A house in Vietnam left behind by a relative can leave an overseas heir stuck for years. Believing that a name in the will is enough to be registered on the title, many only later discover that the law does not let them keep the property and grants them only its value. A single misstep at this stage can trigger a tax that should have been exempt, or leave the sale proceeds "frozen" and unable to be remitted abroad.
Does holding a foreign nationality still allow you to inherit real estate in Vietnam? If so, do you keep the house or must you sell it to receive the money? And when you sell it or give it to a relative, who pays the tax, how much, and how do you legally transfer that money out of the country? These are the tangled questions that leave many overseas Vietnamese and foreign nationals at a loss, with some giving up midway, convinced that "every road is blocked." The article below analyses the current legal framework, the step-by-step procedure and each specific tax and fee, together with the risks to avoid, so that you take the right path from the very first step.
Foreigners may inherit in Vietnam, but the form in which they receive the estate is what truly matters
First, a very common misconception must be cleared up: "holding a foreign nationality means you cannot inherit in Vietnam." This is incorrect. The right to inherit is a basic civil right that is not lost because the heir carries another country's passport. The Civil Code affirms that all individuals are equal in their right to inherit under a will or under the law.
The issue is not "whether you may inherit," but "in what form you receive it," especially when the estate is real estate. Where there is a foreign element, the law determines inheritance according to the nationality of the deceased; but for real estate specifically, the exercise of inheritance rights follows the law of the country where the property is located. Because the property sits in Vietnam, Vietnamese law governs the title transfer, registration and the restrictions on ownership.
Under Vietnamese land law, heirs to real estate fall into three groups with very different outcomes. The first group is Vietnamese citizens residing abroad (who retain Vietnamese nationality): they are classified as "individuals" and may hold title to real estate just like a domestic resident. The second group is persons of Vietnamese origin residing abroad who are permitted to enter Vietnam and fall within the category eligible to own housing in Vietnam: they too may be granted a Certificate and registered as the title holder. The third group, the focus of this article, is foreign nationals or persons of Vietnamese origin who do not fall within the category eligible to own housing: this group is not granted a title and receives only the value, but is entitled to transfer or gift the inherited share.
The practical consequence: for someone in the third group, "transferring or gifting" is not a matter of preference but is, in effect, the statutory route to convert the inherited real estate into money or to pass it to an eligible holder. Understanding this from the outset spares you months spent waiting for a title certificate that will never be issued.
The procedure to declare the estate, register the transfer and carry out a sale or gift
Whether you ultimately choose to sell or to gift, the estate must first be lawfully declared before it can be disposed of. For someone living abroad, the process usually runs through the following steps:
- Prepare and legalise documents from abroad. Gather the deceased's death certificate, the will (if any) and the documents proving the inheritance relationship, such as birth and marriage certificates. Every document issued by a foreign authority must be consularly legalised and notarially translated into Vietnamese before it can be used in Vietnam.
- Notarise the estate declaration or distribution agreement and post the notice. The heir (or an authorised representative) requests a notarial practice organisation to draw up the document. The notarial organisation must post notice of receipt for 15 days at the People's Committee of the commune where the deceased last resided (if the last residence was abroad, the notice is posted at the last place of residence in Vietnam, or published through the Department of Justice). Only once the posting period has ended with no complaint may the notary proceed.
- File the dossier at the land registration office. Because they are not granted a Certificate in their own name, third-group heirs file an inheritance dossier to have it recorded in the cadastral register, providing the legal basis for the next step of disposal.
- Sign the transfer or gift contract. When selling, the heir is named as the transferor in the contract. When gifting, the heir is named as the donor, and the recipient must be a party eligible to receive land use rights under the regulations.
- Register the transfer to the buyer or donee and complete the tax and fee obligations. The receiving party completes the registration procedure to be granted a Certificate in their own name; the taxes and fees are declared and paid at this stage.
- Remit the money abroad. After the sale and the completion of financial obligations, the heir carries out the procedure to purchase and remit foreign currency abroad through a licensed bank, accompanied by documents proving the lawful origin of the funds (the inheritance file, the transfer contract, tax payment vouchers).
Because most clients in this group live abroad and can return to Vietnam only once or twice briefly, the pivotal step is usually to execute a valid power of attorney (which must also be consularly legalised) so that a lawyer or domestic representative can pursue the entire process on their behalf.
The taxes and fees payable when you inherit and then sell or gift the property
This is the part most people worry about, yet it is not confusing once the principle is clear. Three moments must be kept distinct: when you receive the estate, when you sell, and when you gift. Each moment has its own tax, its own payer and its own exemption. From 1 July 2026, these rates apply under the Law on Personal Income Tax 2025.
| Stage | Personal income tax | Registration fee | Exempt when |
|---|---|---|---|
| Receiving the inheritance (real estate) | 10% on the value exceeding VND 20 million per occurrence, paid by the heir | 0.5% of value (if registered in the heir's name) | Inheritance between close relatives (spouses, parents and children, grandparents and grandchildren, siblings) is exempt from both |
| Selling (transfer to a third party) | 2% on the transfer price, paid by the seller (the heir) | 0.5%, paid by the buyer | Exempt for an individual who owns only a single house or residential land plot in Vietnam (rarely applicable to those living abroad) |
| Gifting (to an eligible person) | 10% on the value exceeding VND 20 million, paid by the donee | 0.5%, paid by the donee | A gift between close relatives is exempt from both |
The most easily overlooked point is the exemption for close relatives. Most estates pass from parents to children, so the very act of receiving inherited real estate is usually already exempt from personal income tax.
