to ensure the satisfaction of fire prevention and fighting conditions (depending on each project, there will be different requirements).
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