When it comes to “cashing in”, selling and renting out your new property in Vietnam, there are a few things you need to know that no one is telling you.
Almost 20 months on from the legislation which flung the gates open for foreigners to buy, a lack of subsequent legal documents clarifying relevant procedures means the law is yet to be implemented practically and as such there is no clear defined process.
For the more than 80,000 foreigners living and working in Vietnam and more than 4 million Viet kieu who have close links with their home country, complications and frustrations are normally “expected” and managed.
But, what if you are a foreign investor not living in Vietnam?
1. SELLING /TRANSFERRING
When you managed to sell your property, congratulations. The next thing you need to do is to verify your marital status with a notarized and translated document from the registry in your home country; which will again need to be notarized and translated in Vietnamese at a local notary office – this takes time and is done at a fee.
Then you will need to prepare a ‘deposit contract’ and a ‘sale contract’, both of which must be notarized and signed by all parties including the developer that sold you the property in the first place. There are no standard contracts so you must prepare one yourself (or have a consultant to do so).
The next step is to have the above translated, signed and witnessed in Vietnamese by a notary. Once the transaction is completed, you need to look into the tax aspect.
You cannot repatriate your funds by the book if your tax has not been paid.
Finally, when the time comes to have all that hard-earned cash sent to your bank account, the only way you can repatriate your money with most international banks is to show that Vietnam law has been abided by through providing ALL of the above documents including your red invoice as proof of payment from the tax department.
Then and only then will the bank allow you to receive your funds. Once this is completed, you will also need to pay the developer to finalize the transfer.
2. RENTING OUT
With many major projects due to complete in Ho Chi Minh City and Hanoi in late 2017, if you are an investor, it’s almost time to look for a tenant.
The above rules (largely enforced by the bank) in regards to taxation, repatriation and receipt of funds will apply. Unless you’re willing to pay a visit to the tax office every month, you may need to settle on collecting your rental return on a quarterly or annual basis for the sake of convenience.