Vietnam – Property Taxes

What taxes and fees apply when buying property in Vietnam?

Purchasing real estate in Vietnam triggers a number of separate costs, and it is worth noting at the outset that the country does not employ the concept of “stamp duty” in the manner familiar to buyers in markets such as the UK or Australia. The equivalent one-time charge is instead referred to as a registration fee. Vietnam levies no additional stamp duties or document charges for property transactions beyond this standard fee, which simplifies the process to a single 0.5% registration charge.

Registration fee: Upon receiving the Certificate of Land Use Rights and Ownership of Houses, buyers are required to pay a registration fee. This charge is computed on the basis of the land price zone established annually by the relevant Province or City, multiplied by the property’s area, at a rate of 0.5%, with an upper limit of VND 500 million per transaction.

VAT on new-build purchases: Purchasing directly from a developer rather than on the secondary market means VAT is applied to the construction value of the property. A standard rate of 10% VAT is levied on commercial housing, while social housing attracts a reduced rate of 5%. Vietnam’s 2025–2026 VAT reduction to 8% explicitly excludes real estate, so these housing-specific rates remain unchanged. It is important to note that VAT is charged only on the building value — it is not applied to the portion of the price attributed to land.

Apartment Maintenance Fund: For purchasers of apartments, a contribution to the Apartment Maintenance Fund is also required, set at 2% of the property’s value before VAT. This levy, broadly equivalent to a sinking fund contribution in other jurisdictions, is standard for strata-titled residential units.

Notary fees: Vietnamese property law requires that contracts for the transfer of land use rights and assets attached to land be formally notarised; the parties may attend any notary office to complete this step and settle the applicable fee. The notarisation charge is calculated according to the value of the transaction and is capped at a maximum of VND 70 million (roughly USD 3,290) per transaction for real estate conveyances.

Legal and agent fees: Engaging a qualified lawyer is strongly advisable for any property buyer, and particularly for those who are not familiar with Vietnamese legal practice. Fees for legal representation are separate from government-imposed charges and typically fall within the range of 0.2% to 0.5% of the property value, though this varies between providers.

A note on the transfer tax: While the 2% Personal Income Tax on the transfer is formally the seller’s liability, it is worth noting that contracts may be structured so that the buyer declares and pays this charge on the seller’s behalf at the point of completion. Buyers should clarify in the sale agreement precisely who will be responsible for settling this amount.

Important 2026 change: From 1 January 2026, Vietnam’s land pricing framework will be revised to align more closely with market values, with the aim of improving transparency and equitable land management. Since the registration fee base is tied to official provincial land price lists, any upward revision to those lists may raise the assessed value used as the basis for fees and taxes linked to those official benchmarks. Buyers should confirm current assessed values with their notary or legal adviser before finalising a transaction.

Worked example: Approximate purchase costs on a VND 5 billion resale apartment (as of 2025)

Always verify current rates and assessed values with a locally qualified lawyer and the General Department of Taxation of Vietnam before completing any transaction. The figures above are illustrative for a resale property in which the seller settles their own transfer tax obligation.

What taxes and fees apply when selling property in Vietnam?

In a Vietnamese property transaction, the seller carries the primary tax burden. Individual sellers are subject to Personal Income Tax at a rate of 2% on the transfer value of the property, while corporate sellers are liable for Corporate Income Tax at 20% on any net gains. This tax is the seller’s responsibility to settle.

The 2% PIT is calculated on the total gross sale price — or on the official assessed value where the declared price is lower — rather than on the profit achieved. This means a seller who originally paid VND 3 billion for a property and subsequently sells it for VND 5 billion owes 2% of VND 5 billion (VND 100 million), regardless of the actual gain realised. This contrasts sharply with the approach in markets such as Canada or Australia, where tax on property disposals is ordinarily computed on the net profit rather than the total proceeds.

Agent (brokerage) fees: No legally prescribed commission rate exists for real estate agents in Vietnam, and in practice sellers typically bear brokerage costs, though the amount is negotiable. For long-term rental agreements exceeding 12 months, brokerage fees are commonly calculated on the basis of one to 1.8 months’ rent. For sales transactions, agent fees are subject to agreement between the parties and frequently fall in the range of 1%–2% of the sale price, though buyers and sellers should verify prevailing market rates with local agents.

Tax filing deadline: Where the parties have not agreed that the buyer will pay tax on the seller’s behalf, the tax declaration dossier for a real estate transfer must be submitted no later than 10 days after the transfer contract takes effect. Sellers should be mindful of this tight window to avoid incurring penalties for late filing.

