Vietnamese investors will not face a property tax hike this year.
Property is becoming a popular investment asset for many in Vietnam thanks to the capital appreciation and rental yield that it can achieve due to increased demand particularly in popular places such as Ho Chi Minh City. Therefore recent news announced by the Finance Ministry that second property owners will not be taxed will be music to the ears of investors looking to expand their property portfolios.
It was thought that in 2017 the Government would apply a tax to those who have more than one property. The deputy director of the Finance Ministry, Nguyen Van Phung, commented that whilst thy Government is assessing avenues to implement a tax for those with more than one home, nothing is likely to be implemented this year.
Property owners with multiple properties in the United Kingdom are now at the receiving end of additional taxes. Introduced to deter buy-to-let landlord by increasing the stamp duty for anyone who buys a property but already owns one, the tax was introduced to address the country’s acute housing shortage. Experts say that those looking to purchase additional property tend to be tax rich and so are not put off by this extra cost.
The reason Vietnam is considering introducing new taxes is because the existing taxes are low plus valuations are considered to be out of date. The fact that it is not going to be introduced anytime in the near future will go to boast the appeal of Vietnamese property for investors keen to make a moves in the property market that has seen significant growth of late.
