Many people assume simply:

“If I pay the money, I will own it just like in my home country.”

>>> 5 common real estate disputes foreigners face when investing in Nha Trang

>>> Safe investment in Nha Trang: Let a lawyer accompany you from the very beginning

In reality, Vietnam does not operate this way. Foreigners’ rights to real estate are clearly limited, and misunderstanding these rules from the outset can lead to significant legal risks.

First, Understand This Correctly: Owning a House Is Not the Same as Owning Land

In Vietnam:

• Individuals do not own land; they own land-use rights

• Land-use rights are strictly managed by the State

• Foreigners are not permitted to hold land-use rights in their own name

Therefore, when referring to “real estate ownership,” foreigners may only own housing in specific cases permitted by law—not all types of property.

What Types of Property Are Foreigners Allowed to Own?

Apartments in Projects Approved for Sale to Foreigners

This is the most common and safest option for foreigners in Nha Trang.

Foreigners may:

• Purchase apartments in legally approved projects

• Be named as the owner of the apartment

• Hold ownership for a fixed term as prescribed by law

However, not all projects are eligible. A project must:

• Be approved for sale to foreigners

• Not exceed the legally permitted foreign ownership quota

If a foreign buyer purchases in an ineligible project, they may not be issued an ownership certificate.

Houses Within Approved Residential Projects (Not Individual Land Plots)

In certain approved housing projects, foreigners may purchase houses associated with the project, but the conditions are very strict.

Foreigners are not allowed to purchase standalone houses on individual land plots outside approved projects, even if introduced by brokers or acquaintances.

Purchasing “land + private house” through:

• Having a Vietnamese individual hold title on your behalf

• Handwritten agreements

• Private side arrangements

all carry extremely high legal risks.

Property Types Foreigners Should NOT Purchase

The following are common high-risk scenarios:

• Individual residential land plots

• Houses built on land titled in a Vietnamese person’s name

• Purchases using nominee arrangements (“ownership on behalf”)

• Contracts that are not properly notarized

In these cases, even if you pay the full amount, Vietnamese law does not recognize your ownership, and protecting your rights in a dispute is extremely difficult.

What Does “Time-Limited Ownership” Mean?

One issue that confuses many foreigners is:

“Why is my ownership only for a limited period?”

Under Vietnamese law, foreigners’ housing ownership rights are generally:

• Time-limited

• Renewable if legal conditions are met

It is essential that:

• The ownership term is clearly stated in official documents

• Rights and obligations during that term are transparent

If these points are not clearly understood, buyers may:

• Misjudge the true value of the asset

• Encounter difficulties when reselling or leasing the property

Failure to understand ownership duration can significantly affect resale and rental transactions

Why Do Many Foreigners Buy the Wrong Type of Property?

The reasons are usually not financial, but rather:

• Trusting incomplete or misleading advice

• Not understanding Vietnamese

• Assuming Vietnamese law is similar to their home country’s law

• Failing to conduct legal due diligence before purchasing

Many investors only discover problems after paying a deposit or a substantial portion of the purchase price.

How Does a Lawyer Help Foreigners Invest Safely?

A lawyer does more than answer the question:

“Am I allowed to buy this?”

A lawyer helps you:

• Identify the correct type of property you are legally permitted to purchase

• Verify whether a project meets all legal requirements

• Clearly explain ownership rights and duration

• Avoid “shortcuts” that carry significant legal risk

For foreigners, a lawyer serves as the bridge between you and the Vietnamese legal system—helping you understand the rules and proceed correctly.

Not All Property Is Available to Foreigners

Nha Trang is an attractive market, but not every property is suitable—or legal—for foreign ownership.

The most important question is not:

“How much does it cost?”

But rather:

“Will Vietnamese law recognize my legal rights to this property?”

And to answer that question, consulting a lawyer before investing is the most critical step.

 

If you have any questions or need legal advice, please contact us via the following forms:

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Website: https://luatsulh.com/

Main office address: 12A Nguyen Dinh Chieu Street, Tan Dinh Ward, Ho Chi Minh City (Formerly: Da Kao Ward, District 1)

Nha Trang Branch office address: 144 Hoang Hoa Tham Street, Nha Trang Ward, Khanh Hoa Province (Formerly Loc Tho Ward, Nha Trang City)

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