Corporate sellers: When a company is the transferor but its registered business activities do not include real estate, it must still pay Corporate Income Tax to the tax authority in the jurisdiction where the property is situated. Income from property transfers must be separated out for the purposes of tax declaration and payment. CIT is to be declared for each individual transaction, no later than the 10th day following the date on which the tax liability arises.

Is capital gains tax payable on property sales in Vietnam?

Vietnam has no standalone tax bearing the name “capital gains tax”; however, profits arising from the sale of real estate are subject to a specific tax structure. In practical terms, the transfer tax described above functions as the counterpart of a capital gains charge — though with a fundamental difference from CGT regimes operating in countries such as the UK, Canada, or Australia: the 2% rate is applied to the total sale price, not to the net profit.

The effective capital gains charge on real estate is therefore based on the full value of the transaction rather than the margin made. A seller who realises only a modest gain — or who even sells at a loss — still faces the same 2% charge as a seller who has substantially increased their investment. There is no reduction for length of ownership and no taper relief mechanism.

Exemptions: Under the Law on Personal Income Tax, individuals may be relieved of personal income tax on real estate transfers in certain defined circumstances, including transfers between close family members such as spouses, parents and children, and siblings. Documentary evidence of both the family relationship and property ownership is required to claim an exemption.

A potential exemption also exists for gains arising from an individual’s sole residential property or land. This is broadly analogous to principal private residence relief as applied in the UK and certain other markets, though the eligibility conditions differ. Individuals should verify current qualifying criteria with a Vietnamese tax adviser or directly with the General Department of Taxation.

Non-residents: Non-resident individuals are subject to a flat 2% tax on the gross proceeds from any transfer of real estate located in Vietnam. The rate is identical to that applicable to residents, meaning no additional surcharge is imposed on non-resident sellers at the point of disposal.

Corporate sellers: Organisations, including foreign legal entities, disposing of real estate are subject to 20% Corporate Income Tax on taxable income from the transfer. For corporate sellers, the tax is calculated on net profit, making the effective cost heavily dependent on how thoroughly acquisition costs and allowable expenses have been documented.

Practical example (individual seller, as of 2025): A seller disposes of an apartment originally purchased for VND 2 billion. The agreed sale price is VND 3.5 billion. The transfer tax owed is 2% × VND 3.5 billion = VND 70 million — irrespective of the VND 1.5 billion gain actually achieved. Check current rules with the General Department of Taxation.

Are there annual property taxes in Vietnam?

Vietnam’s ongoing tax obligations for property owners are very modest by international comparison. Unlike countries that levy market-value-based annual property taxes — such as the council tax system in the UK or the local property tax in Ireland — Vietnam imposes no general annual tax on residential property ownership as such. That said, a non-agricultural land use tax does apply to the land component of ownership.

Where land is classified as non-agricultural, the land user is required to pay a non-agricultural land use tax. This is calculated by multiplying the official price per square metre (as published by the relevant provincial People’s Committee) by the land area and then applying a progressive tax rate ranging from 0.03% to 0.15%.

This land tax is assessed on non-agricultural land and uses progressive rates that vary according to the location and intended use of the land, with higher rates generally applicable in urban zones and for commercial properties.

Agricultural land: On 6 November 2025, the Vietnamese government issued Decree No. 292/2025/ND-CP, providing implementation guidance for Resolution No. 216/2025/QH15 of the National Assembly concerning the extension of agricultural land use tax exemptions. The policy takes effect from 1 January 2026 and runs through 31 December 2030. During this period, agricultural landowners are effectively exempt from annual land use tax.

How low is the annual burden? To illustrate: if a property owner holds a 100 square metre plot of land valued at USD 100,000 and the applicable tax rate is 0.03%, their annual land use tax liability would amount to just USD 30. This underscores how negligible the recurring tax on ownership is when set against annual property tax regimes in countries such as France (taxe foncière) or the United States (local property taxes), where annual bills commonly range from 0.5% to more than 2% of assessed value.

Tax notices are generally issued during the first quarter of each year, giving property owners ample time to arrange payment. Local tax offices in each province oversee collection and may offer different payment schedules or instalment arrangements. Property owners are advised to register with local tax authorities to ensure they receive timely notification of payment deadlines, as well as any revisions to tax rates or exemptions relevant to their holdings.

How is rental income from property taxed in Vietnam?

