Inheritance involving foreign elements is always one of the most complex areas in private international law in general and Vietnamese law in particular. As FDI inflows and the wave of foreigners settling in Vietnam increase, legal relationships regarding assets and inheritance have also become diversified, ranging from traditional real estate to modern financial instruments. To ensure legal safety for assets accumulated in Vietnam, a thorough understanding of current regulations effective as of 2026 is a mandatory requirement.

This essay provides an in-depth analysis of the legal mechanisms for inheritance for foreigners in Vietnam, focusing on core issues: rights and limitations in real estate ownership, inheritance recognition procedures, tax obligations, and dispute resolution mechanisms. At the same time, the article offers practical recommendations on making wills and managing estates in the context of global integration.

1. Overview of Vietnam Inheritance Law

1.1. Legal Basis Governing Inheritance

The inheritance law system in Vietnam is currently governed primarily by the Civil Code 2015. Additionally, specialized laws such as the Land Law 2024, Housing Law 2023, Law on Notarization 2024, Law on Personal Income Tax 2025, along with guiding decrees, circulars, and international treaties of which Vietnam is a member, form a comprehensive legal framework governing inheritance relationships involving foreign elements.

The Civil Code 2015 prescribes two forms of inheritance: inheritance by will and inheritance by law. This law also establishes the principle of equality among subjects, regardless of nationality, place of residence, gender, or religion in enjoying inheritance rights, unless otherwise provided by law or international treaties of which Vietnam is a member.

1.2. Basic Principles of Inheritance

The basic principles of Vietnam’s inheritance law include:

• Ensuring the individual’s right to freely dispose of assets through the making of a legal will.
• Protecting the rights of heirs regardless of the will’s content (e.g., minor children, parents, spouses, adult children incapable of working).
• Equality among heirs, regardless of nationality, place of residence, gender, or origin.
• Respecting the will of the deceased, unless otherwise provided by law.
• Protecting the rights of children, dependents, and vulnerable persons in inheritance relationships.

2. Overview of Regulations on Inheritance Involving Foreign Elements

2.1. Concept and Scope

Inheritance with foreign elements is a complex form of inheritance relationship, defined by Vietnamese law when at least one foreign element appears in the inheritance relationship. These elements include:

• The deceased is a foreign citizen or a Vietnamese residing abroad.
• The heir is a foreign citizen or a Vietnamese residing abroad.
• The estate is located outside the territory of Vietnam.
• The establishment, change, or termination of the inheritance relationship occurs abroad.

The scope of regulation of Vietnamese law regarding inheritance with foreign elements is determined based on the principle of respecting national sovereignty, while ensuring harmony with international treaties of which Vietnam is a member. This helps ensure transparency, fairness, and enforceability in cross-border inheritance relationships.

2.2. Principles for Determining Applicable Law

The Civil Code 2015 stipulates the principles for determining the applicable law for inheritance with foreign elements as follows:

• For movable property: The law of the country of which the deceased held citizenship immediately before death shall apply. This reflects the principle of close attachment between the individual and nationality, while ensuring consistency in handling movable estates.
• For real estate: The law of the country where the real estate is located shall apply. For real estate located in Vietnam, Vietnamese law is the sole basis for resolving inheritance relationships. This principle stems from the specific nature of real estate being attached to the national territory and subject to direct management by the State.
• Case of International Treaties: If an international treaty to which Vietnam is a member contains provisions different from Vietnamese law, the international treaty shall be prioritized for application. This is a principle ensuring compliance with international commitments, while facilitating the resolution of inheritance relationships involving foreign elements.

Determining the applicable law is significant in resolving inheritance disputes, especially when there are differences between the legal systems of countries.

