Global Property Guide

Financial Information for Residential Property Buyers


Vietnam has a high flat rental income tax

Last Updated: October 17, 2016

INDIVIDUAL TAXATION

Nonresidents are taxed on their Vietnamese-sourced income. Married couples are assessed separately and there is no provision for joint taxation.

INCOME TAX

Nonresidents are liable to pay tax on their Vietnamese-sourced income at a flat rate of 20%.

CAPITAL GAINS TAX

Income earned by nonresidents from transfer of real estate is taxed at a flat rate of 0.10% on the gross sale proceeds.


PROPERTY TAX


Land Tax

Non-agricultural land is subject to land tax at progressive rates, from 0.03% to 0.15%. The tax base is the land area used based on the prescribed price per square meter.

Comments

Angel | March 18, 2010

I would like to know more about Vietnam environment:-

1. General business legal environment
Does Vietnam use Common law or civil law! What is the language used in the courts?
is Vietnam like China and we have to do a feasibility study and then apply for approval first?
Are there domestic and foreign companies or just one type of company?

2. Since I am not from Vietnam, do I need a Vietnamese citizenship or visa to start a business at Halong Bay?I hope not!
(If I do need to be Vietnamese to start a hotel business, what are the requirements?)

3. Based on experience, a hotel will require a hotel, restaurant, land use right and alcohol licenses in order for a hotel to operate. Is this the same in Vietnam? If it is the same, what other licenses do I need to have if I want to build a resort hotel?

Since I am not Vietnamese, can I even buy land or do we need a local partner to buy land?

Andy Nguyen | October 21, 2011

Hi
Vietnam uses civil law to adjust behavior of the people and many another laws according to specific field.
If you want to invest in Vietnam, you must have an investment certificate after feasibility research and apply for approval.
The foreigner can just buy apartment for residence in fifty years. When you have a plan to build a hotel or resort... you must rent land from the government but buy it.

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