Landlords in Vietnam — whether they are residents or non-residents — face a combined tax on rental income comprising Personal Income Tax (PIT) and Value Added Tax (VAT), together with a modest Business Licence Tax (BLT). The framework includes a tax-free threshold beneath which no liability arises at all.

Tax-free threshold: Rental income not exceeding VND 100 million (approximately USD 4,000) per year is fully exempt from taxation, providing meaningful relief for smaller landlords and investors with modest rental earnings. This threshold applies to both resident and non-resident landlords.

Above the threshold: Rental income surpassing the annual exemption is subject to VAT at 5% on gross receipts. It is also subject to PIT at a rate of 5% on gross rental income. The combined effective tax rate on gross rental receipts above VND 100 million per year therefore amounts to 10% — considerably lower than rental income tax rates that prevail in many other countries.

Business Licence Tax: Landlords earning rental income are also required to pay a Business Licence Tax, the amount of which varies with total annual rental income. Annual rental income up to VND 100 million is exempt; income in the range of VND 100 million to VND 300 million attracts a BLT of VND 300,000 (roughly USD 12). Higher income bands are subject to slightly elevated flat BLT charges — verify current bands with the General Department of Taxation.

Non-residents: Non-residents are taxed on income sourced within Vietnam. Married couples are assessed individually, with no provision for joint filing. Non-residents with annual rental income exceeding VND 100,000,000 are liable for income tax on that revenue. In addition, 5% VAT is payable on the rental income.

Short-term rentals (e.g. platforms such as Airbnb): Income from short-term lettings is treated in broadly the same manner as income from long-term rentals for tax purposes — the same PIT, VAT, and BLT rules apply once the VND 100 million annual threshold is breached. However, landlords operating via digital platforms may also face obligations under Vietnam’s e-commerce tax rules. Given ongoing efforts to strengthen oversight of platform-based income reporting, short-term rental operators should confirm their current obligations with a local tax adviser or consult guidance published by the Ministry of Finance.

Reporting obligations: Investors must file annual or one-time tax returns for property-related income, including rental receipts and capital gains, settling any tax owed by the prescribed deadlines to avoid penalties. Foreign property owners must obtain a Vietnamese tax identification number in order to file returns — further details are provided in the section on foreign buyers below.

Does inheritance tax apply to property in Vietnam?

Vietnam has no discrete inheritance tax of the kind found in countries such as the UK (Inheritance Tax) or France (droits de succession). However, when inherited property passes to someone outside a close family relationship, personal income tax obligations can arise at the point of registering the inheritance.

Gifts and inheritances received from direct family members are ordinarily exempt from taxation. Where a person inherits or receives property from an individual who falls outside the direct family category, a tax rate of 10% is generally applicable.

Other forms of gift or inheritance involving assets that require ownership registration — such as real estate — are taxed at assessed rates where the income received by each individual recipient exceeds VND 10 million. The VND 10 million threshold operates as a de minimis exemption below which no tax is triggered.

Who counts as a “direct family member”? Under Vietnamese personal income tax law, the exemption for transfers between close relatives encompasses spouses, parents and children (including adoptive relationships), and siblings. Transfers outside these categories — for example, to a friend, a more distant relative, or a foreign heir — are subject to the 10% charge on the assessed value of the inherited property above VND 10 million.

Non-residents and foreign heirs: Non-residents are subject to tax on income originating in Vietnam. A foreign national who inherits property situated in Vietnam would therefore be liable for the same 10% tax where they fall outside the close-family-member exemption. The practical complexity for foreign heirs can be considerable, as probate proceedings in Vietnam can be time-consuming and typically require notarised documentation.

Tax treaties: Vietnam has concluded tax treaties with a number of countries that may provide exemptions or reduced rates designed to prevent double taxation. Investors should take professional advice to determine whether a treaty between Vietnam and their home country applies to their circumstances. It should be noted that most Vietnamese double tax agreements focus on income rather than inheritance matters, making specialist guidance essential.

Does gift tax apply to property transfers in Vietnam?

Vietnam subjects property gifts made during the donor’s lifetime to the same personal income tax framework that governs inherited property. The crucial factor determining tax liability is the nature of the relationship between the donor and the recipient.

Transfers of property as gifts between close family members — including spouses, parents and children, and siblings — are exempt from personal income tax. This treatment mirrors the inheritance exemption outlined above, meaning that most intra-family property restructuring in Vietnam carries no immediate PIT consequence.

