Estate planning for foreigners living and working in Vietnam is a complex legal area that requires a deep understanding of the Vietnamese legal system, principles of private international law, as well as specific regulations related to cross-border assets. Currently, the number of foreigners coming to Vietnam to work, invest, and live is increasing, which entails the need to protect, manage, and transfer assets in a legal, effective, and safe manner. This article will comprehensively analyze the legal aspects related to estate planning for foreigners in Vietnam, focusing on wills, trust funds, and legal issues regarding cross-border assets, while comparing them with international models and proposing practical solutions for individuals and regulatory agencies.

1. Legal basis regulating the ownership and inheritance rights of foreigners in Vietnam

1.1. General legal framework

The ownership and inheritance rights of foreigners in Vietnam are regulated by various legal documents, including the Civil Code 2015, the Housing Law 2023, the Land Law 2024, the Notarization Law 2024, the Personal Income Tax Law, along with guiding decrees, circulars, and international treaties of which Vietnam is a member. The Civil Code 2015 stipulates that all individuals are equal in terms of ownership and inheritance rights, regardless of nationality, gender, or religion. However, for foreigners, the right to own assets, especially real estate, still has certain limitations aimed at protecting national interests and market stability.

The Housing Law 2023 expands homeownership rights for foreign individuals, allowing them to purchase, lease-purchase, receive as gifts, or inherit commercial housing within housing construction investment projects, with a limit of no more than 30% of apartments in an apartment building or 250 individual houses in an area equivalent to a ward. The maximum ownership period is 50 years, which can be extended according to the regulations of the Government. Regarding land use rights, foreign individuals are not permitted to have their names on land use right certificates; only foreign-invested enterprises are allowed to use land in the form of land allocation or land lease.

International treaties, such as bilateral mutual legal assistance agreements, also play an important role in determining ownership, inheritance, and resolving property disputes with foreign elements. In the event of a conflict of laws, international treaties will prevail if they contain provisions different from Vietnamese law.

1.2. Asset ownership rights of foreigners

Foreigners in Vietnam have the right to own the following types of assets:

• Commercial housing in housing construction investment projects, subject to limits on quantity and ownership duration.
• Movable properties such as vehicles, bank accounts, stocks, bonds, capital contributions in enterprises, and intellectual property rights.
• Common property in marriages involving foreign elements, determined according to the Law on Marriage and Family.

The ownership of assets by foreigners must comply with the conditions of legal entry, not falling under diplomatic immunity, and meeting regulations on dossiers and documents proving ownership.

2. Principles of conflict of laws and applicable law in inheritance involving foreign elements

2.1. Concept and scope

Inheritance with foreign elements is an inheritance relationship in which one of the parties (the estate leaver or the heir) is a foreigner, or the inherited estate is located outside the territory of Vietnam, or the legal event arises abroad. This is a special type of civil relationship, governed simultaneously by multiple different legal systems.

2.2. Principles for determining the applicable law

The Civil Code 2015 stipulates the principles for resolving conflicts of law in inheritance with foreign elements as follows:

• Inheritance rights are determined according to the law of the country of which the estate leaver is a national immediately before death.
• The exercise of inheritance rights over immovable property is determined according to the law of the country where that immovable property is located.
• The form of a will is determined according to the law of the country where the will is made, or is recognized if it conforms to the law of one of the following countries: where the testator resides at the time of making the will or death; nationality at the time of making the will or death; or where the immovable property is located.

Bilateral mutual legal assistance agreements that Vietnam signed with countries such as Germany, Russia, the Czech Republic, Cuba, Hungary, Poland, etc., also stipulate the principle of equality between citizens of the parties in inheritance relationships, prioritizing the application of the law of the country where the property is located for real estate and the law of nationality for movable property.

