Property tax: what it is, why it matters, how to obtain it

What "property tax" actually costs in Vietnam

There is no annual holding tax to calculate. These are the one-off and transaction-based charges a foreign owner encounters instead, illustrated on a €530,000 apartment (Tây Hồ median, live data).

2023 Housing Law (in force since 1 January 2025) · 2024 Land Law · Decree 95/2024/ND-CP

When property-related taxes apply, from purchase to resale

⏱ Recurs across the life of your ownership, not once a year

1. 1

   At purchase — the registration fee

   ⏱ Paid once, at title registration◈ 0.5% of declared value

   When your Sale & Purchase Agreement is filed and the Pink Book is issued in your name, the district land registration office collects a one-off 0.5% registration fee on the declared property value. This is paid before the certificate is released and is the one charge every buyer, foreign or Vietnamese, cannot avoid.

   DocumentsSale & Purchase Agreement · Passport · Registration fee receipt

   ⚠A declared value set noticeably below the contract price can delay registration or trigger a tax-office review — the fee is calculated on whichever figure is higher.

   → law firms
2. 2

   At handover — the maintenance fund (new-builds only)

   ⏱ Paid once, at or just before handover◈ 2% of pre-VAT price

   If you are buying directly from a developer, a further 2% of the pre-VAT sale price is collected at handover and held in a dedicated escrow account for the building's future common-area repairs. It is a statutory contribution rather than income tax, but it is mandatory and non-negotiable on every new-build sale.

   DocumentsFinal settlement statement · Bank confirmation letter

   ⚠Confirm the 2% is calculated on the pre-VAT price — some settlement statements quietly apply it to the VAT-inclusive figure instead.

   → accounting
3. 3

   While you own it and rent it out — VAT and rental PIT

   ⏱ Ongoing — declared quarterly or annually while the unit is let◈ 5% VAT + 5% PIT on gross rent

   If you lease your apartment, rental income is subject to 5% VAT and 5% personal income tax, both charged on the gross rent — not on profit, and with no deduction for a mortgage or management fees. Vietnamese-registered property managers usually withhold and declare this on the landlord's behalf.

   DocumentsLease contract · Tax declaration form · Rental income receipts

   ⚠Renting out a unit without registering the lease with the local tax office is a common shortcut that leaves the owner exposed to back taxes and penalties if discovered later.

   → accounting
4. 4

   At resale — the seller's income tax

   ⏱ At the point of resale, before the deed is filed◈ 2% of the transfer price

   When you eventually sell, 2% of the transfer price is withheld as personal income tax before the notary can process the new deed and the buyer's Pink Book. As the seller, this is your responsibility, not the buyer's — plan for it in your net proceeds calculation from the outset.

   DocumentsNotarised sale contract · Existing Pink Book · PIT payment receipt

   ⚠A transfer price understated to reduce the 2% tax is a common but risky practice — it can be challenged by the tax office and complicates proving your real acquisition cost later.

   → law firms

Accountants and tax advisors who work with foreign owners in Hanoi

Frequently asked questions

Sources