In recent years, Airbnb and short‑term rental models in Vietnam have developed rapidly, especially in tourist cities such as Da Nang, Da Lat, Ho Chi Minh City, and Hanoi. The sharp increase in demand for personal and small group travel, as well as the “live like a local” style, has made this form of accommodation very popular.

However, the explosion of Airbnb also comes with many legal challenges when most of these activities fall into a gray area among regulations on business, accommodation, taxes, and fire safety. Recently, the Vietnamese government has taken steps to update the legal framework to better regulate and create more transparent corridors for this new business model.

Regulations on Business Registration and Operating Conditions
To operate an Airbnb legally, the owner needs to clearly determine whether they are operating as an individual or as a business. If only renting occasionally and in small scale, the owner can register a personal tax code. However, if renting professionally (multiple units, frequent), registering a business or commerce household is necessary.

In addition, the Tourism Law, Housing Law, and guiding decrees require lodging facilities to meet conditions about minimum area, equipment, fire safety, public order, and environmental hygiene. This is a point many Airbnb hosts still underestimate and may be administratively sanctioned if authorities inspect.

Regulations on Taxes and Financial Obligations
According to the General Department of Taxation, those who rent via Airbnb must declare and pay value‑added tax (VAT), personal income tax (PIT), and business license fee (if any). The applicable tax rates depend on annual revenue. Specifically, if revenue reaches VND 100 million/year or more, individuals must pay VAT at 5% and PIT at 2%.

When Airbnb payments go through international platforms, it poses challenges in managing income, especially when cash flows are moved through foreign or intermediary accounts. Therefore, owners should seek tax advice to avoid risks of retroactive collection or sanctions.

Local Government Management Policies
Some localities—like Da Nang, Ho Chi Minh City, and Hanoi—have begun issuing specific regulations to manage Airbnb rentals. Standout requirements include registering temporary residence for guests, periodic fire safety inspections, and reporting guest rosters to local police stations.

These requirements place greater responsibilities on hosts in their operations, while also pushing for the professionalization of short‑term lodging. Grasping and strictly complying with local regulations is key to avoiding legal risks.

Upcoming Legal Trends for the Short‑Term Lodging Market
In the near future, it can be expected that Vietnam will continue to perfect its legal framework for short‑term lodging services, with focal points such as:

Establishing separate licensing systems for Airbnb and similar platforms.
Strengthening coordination between state management agencies in monitoring and sanctioning violations.
Applying digital technologies in lodging management to increase transparency and efficiency.

Investors need to proactively update information from the latest legal documents while setting up their Airbnb operations transparently, standardized, and compliant with current laws.

Legal Solutions for Airbnb Investors in Vietnam
Investing in Airbnb in Vietnam requires not only good business strategy but also strict legal compliance. From business model, tax obligations to local regulations, every aspect must be standardized. Below are practical legal solutions to help investors operate effectively and legitimately.

Choosing the Right Business Model
Deciding between individual business household or LLC depends on scale and long‑term investment orientation. Each model has its pros and cons in taxation, scalability, and legal liability. Therefore, investors should carefully consider with advice from lawyers specialized in investment and real estate.

Establishing Internal Legal & Operational Procedures
To mitigate risks, investors should standardize all processes from lease contracts, internal policies, operation guidelines to security policies, asset insurance, guest registration, and recordkeeping. This not only ensures legal compliance but also increases trust from guests and local authorities.

Ongoing Local Policy Consultation & Updates
Each locality may impose distinct regulations, so investors cannot apply experiences from other places mechanically. DEDICA recommends clients have a legal partner to timely update policy changes and represent in dealings with governmental agencies when needed.

Investing in Airbnb and short‑term lodging in Vietnam is an attractive opportunity but also full of legal challenges. With the legal framework gradually being completed, investors need to proceed cautiously in preparation, operation, and scale expansion.

If you are interested in developing a short‑term lodging system or want to operate Airbnb professionally and legally in Vietnam, DEDICA Law Firm is ready to support you.

Contact DEDICA Law Firm for in‑depth legal consultation!
📞 Hotline: (+84) 39 969 0012 (Support via WhatsApp, WeChat, Zalo)
🏢 Head Office: 144 Vo Van Tan Street, Xuan Hoa Ward, Ho Chi Minh City
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