2.3. Practical application

In practice, determining the applicable law is often difficult when the estate leaver or the heir has multiple nationalities, or the assets are distributed across multiple countries. In the absence of an international treaty, Vietnamese law will apply the principle of the most effective nationality or the actual place of residence of the estate leaver.

3. Wills of foreigners in Vietnam: lawful conditions and forms

3.1. The right to make a will of foreigners

Vietnamese law recognizes the right of foreigners to make wills in Vietnam, provided that the testator has full civil act capacity, and the will is made voluntarily, lucidly, and without coercion, deception, or threats. Foreigners can make wills for various types of assets in Vietnam, including housing, movable properties, financial assets, intellectual property rights, and capital contributions in enterprises, subject to certain legal limits.

3.2. Lawful forms of wills

Wills of foreigners in Vietnam must comply with the regulations on form under the Civil Code 2015:

• The will must be made in writing. If it cannot be made in writing, an oral will can be made, but there must be at least two witnesses and it must be notarized or authenticated within 5 working days.
• The will can be made in a foreign language, but it must be accompanied by a notarized Vietnamese translation.
• The will must have the signature or fingerprint of the testator, and the confirmation of a notary public or a competent person for authentication.

Cases of unlawful wills include: the testator lacks full civil act capacity, the will is forged or illegally modified, the content violates the law or social ethics, the will was made under coercion or deception, or it infringes upon the reserved portion of the estate for heirs who cannot be disinherited under Vietnamese law.

3.3. The right to appoint heirs and distribute assets

Foreigners have the right to appoint heirs, determine the portion of the estate for each heir, assign obligations to heirs, designate a will custodian, an estate manager, an estate distributor, and set aside a portion of the assets for bequeathing or worship. Foreigners also have the right to appoint Vietnamese citizens as heirs, without limitation on the types of assets that can be inherited, including real estate, provided they comply with Vietnamese legal regulations on asset ownership.

4. Procedures for notarization, authentication, and storage of wills for foreigners

4.1. Will notarization process

The procedure for notarizing a will for foreigners in Vietnam includes the following steps:

• Dossier preparation: Identification documents (passport, temporary/permanent residence card), documents proving asset ownership, documents proving marital status (if necessary), and notarized Vietnamese translations of foreign documents.
• Drafting the will: Clearly state the identity of the testator, list assets in detail, information about heirs, stipulate the method of asset distribution and inheritance conditions, and designate an executor of the will (if necessary).
• Notarizing the will: Schedule an appointment with a notary office, arrange an interpreter if not fluent in Vietnamese, present the intention to make a will to the notary public, and sign the will in front of the notary public and witnesses (if necessary).
• Storing the will: Receive a notarized copy of the will, store the copy in a safe place, inform relatives or heirs about the existence and storage location of the will, and potentially register the will at the Will Depository Center under the Ministry of Justice (if applicable).

4.2. The role of the notary public

The notary public is responsible for confirming the voluntariness and lucidity of the testator, verifying the legality of the will’s content, clearly explaining relevant legal regulations, storing the original will at the notary office, and issuing a copy to the testator.

4.3. Storage and confidentiality of wills

Notarized wills are stored at the notary office, ensuring confidentiality and preventing loss, forgery, or illegal modification. The testator may request a notarization practice organization to keep or entrust another person to keep the will, with the obligation to keep the will’s contents secret, preserve the will, and hand over the will to the heirs or the competent authority to announce the will upon the testator’s death.

5. Real estate ownership rights and limitations for foreigners

5.1. Regulations on homeownership

The Housing Law 2023 and guiding decrees stipulate that foreign individuals are allowed to own commercial housing within housing construction investment projects, under the following conditions:

• Having a legal entry permit into Vietnam.
• Not falling into the category entitled to diplomatic privileges and immunities.
• Only allowed to purchase, lease-purchase, receive as gifts, inherit, and own no more than 30% of the apartments in an apartment building, or no more than 250 individual houses in an area equivalent to a ward.
• The maximum ownership period is 50 years, which can be extended according to the regulations of the Government.

