Purchase apartment at any stage of a commercial project, if you are in Vietnam
When purchase apartment in Vietnam you need to following next points:
1. Make an objective assessment of your financial capabilities.
When you’re going to buy an apartment in a compound under construction, you can rely on step-by-step payments. You can follow the payment schedule, which is approved by the developer (in each project in different ways), or immediately make a full payment. On the one hand, installment is certainly convenient, because even if you currently do not have enough money to buy an apartment, then you pay the first installment, which is usually 10-30% (depending on the stage of development), and you have about 12-15 months for the remaining payment. On the other hand, full payment guarantees that the price will remain the same at any stage of payment.
2. Carefully study the proposals:
Location of the project. What includes in the price. Finding out how many apartments at the date of your request remained in this project for purchase by foreigners.
3. To visit a notary and sign a Purchase Contract.
I would like to specifically underline that, according to the Law, only a transaction certified by a notary is considered as a legal. Only a notarized Purchase Contract immediately transfers to the Register Department by Developer. It’s clear that if the Purchase Contract is signed between you and the Developer without a notary, it can turn out that in the end you won’t be able to get a Certificate of Ownership “Pink book”, since your place will be occupied by those who assured the contract from a notary, because only 30 % of all apartments in one building can be sold to foreigners.
4. Documents of ownership of the Developer According to the Law on housing:
- Approve the draft of the Project issues by competent Authority.
- A lease agreement for a land plot.
- Drawings of the apartment plan for sale.
- Hand-over protocol of Apartment, includes provisions of administration and administrative fees.
5. Purchase taxes:
- Personal Income tax — 2%. So if you purchase apartment in Vietnam 50 000 USD — the tax will be 50,000 * 2% = 1 000 USD. Actually, this tax is paid by the Seller. However it may be that the Seller will pass this duty on you. Not why, just so.
- Registration fee — 0.5% of the price of the apartment. If you buy an apartment 50 000 EURO — the registration fee will be 50 000 * 0.5% = 250 USD
- One-time fee for major maintenance — 2%. If you buy an apartment 50 000 USD — a one-time fee will be 50 000 * 2% = 1000 USD
- Notarization fee is not more than 150 USD (about 0.09% of the value of the Contract)
So, if you buy an Apartment for 45 000 USD the cost of the transaction ownership at the best way — 2.59% or 1 300 USD. Other way if you pay income tax — 4.49% or 2 300 USD.
«Leadership TSC» provides services of property search and support of transactions.
Read also:
Methods of payment for real estate and money transfer to Vietnam
