Tax Obligations for Resident and Non-Resident Property Owners in Vietnam

We detail the tax reporting obligations for foreigners who own rental properties in Vietnam, addressing common questions related to this topic. Foreign property owners in Vietnam, both resident and non-resident, are required to adhere to the same tax regulations as Vietnamese citizens.

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The current Housing Law, No. 27/2023/QH15, dated 27 November 2023, took effect on 1 August 2024. This law replaced Housing Law No. 65/2014/QH13, which was enacted in 2015. It provides guidance on housing management in Vietnam and applies to both resident and non-resident property owners, specifically allowing foreign citizens and investors to purchase property in Vietnam.

The newest releases of Decree No. 68/2026/ND-CP (“Decree 68”), as amended by Decree No. 141/2026/ND-CP (“Decree 141”), and Circular No. 18/2026/TT-BTC (“Circular 18”) introduce new tax policies regarding property rental activities in Vietnam. Decree 141 raises the annual revenue threshold for exemption from value added tax (VAT) and personal income tax (PIT) from VND 500 million to VND 1 billion, effective from 1 January 2026.

As a foreign owner of a rental property in Vietnam, it is important to understand your tax reporting and remittance obligations to avoid complications with the tax authorities.

Additionally, it is important to note that there are potential tax exemptions or reductions available for foreign owners of rental properties in Vietnam, depending on their home country. Some tax jurisdictions even treat rental income from overseas as tax-free income.

Paying tax on rental income in Vietnam

As a foreigner owning rental property in Vietnam, you are subject to the same tax regulations as Vietnamese citizens. From 1 January 2026, individuals with annual rental revenue of VND 1 billion or less are not subject to VAT and are not required to pay PIT on that rental activity.

Example: Marcus, an Australian resident, earns a total rental income of VND 1.2 billion (approximately US$46,000) from his property in Vietnam from 1 January 2026 to 31 December 2026, including taxes. This means his monthly rental income is VND 100 million (approximately US$3,846). As his annual rental revenue exceeds the VND 1 billion threshold, he is subject to VAT on the full rental income and PIT on the portion of rental income exceeding the threshold in respect of his rental activities in Vietnam.

PIT taxable revenue from property rentals in Vietnam

According to Decree 68, taxable income from property rentals for PIT calculation in Vietnam is the amount paid by the lessee for each payment period under the lease contract. In cases where the lessee makes an advance payment for multiple years, the revenue used to calculate taxable income may either be allocated across the prepaid years or determined based on the total one-time payment received.

Meeting tax obligations in Vietnam

There are two basic steps lessors must take to perform their tax obligations in Vietnam:

1. Obtain a tax code number: The first step is to obtain a tax ID specifically for property income. This tax code is separate from the one used for employment income in Vietnam. You can apply at the local tax office where the property is located, either in person or through an authorised representative with a notarised Power of Attorney.
2. Declare and pay taxes: After obtaining your tax code and registering for online tax filing, you can begin filing tax declarations and remittances. You may choose to declare and pay taxes on rental income either twice a year or annually.

Tax Declaration Forms for Real Estate Leasing Activities
Taxpayer type	Required form	Supporting appendix
Organisation declaring and paying tax on behalf of individuals leasing real estate (excluding accommodation services)	Form No. 01/TCKT	Appendix: Detailed List of Individuals Leasing Real Estate – Form No. 02/BK-KTBDS
Individual directly declaring tax to the tax authority for real estate leasing	Form No. 01/BDS	Appendix: Detailed List of Real Estate – Form No. 01/BK-BDS
Source: Circular No. 18/2026/TT-BTC

Taxes on property rental in Vietnam

Before 1 January 2026, rental income taxes included a 5 per cent VAT, a 5 per cent  PIT, and a Business License Tax (BLT). For the BLT, the tax authority would review the submitted documents and determine the payable amount, so no separate action was required from the lessor.

However, after 1 January 2026, Vietnam officially abolishes BLT with the issuance of  Resolution No. 198/2025/QH15, supported by Decree No. 362/2025/ND-CP and  Official Letter No. 645/CT-CS. This means that rental income in Vietnam is now liable for VAT and PIT.

Tax obligation deadlines

The individual may choose to file tax returns either twice during the tax year or once annually:

• For twice during the year: the first tax return is no later than 31 July of the tax year, and the second is no later than 31 January of the following calendar year.
• For annual tax returns: By 31 January of the following year.

The payment deadline is the same as the tax return submission deadline.

Example: Back to the case of Marcus, his tax obligations for each tax period are as follows:

• No BLT is required to be paid from 1 January 2026.
• As Marcus earns VND 1.2 billion in annual rental revenue, exceeding the VND 1 billion exemption threshold, he is subject to VAT and PIT on his rental income.
• Based on the applicable tax calculation rules, his VAT liability is VND 60 million, and his PIT liability is VND 60 million.
• He may choose to declare and pay taxes either twice per year or on an annual basis, subject to the applicable filing deadlines.

FAQ – Owning properties in Vietnam as foreigners

Is it true that tax responsibilities for foreigners with respect to owning an investment property are the same as those of local owners? I hear that foreigners and non-residents are subject to a flat PIT rate of 20 per cent in Vietnam.