5.2. Land use rights

Foreign individuals are not recognized as land use subjects in Vietnam; only foreign-invested enterprises are permitted to use land in the form of land allocation or land lease. If a foreigner inherits land use rights, they are only entitled to the value of the transfer of land use rights to an eligible person (Vietnamese citizen).

5.3. Practice and limitations

The number of foreigners actually owning homes in Vietnam remains limited, mainly concentrated in large cities such as Hanoi, Ho Chi Minh City… …Da Nang, etc. Regulations on entry conditions, restrictions on areas where homeownership is permitted, as well as complex administrative procedures are significant barriers.

6. Trust funds and suitable trust structures for foreigners

6.1. Concept and legal nature

A trust fund is a legal mechanism characteristic of the Common Law system, in which a person (the settlor) transfers their assets to another person (the trustee) so that this person manages and uses the assets for the benefit of one or more beneficiaries, according to the predefined purpose. The salient feature of a trust is the separation between the legal ownership of assets and the beneficial ownership of those assets.

6.2. Common types of trust funds

• Family trust: Managing, protecting, and transferring assets to future generations, ensuring inheritance rights are passed down safely and in an organized manner.
• Charitable trust: Supporting humanitarian, educational, healthcare, and social welfare activities, ensuring assets are used transparently and for the right purposes.
• Investment trust: Managing investment portfolios, shares, bonds, and real estate, optimizing financial performance and protecting assets from legal or financial risks.
• Asset protection trust: Separating assets from personal financial obligations, protecting assets from creditors, divorce, bankruptcy, or corporate risks.

6.3. Legal structure and stakeholders

A trust fund typically involves three parties:

• Settlor: The person who establishes and funds the trust.
• Trustee: An individual, consulting group, or specialized organization with fiduciary duties in managing the fund, both during the settlor’s lifetime and after their death, depending on the fund’s structure.
• Beneficiary: A person, group of people, or organization receiving assets from the fund according to the provisions of the trust deed.

In some cases, there may also be a protector or a remainderman.

6.4. Benefits of a trust fund

Trust funds bring many benefits to foreigners in Vietnam:

• Protecting assets against legal and financial risks, family or corporate disputes.
• Absolute control over the distribution of assets, the timing, method, and recipients of the assets.
• Optimizing inheritance tax, income tax, and reducing asset transfer costs.
• Ensuring privacy, confidentiality of asset information and transactions.
• Supporting the management of complex, multinational, cross-border assets.

6.5. Regulations and practices regarding trust funds under Vietnamese law

Currently, the Vietnamese legal system has a different approach compared to the Trust institution in Common Law countries. Specifically:

• Dual ownership is not recognized: The Civil Code 2015 and related documents do not recognize the concept of “dual ownership” – where legal ownership belongs to the Trustee but the actual beneficial right belongs to the Beneficiary. In Vietnam, the person named on the Ownership Certificate (red book, pink book, bank account) is considered by law as the sole owner with full rights to dispose of that asset.
• Alternative forms and limitations:
  • Power of attorney contract: Fiduciary relationships are often simulated through a “Power of attorney contract” or an “Asset management contract”. However, according to the Civil Code, a power of attorney contract typically terminates when the principal or the authorized party passes away (or loses civil act capacity). This eliminates the characteristic of “sustainable succession” across generations that a standard Trust Fund aims for.
  • Securities investment fund: Vietnamese law (Securities Law) has regulations on “Investment Funds” (Public Funds, Member Funds), but these are professional financial institutions used for securities investment, not legal structures for individuals to hold family assets (such as housing, art collections) for inheritance purposes.
• Legal risks upon application: Because there is no independent legal personality or separate asset status for a Private Trust, foreigners transferring assets in Vietnam to an individual “Trustee” face significant risks. Legally, those assets could be considered the private property of the Trustee, could be distrained to pay the Trustee’s personal debts, or divided as inheritance for the Trustee’s spouse/children upon their death, rather than being protected for the true beneficiary.
• Foreigners must pay special attention that the Land Law and the Housing Law do not allow a foreign organization (such as a Trust established abroad) to stand as the owner of housing in Vietnam on behalf of an individual, unless it is an enterprise investing in a housing project.

