Introduction

When a person passes away in Vietnam — whether Vietnamese or foreign — their estate is distributed according to Vietnamese inheritance law if the assets are located in Vietnam. For foreign heirs, navigating this process involves unique challenges.

Legal Framework

Vietnam's inheritance law is governed by:

  • Civil Code 2015 (Part IV: Inheritance)
  • Law on Private International Law 2015
  • Housing Law 2023 (for real estate inheritance)
  • Land Law 2024 (for land use rights)

Types of Inheritance

Inheritance by Will (Testamentary)

A valid will in Vietnam must meet these conditions:

  • Testator was of sound mind and not coerced
  • Will must be in writing (except emergency situations)
  • Witnesses required if the will is not notarized
  • Content must not violate law or public morality

Inheritance by Law (Intestate)

When there is no valid will, assets are distributed by priority:

First order: Spouse, biological parents, adoptive parents, biological children, adopted children

Second order: Grandparents, siblings

Third order: Great-grandparents, uncles, aunts, nieces, nephews

All heirs within the same order receive equal shares.

Rights of Foreign Heirs

Movable property (cash, securities, vehicles)

Foreign heirs have the same inheritance rights as Vietnamese nationals for movable property. No restrictions apply.

Real estate (houses and apartments)

Foreign heirs can inherit:

  • Houses and apartments in approved projects
  • Subject to the same ownership caps as foreign buyers (30% per building, 250 per ward)
  • Ownership limited to 50 years (renewable)

If the property exceeds foreign ownership limits, the heir must sell within one year and receives the sale proceeds.

Land use rights

This is the most restricted area:

  • Foreign individuals generally cannot hold land use rights
  • If inherited, they must transfer the land use rights to an eligible person
  • They receive the monetary value of the transfer

Practical Procedures

Step 1: Obtain death certificate

  • Issued by the commune People's Committee
  • For deaths abroad: legalized death certificate from the relevant embassy

Step 2: Gather estate documents

  • Property certificates (CLUR, vehicle registration)
  • Bank account information
  • Will (if any)
  • Family relationship certificates

Step 3: Notarize inheritance

  • All heirs appear before a notary office
  • Declare and agree on estate distribution
  • If agreement is reached: notarized inheritance agreement
  • If not: file a lawsuit at the People's Court

Step 4: Register property transfer

  • Submit notarized documents to the Land Registration Office
  • Processing time: 10-30 working days
  • Pay transfer tax and registration fees

Taxes and Fees

  • Income tax on inheritance: 10% of the estate value exceeding 10 million VND
  • Registration fee: 0.5% of property value
  • Notarization fees: varies by value

Common Challenges for Foreign Heirs

  1. Distance and language: Navigating Vietnamese bureaucracy from abroad
  2. Document legalization: Foreign documents must be apostilled/legalized
  3. Property restrictions: May be forced to sell certain assets
  4. Multiple jurisdictions: Estate may span multiple countries
  5. Statute of limitations: 30 years for real estate, 10 years for movable property

Conclusion

Inheritance matters involving foreign heirs in Vietnam require specialized legal knowledge spanning international private law, property law, and tax law.

Contact Attorney Vo Thien Hien at Apolo Lawyers for expert guidance on inheritance matters in Vietnam.