Real estate business in Vietnam is always a hot industry and brings high profits for investors. Currently, there are many different forms for investors to do business in real estate business services. Therefore, foreign investors investing in Vietnam are choosing more and more real estate business services in all forms. Following, LSX Law Firm would like to consult about conditions for foreign investors do real estate business services in Viet Nam.
Law on real estate business 2014;
Decree No. 76/2015/ND-CP detailing the implementation of a number of articles of the Law on Real Estate Business
Conditions for foreign investors do real estate business services
According to WTO, FTAs: not specified in the Schedule of Commitments.
According to Vietnamese law, the scope of activities of a foreign-invested economic organization with the function of real estate business includes:
- Renting houses, construction works for sublease.
- For land leased by the State, it has right to invest in the construction of houses for lease; invest in the construction of houses and construction works that are not houses for sale, lease, or lease-purchase.
- Receive transfer of the whole or part of real estate project of the investor to build houses, construction works for sale, lease, lease purchase.
- For land allocated by the State, it has right to invest in the construction of houses for sale, lease, or lease-purchase.
- For leased land in industrial parks, industrial clusters, export processing zones, hi-tech parks and economic zones, they may invest in building houses and construction works for business according to the right land use purposes.
What taxes have to pay when doing real estate business?
The first is corporate income tax based on Clause 1, Article 2 of the Law on corporate income tax. ‘
Article 2. Taxpayers
1. Corporate income tax payers are organizations engaged in the production; and trading of goods and services with taxable incomes in accordance with this Law (hereinafter referred to as enterprises), including:
a) The enterprise is established in accordance the law of Vietnam;’
The second is the value-added tax based on Article 3 of the Law on Value-Added Tax
“Article 3 . Subject to Tax Goods and services used for production, business and consumption in Vietnam are subject to value-added tax, except for those specified in Article 5 of this Law.
Conditions for a foreign individual to buy and own a house
A person living in Vietnam is allowed by a competent Vietnamese state agency; to reside in Vietnam; for one year or more and not belong to the Vietnamese government; representative enjoys diplomatic and consular privileges and immunities in accordance with Vietnamese law.
If you establish a foreign-invested enterprise in Vietnam and are living in Vietnam for 1 year or more; you have right to own property rights. House owners, the maximum ownership term is 50 years after this 50 years, the house owners must sell or donate that house according to Article 4 of Resolution 19/2008/QH.
Hope this article Conditions for foreign investors do real estate business services in Vietnam is useful for you.
The form of rent-purchase of a house means that the lessee pays in advance to the lessor to buy 20% of the value of the house; unless the lessee has prepayment conditions; the payment shall not exceed 50%;
The remaining amount to be paid shall be calculated into house rent to be paid monthly to the lessor for a certain period of time; After the lease-purchase period expires; and when the remaining amount has been paid; the lessee has the right to own the house.