7. How to establish a trust fund: parties, rights, and obligations

7.1. Process of establishing a trust fund

Establishing a trust fund for foreigners in Vietnam usually follows these steps:

• Determine the trust purpose: Asset protection, inheritance transfer, investment, charity, or personal/family goals.
• Choose the appropriate trust type: Family, investment, charitable, protection, fixed, or discretionary.
• Draft the trust deed: A legal document clearly specifying the subjects, objects, purposes, duration, termination conditions, and the rights and obligations of involved parties.
• Transfer assets to the fund: Assets can be real estate, movable property, bank accounts, shares, intellectual property rights, or digital assets.
• Appoint a trustee: Can be an individual, a professional organization, a bank, a fund management company, etc..
• Identify beneficiaries: Individuals, groups of people, charitable organizations, or other subjects according to the trust purpose.
• Register and recognize the trust fund: At competent authorities (if necessary), complying with Vietnamese and international legal regulations.

7.2. Rights and obligations of the parties

• Settlor: Has the right to dispose of assets, appoint the trustee and beneficiaries, and change or revoke the fund (if it is a revocable trust).
• Trustee: Has the obligation to manage, protect, invest, and distribute assets strictly according to the purpose and conditions of the trust deed, report transparently, comply with fiduciary duties, and not use assets for personal purposes.
• Beneficiary: Has the right to receive assets and benefits from the fund as stipulated, the right to request information, and the right to supervise the trustee’s activities.

The parties can agree on control rights, the right to change the trustee, the right to add or remove beneficiaries, and the right to transfer assets between generations.

8. Tax and financial obligations related to estates and trust funds

8.1. Inheritance tax

In Vietnam, inheritance tax is applied at a flat rate of 10% for inherited assets exceeding 10 million VND. However, foreigners may encounter further complexities due to international agreements and the nature of the assets that can affect the payable tax amount. For assets that are cash or savings deposits, they are not subject to personal income tax. If an inherited asset abroad has already been taxed in the host country, the individual may be able to deduct the paid tax amount under the double taxation avoidance agreement between Vietnam and that country.

8.2. Personal income tax on inheritance

Under the Personal Income Tax Law, resident individuals in Vietnam must pay tax on global income, including income from inheriting overseas assets if applicable. The value of inherited assets abroad is determined according to the market price at the time of receiving the inheritance, converted into Vietnamese Dong at the foreign exchange rate announced by the State Bank of Vietnam at the time of declaration.

8.3. Taxes and financial obligations of trust funds

Trust funds are often designed to optimize tax obligations, avoiding inheritance tax, gift tax, property tax, and transfer tax. The income of a trust fund is reported directly on the tax returns of the current beneficiaries, and it is not recognized as a separate taxable entity distinct from the grantor for tax purposes. However, taxpayers in countries that tax global income must still report all income to their tax authorities.

8.4. Other financial obligations

Foreigners inheriting or receiving assets from a trust fund in Vietnam must fulfill tax and fee obligations related to inheritance, transfer, ownership registration, foreign exchange management, and outbound money transfers according to Vietnamese law and relevant international treaties.

9. Cross-border assets

9.1. Cross-border asset transfers

The cross-border transfer of assets, especially real estate, shares, bank accounts, and intellectual property rights, requires compliance with regulations on foreign exchange management, consular legalization, recognition of foreign court judgments and decisions, and ownership registration procedures in Vietnam. Foreigners receiving inherited assets in Vietnam may transfer, sell, gift, or remit the money abroad, but must comply with foreign exchange management regulations, tax obligations, and related legal procedures.

