Foreigners who inherit real estate in Vietnam often assume they will simply have the title transferred into their name, the "red book" or "pink book," just like a Vietnamese citizen. In reality, the law draws a clear line: in some cases you may hold title to the property itself, in others you are entitled only to its monetary value. Confusing the two can lead to a rejected application, an estate left "frozen" for years, or a forced sale at a price well below market.
Your father or mother has left a house in Vietnam, but you now hold a foreign passport: will you be able to put the title in your name, or will you only receive money? Does holding a foreign passport strip you of the right to inherit your own parents' estate? And if you are entitled only to the value, how do you sell the property and lawfully transfer the proceeds abroad? These are the questions that leave heirs living overseas uncertain, signing the wrong documents, or missing statutory deadlines. This article helps you identify which group you belong to, when you receive the property itself, when you receive only its value, and the steps to take to protect your rights in full.
The right to inherit is not lost because of nationality: the question is the form in which you receive it
The most common misconception is that "holding a foreign nationality means you cannot inherit in Vietnam." This is incorrect. The right to inherit is a civil right tied to bloodline and marriage; it does not depend on which passport you hold. The Civil Code affirms this principle of equality unequivocally:
So what actually changes when the heir is a foreigner? It is the form in which the inheritance is received, especially for real estate. The Civil Code provides that the exercise of inheritance rights over real estate is determined by the law of the country where the property is located (Article 680). Property situated in Vietnam is therefore governed by Vietnamese law, specifically the Land Law and the Housing Law. What this means for you: you still receive your rightful share of the estate, but whether you may hold title to the house and land itself or only receive its monetary value is decided by these two laws, based on which category of person you fall into.
Three groups of overseas heirs and their differing rights over houses and land
The crucial point many people overlook: the decisive line is not "whether you hold a foreign nationality," but "whether you are of Vietnamese origin." A Viet Kieu holding a US passport who remains a person of Vietnamese origin is treated far more favorably than a foreigner with no Vietnamese roots. Current land and housing law divides overseas heirs into three groups with different rights:
| Group of heirs | Land use rights | Housing | What you typically receive |
|---|---|---|---|
| Vietnamese citizens (including Vietnamese citizens residing abroad who retain Vietnamese nationality) | May hold land use rights like a domestic resident | May hold ownership of housing | The house and land itself (in kind) |
| Persons of Vietnamese origin residing abroad who are permitted to enter Vietnam (Viet Kieu who hold foreign nationality but remain of Vietnamese origin) | May receive residential land use rights and other land within the same parcel containing the house | May own housing attached to residential land use rights | The house and residential land itself (in kind) |
| Foreign individuals with no Vietnamese origin | May not hold land use rights | May own only an apartment or house within a commercial housing project, within the cap, outside national defense and security zones | Eligible housing: title (for a fixed term); otherwise: value only |
The Land Law 2024 lists who is recognized as a "land user," including domestic individuals, Vietnamese citizens residing abroad, and persons of Vietnamese origin residing abroad; foreign individuals are not on this list (Article 4). For persons of Vietnamese origin specifically, the law sets out clearly the "land or value" mechanism:
When a foreigner may receive the house itself
For persons of Vietnamese origin residing abroad who are permitted to enter Vietnam, the scope is broadest: they may inherit residential land use rights and own the house attached to that residential land, almost like a domestic resident for this type of asset.
For foreign individuals with no Vietnamese origin, the law still leaves a door open: they may own housing in Vietnam, but within the strict framework of the Housing Law 2023. Specifically, a foreign individual permitted to enter Vietnam may inherit and hold title to housing if it is commercial housing located within a housing development project, not in a national defense or security zone, and within the permitted quantity. That limit is not trivial: a foreign individual may own no more than 30% of the apartments in a single apartment building, or, for separate houses, no more than 250 units within an area whose population is equivalent to one ward (Article 19, Housing Law 2023). The ownership term for a foreign individual is a maximum of 50 years and may be extended once.
A notable exception that benefits many families: a foreign individual married to a Vietnamese citizen living in Vietnam may own housing and hold the rights of an owner like a Vietnamese citizen, that is, without the 50-year limit or the quota above.
When you receive only monetary value, and how to realize it
This is the situation many people mistake for "losing" the asset. That is not the case: you still receive your full share of the value, simply in the form of money rather than a title document in your name. You fall into the "value only" group in two main situations.
First, land use rights. If all the heirs are foreigners or persons of Vietnamese origin who do not qualify to own housing attached to residential land, they are not issued a title in their name, but the law grants them the power of disposal to recover the value:
In other words, you stand as the transferor (the seller) in the contract to sell the inherited land and receive the money, or you donate it to a person who qualifies. While it has not yet been sold or donated, you file the inheritance dossier with the land registration office to have it updated in the cadastral records, and you may authorize another person to look after or temporarily use the land.
Second, housing. Even where the person is permitted to own housing, if the inherited home lies outside a commercial project, exceeds the quota, or sits in a national defense or security zone, only the value may be received:
What this means for you: rather than trying to hold title to an asset the law does not permit, which the registration authority will certainly reject, the correct approach is to complete a valid declaration of inheritance and then transfer the asset to receive its value, or agree for an eligible co-heir to take the asset in kind and pay you your share of the value.
Procedures for declaring the estate, transferring title, and remitting money abroad
Whether you receive the asset in kind or its value, the basic sequence is as follows. Most of these steps can be carried out through a power of attorney, so you are not required to be present in Vietnam throughout.
