Currently, with the trend of international economic integration that attracts foreign investment; The number of foreigners coming to Vietnam is increasing. Therefore, foreigners have a strong demand for renting houses in Vietnam. So, what are the conditions and procedures for renting a house for foreigners in Vietnam? Let’s find out in this article with LSX Law firm.
- Law on Housing 2014
- Decree 99/2015/ND-CP
Can foreigners rent houses in Vietnam?
According to paragraph 1 of Article 159 of the Housing Law in 2014, the organizations and individuals that can own houses in Vietnam include:
- Organizations and individuals investing in housing construction projects in Vietnam under the provisions of Housing Law and related laws.
- Foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign investment funds; branches of foreign banks operating in Vietnam (collectively referred to as foreign organizations).
- Foreign individuals who are allowed to enter Vietnam.
Accordingly, Two groups of Foreigners that can own houses in Vietnam are:
- Foreigners who invest in housing construction under investment projects in Vietnam;
- Buy, rent-purchase, receive as a gift or inherit commercial housing including apartments and separate houses in housing construction investment projects. Except for areas reserved for national defense and security according to the Government’s regulations.
Renting a house is one of the forms of homeownership in Vietnam. Therefore, foreigners can rent houses in Vietnam.
Conditions for renting a house for foreigners in Vietnam
According to Article 119 of the Law on Housing 2014, housing transaction, rental for foreigners requires the following conditions:
- The lessor must be the owner of the house or the person authorized by the owner to conduct transactions on housing in accordance with the provisions of this Law and the civil law.
In fact, If the lessor is an individual, he/she must have full civil act capacity to carry out transactions on housing in accordance with civil law. But If it is an organization, it must have legal status; except in the cases where they donate houses for charity.
- In case the the lessee is a foreign individual, they must have full civil act capacity to conduct housing transactions in accordance with Vietnamese law. Also, they must be eligible to own houses in Vietnam according to the provisions of this Law. But It is not required that they have a temporary residence registration or permanent residence registration in the place where the transaction house is located.
Furthermore, If the lessor is a foreign organization, they must be eligible to own houses in Vietnam according to the provisions of this Law. Also, If the organization is authorized to manage the housing, It’s must be doing businesses in real estate services, and is operating in Vietnam in accordance with the law on real estate business.
Procedures for renting houses for foreigners in Vietnam
Firstly, prepare all necessary documents to prove eligibility to own a house in Vietnam
According to Article 74 of Decree 99/2015/ND-CP:
- For foreign individuals, a valid passport must be prepared with an entry verification stamp from the Vietnamese immigration management agency.
- For foreign organizations, an investment registration certificate must be prepared. Or an acceptance for operating in Vietnam issued by a competent Vietnamese authority that is still valid at the time of signing the housing transaction.
Then, Sign a rental contract for foreigners
The contract must contain the following details:
- Full name of the individual, name of the organization and addresses of the parties.
- Describe the characteristics of the house and the characteristics of the residential land plot associated with that house.
In case of purchase and sale contracts, lease purchase contracts for apartments; the parties must clearly state the area common ownership and common use; area under private ownership; floor area for apartment construction; area of the joint ownership; also the common use in the apartment building in accordance with the approved design purposes.
- Value of capital contribution, house transaction price if the contract has agreement on price; case of purchase, sale, lease, lease-purchase of houses for which the State has regulations on prices; the parties must comply with such provisions.
- Payment terms and methods.
- Housing delivery time; the housing warranty period if it is a purchase or lease-purchase of a newly built house; term of lease, lease purchase, authorization for housing management; capital contribution period.
- Rights and obligations of the parties.
- Commitment of the parties, Other agreements.
- Effective date of the contract. Date, month, year of signing the contract.
- Signatures and full names of the parties, if it is an organization, it must be stamped and the position of the signer must be specified.
However, If the rental period is for foreigners from 6 months or more, a competent state agency must notarize or authenticates it.
Finally, hope this article is helpful for you!
Also, If you have any questions; please contact Lawyer X for quick and best legal services: 0833102102.