9.2. Recognition and enforcement of foreign decisions

Vietnam recognizes judgments and decisions of foreign courts regarding inheritance and asset ownership, provided they meet conditions on consular legalization, translation, registration at competent authorities, and do not violate fundamental principles of Vietnamese law. Bilateral mutual legal assistance agreements specifically regulate procedures for recognizing and enforcing foreign judgments, ensuring the legitimate rights of foreigners in Vietnam.

9.3. Practices and challenges

Practice shows that transferring, recognizing, and enforcing foreign decisions often encounter difficulties due to legal differences between countries, consular legalization procedures, translation, verification of asset origins, and ownership registration requirements in Vietnam. Preparing a complete dossier, legalizing documents, and consulting professional lawyers are crucial elements to ensure legitimate rights.

10. Personal data and cross-border data transfer related to wealth management

10.1. Legal framework on cross-border data transfer

In the era of digital transformation, cross-border data transfer, including personal data related to wealth management, is becoming increasingly essential. Vietnam has promulgated the Data Law 2024 and the Personal Data Protection Law 2025 to regulate this activity. The Data Law 2024 regulates all digital data, treating data as a national asset, setting strict conditions when transferring important and core data abroad, requiring the assurance of national defense, national security, public interest, and the rights of data subjects. The Personal Data Protection Law 2025 focuses on protecting individual privacy, requiring enterprises to prepare a Data Protection Impact Assessment (DPIA) profile, ensuring the transfer aligns with the purpose consented to by the data subject, and applying more flexible post-audit mechanisms.

10.2. Obligations of enterprises and individuals

Enterprises and organizations managing cross-border assets must classify data, assess risks, apply security measures (encryption, firewalls, access management), comply with privacy principles, and cooperate with competent authorities in inspection, supervision, and handling of violations. Individuals have the right to consent to or refuse the cross-border transfer of their personal data, request enterprises to delete/destroy data when necessary, and have their privacy protected according to legal regulations.

10.3. Practical challenges

Cross-border data transfer poses challenges regarding compliance costs, information security, data control rights, and the risks of leakage, forgery, destruction, or illegal use. Enterprises need to invest in strict control processes, meet new security standards, and build mechanisms for collecting and managing data subjects’ consent to comply with both laws.

11. Asset protection solutions

11.1. Legal structures for asset protection

Foreigners in Vietnam can apply the following legal structures to protect their assets:

• Make a lawful will, notarize it, and store it at a competent authority.
• Establish a trust fund, separating ownership rights and beneficial rights, and protecting assets from legal, financial, family, or business dispute risks.
• Use international contracts, asset protection agreements, and transfer ownership and management rights to professional organizations, banks, or fund management companies.
• Choose an appropriate legal nationality when foreign elements are involved, prioritizing the application of the most effective national law or the actual place of residence of the estate leaver.

11.2. International contracts and asset protection agreements

International contracts, asset protection agreements, trust contracts, and cross-border asset management contracts help ensure legitimate rights, optimize taxes, minimize dispute risks, and create a solid legal basis when transferring assets between countries.

11.3. Choice of legal nationality

In the event of a conflict of laws, foreigners should choose a suitable legal nationality, prioritizing the application of the most effective national law, the actual place of residence, or the location of the assets, depending on each specific case. Consulting professional lawyers well-versed in both Vietnamese and international law is the optimal solution to protect legitimate rights.

12. Common legal risks and disputes in estate planning for foreigners

12.1. Legal risks

Foreigners planning their estates in Vietnam often encounter the following legal risks:

• Legal differences between countries, conflicts of law regarding inheritance, ownership rights, and asset transfer.
• Restrictions on real estate ownership rights, land use rights, the number of properties, and homeownership duration.
• Procedures for consular legalization, translation, ownership registration, and recognition of foreign judgments.
• Tax, fee obligations, foreign exchange management, and outbound money transfers.
• Risks of disputes regarding the validity of a will, inheritance rights, asset distribution, and trust fund management rights.
• Risks of leakage, forgery, destruction, or illegal use of personal data and cross-border asset information.

