The Ministry of Construction is seeking feedback on the draft Decree detailing and guiding the implementation of certain provisions of the Real Estate Business Law 2023.

According to Article 9, Clause 3 of the Real Estate Business Law 2023, individuals engaging in small-scale real estate business are not required to establish a company, but must declare and pay taxes as required by law. The Ministry of Construction is proposing 3 options to determine individuals engaged in small-scale real estate business.

Specifically, Option 1 includes individuals selling, transferring, leasing, renting out 3-5 existing residential properties, or 3-5 apartments within a year. Individuals selling, transferring, leasing, renting out 5-10 existing or future construction works, or 5-10 portions of the floor area within a year fall under this option.

Option 2 covers individuals selling, transferring, leasing, renting out real estate with ownership or use rights ranging from 1,000m2 to 2,000m2 in urban areas, and from 3,000m2 to 5,000m2 in rural areas.

Option 3 involves individuals investing in standalone residential buildings with 2 or more floors and less than 20 apartments for rent according to Article 57, Law on Housing No. 27/2023/QH15.

In accordance with current regulations, individuals can engage in real estate business activities if they satisfy the conditions stipulated by law. They must adhere to the principles of real estate business and refrain from engaging in prohibited activities.

The current regulations state that individuals engaging in real estate business must establish a company or cooperative with a real estate business sector, disclose information about the business and projects on the company’s website, and provide information about mortgaged real estate products, among other requirements.
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