Guide to Property Taxes in Vietnam
Tax Rate on Rental Income |
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| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 5%-10% | 5%-10% | 5%-10% |
Nonresident individuals are generally subject to Vietnamese tax on Vietnam-source income. Married individuals are generally assessed separately for personal income-tax purposes.
Rental Income Tax
Rental income derived from real estate located in Vietnam is treated as taxable business income for personal income-tax purposes.
Under the rules applicable in 2026, individuals earning business income of VND 1 billion or less per calendar year are generally not subject to personal income tax on that business income.
Where annual business revenue exceeds VND 1 billion, personal income tax can apply under the applicable business-income regime. Depending on the taxpayer's circumstances and applicable method, business income may be taxed on revenue at rates determined by the type of business activity or, for qualifying taxpayers above the relevant thresholds, on taxable profit.
For a nonresident individual earning rental income from Vietnamese real estate, rental income is treated as Vietnam-source business income. Under the applicable nonresident regime, property rental income can be subject to personal income tax calculated on gross rental revenue rather than net rental profit.
Using a 5% personal income-tax rate on gross rental revenue, annual rental income of $18,000, $72,000 and $144,000 results in estimated personal income tax of $900, $3,600 and $7,200, respectively.
The corresponding effective personal income-tax rate is therefore 5% of gross rental income at each taxable level. Because the tax is calculated on revenue, no illustrative 30% operating-expense deduction has been applied.
Vietnam also applies an annual business-income threshold of VND 1 billion under the 2026 rules. Therefore, the lowest rental-income scenario should be checked against this threshold using the applicable exchange rate and the specific nonresident rules.
VAT on Rental Income
Value Added Tax (VAT) must be considered separately from personal income tax.
Rental activities can fall within the Vietnamese VAT regime once the applicable conditions and revenue thresholds are met. VAT is a transaction tax rather than an income tax and should therefore be shown separately when comparing the income-tax burden of property investment between countries.
For investment analysis, the relevant calculation should therefore distinguish between:
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Personal Income Tax (PIT) imposed on the nonresident landlord's rental/business revenue; and
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VAT, where applicable to the rental activity.
The exact VAT and PIT treatment can also depend on how the property is rented, the amount of annual revenue, the collection mechanism and whether an intermediary or digital platform is involved.
Capital Gains Tax
Income earned by a nonresident individual from the disposal of Vietnamese real estate is generally subject to personal income tax at 2% of the gross sale proceeds.
The tax is therefore based on the property's selling price rather than the investor's actual capital gain. Consequently, acquisition cost and the amount of economic profit do not generally determine the basic 2% tax calculation.
Corporate Taxation
The standard Corporate Income Tax (CIT) rate is 20%.
Vietnamese companies are generally subject to corporate income tax on their taxable profits, including income derived from real estate activities, after deduction of qualifying business expenses.
Foreign companies conducting business in Vietnam through a taxable business presence can also be subject to Vietnamese corporate income tax. However, foreign companies without an established presence in Vietnam may instead be taxed under Vietnam's Foreign Contractor Tax (FCT) regime on certain Vietnam-source income.
Income from the transfer of real estate by a company is generally included in taxable corporate income and subject to the applicable 20% corporate income-tax rate on taxable profits, subject to the specific rules governing real-estate transfers.
Qualifying expenses incurred in generating taxable business income are generally deductible, provided they satisfy the applicable Vietnamese tax requirements and are properly documented.
Certain businesses and investment projects may qualify for preferential corporate income-tax rates or tax incentives, while special tax rules can apply to particular industries and activities.
Property Buying and Selling Taxes/Costs
| Tax Type | Rate |
| Property Transfer Tax | 0.50% |
| Agent Fee (Buyer) | - |
| Agent Fee (Seller) | 1.00% - 3.00% |
| Legal Fees | 0.50% - 1.00% |
| Notary Fee | 0.05% - 0.10% |
| Costs Paid By Buyer | 1.05% - 1.60% |
| Costs Paid By Seller | Unlock |
| Roundtrip Cost | Unlock |
| Source: Global Property Guide, PWC, Deloitte | |
Property Tax
Non-Agricultural Land Use Tax
Land used for non-agricultural purposes can be subject to Vietnam's Non-Agricultural Land Use Tax.
For residential land, progressive rates generally range from 0.03% to 0.15%.
The taxable base is determined using the taxable land area multiplied by the applicable official land price per square metre, rather than the property's current open-market value.
The progressive rates are generally:
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0.03% for land within the applicable residential land-use limit;
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0.07% for the portion exceeding the limit by no more than three times; and
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0.15% for the portion exceeding the limit by more than three times.
