Additional Expenses When Buying a Property in Vietnam

Luckily for many buyers, Vietnam has no stamp duty, property tax, or inheritance tax.

There is also no capital gains tax. The state charges individuals with a transaction tax of 2% of the transaction amount, and companies with a corporate tax of 25% of the transaction amount.

The cost of real estate includes VAT, which is 10% of the cost. The cost of processing documents includes notary services (0.05%).

When purchasing a property directly from the developer, a registration fee of 0.5% is paid. As a rule, the registration fee is included in the price of the property and does not require a separate payment by the buyer.

If you purchase an apartment on the secondary market, you must pay the following types of taxes:

• personal income tax in the amount of 2% of the cost of housing (the responsibility for payment lies with the buyer);
• registration fee in the amount of 0.5% of the cost of housing (the responsibility for payment lies with the buyer);
• an administrative fee in the amount of 15,000 VND;
• the fee for conducting the case in the amount of 0.15% of the value of the right of assignment (not less than 100,000 and not more than 5,000,000 VND).

Calculation of expenses for the purchase of a specific object

New 2-room apartment in a modern residential complex - $300,000

VAT, 10% - $30,000
The services of a notary, an average of 0.06% - $160
Agent's commission, 2-5% - $10,500
The final price of the property with all expenses and taxes - $340,650

During the execution of the transaction, a lawyer and a real estate agent may also be involved. The services of the first one are paid by the buyer, the second one are paid by the seller. As a result, additional costs for each participant of the transaction can cost about 2-5% of the value of the property.

The annual property tax is calculated according to the formula "construction cost [ area of the house (apartment) x 0.5%". The cost of construction is set by the state. If we are talking about a house with an adjacent plot, the rental rate is calculated in the same way (land price x area x 0.5%).

Inheritance is considered as resale. In this case, you must pay personal income tax in the amount of 2% of the resale price specified in the notarized contract.

Quoting conditions of Prian.info materials