- Prepare and consular-legalize your documents. Gather personal documents and documents proving your relationship to the deceased (birth, marriage, and death certificates), and documents proving Vietnamese origin if you belong to that group. Every document issued abroad must be consular-legalized and notarized in translation in Vietnam.
- Notarize the deed of inheritance declaration or the agreement on estate division. The heirs execute the deed at a notarial practice organization. The notarial organization must post a public notice of receipt for 15 days at the People's Committee of the commune where the deceased last resided and where the real estate is located, in order to surface any complaint about an omitted heir before completion.
- Transfer title or sell to receive value. For a person eligible to hold title: use the notarized estate division deed to register the transfer of title. For a person entitled only to value: proceed to transfer (sell) the inherited portion and receive the money.
- Complete the financial obligations. Note that many cases are exempt (see below), so avoid overpaying.
- Remit the money abroad. After receiving the inheritance money or the proceeds of sale, carry out the procedure to remit foreign currency abroad through a licensed bank.
On taxes and fees, there is good news for most families: inheritance of real estate among close relatives within the immediate line of heirs is exempt from the registration fee (and exempt from personal income tax on a corresponding basis):
On remitting money, this is the step that worries people most, yet the law permits it clearly. If the heir is living abroad, a relative who is a Vietnamese citizen is permitted to remit the inheritance money abroad to them (Point d, Clause 2, Article 7, Decree 70/2014/NĐ-CP). And if you yourself are a foreigner or a non-resident with a lawful source of income in Vietnam, such as the proceeds from selling inherited real estate, you may transfer or purchase foreign currency to remit abroad:
Legal risks and common mistakes in practice
The difficulties below recur most often in inheritance files involving real estate with a foreign element, and most are avoidable if the right strategy is set from the outset.
Assuming you may hold title and signing the wrong documents. Many foreigners sign a deed to take the asset in kind, hoping to keep the house, only to have the registration authority refuse the transfer of title because they do not qualify to hold land. The file must be redone from scratch, taking many additional months. Identifying the correct category before putting pen to paper is a step that cannot be skipped.
Asking a relative in Vietnam to hold title on your behalf. Some choose to let a relative in Vietnam hold the title instead. This is a serious risk: on paper, the asset belongs to the titleholder, and when a dispute arises, proving a "nominee arrangement" to recover the value is very difficult and costly.
Letting the statute of limitations for claiming a share lapse. The statute of limitations for an heir to request division of the estate is 30 years for real estate, counted from the time the inheritance is opened (Article 623, Civil Code 2015). Those living far away easily delay until the deadline passes, at which point the asset may belong to the heir managing the estate, and you lose your rights, regrettably.
Being "omitted" in a declaration by co-heirs. When an overseas heir does not follow matters closely, co-heirs in Vietnam may declare the estate on their own and omit that heir's name. Such a case requires litigation to demand re-division of the estate, a longer and more complex procedure than declaring correctly from the start.
Documents not consular-legalized and remittance bottlenecks. Two technical knots are enough to stall an entire file: documents from abroad that have not been consular-legalized are rejected at the notarization stage; and money already received but lacking documents proving its lawful origin will not be allowed by the bank to be remitted abroad.
How DEDICA handles real estate inheritance with a foreign element
DEDICA Law Firm works alongside overseas heirs toward a complete resolution: first by precisely identifying which category you fall into and planning the optimal approach, keeping the asset in kind where you qualify, or converting it into value and bringing it home. We guide the preparation and consular legalization of documents from abroad; and, under a power of attorney, we declare the estate at the notarial organization and work with the land registration office, the bank, and the developer so that you need not fly back to Vietnam.
Where there is a dispute among co-heirs, or where you have been omitted from a declaration already made, DEDICA represents you in negotiation and in litigation before the court to seek re-division of the estate, accompanies you through the enforcement stage, and handles the remittance of money abroad in compliance with foreign exchange rules.
Conclusion
To know whether you receive the house and land itself or only money, start by identifying which group you belong to: Vietnamese citizens and persons of Vietnamese origin permitted to enter Vietnam may hold title to a house and residential land; a foreign individual with no Vietnamese origin may hold title only to an eligible apartment or house within a commercial project, while everything else, especially land and housing outside a project, yields only the monetary value. The sequence has four steps: (1) consular-legalize and notarize in translation the documents issued abroad; (2) notarize the deed of inheritance declaration or estate division agreement and post the 15-day notice; (3) register the transfer of title for an eligible person, or transfer the asset to receive its value; (4) complete the financial obligations and remit the money abroad through a licensed bank. The three most costly mistakes to avoid are: signing the wrong documents because you assumed you could hold land title, letting the 30-year limitation lapse, and overlooking the supporting documents at the foreign exchange stage. If you are living abroad, authorizing a lawyer to handle matters from the very first step of choosing the strategy and reviewing the file will help you avoid having to start over.
Every real estate inheritance file with a foreign element differs in nationality, origin, type of asset, and number of heirs. It is precisely these differences that determine whether you receive land or money. DEDICA Law Firm is ready to support you with inheritance of real estate involving a foreign element, building a plan so that you receive your share of the estate in full and bring its value home, even when you cannot be present in Vietnam. Contact DEDICA for in-depth legal consultation tailored to your specific situation.
This article is for reference only, based on the law in effect at the time of writing. Each case has its own facts; please consult a DEDICA lawyer for precise advice on your specific situation.
