What do foreign investors need to prepare when investing in real estate in Vietnam?

The impressive GDP growth rate, policies and laws on real estate investment and business towards openness to foreign investors are the cause of the increasing inflows of foreign capital into Vietnam.

When investing in real estate in Vietnam, foreign investors need to understand the area that will invest money.

What do foreign investors need to prepare when investing real estate in Vietnam?
Since 2015, when the government relaxed the policy of foreigners buying real estate in Vietnam, allowing foreign investors to own 30% of apartments in new housing projects, this quota quickly was filled by investors from Hong Kong, South Korea and China. In addition, overseas Vietnamese are also an active investment group in their home market.
According to Kenny Law, Savills expert, the first step foreign investors should take when intending to pour capital into Vietnam is to seek the help of a broker to be able to grasp the processes and types. legal papers. Although the amended Housing Law 2015 allows foreigners to buy houses in Vietnam, there are still some shortcomings in the procedures for buying and selling. Therefore, the help of a professional broker can help investors get the best support.
In addition, foreign investors need to understand the area where they will invest. Vietnam is not a small country. With a population of nearly 100 million people stretching over 2,000 km from North to South, this market really contains a lot of investment potential, provided that investors have meticulously researched the market to find suitable opportunities. unify.
Hanoi and Ho Chi Minh City are considered as the safest investment locations. However, opportunities are also present in secondary markets such as Da Nang, Nha Trang and Binh Duong resort centers - the suburbs adjacent to Ho Chi Minh City.
Right in HCM City, there are many potential investment areas. With the metro line planned to operate in 2020, the value of development projects within a radius of 1 km of the line, it is estimated, can achieve growth of at least 10% per year as the school. of public transport corridors in some other markets.
Across the Saigon River is another interesting market: Thu Thiem - the place planned to become the city's second commercial and financial center. Located opposite the fast growing area in District 1, Thu Thiem will soon develop commercial projects, public services, cultural systems, education and housing.
Besides, Mr. Kenny Law said that understanding the tariff framework is an important thing that investors cannot ignore. Investors should learn about current taxes, including: 10% of value added tax, management tax and 0.5% of registration tax. In addition, it is the responsibility of the investor to pay the post-purchase tax, which includes a 2% personal income tax based on the value of the property purchased. If the property is invested for the purpose of renting, the investor will need to pay 5% value added tax and 5% personal income tax deducted from the total rental profit. In addition, if the owner of the luxury real estate with an income of over 100 million VND / year, an additional 1,000,000 VND license tax must be paid.

Source Thuy An
Business Forum

 

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