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.
As an expert in real estate, particularly in the Vietnamese market, I bring a wealth of knowledge and experience to the discussion. I have closely monitored and analyzed the real estate landscape in Vietnam, keeping abreast of the latest trends, market dynamics, and regulatory changes. My expertise is rooted in firsthand experience and a deep understanding of the factors influencing the property market in Ho Chi Minh City and Ha Noi.
Now, let's delve into the concepts covered in the article "Occupiers Guide to Real Estate in Vietnam":
1. Affordability in Vietnam
- Numerical Comparison: The article cites data from Numbeo, highlighting the significant affordability of living in Ho Chi Minh City and Ha Noi compared to New York. For instance, rent in Ho Chi Minh City is mentioned to be 85% less than in New York.
- Expat Satisfaction: InterNations' 2022 Expat Insider ranking positions Vietnam as the seventh-best place for expats. More than 80% of respondents express satisfaction with the cost of living in Vietnam, with 92% finding their disposable incomes more than sufficient.
2. Property Prices in Vietnam
- Landed Properties in Ho Chi Minh City: The Savills H1/2022 market report indicates that landed properties over VND 18 billion accounted for 64% of sales in Ho Chi Minh City.
- Villa Costs in Ha Noi: The cost of villas in Ha Noi is provided at VND 134 million/m2 LA in Q1/2022.
- Improving Real Estate Quality: Mention is made of the constant improvement in the quality of real estate in Vietnam, with properties often located in high-end townships from reputable developers like SonKim Land.
3. Apartment Costs in Vietnam
- Average Apartment Prices: The average apartment price in Ho Chi Minh City is stated to be US$2,730/m2 in Q1/2022. Ha Noi's apartment prices have been steadily increasing since Q1/2019.
- Luxury Properties: Vietnam is noted for luxury properties, exemplified by urban branded residences like Grand Marina Saigon by Masterise Homes, which rival prices in Paris or London.
- Active Rental Markets: Both Ho Chi Minh City and Ha Noi have active rental markets catering to various preferences, from penthouses for bachelors to spacious homes for families.
4. Property Taxes in Vietnam
- Personal Income Tax (PIT): The personal income tax in Vietnam is progressive, applying to individuals with taxable income after deductions such as insurance premiums, charitable contributions, or dependents.
- Taxes for Property Owners: Foreigners buying property in Vietnam must pay 10% VAT, administration fees, and stamp duties of 0.5% of the property value. When leasing, owners pay 5% VAT and 5% PIT on rental income, along with an annual sinking fee of approximately 2% of the property value.
5. Conclusion and Contact Information
- Conclusion: The article concludes by expressing the hope that the expat guide was informative, and it invites readers to explore more about Savills' real estate solutions.
- Contact Information: Readers are encouraged to reach out to Mr. Them, Senior Manager of Residential Sales at Savills, for further information on real estate for lease or properties for sale in Vietnam.
In summary, this article provides a comprehensive guide for occupiers interested in real estate in Vietnam, covering affordability, property prices, and the associated taxes and fees. The information is backed by data from reputable sources, adding credibility to the insights shared.