Where the recipient does not fall within the close family category, gifts involving assets that require ownership registration — such as real estate — are subject to tax at assessed rates where the value received by the recipient exceeds VND 10 million. The 10% rate applies to the assessed value of the property above this threshold.

The recipient (donee) bears responsibility for declaring and paying the tax when the ownership transfer is registered. Under Vietnamese law, contracts for the transfer of land use rights and assets attached to land must be notarised, and the notary will ordinarily draw the parties’ attention to any tax obligation arising at the time of notarisation.

Recipients — particularly those receiving property from donors located outside Vietnam — should also consider whether tax obligations arise in their country of residence or tax domicile, as a gift of Vietnamese real estate may be treated as taxable income or a chargeable gift in other jurisdictions. Professional advice from qualified practitioners in both countries should be obtained before proceeding with any cross-border property gift.

Are there tax advantages or incentives for buying property in Vietnam?

At the personal income tax level, Vietnam offers no broad reliefs or credits specifically designed for owner-occupiers, first-time buyers, or those undertaking renovation work, comparable to the schemes available in countries such as Australia or the UK. At present, there are no dedicated tax breaks or incentives specifically designed to encourage foreign nationals to purchase real estate in Vietnam.

Nevertheless, certain targeted incentives do exist, primarily directed at investors in particular sectors or geographic areas:

• Certain designated development zones may offer reduced land use tax rates or temporary exemptions for a defined period. Particular property categories, such as social housing projects, may also be eligible for specific tax concessions.
• To qualify for available incentives, investors must satisfy defined criteria — for example, investing in priority sectors or in underdeveloped regions. Thoroughly understanding these requirements before committing to an investment is essential.
• The PIT exemption on transfers between family members — described in the sections on inheritance and gifts above — offers a meaningful planning advantage for families wishing to restructure property holdings.
• The VND 100 million annual rental income threshold functions effectively as a tax-free allowance for smaller landlords, which is especially relevant for expats renting out a secondary property while residing overseas.

Corporate structure: Some investors choose to hold real estate through a Vietnamese company, which can provide access to different expense deduction rules — corporate sellers pay 20% CIT on net profit rather than 2% on gross proceeds, which may be more advantageous in certain scenarios. This approach does, however, involve additional compliance and setup costs, and is not universally appropriate. Specialist legal and tax advice should always be sought before adopting a corporate holding structure.

Social housing VAT: The transfer of social housing is subject to VAT at 5% only, reducing the upfront cost of purchasing government-approved affordable housing relative to commercial new-build property. This benefit is relevant to buyers who qualify to participate in social housing programmes.

Do different rules apply to foreign buyers or non-residents?

The rules governing property ownership by foreign nationals in Vietnam differ substantially from those that apply to Vietnamese citizens. The legal framework has been considerably updated by the Housing Law 2023 and the Land Law 2024. A clear understanding of what can be purchased, and on what terms, is a prerequisite to considering the tax position.

What foreign individuals can own: Foreign organisations and individuals cannot own land outright in Vietnam, as land is held under collective ownership by all the people and administered by the State on their behalf. Foreign individuals may, however, acquire residential property in a different form. Foreign individuals who are permitted to enter Vietnam may own houses or apartments within commercial projects for a term of up to 50 years, which is renewable.

Quantitative limits: Caps exist on the proportion of units within a single building or residential area that may be owned by foreign individuals. These limits are set by ministerial decree and are subject to change; current caps should be verified with the Ministry of Construction or a licensed Vietnamese lawyer.

Overseas Vietnamese: The Housing Law 2023 and Land Law 2024 have broadened the conditions under which Vietnamese nationals residing abroad may own real estate, expanding their ownership rights. The fundamental requirement is that the individual must be permitted to enter Vietnam. Overseas Vietnamese holding a valid Vietnamese passport with a valid entry stamp enjoy the same rights and obligations regarding land and housing as domestically resident individuals and may purchase, receive transfers of, gifts of, and inheritances of all categories of real estate without restriction.

Tax registration for foreign buyers: Foreign investors are obliged to register for a tax code with the Vietnamese tax authorities. This involves submitting the required documentation — such as a passport and investment certificate — and obtaining a tax identification number. The tax code is indispensable for filing tax returns and meeting all other tax-related obligations in Vietnam.

Rental and sale taxes for non-residents: As noted in the relevant sections above, the 2% transfer tax rate is identical for both residents and non-residents disposing of property, and the rental income tax threshold and rates are the same for both groups. Foreign property owners are required to file annual tax returns in Vietnam, declaring any rental income or gains from property sales. Failure to meet these obligations may result in penalties and legal complications.

