Typical Taxes and Fees
When buying or selling a house in Vietnam, you will incur several taxes and fees. These may include:
- Value-added tax (VAT): This tax is levied on the sale price of the property and is usually paid by the buyer. The tax rate is currently 10%.
- Registration fee: This fee is paid to the government and is usually split between the buyer and seller. It amounts to 0.5% of the property’s value.
- Notary fees: These fees are paid to the notary who handles the transaction. They usually amount to around 0.05% to 0.1% of the property’s value.
In Vietnam, property tax is levied by the local government and is based on the assessed value of the property. The tax rate ranges from 0.03% to 0.15% of the assessed value.
Capital Gains Tax (CGT)
If you sell a property in Vietnam, you may be subject to capital gains tax. The tax rate is currently 20% and is applied to the difference between the sale price and the purchase price.
In Vietnam, inheritance tax is levied on the value of the inherited property. The tax rate depends on the value of the property and the relationship between the deceased and the heir.
If you receive a gift of property in Vietnam, you may be subject to gift tax. The tax rate depends on the value of the property and the relationship between the giver and the receiver.
Tax on Property Income
If you rent out your property in Vietnam, you will be subject to tax on the rental income. The tax rate ranges from 5% to 20%, depending on the amount of rental income.
If you buy a house in Vietnam and use it as your primary residence, you may be eligible for certain tax deductions. These include deductions for mortgage interest and property tax. Additionally, Vietnam offers certain tax incentives for foreign investors, such as exemption from VAT and reduced corporate income tax rates. However, it’s important to consult with a tax professional to determine your specific tax situation.