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Inheritance Rights of Overseas Vietnamese in Vietnam
For millions of Vietnamese residing overseas, the issue of inheriting property in their homeland carries not only material significance but also a profound spiritual connection to their origins. However, the exercise of inheritance rights in Vietnam demands a deep understanding of the legal framework, especially concerning real estate – a type of asset subject to numerous legal restrictions for non-residents. The article below offers a comprehensive, updated, and detailed perspective on the rights, conditions, procedures, and important considerations for Overseas Vietnamese (Viet Kieu) receiving inherited property in Vietnam.
Who are Overseas Vietnamese (Viet Kieu)?
According to legal regulations, Overseas Vietnamese (Viet Kieu) include:
- Vietnamese citizens currently residing and living long-term abroad;
- Individuals of Vietnamese origin who once held Vietnamese nationality or have parents, grandparents, or ancestors who were Vietnamese and are currently residing long-term abroad.
Accurately determining the legal status of an Overseas Vietnamese (Viet Kieu) is a fundamental prerequisite when considering inheritance rights in Vietnam.
What is Inherited Property?
Inherited property comprises:
- The personal assets of the deceased
- The deceased's share of jointly owned assets with others
Assets are understood to be items, money, valuable papers, and property rights, encompassing both real estate (houses, land) and movable property (money, jewelry, cars…).
Property Inheritance Rights According to Legal Regulations
Inheritance by Will
The testator has the full right to decide on the distribution of their assets to others, including foreigners and Overseas Vietnamese. The will must adhere to conditions regarding form (a notarized or authenticated document) and content that does not violate the law or social ethics. The will should also clearly specify the heirs, the portion of the estate, and the type of assets to be received. Having a clear will facilitates the inheritance process and minimizes the potential for disputes among involved parties.
Inheritance by Law
In the absence of a will, assets will be distributed according to the order of inheritance as stipulated by law, including:
- First line: spouse, children, and biological parents of the deceased
- Second line: paternal grandparents, maternal grandparents, and siblings
- Third line: aunts, uncles, great-aunts, great-uncles, nephews, and nieces...
Overseas Vietnamese are considered individuals with blood relations if they can provide evidence through birth certificates, household registration records, or other valid documents. They can claim a share of the inheritance like other heirs in the same line.
Can Overseas Vietnamese Inherit in Vietnam?
Inheritance Rights According to Legal Regulations
Article 610 of the Civil Code 2015 affirms that all individuals are equal in their right to bequeath and inherit property, including Overseas Vietnamese (Viet Kieu). Therefore, Overseas Vietnamese have the right to inherit property in Vietnam, except if their rights are revoked according to Article 621 (e.g., individuals who mistreat or harm the life of the deceased).
Conditions for Receiving Inheritance for Certain Types of Assets
- Movable property: No restrictions apply; Overseas Vietnamese have full rights to inherit assets such as money, gold, and vehicles...
- Real estate (houses, land): Subject to the regulations of the Housing Law and the Land Law.
Overseas Vietnamese must demonstrate that they:
- Are eligible to enter Vietnam
- Have Vietnamese origin (confirmation of Vietnamese origin or former Vietnamese nationality)
- The land and houses are not located in prohibited areas
- Comply with any arising financial obligations
Steps for Overseas Vietnamese to Inherit Property in Vietnam
- Step 1: Prepare the Documentation
The dossier for claiming inheritance includes:
- Death certificate of the deceased
- Certificate of land use rights/house ownership
- Identification documents of the heir (passport, citizen identification card, residence card)
- Documents proving the relationship with the deceased (birth certificate, marriage certificate...)
- A valid will according to Vietnamese law (if any)
- Documents proving Vietnamese origin and legal entry
- Notarization request form
- Authorization contract (if any)
- Step 2: Notarize the Agreement Document
In cases with multiple heirs, the parties need to create an agreement document on the distribution of the estate, which must be notarized at a notary office.
- Step 3: Public Posting
The inheritance claim document is posted publicly for 15 days at the People’s Committee of the commune where the deceased last resided or had temporary residence. If no complaints are received, the process continues.
- Step 4: Submit the Land Registration Application
The dossier is submitted to the Land Registration Office where the property is located. This agency will review the dossier and update the heir’s information in the certificate of land use rights.
- Step 5: Fulfill Financial Obligations
Overseas Vietnamese receiving inheritance must fulfill:
- Personal income tax obligations (if not exempt)
- Registration fee: 0.5% of the property value
- Other administrative fees.
- Step 6: Receive the Certificate of Ownership/Land Use Rights
After completing the procedures, the heir will be issued the land ownership certificate in their name.
Special Cases to Note
Cases of Ineligibility to Own Houses/Land
Overseas Vietnamese who do not meet the conditions to own houses or land in the following cases are not issued a land ownership certificate:
- Lack of documents proving Vietnamese origin or not having Vietnamese origin confirmed by a competent authority in Vietnam;
- Not being permitted to enter Vietnam or being prohibited from entering Vietnam according to the decision of the immigration management agency;
- The inherited property is located in an area where foreign ownership is prohibited or restricted (such as border areas, national defense and security areas - as regulated by the Land Law and guiding documents);
- Not being eligible to own housing in Vietnam (e.g., lacking a legal residence permit or a valid passport);
- Failure to fully comply with financial obligations, taxes, and fees related to the inheritance process.
However, they have the right to:
- Dispose of the inherited share: transfer or gift the property to eligible individuals
- Authorize others to manage or transfer the property
- Receive the monetary value of the property instead of ownership rights
Legalization of Documents
Documents issued by foreign countries (birth certificates, marriage certificates, nationality papers…) must be:
- Legalized at the Vietnamese Embassy/Consulate
- Translated into Vietnamese and legally notarized in Vietnam
Obstacles and Difficulties Faced by Overseas Vietnamese When Receiving Inheritance
Language and Different Legal Systems
The majority of procedures and documents are in Vietnamese. Overseas Vietnamese need reliable translation, interpretation, and legal advice.
Restrictions on Real Estate Ownership
Overseas Vietnamese who no longer hold Vietnamese nationality may encounter legal barriers when inheriting land or houses. Applying for a Certificate of Land Use Rights is subject to strict regulations on entry, residency status, and the location of the real estate.
Inheritance Disputes
If there are multiple heirs and no clear will, disputes often arise. In such cases, court proceedings can be lengthy and complex.
Tax and Fee Obligations When Receiving Inheritance
Heirs who are parents, children, or spouses of the deceased are often exempt from personal income tax. However, if the inherited property is substantial or the heirs are not direct relatives, the following may apply:
- Personal Income Tax: 10% of the asset value or as specifically regulated
- Registration Fee: 0.5% of the real estate asset value
- Notarization and authentication fees.
Accurate declaration and timely payment of taxes will help avoid legal risks and ensure lawful ownership.
Conclusion
Inheriting property in Vietnam for Overseas Vietnamese is a process that carries both emotional significance and demands meticulous accuracy and strict adherence to the law. From determining inheritance status and preparing documents to fulfilling financial obligations, each step can impact the rights and processing time of the heirs. To avoid errors, delays, or unwanted disputes, Overseas Vietnamese should proactively understand legal regulations and seek support from legal experts knowledgeable in Vietnamese law. Thele.blog will help ensure your inheritance rights are fully, legally, and safely realized.
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