12.2. Common disputes

Common disputes in estate planning for foreigners include:

• Disputes over real estate ownership rights, land use rights, and the right to receive inherited asset value.
• Disputes between domestic heirs and those abroad regarding asset division, estate management rights, and beneficial rights from a trust fund.
• Disputes over the validity of a will, compulsory inheritance rights, and the reserved portion of the estate for heirs who cannot be disinherited.
• Disputes over tax, fee obligations, money transfers, ownership registration, and the recognition of foreign judgments.
• Disputes over control rights, the right to change the trust fund manager, and the right to add or remove beneficiaries.

12.3. Solutions for dispute prevention and resolution

To prevent and resolve disputes, foreigners should:

• Make a lawful will, notarize it, and store it at a competent authority.
• Establish a trust fund, clearly stipulating the rights and obligations of parties, supervision mechanisms, and transparent reporting.
• Consult professional lawyers well-versed in both Vietnamese and international law.
• Prepare a complete dossier, carry out consular legalization, and translate relevant documents.
• Regularly update, inspect, and adjust the estate plan, will, and trust fund according to legal changes and practical situations.

13. Practical guidelines for foreigners in establishing estate plans in Vietnam

13.1. Making a will

• Seek legal experts and lawyers specializing in cross-border inheritance.
• Collect necessary documents: identification documents, documents proving asset ownership, documents proving marital status, and notarized Vietnamese translations of foreign documents.
• Draft the will: clearly identify the testator, list assets in detail, heir information, asset distribution methods, inheritance conditions, and designate a will executor.
• Notarize the will: schedule an appointment with a notary office, arrange an interpreter, and sign the will before a notary public and witnesses.
• Store the will: receive the notarized copy, store it safely, notify relatives or heirs about its existence and location, and register it with the Will Depository Center (if available).

13.2. Establishing a trust fund

• Determine the trust purpose: asset protection, inheritance transfer, investment, or charity.
• Choose the appropriate trust type: family, investment, charitable, protection, fixed, or discretionary.
• Draft the trust deed: clearly define the subjects, objects, purposes, duration, termination conditions, and the rights and obligations of the involved parties.
• Transfer assets to the fund: real estate, movable property, bank accounts, shares, intellectual property rights, and digital assets.
• Appointment: appoint a fund manager, identify beneficiaries, and register and recognize the trust fund at competent authorities (if necessary).
• Regularly inspect, update, and adjust the trust deed, beneficiary list, supervision mechanisms, and transparent reporting.

13.3. Regular updates and inspections

• Review and update wills and trust funds every 3-5 years or after major life events (marriage, divorce, childbirth, asset changes, or change of nationality).
• Check the legality and validity of wills, trust deeds, asset ownership rights, tax/fee obligations, foreign exchange management, and outbound money transfers.
• Consult lawyers, financial experts, and fund managers to ensure compliance with Vietnamese and international legal regulations and optimize legitimate rights.

Conclusion

Estate planning for foreigners in Vietnam currently requires special caution in light of significant changes in the legal corridor, particularly the new regulations in the Land Law 2024 and the Housing Law 2023. Understanding the principles of ownership, inheritance, and financial obligations not only helps protect legitimate assets but also minimizes complex international conflicts of law that often occur in cross-border contexts.

To ensure feasibility and legal safety, foreigners should prioritize establishing a lawful will, notarized and stored properly according to regulations, to dispose of their assets. Proactively consulting with experts will help optimize asset transfer strategies, ensuring strict compliance with current tax and foreign exchange management regulations to sustainably protect rights for future generations.

HARLEY MILLER LAW FIRM

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• Hotline: 0937215585
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