The 20 per cent flat PIT rate only applies to income from salaries, wages, or service contracts earned by non-resident individuals in Vietnam, and does not apply to income derived from the leasing of real estate. For rental income from real estate, both resident and non-resident individuals, including foreign individuals, are subject to tax obligations under the same principles applicable to Vietnamese individual property owners. This clarification was provided in Official Letter No. 5262/TCT-DNNCN, issued by the General Department of Taxation of Vietnam on 11 December 2020. Accordingly, the statement that the “tax responsibilities are the same as those of local owners” is appropriate; however, applying a flat 20% PIT rate to rental income from real estate would be incorrect, as the 20% rate applies only to employment income or service contract income of non-resident individuals.

I am not a resident for tax purposes in Vietnam and my home country has a Double Tax Treaty with Vietnam. Can I claim tax exemption on rental income from my investment property in Vietnam?

To assess the tax implications specifically, it is necessary to determine the individual’s country of tax residence. Vietnam currently has approximately 80 Double Taxation Agreements (DTAs) with other countries. Income derived from immovable property is generally addressed under Article 6 of these treaties, under which income from immovable property may be taxed in the country where the property is located (i.e., Vietnam), rather than solely in the individual’s country of residence. However, the double taxation relief provisions under the applicable DTA may allow the individual to claim a credit for tax paid in Vietnam when determining their tax liability in their country of residence. Importantly, such foreign tax credit relief generally applies only to income tax (PIT) and is limited to the amount of income tax actually paid in Vietnam. It does not apply to VAT, as VAT is not an income tax.

Example: Marcus, an Australian citizen, earns annual rental revenue of VND 1.2 billion from real estate located in Vietnam. As the annual rental revenue exceeds the VND 1 billion tax-free threshold, he is subject to both VAT and PIT. His Vietnamese tax liabilities would be:

• VAT: VND 60 million
• PIT: VND 10 million (calculated on the portion exceeding the threshold: (VND 1.2 billion – VND 1 billion) × 5%)

Under the Vietnam–Australia DTA, Marcus may generally be able to claim a foreign tax credit for the VND 10 million of PIT paid in Vietnam when calculating his Australian tax liability, subject to the specific provisions of the DTA and applicable Australian tax law. The VND 60 million of VAT, however, would generally not qualify for a foreign tax credit because it is not an income tax.

I don’t speak Vietnamese and don’t know how to do a tax registration and declaration in Vietnam. I’m not even in Vietnam at the moment. Who is empowered to help me with this?

You can appoint someone in Vietnam, such as your property manager, lessor, or a professional tax consultant, to handle tax compliance procedures on your behalf. To authorise this, you’ll need to complete a Power of Attorney. For the Power of Attorney to be legally effective in Vietnam, it must be:

• Signed by both you and the authorised representative and witnessed by a notary if you are physically in Vietnam; or
• Signed by you, legalised by the Vietnamese Consulate in your home country, then sent to Vietnam for certification by a local notary if you are residing outside of Vietnam.

I purchased a condo in Ho Chi Minh a few years ago but have not been issued a certificate of ownership yet. Why is this happening and what can be done to accelerate the process?

Obtaining certificates of ownership for foreign investors has been a contentious issue in Vietnam due to regulatory conflicts among government agencies. This challenge is particularly pronounced in Ho Chi Minh City, where a significant number of properties have been sold to foreigners.

The Real Estate Association has been actively urging the Ho Chi Minh City People’s Committee to issue ownership certificates to foreign property owners as mandated by the Housing Law, yet the issue remains unresolved. Currently, Hanoi is the only city in Vietnam issuing certificates of ownership to foreign homeowners, so those in Ho Chi Minh City and other provinces may need to wait.

In the meantime, you can consider collaborating with other homeowners to apply pressure on project developers to continue following up with the relevant authorities. If the delay is causing financial or legal complications, selling the property may be an option. However, it is advisable to consult with a legal expert beforehand to ensure compliance and safeguard your interests.

What are the key points for me, as a foreign investor, to consider before buying a property in Vietnam?

For foreign investors primarily interested in rental properties, the return on investment is often a top priority. However, there are several tax, legal, and logistical factors to carefully consider before making a purchase decision:

• Foreign ownership restrictions: In Vietnam, there are restrictions on foreign ownership of land. Foreigners can only buy and own apartments and condominiums for a maximum period of 50 years, after which ownership rights can only be renewed for another period of 50 years.
• The property’s legal status: Delays in the issuance of ownership certificates have been a common frustration among foreign property owners in Vietnam. Additionally, some project developers face unresolved licensing or tax issues, which may prevent them from signing valid purchase contracts. Without a valid purchase contract and ownership certificate, legally transferring property ownership becomes challenging.
• Taxation: Owning a property in Vietnam comes with tax obligations. You’ll need to register for a tax code and pay taxes on any rental income. Tax may also apply if you sell the property in the future (i.e. income from sales of real estate). Compliance is essential, as commercial banks require proof of tax payments before allowing overseas transfers of income earned in Vietnam.
• Property management: If you plan to lease out your investment property, consider how it will be managed in your absence. Reliable property management services can assist with tenant communications, maintenance, and rent collection. Proper insurance coverage for potential damages or losses is also advisable.
• Financing: Obtaining financing from Vietnamese banks may be challenging for foreigners. You may need to explore international banks or finance companies that lend to non-residents. Research and compare financing options carefully before proceeding.

To navigate these complexities, it is highly recommended to consult a professional real estate advisor and engage a legal expert to assist with the negotiation and purchase process.

(This article was originally published 19 May 2023. It was last updated 23 September 2026.)