Karen, who lives in Melbourne, Australia, shared her story with DEDICA:
"My father was Vietnamese and lived in Da Nang. He passed away early this year, leaving savings accounts of over VND 3 billion in his name. My mother is Australian, and she and I both live in Melbourne. Searching online, I found some pages saying inheritance is taxed at 10%, and others saying foreign nationals cannot inherit at all. None of us can travel to Vietnam yet. Where should we start, and will any tax be taken out of this money?"
DEDICA lawyers answer A foreigner receiving inheritance money from Vietnam pays no personal income tax on it: the law taxes inheritances only when the estate consists of securities, capital contributions, real estate, or assets subject to ownership registration, and cash or bank deposits fall outside that list. Both claims you came across, from a blanket 10% tax to foreigners being barred from inheriting, are wrong as far as savings deposits are concerned. What your family actually needs is a complete inheritance declaration file so the bank can release the savings, and if you cannot come to Vietnam yet, you and your mother can authorize a lawyer in Vietnam to handle everything. Below are the legal grounds and the step-by-step process.
Personal income tax rules for inherited money
Many people assume that receiving an inheritance always means paying tax. In fact, Vietnam has no separate inheritance or estate tax like the US, the UK or South Korea; any tax arises only through personal income tax, and the law lists exactly which asset types are caught. From 1 July 2026, the Law on Personal Income Tax 2025 replaces the 2007 law and provides:
The savings of over VND 3 billion left by Karen's father are bank deposits, not securities, capital contributions, or assets subject to ownership registration, so they create no taxable income. Karen has nothing to declare and no personal income tax to pay, even though she is an Australian citizen living in Melbourne. The same is true for her mother: as the wife of the deceased, she is an heir of the first rank, and the money she receives is not taxed either, even though she is Australian. The rules applying until 30 June 2026 (the 2007 PIT Law and Article 16 of Circular 111/2013/TT-BTC) also tax only the same four asset groups, so the outcome does not change whether the file is completed before or after 1 July 2026.
For the full picture: if the estate also includes assets on the taxable list, say an apartment or shares, the portion of value above the threshold is taxed at 10% per receipt. The current threshold is VND 10 million under Article 16 of Circular 111/2013/TT-BTC; from 1 July 2026 it rises to VND 20 million and applies to non-residents as well:
Real estate inherited between direct family members (spouses; parents, including adoptive parents, and children; parents-in-law and children-in-law; grandparents and grandchildren; siblings) remains tax-exempt under Clause 1, Article 4 of the law. In other words, Vietnamese tax law distinguishes only by asset type and family relationship, never by the heir's nationality.
Claiming inherited savings from abroad, step by step
Good news on tax does not open the savings account by itself: the bank pays out only against a valid inheritance declaration. For a family abroad like Karen and her mother, the path usually has four steps:
- Gather documents proving the inheritance relationship and the event itself: Karen's birth certificate (father-daughter relationship), the parents' marriage certificate (spousal relationship), the death certificate, passports, and any savings account details. Documents issued abroad must be consularly legalized and translated into Vietnamese with certified translation.
- Sign a power of attorney before the competent authority where you live, so a lawyer in Vietnam can carry out the procedures on the family's behalf if you cannot travel.
- Declare the inheritance at a notarial practice organization in Vietnam, then submit the file to the bank to release and receive the money.
- Transfer the money to your country of residence: inheritance proceeds are a lawful source of funds and may be converted and remitted abroad through a licensed bank. DEDICA will cover the transfer procedure in detail in a separate article.
The real costs are procedural: notarization fees for the inheritance declaration (based on the asset value), consular legalization and translation costs, and bank charges for receiving and remitting foreign currency. Together these are usually far below the "10% tax" Karen initially feared.
Conclusion
In short, the savings of over VND 3 billion left by Karen's father will reach Karen and her mother intact as far as Vietnamese tax is concerned: Vietnam does not levy personal income tax on inheritance money, whatever the heir's nationality. The path has four parts: complete and consularly legalize the documents proving the father-daughter and spousal relationships; grant power of attorney to a lawyer in Vietnam; declare the inheritance at a notary office and work with the bank; and finally complete the lawful transfer of the funds to Australia. Every step can be done while the family remains abroad.
If you are abroad and unsure where to start with a savings account or bank deposit left by a loved one in Vietnam, DEDICA can review your documents, draft the power of attorney, declare the inheritance at the notary office on your behalf, work with the bank, and advise on transferring the money to where you live. Contact DEDICA and let a lawyer guide you from the very first document.
This article is for general reference as of its publication date; every case has its own facts, so please consult a DEDICA lawyer for advice on your specific situation.