2.3. Inheritance Rights of Foreigners

Foreigners have the right to inherit assets in Vietnam under both forms: inheritance by will and inheritance by law. This right is recognized by Vietnamese law to ensure equality between Vietnamese citizens and foreigners in civil relations. However, ownership rights regarding certain types of assets are limited by specialized legal regulations:

• For land: Foreigners are not recognized as having land ownership rights in Vietnam. In the case of inheriting land use rights, they are only entitled to the value of the land use rights through transfer to a person eligible for ownership or through receiving a corresponding amount of money.
• For housing: Foreigners are permitted to own housing in Vietnam in certain cases, but must comply with limits on quantity, location, and ownership duration. If they do not meet the conditions, they are only entitled to the value of the housing instead of direct ownership rights.
• For financial assets and securities: Foreigners have the right to inherit bank deposits, stocks, bonds, capital contributions, and other types of securities. However, ownership rights may be limited by regulations on foreign ownership ratios in specific business sectors.
• For other movable assets: Foreigners have the right to inherit and legally own movable assets such as vehicles, jewelry, and personal items, provided that such ownership does not violate Vietnamese law.

Thus, Vietnamese law both ensures the inheritance rights of foreigners and sets necessary limits to protect national interests, maintain order in land and real estate management, and control foreign investment flows.

3. Real Estate and Land Ownership Rights for Foreigners

3.1. Land Ownership Rights

According to the regulations of the Land Law 2024, land belongs to the entire people, with the State acting as the representative of the owner and uniformly managing it. Foreigners do not have land ownership rights in Vietnam; they can only be allocated land, leased land, or receive the transfer of land use rights by the State in certain special cases, mainly through investment projects.

When inheriting land use rights, foreigners are not issued a Certificate of land use rights, ownership of housing and other assets attached to land. However, they have the right to transfer or donate the inherited land use rights to Vietnamese individuals or organizations/individuals eligible to own land in Vietnam. If they do not transfer or donate, foreigners may authorize another person to manage and use the land and fulfill related financial obligations.

3.2. Housing Ownership Rights

The Housing Law 2023 stipulates that foreign individuals permitted to enter Vietnam, who do not fall under the category of enjoying diplomatic or consular privileges and immunities, have the right to own housing in Vietnam through the following forms: investing in housing construction under projects, purchasing, lease-purchasing, receiving gifts, or receiving inheritance of commercial housing (apartments, individual houses in housing construction investment projects), except for areas ensuring national defense and security as prescribed by the Government.

Foreigners are only allowed to own housing in Vietnam for a maximum period of 50 years from the date of issuance of the Certificate, which may be extended if there is a need. The quantity of housing owned is limited: not exceeding 30% of the number of apartments in a condominium building, and not exceeding 250 individual houses in an area with a population equivalent to a ward-level administrative unit. If exceeding the quantity or not falling under the category eligible to own housing, foreigners are only entitled to the value of that housing.

4. Procedures for Declaring Inheritance and Notarization for Foreigners

4.1. Inheritance Declaration Dossier

The procedure for declaring inheritance involving foreign elements is more complex than domestic cases, due to involving foreign documents, consular legalization, notarized translation, and determination of applicable law. The inheritance declaration dossier includes:

• Identity documents of the heir (passport, citizen identity card, legal residence documents).
• Death certificate of the estate leaver (if issued abroad, it must be consularly legalized and translated into Vietnamese).
• Documents proving the inheritance relationship (birth certificate, marriage registration certificate, documents proving parent-child, spousal, sibling relationships…).
• Documents regarding the inherited assets (Certificate of land use rights, housing ownership, documents proving ownership of financial assets, shares, securities…).
• Power of attorney (if any).
• Legal will (if any).

All documents issued by foreign agencies must be consularly legalized at the Vietnamese diplomatic or consular mission in the host country, then notarized and translated into Vietnamese.

4.2. Procedure for Notarizing the Instrument for Declaring Inheritance

The heir or the legal representative submits the dossier to a notarial practice organization where the real estate is located or at the last place of residence of the estate leaver. The notary verifies the validity of the dossier and posts the acceptance of notarization of the instrument for declaring inheritance at the Commune-level People’s Committee of the last place of residence of the estate leaver for a period of 15 days.

After the posting period expires without any complaints or denunciations, the notary establishes the instrument for declaring inheritance and certifies it according to regulations. If the heir is abroad and cannot return to Vietnam, they may establish a power of attorney at the Vietnamese diplomatic mission in the host country, have it consularly legalized, and send it to Vietnam for the authorized person to carry out the inheritance declaration procedure.

