A Guide for Foreign Investors in Ho Chi Minh City

The rapid developments in one of the biggest cities in Vietnam has attracted a lot of foreign investors and opened new project launches in Ho Cho Minh City. With all the scramble to get the best real estate investment such as businesses and property for sale, where should you start as a foreign investor in Vietnam?

Here is an overview of real estate investment laws and requirements in Ho Chi Minh City.

Foreign Investors

In 2014, Vietnam revised its property laws and regulations to accommodate and encourage more foreign investment in the country. For example, if you are a foreigner who wants to buy a new property for sale in district 2, you should have the following requirements:

If you are a Vietnamese living overseas, you are required a passport stamped with mark from the immigration department and documents that validate your Vietnamese background.

For foreigners planning to invest in Vietnam properties, you are required to have a passport with a stamp from immigration department. Unless you own a business, buying of real estate apartments from new project launches in Saigon will no longer require work permit, residency documents, and other paperwork. However, you are restricted to own that property for only up to 50 years. If you wish to extend your ownership for another 50 years, you will have to apply for extension before your ownership ends. Any real estate foreign investor is subject to the same rights and laws that the local investors enjoy and follow.

Foreign organizations can own residential properties in Ho Chi Minh City, if it is used for residential purposes and the ownership is only covered in the period stated in the certificates. Organizations are not allowed to have their properties leased out. Remember also that a foreign investor or group cannot own more than 30% of the residential parties in a ward.

However, if the type of property you wish to buy in Vietnam is already sold out, try to inquire about vin homes resale at central park in Ho Cho Minh City for resold units. While the developer may have ran out of available condos, you may be able to find properties for sale from the resale market and buy it directly from the investor, instead. But before agreeing on the contract and releasing any amount of money, make sure to ask and research about the necessary requirements for the transfer of ownership.

Some of the taxes imposed in Vietnam are as follows: corporate income tax, value added tax, personal income tax, foreign contractor tax, special sales tax, import and export duties, natural resources tax, property tax, and environmental protection tax. Since there are no local or provincial taxes in Vietnam, you must remember that these are all national taxes that are carried out by local administrative offices.

Property tax is in the form of a land rental or land use fee. If you wish to own a real estate in district 4 or any other districts in Ho Chi Minh City, you should apply to the land management authority. The tax will vary on the location and type of infrastructure where the property is located. Since 2012, all those who own apartments and houses must pay a lang tax based on the square meter. These can be between .03% to .15%.

There are three forms of tax incentives in Vietnam that are given to companies, such as the exemption or reduction of land rent and levy; exemption or reduction of import tax on goods that are imported as fixed assets; and the lower rate of corporate income tax for a specific period or throughout the duration of a project. There are also incentives for those who wish to invest in projects and developments in disadvantaged regions, incentives for industries that are being prioritized to improve education, technology, and healthcare, as well as incentives for those who wish to invest in economic zones.

Taxation and Tax Incentives

Land for Foreign Investment

The law allows for ownership and the right to use land if the individual or party has an LUR certificate. In the revised 2014 Land Law, both local and foreign investors are given equal opportunities in Vietnam for housing projects, whether it is for residence or leasing or selling. Foreign investors can also pay either through short-term or long-term plans.

Foreign groups or enterprises, however, are not allowed to have LUR, but this can be acquired through leasing land from allowed lessors or if the party receives a capital contribution in the form of LUR from a Vietnamese party. This is common in joint venture companies that often have new project launches in the cities.

The same Land Law also covers provisions for the limit of the LUR lease contract, which is 50 years, the LUR transfer, and LUR mortgage. The lease terms are determined by the term of the project investment; however, this can be extended if permitted. Owners can also mortgage part or all of their assets and LUR at any approved credit institution in the country.

The Best Places to Rent in Ho Chi Minh City Districts

Ho Chi Minh City in Vietnam, the city with two names, is becoming one of the fastest-growing cities in Southeast Asia. It’s not surprising given its flourishing metropolitan areas which are also home to export processing zones and industries, large foreign investments, and various sectors such as tourism, seafood, agriculture, mining, and construction. This is why a lot of people find it ideal to rent apartment at HCMC because of the various opportunities the city presents to both tourists and long-term residents.

As of 2003, you can rent apartment in Saigon in 24 districts, although most residents enjoy better amenities in districts 1, 2, and 3 based on reviews.

