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Registering Property in

Vietnam

Below is a detailed summary of the steps, time and cost involved in registering property in Vietnam. It assumes a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016.

Compare Vietnam to 189 other economies.

  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Build an application for the transfer of land use rights and ownership of assets attached to the land

    Agency: Land Use Right Registration Office under the Department of Natural Resources and Environment (LUR Office)

    Parties obtain a Land Use Right (LUR) transfer contract (standard form) for free at the notary's office or online at http://moj.gov.vn/huongdannv/Lists/TaiLieuNghiepVu/View_Detail.aspx?ItemId=138.


    At the LUR office, the buyer will make a search on the ownership.


    The dossier includes: (i) LUR certificate, (ii) Decision or Resolution of the highest decision-making body of the company regarding the LUR transfer; and (iii) company's legal status documents and the construction works.

    1 day VND 4,000
    2

    Notary checks for any encumbrances on the property

    Agency: Notary Public

    Under Section I.5.1(c) of Circular No. 04/2006/TTLT-BTP-BTNMT, the notary public is required to check that the contents of the transfer agreement do not contradict social ethics or violate laws and regulations. In practice, the notary public will also check the encumbrances on the property with the LUR Office prior to notarizing the transfer contract. If the property is subject to an encumbrance, the notary public will not conduct the notarization unless otherwise agreed by the existing mortgagee (or any other owner of the encumbrance) and the transferee. The notaries have their own system to check the encumbrance on the transferred property before notary and it only takes few minutes to do so. There is no cost arising from such searches. He will study the contract and the results of the search before he notarizes.

    Less than a day (online procedure)

    Under Section I.5.1(c) of Circular No. 04/2006/TTLT-BTP-BTNMT, the notary public is required to check that the contents of the transfer agreement do not contradict social ethics or violate laws and regulations. The notary public will also check the encumbrances on the transferred property with the LUR Office prior to notarizing the transfer contract.
    No cost
    3

    The transferor and transferee will sign the contract which will be witnessed and certified by a notary located in the same area as the property

    Agency: Notary Public

    The land use right (LUR) transfer contract shall be made in duplicate, one for the seller and another for the buyer. This contract must be notarized by the public notary where the land is located (according to Article 167.3 of Land Law No. 45/2013/QH13 of the National Assembly dated November 29, 2013 which became effective from July 1, 2014 (the "New Land Law")). The dossier for the public notary office includes: (i) Request for notarization of the contract or transaction (in standard form); (ii) LUR transfer contract; (iii) Document evidencing transferor’s title of the land and warehouse (e.g., land use right certificate for the 557.4 square meters land and construction works ownership registration certificate for the warehouse or certificate of land use right and assets attached to the land for both land and warehouse; (iv) Business registration certificate of the transferor and transferee; (v) The transferor's corporate approval on transfer of property to the transferee; (vi) Power of attorney granted by the legal representatives of the transferor and transferee if the signatory is not legal representative of the transferor and transferee; (vii) ID card of the signatory (including the legal representative and authorized person, if any), according to Joint Circular No. 04/2006/TTLT-BTP-BTNMT dated June 13, 2006 of the Ministry of Justice and the Ministry of Natural Resource and Environment); (viii) Copies of other documents relevant to the contract or transaction which the law stipulates must be available according to Article 40.1.dd of Law on Notarization No. 53/2014/QH12 dated June 20, 2014 of the National Assembly, effective as of January 1, 2015 (Law on Notarization).

    The time-limit for notarization shall not exceed 2 working days in the case of a complex contract or transaction, this time-limit may be extended but not beyond 10 working days (Article 43 Law on Notarization.


    If the value of property or contract between VND 1,000,000,000 and VND 3,000,000,000 notary fee is VND 1,000,000+0,06 % of the amount of the value of property or value of the contract/transaction exceeding 1,000,000,000 . (Joint Circular No. 08/2012/TTLT-BTC-BTP dated January 19, 2012 of the Ministry of Finance and the Ministry of Justice on rates, collection, payment, management and use of notary fees, as amended by Joint Circular No. 115/2015/TTLT-BTC-BTP of the Ministry of Finance and the Ministry of Justice dated August 11, 2015)

    7 days VND 1 million + 0.06% of the amount exceeding VND 1 billion
    4

    The parties pay income tax on assignment of the land-use right and the registration fee at the relevant District Department of Taxation

    Agency: District Department of Taxation

    The registration fee (paid by the transferee) is 0.5% (Decree 45/2011/ND-CP and Circular 124/2011/TT-BTC on registration fee) .

    Corporate Income Tax (CIT): From January 1, 2016, the tax rate of the income tax from the assignment of land use right (paid by the transferor) is 20% (Article 10.1 and Article 3.2 of Law on Corporate Income Tax No. 14/2008/QH12 dated June 3, 2008, as amended by Law No. 32/2013/QH13 dated June 19, 2013 and Law No. 71/2014/QH13 dated November 26, 2014 (the "CIT Law")).

    Registration Fee: From June 1, 2011, there are certain reforms related to registration fees as follow: (1) Decree No. 45/2011/ND-CP dated June 17, 2011 of the Government guiding on registration fees which replaced Decree No. 176/1999/ND-CP dated December 21, 1999 of the Government as amended by Decree No. 80/2008/ND-CP dated July 29, 2008 of the Government; and (2) Circular No. 124/2011/TT-BTC dated August 31, 2011 of the Ministry of Finance guiding on registration fees replaced Circular 68/2010/TT-BTC dated April 26, 2010 of the Ministry of Finance which abolished Circular 79/2008/TT-BTC and Circular 95/2005/TT-BTC of the Ministry of Finance.