5. Procedures for Registering Land Use Rights and Transfer After Inheritance

5.1. Registration of Land Use Right Changes

After completing the procedure for declaring inheritance and notarizing the instrument for declaring inheritance, the heir is obligated to carry out the procedure for registering changes in land use rights at the Land Registration Office under the Department of Natural Resources and Environment where the land is located. This is a mandatory step to record the change of the land use right subject in the cadastral records and on the Certificate of land use rights.

The dossier for registration of changes includes:

• Application for registration of changes in land use rights according to the form issued by the Ministry of Natural Resources and Environment.
• Original Certificate of land use rights, ownership of housing and other assets attached to land.
• Legally notarized instrument for declaring inheritance.
• Identity documents of the heir such as passport, citizen identity card, or equivalent documents.
• Power of attorney in case the heir authorizes another person to carry out the procedure.

The land registration agency is responsible for receiving and checking the dossier. If the dossier is valid, the agency will record the change in the cadastral book and adjust the Certificate of land use rights. The settlement time limit is not more than 10 working days from the date of receiving a complete and valid dossier, excluding the time for the heir to fulfill financial obligations, as well as weekends and holidays according to regulations. In cases where the dossier is complex or involves foreign elements, the time limit may be extended but written notice must be given to the heir.

5.2. Transfer of Land Use Rights After Inheritance

For foreigners, Vietnamese law does not recognize land ownership rights. Therefore, foreigners are not issued a Certificate of land use rights after receiving inheritance. However, they still have the right to transfer or donate the inherited land use rights to Vietnamese individuals or organizations/individuals eligible to own land according to the provisions of the law.

The procedure for transferring land use rights after inheritance includes the following steps:

• Establish a contract for transfer or donation of land use rights: The contract must be made in writing and notarized at a notarial practice organization. The content of the contract must clearly show information about the land plot, rights and obligations of the parties, transfer value, or conditions for donation.
• Fulfill financial obligations: The transferee or the donee must pay personal income tax, registration fees, and other fees according to regulations. The foreigner who is the transferor has the obligation to declare and pay tax on the income generated from the transfer.
• Register at the competent state agency: After the contract is notarized and financial obligations are fulfilled, the parties must submit a dossier for registration of name transfer at the Land Registration Office. The dossier includes the notarized transfer or donation contract, Certificate of land use rights, tax and fee payment vouchers, and identity documents of the parties.
• Issuance of Certificate of land use rights to the transferee or donee: The land registration agency will adjust or issue a new Certificate of land use rights to the transferee or donee, and simultaneously record the change in the cadastral records.

In case the foreigner cannot directly carry out the procedure, they may authorize a legal representative in Vietnam. The power of attorney must be notarized and consularly legalized if established abroad. The transfer or donation of inherited land use rights by foreigners is a legal solution to ensure their legitimate rights while complying with Vietnamese law regarding land ownership. However, this process is often complex, requiring thorough preparation of documents and support from notarial practice organizations, land registration agencies, and professional legal advisors.

6. Application of Foreign Law Regarding Movable Property and Wills Made Abroad

6.1. Movable Property

For estates that are movable property (money, stocks, vehicles, movable assets…), the division of the estate is determined according to the law of the country of which the estate leaver held citizenship immediately before death. If the law of the estate leaver’s nationality contravenes the basic principles of Vietnamese law, the Vietnamese court may refuse to apply that part of the regulation to ensure public order.

6.2. Wills Made Abroad

The form of a will with foreign elements is determined according to the law of the country where the will was made. In addition, a will is also recognized in Vietnam if it complies with the law of one of the following countries:

• Where the testator resided at the time of making the will or at the time of death;
• Where the testator held citizenship at the time of making the will or at the time of death;
• Where the real estate is located if the inherited estate is real estate.

A will made abroad desiring validity in Vietnam must be consularly legalized, notarized and translated into Vietnamese, and must not contravene the basic principles of Vietnamese law. If the will is made at a diplomatic or consular mission of Vietnam abroad, consular legalization is not required.

