Search
4 Steps to Transfer Land Use Rights in Vietnam
Land in Vietnam holds a unique and complex legal status. Unlike many countries where individuals can own land outright, under Vietnamese law, land is collectively owned by the people, with the Government acting as the authorized representative to manage it on their behalf. Instead of owning land, individuals and organizations are granted land use rights in accordance with the Law on Land. When a land user wishes to “sell” their rights to another party, they must go through the procedure of transferring land use rights following strict legal requirements.
Understanding this process is crucial because transferring land use rights is not as simple as signing a property sale and purchase agreement. It involves multiple steps to ensure compliance with the law and to protect the interests of both parties. This article will provide a detailed and up-to-date overview of the transfer of land use rights in Vietnam, helping both local and foreign buyers navigate the procedure smoothly.
What Is the Transfer of Land Use Rights?
Under the Vietnamese Law on Land, transferring land use rights means the lawful movement of rights from one party to another. This transfer can occur through various forms such as a sale, conversion, inheritance, donation, or capital contribution using land use rights.
A contract for the transfer of land use rights must be made in writing and notarized at a competent notary’s office. Moreover, the transaction must be registered with the appropriate People’s Committee to be legally effective. Upon successful registration, the transferee obtains the legal right to use the land, exploit its benefits, and bear the associated obligations, while paying the transferor the agreed amount as specified in the transfer contract.
The structured transfer process is designed to simplify administrative procedures, eliminate unnecessary steps like land recovery and reallocation, and at the same time, safeguard the legitimate rights of all parties involved.
Conditions for Transferring Land Use Rights in Vietnam
Before proceeding with a land use rights transfer, it is crucial to ensure that all legal conditions are met. The key requirements include:
- Possession of a Certificate of Land Use Rights (commonly known as the "Red Book"), unless exceptions under Article 186(3) and Article 168(1) of the Law on Land apply.
- No land disputes are ongoing related to the property concerned.
- No enforcement orders (such as distraint for judgment enforcement) are placed against the land.
- Land use terms must still be valid and not expired.
It is essential to note that even if the other conditions are met, without holding a valid land use rights certificate, the transfer cannot legally proceed. Furthermore, for certain special categories of land (such as agricultural or forestry land), additional requirements may apply.
Once all conditions are met, the parties must register the transfer at the local Land Registration Office. The transfer only becomes effective upon updating the cadastral record.
Step-by-Step Procedure for Transferring Land Use Rights
To help you understand the process clearly, here’s a detailed step-by-step breakdown:
- Step 1: Execute a Notarized Transfer Contract
The first step involves preparing and signing a contract for the transfer of land use rights at a licensed notary’s office. Required documents typically include:
- Legal status documents for both individuals and organizations
- Certificate of land use rights (Red book)
- Marriage certificate (if applicable) or certificate of marital status for unmarried individuals
- Personal identification documents (ID card/Citizen ID/passport) and household registration books
The notary will authenticate the contract to ensure its legality and prevent future disputes.
- Step 2: Declare Financial Obligations
Next, both parties must declare their financial obligations at the Land Registration Office. The application dossier includes:
- Registration fee declaration (02 copies)
- Personal income tax declaration (02 copies)
- Original notarized transfer contract
- Certified copies of the Certificate of land use rights
- Certified copies of personal identification documents
- Proof of relationship (for cases of donation or inheritance to benefit from tax exemptions)
Noted:
Taxes and fees must be paid within 10 days after receiving the tax authority’s notice. Delays may result in penalties.
Taxes typically include:
- Personal Income Tax: Normally 2% of the transfer price (but exemptions apply in cases like transfers between spouses or family members).
- Registration Fee: 0.5% of the value of the land use rights.
- Step 3: Prepare an Application Dossier for Ownership Change
After financial obligations are met, the next step is to file an application for ownership change. The dossier generally includes:
- Application for amendment signed by the transferor (or by the transferee if authorized)
- Contract for transferring land use rights or related documents (donation, inheritance, etc.)
- Original Certificate of land use rights
- Receipt of paid taxes and fees
- Certified identification documents of both parties
All submitted documents must be complete and accurate to avoid delays in processing.
- Step 4: Pay Administrative Fees and Receive the Updated Certificate
Upon successful dossier submission and payment of necessary administrative service fees, the authorities will proceed to:
- Update the cadastral record
- Issue a new or amended Certificate of Land Use Rights reflecting the change in ownership
Typically, the updated certificate is issued within 30 working days from the date of submission of a complete and valid dossier. In cases of incomplete applications, authorities will notify applicants promptly for necessary corrections.
For more information on real estate ownership, please refer to the article “6 most frequently asked questions about purchasing properties in Vietnam”.
Why Choose Thele.blog for Land Use Rights Consultation?
Navigating Vietnam’s real estate and land regulations can be complicated, especially for foreign investors and first-time land users. That’s where Thele.blog comes in.
As one of Vietnam’s leading legal consulting firms, Thele.blog specializes in:
- Real estate and land law
- Business law and taxation
- Labor and employment law
- Litigation and dispute resolution
With a dedicated legal professionals team working in Ho Chi Minh City, Thele.blog is well-equipped to offer you expert advice, personalized service, and practical solutions to ensure your land use rights transfer is handled smoothly and efficiently.
If you are looking for a reliable partner to assist with land use rights transfer or any legal matter in Vietnam, do not hesitate to contact Thele.blog today. We are committed to delivering optimal, effective, and client-centric solutions tailored to your specific needs.
Leave A Comment