District 1 or Quan 1
Located in District 1 are most of the offices and public infrastructures of the government. It is also the most expensive district in Ho Chi Minh City to live in because of the commercial centers found in the area. District 1 is the perfect place to settle and look for a Saigon apartment rental deal if you want to immerse in the country’s history and culture. It is considered the city center and is the best place for expatriates and tourists to rent apartment at HCMC because of the variety of choices.

Some of the famous sites you should see are the City Opera House, Central Post Office, Reunification Palace, and the Saigon Notre-Dame Basilica. District 1 is also the best place to look for an apartment for rent in Ho Chi Minh City in Vietnam if you wish to enroll your children to the best public schools.

If you want a condominium rental in district 1, you should consider the following as your top choices: Springlight City Condominium Complex, Lamha Residenca Serviced Apartment, Sao Giao Dich Bat Dong San Dat Viet, InterContinental Saigon Residences, Somerset Chancellor Court Ho Chi Minh City, Avalon Apartments, Horizon Tower, Icon 56 Apartment, Toa Nha Ben Thanh Tower, Galaxy 9, PL Central Apartment, HAD Apartment Truong Dinh, Apartment 42 Nguyen Hue, Oakwood Apartments Ho Chi Minh City, Saigon Pavillon, and Sherwood Residence.

District 2 or Quan Thu Thiem
The second district has eleven wards or Phuong in total with a land area of 50 km2, which is prized for its investment opportunities after the Thu Thiem tunnel and bridge were recently completed. The tunnel connects districts 1 and 2, allowing for the fast growth of the area, perfect for families who want to rent apartment in Saigon. In fact, there is an established expatriate community in district 2 which will allow for easier opportunities to look for a rent a house deal or a villa rental if you wish to movie into the city. It also has international schools, restaurants, and shops that sell imported goods.

If you are looking for apartment for rent in district 2, we recommend the following: Thu Thiem Sky Apartment, Condominium R7 Duc Khai, Estella Heights, Riverside Serviced Apartments, Somerset Vista Ho Chi Minh City, and Diamond Island Luxury Residences.

District 3 or Quan 3
District 3 of Ho Chi Minh City, Vietnam is divided into 14 phuong with a total land area of 5 km2. What makes the district so attractive to tourists and long-term residents are its French-inspired architecture left over from the colonial period of Vietnam. It is also home to the Xa Loi Pagoda, considered the largest in Ho Chi Minh City as well as the British International School Vietnam.

If you want to rent a house in district 3 or you are looking for an apartment or condominium for the family, we recommend the following villa rental, rent a house services, and apartment for rent in Ho Chi Minh City: Oakwood Apartments Ho Chi Minh City, Saigon Apartments, HAD Apartment Truong Dinh, Poonsa Serviced Apartment, SILA Urban Living, Sherwood Residence, Angela Boutique, Indochine Park Tower, Sherwood Suites, Thien Thao Hotel, Three Oaks 4 Serviced Apartments, Babylon D3, An Phu Plaza, Victory Hotel, and Cityhomes Truong Dinh Services Apartment, Saigon Aparments, Duong Thi Sang House Renting, and Oakwood Apartments Ho Chi Minh City.

Other Districts
You can also look for other apartment for rent in Ho Chi Minh City at http://www.bestrent.vn/property/vinhomes-central-park-apartments-for-rent/ for an NYC-inspired location and luxurious living. The condominium units at Vinhomes speaks comfort and style, perfect for the modern individual.

For other locations, some of the best villa rental, apartments, and rent a house deals are the following: Icon 56 Apartment, Galaxy 9, Apartments Riva Park District 4, Ivy House Serviced Apartment, Chung Cu Khanh Hoi 3, Apartments Gold View, Avalon Apartments, InterContinental Saigon Residences, Merin City Suites, Tan Da Court, Riverside Apartment, Smiley Apartment 2, EverRich Infinity, Ngoc Phuong Nam Apartment, Dracon Riverside City, Him Lam Thap C Cholon, Saigon Mansion Apartment, Lucky Residence Suites, Novaland Lucky Palace, Leman Luxury Apartments, Era Town, Garden Court 2, Green View Apartments, Belleza Apartments, Chung Cu My Phu, ACE Sai Gon Apartment, M-One Nam Sai Gon, Song Hung Hotel and Serviced Apartments, E-home 5, Green valley Apartment PMH, Khu Dan Cu Phu Loi, Topaz Elite Quan 8, Saigon Village, Citi Home, Hado Centrosa Garden, Had Apartment, Rose Apartment, Masteri Thao Dien, Him Lam Thap C Cholon, Thai An Apartment, Vo Dinh Apartment, The Splendor Apartments, Sunny Plaza, Skyler View Serviced Apartment, Grace Residence, Tan Binh Apartment Building, Bluesky Serviced Apartment Airport Plaza, Oriental Plaza, MAC Serviced Apartments, BonBon Residences, Pearl Plaza Apartment, The Manor, Gia Phu Apartment, Hoang Anh Gia Lai Apartments, Imperia An Phu Apartments, and Etown Complex.

