If the Special Administrative-Economic Unit Act is implemented, the duration of a foreigner’s home ownership may double from 50 years to 99 years.
On August 2, the Permanent Government discussed the Law Project Administrative-special economic unit (referred to as special zone). Prime Minister Nguyen Xuan Phuc agreed that to attract resources to invest in these special economic zones, the creation of an institutional framework would outstrip existing laws, minimizing the application of business investment conditions at Special zones … are needed.
Regarding the land use policy, the Prime Minister requested the revision of the draft in the direction of increasing the duration of land lease, land allocation, and land use. Also according to the draft, foreigners will be allowed to own houses in projects for up to 99 years, allowing the mortgage of assets associated with land use rights at foreign credit institutions, in accordance with the Constitution in 2013.
So, if this bill is implemented, the duration of foreigners’ home ownership will be doubled (the current stipulation is 50 years).
At the same time, the government leaders assigned MPI to update the latest information on the special zone to have a comparative advantage, because the special zone without investors is unlikely to succeed, so first of all to pay attention to the problems. About strategic investors. “When the construction needs to assess the impact, what is the benefit of our people in the short term? In the long term? People should not just look at the inadequacies and then backward,” the prime minister emphasized.
Vietnam currently has 18 special economic zones, 325 industrial zones with different preferential policies. By the end of 2016, the government has decided to establish three more special economic zones, including Van Phong (Khanh Hoa), Van Don (Quang Ninh) and Phu Quoc (Kien Giang). This is expected to form Vietnam’s “dream of a special economic zone” in the future.
7 important notes for foreigners buying houses in Vietnam
First, foreigners need to prove that they are qualified to own houses in Vietnam in accordance with the law. According to the Housing Law, foreigners only need to “legally enter” into Vietnam to be able to own a house. Therefore, foreigners need to prove the “legality” of their stay in Vietnam.
Secondly, foreigners need to prove that they have a clear source of financing to buy a house and make it easier to withdraw funds later. Therefore, foreigners need to open an account at a bank in Vietnam, transfer money from overseas to this account, and pay for the house purchase from the account. If you are a foreigner working or doing business in Vietnam, you should also keep proof of income to buy a home.
Third, foreigners also need to find out what projects they are allowed to own, where they are not allowed, to avoid future risks. Note that they are only allowed to buy houses from residential development projects, is from new residential areas, not owned homes in existing residential areas. This test is not difficult with consultancy from the prestigious real estate consultants such as Savills, Collier …
Fourth, at the conclusion of the contract period, foreigners need to be aware of the conditions for the investor to sign a home purchase contract with the buyer to ensure that the transaction is legally and legally recognized, protect. Foreigners need to ensure that the investor sign a house purchase contract with them in accordance with the form registered with the state agency.
Fifth, the performance of the contract with the owner in Vietnam may not be the same as the conduct of transactions in the foreign country, for example, the investor in Vietnam usually does not prescribe that they have an obligation to remind the person. Buying a home payment, other than trading habits in some countries. This can result in late payment home buyers, and may be fined or terminated in accordance with the terms of the contract. Therefore, foreign buyers should note some differences in purchase transactions. Foreigners can hire appropriate professional lawyers to overcome these differences and difficulties.
Sixth, according to the Housing Law, foreigners who own houses still have full rights such as: leasing, donation, capital contribution, inheritance … for the house. However, it is important to note that in order for these rights to be exercised, the owner must have a certificate of home ownership. Therefore, it is necessary to clearly specify the obligation of the seller to sell house ownership certificates. In addition, when renting a house, a foreigner owning a house must register the lease with the local authority (the district-level housing management agency) and declare the income tax on the rented portion. The rest is considered legal income. As well, residents in the home need to apply for temporary residency with the local government. It is not yet clear how this registration will be implemented specifically for foreigners, for homeowners who are foreigners. Some foreigners wonder if they do not regularly live in Vietnam, how do they fulfill these obligations? It would also be easier if they hired real estate managers on their behalf to manage the house and, on their behalf, carry out the relevant administrative procedures.
Seventh, if you no longer want to own a house, then how will foreigners do? Can they be sold to other foreigners (eligible) or Vietnamese? Currently, there is no clear procedure on how they can transfer money to sell their home abroad. However, if they have proven their legal origins and have fully paid taxes, the State must recognize and permit the transfer abroad.
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