Expats in Vietnam face fines of up to $1,920 for housing violations

The government has recently issued Decree No. 339, which sets out administrative penalties for violations in construction, technical infrastructure management, housing management and development, and real estate business.

As per the decree, foreign individual homeowners shall get fines of VND20 million to VND30 million ($767-1,150) if they fail to notify the relevant authorities in writing of their intention to rent out their residential property before doing so, or fail to provide written notification of the termination of a housing lease.

Also, fines ranging from VND30 million to VND50 million ($1,150-1,920) may be imposed on foreigners who own housing despite not being eligible to do so or failing to meet ownership conditions.

The same penalty range applies to violations such as paying for the purchase or lease-purchase of housing without going through a credit institution operating in Vietnam, as well as submitting an application to extend the housing ownership period after the prescribed deadline.

In these cases, violators will be required to provide written notification of the rental if the property is still being leased out, or notification of the termination of the lease.

Foreign individuals who own housing despite not being eligible must return the property to the seller and receive a refund of the amount already paid.

The decree further stipulates penalties for foreign organizations that own housing in Vietnam.

Such organizations shall be fined VND60 million to VND100 million ($2,300-3,840) for violations including owning housing despite not being eligible, failing to satisfy ownership conditions, using housing to accommodate people who do not work for the organization, or making purchase payments through means other than a bank operating in Vietnam.

The new rules underscore the government’s tighter enforcement of regulations governing housing ownership and use by foreign individuals and organizations in Vietnam.