As international integration accelerates, many legal relationships now extend beyond national borders — one of them being an inheritance relationship with a foreign element.
An inheritance is considered to have a foreign element in the following cases:
- The decedent is a foreign national or an overseas Vietnamese;
- The heir is a foreign national or an overseas Vietnamese;
- The inherited estate is located abroad.
A. Inheritance Procedures with a Foreign Element under Vietnamese Law
1. Under Article 680 of the 2015 Civil Code, statutory inheritance with a foreign element is governed as follows:
- Statutory inheritance is governed by the law of the country of which the decedent was a national immediately before death.
- The right to inherit real estate is governed by the law of the country where the real estate is located.
The procedure for declaring an inheritance with a foreign element still follows the ordinary process set out in the 2014 Law on Notarization and Decree 29/2015/ND-CP, which provides detailed guidance on implementing certain provisions of the Law on Notarization:
- Any agreement on the division of the estate, or any declaration of inheritance, must be publicly posted at the office of the People's Committee of the commune-level ward where the decedent was last permanently registered;
- If there is no place of permanent registration, the notice is posted at the People's Committee of the commune-level ward where the decedent had a registered temporary residence;
- If neither can be established, the notice is posted at the People's Committee of the commune-level ward where the decedent's real estate is located.
After 15 days of public posting, if no complaint or objection has been received, the notary office will certify the estate division agreement pursuant to Article 57 of the 2014 Law on Notarization.
2. For an heir residing abroad, the heir may choose either of the following options:
- Return to Vietnam to complete the inheritance procedure at a local notary office where the real estate is located: One of the co-heirs approaches a notary office to request notarization and submits, in advance, the set of documents relating to the declaration of inheritance. The heir residing abroad may send their documents (identity papers, documents proving their relationship to the decedent, etc.) to Vietnam in advance so that a relative there can initiate the notarization request (copies may be submitted at this stage). Once the file is complete, the notary office proceeds with the notarization in the usual manner. After the 30-day public notice period, if no complaint or objection is received, the estate can be declared. At that point, the heir residing abroad may return to Vietnam and, together with the other co-heirs, attend the notary office to prepare and sign the inheritance declaration. When signing in the presence of the notary, that person must present the original of their identity document and any documents relevant to their claim to the inheritance.
- If the heir residing abroad is unable to travel to Vietnam for an extended stay to carry out the inheritance declaration in person, they may grant a power of attorney authorizing someone in Vietnam to act on their behalf in accordance with the law. The power of attorney must be executed at a Vietnamese diplomatic mission in the country where the heir resides, such as an Embassy or Consulate. The power of attorney document must clearly state the identity of the principal and the attorney-in-fact; the basis for the authorization (information regarding the inheritance and the inherited assets, etc.); and must clearly state the scope of authorization, for example: "The attorney-in-fact is authorized to act on my behalf and in my name to carry out the inheritance declaration procedure in accordance with the law." Once the power of attorney document is received from abroad, the attorney-in-fact may, together with the other co-heirs of the decedent, attend the notary office to request that the inheritance declaration procedure be carried out in accordance with the law. The attorney-in-fact may only act within the scope of the authority granted.
B. Key Considerations for Inheritance with a Foreign Element
1. Rules on Recognizing Land Use Rights and Home Ownership for Inheritance with a Foreign Element
Under the new provisions of the 2014 Law on Housing, as of July 1, 2015, overseas Vietnamese and foreign nationals are no longer limited to receiving only the monetary value of an inherited estate — they may now be named directly on the Certificate of ownership. This is an open provision that makes it easier for heirs who are overseas Vietnamese or foreign nationals to formally register their own land use rights and home ownership. Specifically, the 2014 Law on Housing provides:
- Overseas Vietnamese may acquire housing through purchasing or entering into a hire-purchase of commercial housing from a real estate business enterprise or cooperative (collectively, a "real estate business enterprise"); by purchasing, receiving as a gift, exchanging, or inheriting housing from a household or individual; or by receiving a transfer of residential land use rights within a commercial housing construction investment project where the sale of serviced land plots for self-construction of housing is permitted under the law (Clause 2, Article 8).
- Foreign organizations and individuals may own housing in cases involving the purchase, hire-purchase, gift, or inheritance of commercial housing — including apartments and individual houses — within housing construction investment projects, except in areas designated for national defense and security purposes as determined by the Government (Point b, Clause 2, Article 160).
2. Income Tax on the Transfer of Inherited Land
Under Clause 4, Article 4 of the Law on Personal Income Tax, income from an inheritance of real estate between a biological parent and biological child is exempt from tax.
Under Clause 5, Article 3 of the Law on Personal Income Tax, income derived from the transfer of real estate is generally taxable. However, income derived from the transfer of inherited property is exempt from personal income tax in the following cases:
- Income from the transfer of real estate between spouses; between biological parents and biological children; between adoptive parents and adopted children; between parents-in-law and children-in-law; between paternal grandparents and grandchildren; between maternal grandparents and grandchildren; and between biological siblings;
- Income from the transfer of housing, residential land use rights, and assets attached to residential land, where the individual owns only a single home or piece of residential land.
Accordingly, an heir who wishes to transfer inherited housing, land use rights, or attached assets will only be exempt from personal income tax if the property is their sole property in Vietnam, or if the transfer is made only to a close family member (including grandparents, adoptive parents, parents-in-law, or biological siblings).
3. Transferring the Proceeds from the Sale of Inherited Land Abroad
Where the heir is an overseas Vietnamese or a foreign national who does not qualify to purchase housing attached to residential land in Vietnam, that heir has the right to transfer the value of the inherited estate received abroad, in accordance with the Ordinance on Foreign Exchange.
Specifically, a Vietnamese citizen acting as a representative for the heir abroad may contact a bank licensed to conduct foreign exchange operations to carry out the procedure for transferring or carrying foreign currency (obtained through inheritance) out of the country.
The required documents for this procedure include:
- An application to transfer or carry foreign currency (using the bank's form);
- The original or a notarized copy of the competent authority's document regarding the division of the estate, or the will, or the agreement between the lawful heirs;
- A power of attorney from the heir (notarized/certified), or documents proving the legal representative status of the person requesting to transfer or carry the foreign currency;
- A copy of the national ID card (for a request to transfer foreign currency) or a copy of the passport (for a request to carry foreign currency).
Giang Le Notary Office can prepare your documents, certify your signature, and arrange consular legalization for your file. With our full-service package, you save not only on travel costs but also on waiting time and the effort of preparing documents. Once completed, your file will be delivered directly to your home by courier. Please specify your preferred delivery method (regular mail, expedited, or signature-required registered mail). For full details on our package pricing, please contact Giang Le Notary Office by phone at 613 608 4046 or email services@eznotary.ca.