    The transferee is required to declare and pay in full the registration fees when registering its ownership and rights to use of the property with the competent authority of Vietnam (e.g., application for a LUR certificate with respect to the 557.4 square meters land and the warehouse with the LUR Office) (Article 3 of Decree No. 45/2011/ND-CP dated June 17, 2011 of the Government and Article 2 of Circular No. 124/2011/TT-BTC dated August 31, 2011 of the Ministry of Finance), instead of the 30-day period as provided previously in Decree 176.

    25-30 days The registration fee (paid by the transferee) is 0,5% (Circular 79/2008/TT- BTC dated 15/9/2008 replaced Item II Section II Circular 95/2005/TT- BTC guiding on registration fee). The tax rate of the income tax from the assigment of land use right (paid by the transferor) is 22% based on Article 11.2, Decree No. 218/2013/NĐ-CP dated December 26, 2013 of the Government guiding the implementation of the Law on Corporate Income Tax ("Decree 218")). The transferor is required to declare the corporate income tax for each time of transfering property (Article 12.5.b of Circular No. 156/2013/TT-BTC dated November 06, 2013 of the Ministry of Finance guiding Law on Tax Management ("Circular 156")). The taxation authority will base on the declaration to record, adjust the payable tax and issue a tax notice to the taxpayer within 3 working days from the day of receiving such declaration. (Article 18.4.(b) of Circular 156). A transfer of land use rights is not subject to VAT (Article 5.6 of the VAT Law), but a transfer of the warehouse is subject to VAT rate of 10% (Article 8.3 of the VAT Law).
    5

    The land-use right transferee shall register the right to use land

    Agency: Land Use Right Registration Office under the Department of Natural Resources and Environment (LUR Office)

    The Land Use Right Registration Office is the prescribed authority. Currently, there are many land use rights registration offices in Ho Chi Minh City, including the provincial land use rights registration office (immediately under the Department of Natural Resources and Environment of Ho Chi Minh City) and district land use rights registration offices (under the people's committee of districts). According to Article 17.1(a) and (k) of Circular No. 23/2014/TT-BTNMT of the Ministry of Natural Resources and Environment, providing for land use right or house and land-attached asset ownership certificates (effective as of July 5, 2014), in order to obtain the LUR certificate, the transferee may request the LUR Office to issue a new LUR certificate or an update on the existing LUR certificate.


    1. In order to issue a new LUR certificate, the application dossier has to include according to the above mentioned Circular, Decree No. 43 and No. 88: (i) application for issuance of LUR certificate (in stipulated form); (ii) a copy of the business license; (iii) the sale and purchase contract for the Property; (iv) the original LUR certificate and the certificate of ownership of the warehouse; (v) copies of relevant tax payment receipts evidencing for fulfillment of relevant financial obligations; and (vi) a map of the Property (if existing documents on the Property do not have such a map).

    Time-limit: 30 working days from the date of receipt of the proper dossier (Article 61.2(a) and (b) of Decree No. 43 detailing a number of articles of the Land Law ("Decree 43"), effective as of July 1, 2014).


    2. In order to update an existing LUR certificate, the application dossier should contain According to the above mentioned Circular: (i) the sale and purchase contract for the Property; and (ii) the original LUR certificate and the certificate of ownership of the warehouse.

    Time-limit: not over 15 working days from the date of receipt of the valid dossier ((Decree 43, Article 61.2 (i)).

    15-30 days VND 50,000 (Updating existing LUR Certificate)

    According to Circular 106/2010/TT-BTC dated 26 July 2010 issued by the Ministry of Finance, the cost for registering the LURC are as follows:
    (a) Not over VND100,000 for the issuance of a new LURC; or
    (b) Not over VND 50,000 for the update/amendment to the existing LURC in the event of 1 (b) above occurs

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 14.0
    Reliability of infrastructure index (0-8) 6.0
    What is the institution in charge of immovable property registration? Land Department of the Environmental and Natural Resources Department
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Scanned 1.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? Yes 1.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Scanned 1.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? Yes 1.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Different databases but linked 1.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? Yes 1.0
    Transparency of information index (0–6) 3.0
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Anyone who pays the official fee 1.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, on public boards 0.5
    Link for online access:
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, on public boards 0.5
    Link for online access:
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Yes, on public boards 0.5
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? No 0.0
    Number of property transfers in the largest business city in 2015:
    Who is able to consult maps of land plots in the largest business city? Only intermediaries and interested parties 0.0
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, on public boards 0.5
    Link for online access:
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? Yes, in person 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 0.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the economy mapped? No 0.0
    Are all privately held land plots in the largest business city mapped? No 0.0
    Land dispute resolution index (0–8) 5.0
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes 1.5
    Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? No 0.0
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Registrar; Notary.
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Registrar; Notary.
    Is there a national database to verify the accuracy of identity documents? No 0.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? Province People's court
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? Between 1 and 2 years 2.0
    Are there any statistics on the number of land disputes in the first instance? No 0.0
    Number of land disputes in the largest business city in 2015:
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0