The sticker price of a property in Vietnam is never the real price. Between the registration fee, transfer income tax, notary charges, and (for new builds) VAT and a maintenance fund, the extra costs can add several percent to your budget, and disputes over who pays what are common. This guide breaks down each tax and fee, who normally bears it, and how to budget so nothing surprises you at the notary’s office.
The main taxes and fees, at a glance
| Cost | Rate (typical) | Usually paid by |
| Registration fee (le phi truoc ba) | 0.5% of value | Buyer |
| Personal income tax on transfer | 2% of transfer price | Seller |
| Notarization fee | Tiered by value | Negotiable |
| VAT (new build from developer) | 10% on the house portion | Buyer |
| Maintenance fund (apartments) | 2% of pre-VAT price | Buyer |
| Agent commission | ~1-2% | Seller (commonly) |
These are the standard figures under Vietnam’s tax rules. The exact amount often depends on the State’s land price framework, which can differ from your contract price.
Registration fee: small rate, real money
The registration fee is 0.5% of the property value, and it is what you pay to have the certificate issued in your name. The catch: the taxable value is usually the higher of your contract price and the State-published price framework for that location. In areas where market prices far exceed the State table, the fee is based on the contract price, so it climbs with the real deal.
Personal income tax on transfer: the 2% that sparks arguments
When property changes hands, personal income tax is charged at 2% of the transfer price. Legally this is the seller’s obligation. In practice, in a hot market sellers often push it onto the buyer by quoting a “net to me” price. There is nothing illegal about negotiating who pays, but you must agree in writing before signing, because it is one of the most frequent last-minute disputes at the notary.
A dangerous shortcut: under-declaring the price in the contract to reduce the 2% tax. This is tax fraud, it can void protections if a dispute arises later, and tax authorities increasingly compare declared values against the State framework.
Buying new from a developer: VAT and the maintenance fund
Second-hand transfers between individuals do not carry VAT, but buying a brand-new unit from a developer does. VAT of 10% applies to the construction/house portion of the price (land value is excluded). For apartments, you also pay a 2% maintenance fund that goes to the building’s operating reserve. Read the developer’s price sheet carefully: a “price” quoted before or after VAT can differ by nearly 10%.
Notary and smaller fees
The sale contract must be notarized. Notary fees are tiered by the transaction value and are modest relative to the property but not trivial on a large deal. There are also small cadastral and certificate-issuance charges. Who pays the notary fee is negotiable and should be stated in the contract.
A real scenario
A buyer agrees on a 5 billion VND apartment resale and assumes the price is all-in. At the notary, the seller insists the price is “net,” meaning the buyer must also cover the 2% income tax (100 million VND) plus the 0.5% registration fee (25 million VND). That is 125 million VND unplanned. The deal stalls. The fix costs nothing: write the fee allocation into the deposit agreement, so “5 billion” clearly means inclusive or exclusive of taxes before anyone pays a deposit.
Common mistakes and how to fix them
- Budgeting only the headline price. Fix: add roughly 2-3% for a resale, more for a new build with VAT.
- Leaving tax responsibility verbal. Fix: state who pays each tax in the written deposit agreement.
- Under-declaring the contract price. Fix: declare the true price; the small tax saving is not worth the legal and fraud risk.
- Confusing pre-VAT and post-VAT developer prices. Fix: ask for the full breakdown, including the 2% maintenance fund.
- Forgetting the State price framework. Fix: check whether your fee will be based on the framework or the contract, whichever is higher.
Your budgeting checklist
- Confirm whether the quoted price includes or excludes taxes, in writing.
- Set aside 0.5% for the registration fee.
- Agree explicitly who pays the 2% transfer income tax.
- For new builds, add 10% VAT on the house portion plus the 2% maintenance fund.
- Budget notary and issuance fees.
- Declare the real transaction price, always.
Conclusion and next step
Property taxes in Vietnam are not high, but they are easy to overlook and a frequent source of last-minute conflict. Your next step: before paying any deposit, put a single line in the agreement specifying who pays the registration fee, the 2% income tax, and the notary fee. That one sentence turns a common dispute into a settled fact.
Frequently asked questions
Who legally pays the 2% transfer income tax?
By law it is the seller’s obligation, but the parties can agree otherwise. Whatever you agree, record it in writing before signing to avoid a dispute at the notary.
Is the registration fee based on my contract price?
It is 0.5% of the value, calculated on the higher of your contract price and the State price framework for that location. In high-value areas the contract price usually governs.
Do I pay VAT on a second-hand apartment?
No. VAT applies when you buy a new unit from a developer, not on individual-to-individual resales. Resales still carry the registration fee and income tax.
What is the 2% maintenance fund for?
For apartments, it is a one-time contribution to the building’s shared maintenance reserve, used for common-area repairs. It is separate from monthly management fees.
Can I reduce tax by writing a lower price in the contract?
Do not. Under-declaring is tax fraud, exposes you to penalties, and can weaken your legal position if a dispute arises. Declare the real price.
References
- Vietnam Law on Personal Income Tax and guiding circulars.
- Vietnam regulations on registration fees (le phi truoc ba).
- General Department of Taxation of Vietnam.