In what forms can Vietnamese residing abroad do real estate business?

Quang Minh July 18, 2022

0 5 phút đọc

Posts : In what forms can Vietnamese residing abroad do real estate business? In the section LSX Lawfirm

You are interested in In what forms can Vietnamese residing abroad do real estate business? so let's go Lsxlawfirm.com check out the following article!

The real estate business has attracted a lot of investors in Vietnam recently. Besides, many Vietnamese people living abroad want to invest in the real estate business. However, if they do not have a clear understanding of the regulations regarding the business of real estate, they may violate Vietnamese legislation. So, in this article, LSX legal firm would like to give you information about: “In what forms can Vietnamese residing abroad do real estate business?”

Legal ground

Law on Real Estate Business 2014

In what forms can Vietnamese residing abroad do real estate business?

Any Vietnamese organizations and individuals may conduct real estate trading under the following forms:

Firstly, purchase buildings for sale, for lease, or lease purchase;
Secondly, rent buildings for sublease;
Thirdly, build houses on land which is allocated by the State for sale, for lease, or lease purchase; transfer the land which is divided into smaller lots for sale as prescribed in law on land; build technical infrastructures of the cemetery on that land for transfer of both the land and the technical infrastructures;
Fourthly, build houses on the land which is leased by the State for lease; build houses or constructions other than houses on such land for sale, for lease, or lease purchase;
Fifthly, build houses on land which is recognized by the State for sale, for lease, or lease purchase;
Sixthly, build buildings on land which is transferred from organizations, households, or individuals for sale, lease, or lease purchase;
Build buildings on land which is leased from organizations, households, or individuals for lease according to proper land use.
Also, receive total or a part of real estate project from investors to build buildings on it for sale, for lease, or lease purchase;
Lastly, receive or rent land from organizations, households, or individuals to build technical infrastructures on it for transfer or lease of both the land and the infrastructure.

Overseas Vietnamese may conduct real estate trading in the following forms:

Forms prescribed in Point 2, 4, 7, and 8 in the section above;
Build houses on land which is allocated by the State for sale, for lease, or lease purchase;
Build buildings on land which leased out or transferred into industrial parks, industrial complexes, export-processing zones, hi-tech zones, or economic zone for trading for the proper land use.

Form of real estate trading that foreign-invested enterprises may conduct

Foreign-invested enterprises may conduct real estate trading in the following forms:

Forms prescribed in Point b, d, h Clause 1 and Point b Clause 2 of Article 11 of the Law on Real Estate Business;
Build buildings on land which leased out or transferred in industrial parks, industrial complexes, export-processing zones, hi-tech zones, or economic zone for trading for the proper land use.

Prohibited acts in real estate business

Prohibited acts in the real estate business under the law:

Firstly, real estate trading does not satisfy the requirements prescribed in this Law.
Secondly, the real estate projects are not complied with planning approved by competent agencies.
Thirdly, failure to disclose, or untruthfully disclose about the real estate.
Fourthly, fraud and deception in real estate trading.
Fifthly, illegal mobilization of funds; illegal use of mobilized capital of organizations or individuals, and option fees of off-the-plan real estate buyers or lessees for improper purposes.
Also, failure to fulfill or completely fulfill financial obligations to the State.
Grant and use of real estate broker license in contravention of the provisions of this Law.
Lastly, collection of charges, fees, and money amounts related to real estate trading in contravention of the provisions of law.

Documents proving eligible house owners for Vietnamese residing abroad

Article 7 of the Law on Housing 2014 stipulates who can own houses in Vietnam

Article 7. Entities eligible for the homeownership in Vietnam

1. Vietnamese organizations, households, or individuals (hereinafter referred to as Vietnamese entities).

2. Overseas Vietnamese.

3. Foreign organizations and individuals (hereinafter referred to as foreign entities) prescribed in Clause 1 Article 159 of this Law.

Article 8 of the Law on Housing 2014 stipulates the conditions for recognition of house ownership

Article 8. Entities eligible for the homeownership recognition

“1. Vietnamese entities; overseas Vietnamese permitted to enter Vietnam; foreign entities prescribed in Article 160 in this Law.

2. Entities having legitimate housing through the following transactions:

a) Vietnamese entities who invest in housing construction, purchase, enter into lease-purchase agreements, receive gifts, receive an inheritance, receive a capital contribution, exchange houses, or make other transactions prescribed in regulations of law.

b) Overseas Vietnamese who enter into agreements on commercial housing purchase, lease purchase with enterprises or cooperatives conducting real estate trading (hereinafter referred to as real estate enterprise); agreements on housing purchase, gifting, exchange, inheritance with households or individuals; agreements on residential land transfer in the project on commercial housing construction which permitted to divide the piece of land into smaller lots/plots for sales as prescribed.

c) Foreign entities who enter into agreements as prescribed in Clause 2 Article 159 of this Law.”

Besides, Clause 1, Article 186 of the 2013 land law stipulates that overseas Vietnamese who are entitled to own houses in accordance with the housing law are entitled to own houses associated with residential land use rights in Vietnam.

Point b, Clause 2, Article 119 of the Law on Housing stipulates the conditions for parties to a housing transaction as follows:

If the entity is a foreign person or an overseas Vietnamese; he/she must have the full civil capacity to enter into transactions in housing as prescribed in Vietnamese law, qualify for the homeownership in Vietnam as prescribed in this Law; and he/she not required to register temporary or permanent residence in the place where the house under transactions is located.

Legal service of LSX Legal Firm

LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:

Legal advice related to new regulations;
Representing in drafting and editing documents;
We commit the papers to be valid, and legal for use in all cases;
Represent to submit documents, receive results, and hand them over to customers.

With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.

Furthermore, using our service, you do not need to do the paperwork yourself; We guarantee to help you prepare documents effectively and legally.

Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.

After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.

Conditions for holding an auction of land use rights when State allocates or leases land?

Firstly, the annual district-level land use plan approved by a competent state agency is available;
Secondly, the land has been cleared or is land with attached assets owned by the State;
Thirdly, the plan for holding the auction of land use rights approved by a competent state agency is available.

Requirements in terms of organizations or individuals conducting real estate trading?

1. Any organizations or individuals wish to conduct real estate trading shall set up enterprises or cooperatives (hereinafter referred to as enterprises) and have legal capital not smaller than VND 20 billion, excluding cases prescribed in Clause 2 of this Article.
2. Any organizations, households and individuals who conduct small-scale or irregular transactions of real estate sale, transfer, lease-out, and lease purchase shall not required to set up enterprises, but they shall make tax declaration as prescribed.

Meaning of overseas Vietnamese?

According to Clauses 3 and 4, Article 3 of the Law on Vietnamese Nationality 2008 (amended and supplemented in 2014), overseas Vietnamese means Vietnamese citizens and people of Vietnamese origin who reside and live in a foreign country for a long time.

Contact LSX

Finally, hope this article is useful for you to answer the question about “In what forms can Vietnamese residing abroad do real estate business?”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]