The tax that actually arises usually falls at the sale stage: personal income tax on a real estate transfer equals 2% of the transfer price, applied identically to both resident and non-resident individuals. This surprises many foreigners: selling an inherited estate is still subject to transfer tax, even though receiving the inheritance was exempt.
If you choose to gift rather than sell, the tax obligation shifts to the donee: they pay personal income tax of 10% on the value exceeding VND 20 million, unless the gift is between close relatives, in which case it is exempt. Likewise, the registration fee on real estate is 0.5% and is also exempt where the property is a gift between close relatives.
There are also smaller items not to forget to budget for: notarisation fees for the estate declaration and the contracts (calculated on the value of the assets under Circular 257/2016/TT-BTC), dossier appraisal fees, the Certificate issuance fee, and the costs of translating and consularly legalising documents from abroad.
Legal risks and common mistakes in practice
Most cases drag on not because the law is complex, but because the heir takes the wrong path from the start. Below are the situations DEDICA encounters most often.
Assuming you can be registered on the title and waiting in vain. A foreigner files for a Certificate in their own name, waits months, then is refused, when they should have taken the direct route of "receiving the value, then transferring or gifting." Identifying the correct category from the outset saves both time and money.
Co-heirs who have not reached agreement, or who have been left out. When an heir living abroad is omitted, or the co-heirs have not finalised the distribution plan, the notarial dossier stalls. During the posting period, if a complaint or denunciation arises about concealing or omitting an heir, the notary must suspend the matter to resolve it.
Forgetting that an heir inherits obligations, not just assets. If the estate is mortgaged or the deceased still owed debts, the heir must discharge those obligations within the limits of the estate received. Discovering a debt attached to the property only after the sale is not uncommon.
Declaring a low sale price to "dodge" tax. Some people record a transfer price lower than the actual one to reduce the 2% tax. But the tax is calculated on the price stated in the contract and not lower than the land price set by the provincial People's Committee; a false declaration also carries the risk of penalty and delays the whole transaction.
Getting stuck at the stage of remitting money abroad. Having completed the sale but lacking documents proving the lawful origin of the funds (the inheritance file, the transfer contract, tax payment vouchers), the bank will not carry out the foreign-currency remittance. Preparing this set of documents in parallel from the outset, rather than at the last minute, avoids the situation of money left "frozen" in Vietnam.
DEDICA's role in handling inheritance with a foreign element
For an heir living abroad, a lawyer's greatest value is sparing you the repeated flights back and forth. DEDICA maps out the overall strategy from the start, including identifying which category you fall into, whether to sell or to gift, and how to optimise your tax obligation lawfully, then guides the preparation, notarisation and consular legalisation of the full set of documents from abroad. On the basis of a valid power of attorney, DEDICA's lawyers represent you before the notarial organisation, the land registration office, the tax authority and the bank; handle disputes or the omission of co-heirs; and accompany you through to the final step of lawfully remitting the money to your account abroad.
Conclusion
Foreigners fully have the right to inherit in Vietnam; the difference is that, for real estate, if you do not fall within the category eligible to own it, you receive only the value and must transfer or gift the inherited share. The procedure comprises: (1) consularly legalising and notarially translating all documents from abroad; (2) notarising the estate declaration or distribution document and posting the 15-day notice; (3) recording the dossier at the land registration office; (4) signing the transfer or gift contract as the seller or donor; (5) completing the taxes and fees and registering the transfer to the recipient; (6) remitting the money abroad. On tax: inheritance from a close relative is usually exempt; a sale is taxed at 2% of the transfer price; a gift is taxed at 10% on the value exceeding VND 20 million, paid by the donee, save for close relatives. The three errors that delay dossiers most are: documents not consularly legalised, taking the wrong route of seeking a title in one's own name, and overlooking the documentation needed to remit money abroad. If you cannot return to Vietnam, authorising a lawyer to act from the very first document review is the surest way to avoid starting over.
Every inheritance file with a foreign element has its own particulars of nationality, asset type and place of residence of the heir. DEDICA Law Firm is ready to support you with cross-border inheritance, from mapping the strategy and standardising and legalising the dossier, through to converting the inherited share into money that reaches your account abroad, even when you cannot be present in Vietnam. Contact DEDICA for in-depth legal consultation tailored to your specific case.
This article is for reference only, based on the law in force at the time of writing. Each case has its own particulars; please consult a DEDICA lawyer for precise advice.
