For investors, understanding the exit strategy — how to legally sell the property and repatriate profits abroad — is critically important. Vietnamese law provides a clear procedure for these purposes.
Resale Options (Exit Strategies)
A foreign buyer has three main options for sale:
1. Contract Assignment (SPA Assignment / Chuyển nhượng Hợp đồng Mua bán)
Sale before construction completion and before signing the final Handover Minutes.
Procedure: Handled through the Developer, who terminates the old SPA and issues a new one in the Buyer's name.
Taxes: Requires payment of Personal Income Tax (PIT) at a rate of 2% of the sale price.
Liquidity: Depends on the Developer's regulations.
2. Sale after Handover (Without Pink Book)
Sale after receiving the keys but before the Pink Book has been issued.
Procedure: Similar to contract assignment, but with additional handover documentation.
Liquidity: High, as the apartment is ready for use.
3. Sale with Pink Book (Pink Book Transfer / Chuyển nhượng Sổ hồng)
The most reliable and liquid option.
Procedure: Handled through a Notary Public and the local DONRE (Land Registry).
Rights: The buyer (Vietnamese or foreign) receives direct ownership title.
Liquidity: Highest appeal on the secondary market.
Capital Gains Tax
Upon selling the property (by any of the three methods), the foreign seller is obliged to pay Personal Income Tax on property sale (Capital Gains Tax).
Rate: 2% of the gross sale price (regardless of whether a profit was made).
Calculation: The tax is calculated on the total amount specified in the assignment/sale contract, not on the profit.
Payment: Must be paid to the tax authority before the transaction is finalized/notarized.
Repatriation of Funds
The key requirement for legally transferring funds out of Vietnam after a sale is proving the legitimate source of both the incoming (purchase) and outgoing (sale) funds.
1. Requirement: Foreign buyers must transfer all payments (to the developer or seller) through their bank account in Vietnam or an international account with direct transfer to the Developer's account.
2. Documents for Repatriation:
- Incoming Transfers: Proof of all previous incoming bank transfers for the purchase (Proof of Incoming Funds).
- Contract: Original or notarized copy of the Sale and Purchase Agreement (SPA/Assignment/Transfer Deed).
- Tax Confirmation: Document confirming the payment of Capital Gains Tax.
- Bank Account: Sale proceeds must be deposited into an account in Vietnam opened in the seller's name.
3. Procedure: The bank in Vietnam will verify the entire chain of transactions and documents before allowing the conversion of VND into foreign currency and the transfer abroad.
SUMMARY
The Vietnamese real estate market offers clear and structured rules for post-purchase management and exit. Compliance with tax regulations (10% on rent, 2% on sale) and conducting all financial transactions through the banking system are critical to ensuring the legality of ownership and the smooth repatriation of funds in the future.