No surcharge: Unlike certain countries that impose a surcharge on foreign purchasers — such as the additional buyer stamp duties applied in some Australian states or Canadian provinces — Vietnam does not currently levy any additional charge solely on the grounds that the buyer is a foreign national. The registration fee rate of 0.5% applies equally to all eligible purchasers.

Double tax treaties: Vietnam has concluded tax treaties with a number of countries that may offer exemptions or reduced rates intended to prevent double taxation. Investors should seek professional advice to establish whether treaty benefits apply to their situation based on their home country. Foreign buyers should also be aware of their home-country tax obligations on income and gains from Vietnamese property, which may be subject to taxation in their country of residence, subject to any applicable treaty relief.

Frequently asked questions: property taxes in Vietnam

Is there a capital gains tax on property in Vietnam?

Not as a standalone tax. Vietnam taxes individual sellers of real estate at a flat rate of 2% Personal Income Tax on the gross transfer price, regardless of the profit actually realised. No separate capital gains tax regime exists. For corporate sellers, profits from property disposals are subject to 20% Corporate Income Tax on net gains. Consult the General Department of Taxation for current rules and any exemptions that may be relevant to your circumstances.

Do I pay tax when I sell my Vietnamese property if I am not a resident?

Income earned by non-residents from the transfer of real estate located in Vietnam is taxed at a flat rate of 2% on the gross sale proceeds. This rate is the same as that applied to resident sellers. Non-residents must also file a tax declaration within 10 days of the contract taking effect. Tax treaties between Vietnam and your home country may affect your overall liability — obtain specialist advice before proceeding with a sale.

What is a “Pink Book” and why does it matter for property taxes?

The Pink Book (formally the Certificate of Land Use Rights, Ownership of Residential Housing and Other Assets Attached to Land) is the principal ownership document in Vietnam. It serves as conclusive proof of a property owner’s legal title to the property. All taxes and registration fees at the point of purchase are associated with the issuance of this certificate. Without a valid Pink Book, the property cannot lawfully be sold, transferred, or used as security for a mortgage.

How much tax will I pay on rental income from my Vietnamese property?

Rental income not exceeding VND 100 million per annum is fully exempt from taxation. Beyond this threshold, 5% VAT and 5% PIT apply to gross rental receipts, together with a modest Business Licence Tax. The combined effective rate on gross income above the threshold is 10%. Verify the current threshold and applicable rates with the General Department of Taxation or a local tax adviser, as these figures are subject to revision.

Are property transfers between family members taxed in Vietnam?

Transfers between close family members — including spouses, parents and children, and siblings — are exempt from Personal Income Tax. To claim this exemption, adequate supporting documentation must be produced, including proof of property ownership and the current legal status of the parties. Transfers to more distant relatives or unrelated recipients where the value exceeds VND 10 million are subject to 10% PIT. Confirm the current categories qualifying for exemption with a Vietnamese lawyer before proceeding.

Will the new land price rules from 2026 affect how much I pay?

From 1 January 2026, Vietnam’s land pricing framework will be revised to bring it closer to market values. Since charges such as the registration fee and the non-agricultural land use tax are computed against officially assessed land values, any increase in those benchmarks will raise the tax base accordingly. Buyers and sellers completing transactions from 2026 onwards should obtain current assessed values from the provincial Land Registration Office before finalising any transaction.

Can I use a Vietnamese company structure to reduce my property tax bill?

A corporate holding structure may offer advantages in certain scenarios — companies are liable for 20% CIT on the net profit from a property sale rather than 2% on gross proceeds, which can be more tax-efficient when a sale generates a relatively small gain. However, establishing and maintaining a Vietnamese company entails registration costs, ongoing compliance requirements, and accounting obligations. There are also legal constraints on the categories of property that a foreign-invested company may hold. Specialist legal and tax advice should always be sought before selecting a holding structure.

Does Vietnam have double tax treaties that affect property-related taxes?

Vietnam has concluded tax treaties with a number of countries, which may provide exemptions or reduced rates designed to prevent double taxation. Most treaties cover income taxes — which can encompass rental income and PIT on property transfers. Treaty provisions, however, vary considerably from one agreement to another and must be applied with care. Always consult a tax adviser with expertise in both Vietnam and your home country before relying on treaty relief as part of your tax planning.