In this article, Dezan Shira and Associates details the tax reporting obligations for foreigners who own rental properties in Vietnam, addressing common questions related to this topic. Foreign property owners in Vietnam, both resident and non-resident, are required to adhere to the same tax regulations as Vietnamese citizens.
The current Housing Law, No. 27/2023/QH15, dated November 27, 2023, took effect on August 1, 2024. This law replaced Housing Law No. 65/2014/QH13, which was enacted in 2015. It provides guidance on housing management in Vietnam and applies to both resident and non-resident property owners, specifically allowing foreign citizens and investors to purchase property in Vietnam.
The newest releases of Decree No. 68/2026/ND-CP (“Decree 68”) and Circular No. 18/2026/TT-BTC (“Circular 18”) introduce new preferential tax policies regarding property rental activities in Vietnam.
As a foreign owner of a rental property in Vietnam, it is important to understand your tax reporting and remittance obligations to avoid complications with the tax authorities.
Additionally, it is important to note that there are potential tax exemptions or reductions available for foreign owners of rental properties in Vietnam, depending on their home country. Some tax jurisdictions even treat rental income from overseas as tax-free income.
Paying tax on rental income in Vietnam
As a foreigner owning rental property in Vietnam, you are subject to the same tax regulations as Vietnamese citizens. This means that if your annual rental income exceeds the tax-free threshold of VND 500 million (approximately US$19,000 per year or US$1,583 per month), you are required to register for and pay taxes on that income.
Example: Marcus, an Australian resident, earns a total rental income of VND 600 million (about US$23,000) from his property in Vietnam from Jan 1, 2026, to Dec 31, 2026, including taxes. This means his monthly rental fee is VND 50 million (about US$1,923), and his annual rental income will exceed VND 500 million (approximately US$19,000). Therefore, he is required to pay taxes in Vietnam in 2026 for the amount exceeding the threshold (i.e. VND 100 million).
PIT taxable revenue from property rentals in Vietnam
According to Decree 68, taxable income from property rentals for PIT calculation in Vietnam is the amount paid by the lessee for each payment period under the lease contract. In cases where the lessee makes an advance payment for multiple years, the revenue used to calculate taxable income may either be allocated across the prepaid years or determined based on the total one-time payment received.
Meeting tax obligations in Vietnam
There are two basic steps lessors must take to perform their tax obligation in Vietnam:
- Obtain a tax code number: The first step is to obtain a tax ID specifically for property income. This tax code is separate from the one used for employment income in Vietnam. You can apply at the local tax office where the property is located, either in person or through an authorized representative with a notarized Power of Attorney.
- Declare and pay taxes: After obtaining your tax code and registering for online tax filing, you can begin filing tax declarations and remittances. You may choose to declare and pay taxes on rental income either twice a year or annually.
Tax Declaration Forms for Real Estate Leasing Activities | ||
Taxpayer type | Required form | Supporting appendix |
Organization declaring and paying tax on behalf of individuals leasing real estate (excluding accommodation services) | Form No. 01/TCKT | Appendix: Detailed List of Individuals Leasing Real Estate – Form No. 02/BK-KTBDS |
Individual directly declaring tax to the tax authority for real estate leasing | Form No. 01/BDS | Appendix: Detailed List of Real Estate – Form No. 01/BK-BDS |
Source: Circular No. 18/2026/TT-BTC | ||
Taxes on property rental
Before January 1, 2026, rental income taxes included a 5 percent Value-Added Tax (VAT), a 5 percent Personal Income Tax (PIT), and a Business License Tax (BLT). For the BLT, the tax authority would review the submitted documents and determine the payable amount, so no separate action was required from the lessor.
However, after January 1, 2026, Vietnam officially abolishes BLT with the issuance of Resolution No. 198/2025/QH15, supported by Decree No. 362/2025/ND-CP and Official Letter No. 645/CT-CS. This means that rental income in Vietnam is now liable for VAT and PIT.
Tax obligation deadlines
The individual may choose to file tax returns either twice during the tax year or once annually:
- For twice during the year: the first tax return is no later than 31 July of the tax year, and the second is no later than 31 January of the following calendar year.
- For annual tax returns: By January 31 of the following year.
The payment deadline is the same as the tax return submission deadline.
Example: Back to the case of Marcus, his tax obligations for each tax period are as follows:
- 2026: No BLT is required to pay any more. The PIT exemption threshold is VND 500 million. Thus, he is required to pay VAT on the rental income and the PIT on the portion exceeding the threshold.
- Based on this, the VAT liability is VND 30 million, and the PIT liability is VND 5 million.
- He may choose to declare and pay taxes either twice per year or on an annual basis.
(This article was originally published May 19, 2023. It was last updated March 23, 2026.)