The list above includes the best apartment for rent in Ho Chi Minh City districts 4 to 12 and districts Gò Vấp, Tân Phú, Tân Bình, Tân Bình, Bình Thạnh, Bình Tân, Thủ Đức, and Phú Nhuận. Inner districts in Ho Chi Minh City include Hóc Môn, Củ Chi, Nhà Bè, Bình Chánh, and Cần Giờ.

Make sure that when you are looking for a Saigon apartment rental, your budget can afford the contract and you are given the chance to tour or inspect the unit. You can also ask around the neighborhood for feedback about the landlord, rates, and common issues.

Invest in Your Own Beach Villa or Condotel at Kahuna Ho Tram

Kahuna, which is a Hawaiian word for big waves, is the name for one of the biggest projects in Vietnam, Dự án Hồ Tràm or the Bà Rịa-Vũng Tàu Project, more commonly known as Kahuna Ho Tram Resort. Hồ Tràm, a small beach town near Ho Coc beach in the Bà Rịa-Vũng Tàu Province, is just two hours away from Ho Chi Minh City, making it an ideal getaway for those looking for a pristine beachfront, world-class entertainment and services, and quality time with family and friends.

Hồ Tràm Beach
Hồ Tràm is a twin beach to Ho Coc, which is also under development, and is flanked by the Binh Chau Nature Reserve and the River Ray. The 14-kilometer shoreline makes an ideal setting for such a big project as kahuna at ho tram. With the favourable Vietnam climate and the location’s unobstructed view of the pristine sea, the Kahuna Ho Tram project surely found the perfect location for its luxurious offerings.

The area is already popular among local and foreign tourists because it has been developed in recent years, allowing for easier travel and development of infrastructures.

Within five years since the development of small beach resorts in 2010, Hồ Tràm grew rapidly as a premium resort destination. In 2014, it was hailed as a top destination for golf in the southern part of country, and the following year, it hosted the Hồ Tràm Open.

Projects in Hồ Tràm Beach are expected to be completed by 2019.

More Resort Development Unveiled
The Kahuna Ho Tram Strip recently revealed a continuation of its Dự án Hồ Tràm project to include villas and condotels, allowing for property investment and a holiday resort investment for those who are interested. The Kahuna Ho Tram Strip includes 36 double-key villas, 8 beach villa for sale, and 164 condotel units in a twelve-storey tower.

Not only will investors enjoy their own Vung Tao condo in Vietnam or their own villa beside golf course, but they will also be able to invest in condo near world-class facilities, such as the five-star Grand Hotel, the multi-awarded integrated Kahuna Ho Tram Resort, the five-star Beach Club, Gallery Villas residence, and the Bluffs Golf Course designed by the talented golfer and entrepreneur Greg Norman. Kahuna Ho Tram Strip will also see future developments that will bring Vietnam to the forefront of tourism and entertainment in the Asian region alongside Macau and Phuket with a theme park, amphitheater, water park, wellness center, and many more leisure facilities.

Your Home Near the Beach
To invest in condo, pick from any of the following units: a standard one-bedroom unit, a penthouse, and a villa beside the golf course. Lessees can also enjoy benefits and a rental revenue share. Not only will the beach villa for sale enjoy a view of the spectacular beach, but all the condo units have a prime view of the natural forest and the waters surrounding Kahuna Ho Tram. Residents will also enjoy access to a water-lined walkway, relaxation pond, and swimming pools.

The condotel units will evoke the feeling of a luxurious cruise ship tour, each with their own Jacuzzi or private pool. There is a total of 130 standard units, 8 penthouses, 14 corner units, 10 ground floor standard units, and 2 ground floor corner units.

Meanwhile, the double key garden villas or the beach villa for sale include private gardens and pools, all linked by a waterway and pond. Each villa is also designed to function as a two-storey home or as a three-bedroom rental villa.

The single key beachfront villas on the other hand, have direct access to the beach with their own swimming pool in a two-storey home.