2. Occupiers Guide to Real Estate in Vietnam
While laws and taxes for investors occupiers overlap, the pull factors differ. In the guide to real estate in Vietnam for occupiers, the article looks at how affordable it is to live in Vietnam, property prices and real estate projects in Ho Chi Minh and Ha Noi, and taxes foreign homeowners must pay.
2.1 How Affordable is Vietnam?
Many expats enjoy how affordable is it to live in Ho Chi Minh City and Ha Noi. According to Numbeo, in September 2022, rent in Ho Chi Minh City was -85% less than in New York, and US$2,100 in Ha Noi would afford the same standard of living as US$9,200 in New York.
Vietnam ranked seventh in InterNations’ 2022 Expat Insider ranking for the best places for expats to live. More than 80% of respondents were happy with the cost of living in Vietnam compared to 46% internationally. Approximately 92% of the respondents found that their disposable incomes were more than enough to live comfortable lives.
2.1.1 How Much Does a House Cost in Vietnam?
In Savills H1/2022 market report, in Ho Chi Minh City, landed properties of over VND 18 billion accounted for 64% of sales. In Q1/2022, villas in Ha Noi cost VND 134 million/m2 LA, townhouses cost VND 185 million/m2 LA, and shophouses cost VND 323 million. The quality of real estate in Vietnam is constantly improving and landed properties in Vietnam are often in high-end townships and come from reputable developers like SonKim Land.
Browse our landed properties and apartments for sale in Ho Chi Minh City and Ha Noi.
2.1.2 How Much Do Apartments Cost in Vietnam?
The average apartment in Ho Chi Minh City cost US$2,730/m2 in Q1/2022, and apartment prices in Ha Noi have increased continuously since Q1/2019. In Q2/2022, the average apartment price in Ha Noi was VND 45 million/m2. Vietnam is also no stranger to luxury properties, with urban branded residences like Grand Marina Saigon by Masterise Homes fetching prices that rival Paris or London.
Ho Chi Minh City and Ha Noi also have active rental markets, with landed properties and apartments that cater to dynamic players, from bachelors looking for penthouses, couples looking for retirement apartments, or families wanting enough space for their children and pets in a home.
Browse our collection of rental apartments and rental homes in Vietnam.
2.2 Property Taxes in Vietnam
2.2.1 Personal Income Tax
Personal income tax (PIT) is progressive and applies to individuals with a taxable income after deductions, which include insurance premiums, charitable contributions, or dependents.
2.2.2 Taxes When Owning and Buying Property in Vietnam
When buying property in Vietnam, foreigners must pay certain taxes and fees. When buying properties in Vietnam, 10% VAT applies, along with administration fees and stamp duties of 0.5% of the property value. When leasing properties, owners must pay 5% VAT and 5% PIT on rental income; they are also responsible for an annual sinking fee, which is approximately 2% of the apartment or house value, before VAT. If homeowners sell their properties, they must pay a transaction fee, which is approximately 2% of the transacted value.
Conclusion
We hope that this expat guide to buying property in Vietnam was informative At Savills, our team specialise in finding bespoke real estate solutions for foreigners. If you would like to know more about our supporting services, click here. Alternatively, contact Mr Them, Senior Manager of Residential Sales, to find out more about real estate for lease or properties for sale in Vietnam.