7. Legal Limitations and Risks for Foreign Heirs

7.1. Limitations on Property Ownership Rights

Vietnamese law clearly stipulates that land belongs to the entire people and the State is the representative of the owner. Therefore, foreigners are not recognized as having land ownership rights in Vietnam. In the case of inheriting land use rights, foreigners can only enjoy the value of the land use rights through transfer to a person eligible for ownership or through receiving a corresponding amount of money from the disposal of the asset.

For housing, the Housing Law allows foreigners to own housing in Vietnam but only in certain cases, such as through purchase, gift, or inheritance. The maximum ownership duration is 50 years, which can be extended according to regulations. The quantity of housing that foreigners are allowed to own is also limited, usually not exceeding 30% of the number of apartments in a condominium building or not exceeding 10% of individual houses in an area with many houses. If the heir does not meet ownership conditions, they are only entitled to the asset value instead of direct ownership rights.

For financial assets and shares in enterprises, the ownership rights of foreigners are governed by the Law on Enterprises, Law on Investment, and guiding documents. Some business lines are conditional or limit foreign ownership ratios, for example, in banking, telecommunications, and aviation. In the case of inheriting shares or capital contributions, foreigners must comply with maximum ownership ratio limits. If exceeding the limit, the inherited capital or shares must be transferred to eligible subjects according to legal regulations.

7.2. Administrative Barriers and Procedures

Foreigners receiving inheritance in Vietnam often face many administrative barriers. First, documents issued abroad must be consularly legalized to be recognized in Vietnam. Then, these documents must be translated into Vietnamese and undergo notarized translation. This process is both time-consuming and incurs significant costs.

Verifying the inheritance relationship is also a complex procedure, especially in cases involving foreign elements. Competent authorities in Vietnam must check the legality of documents proving personal relationships, such as birth certificates, marriage registration certificates, and death certificates, which may be issued in many different countries. Differences in form and content of documents between legal systems can cause difficulties in verification.

Another barrier is determining the applicable law. In cases involving foreign elements, it is necessary to determine whether Vietnamese law or foreign law will apply to the inheritance relationship. This can lead to conflict of laws, prolonging the resolution time and giving rise to disputes.

Financial obligations are also an important factor. Foreigners receiving inheritance must fulfill obligations to pay personal income tax on the inheritance, registration fees, and other fees according to regulations. Fulfilling financial obligations requires transparency regarding the origin of assets and complete legal records; otherwise, it will lead to delays in the process of recognizing ownership rights.

Additionally, cultural and language differences between Vietnam and the heir’s country can create barriers in understanding and implementing legal regulations. Heirs may encounter difficulties in communicating with functional agencies, leading to errors in dossiers or delays in procedures. Inheritance disputes also easily arise when many heirs participate, especially in cases where the will is unclear or there are differences in legal interpretation between countries.

8. Taxes, Fees, and Financial Obligations Related to Inheritance for Foreigners

8.1. Personal Income Tax from Inheritance

According to the Law on Personal Income Tax 2025 (effective from January 1, 2026), income from receiving inheritance by individuals residing in Vietnam is subject to a tax rate of 10% on the value of the inherited asset exceeding 20 million VND for each occurrence. Real estate, housing, shares, securities, capital contributions, and assets requiring ownership or use right registration are all subject to this tax. However, cases of inheritance between husband and wife, parents and children, grandparents and grandchildren, and biological siblings are exempt from personal income tax.

8.2. Registration Fees and Other Fees

When registering ownership of housing or land use rights, the heir must pay registration fees according to regulations (usually 0.5% of the asset value). Some cases are exempt from registration fees, for example: inheritance between husband and wife, parents and children, grandparents and grandchildren, and biological siblings. In addition, the heir must pay notary fees, land change registration fees, fees for issuing Certificates of land use rights and housing ownership, and other fees according to local regulations.

8.3. Other Financial Obligations

The heir must also perform other financial obligations related to the inherited estate, such as paying debts, property obligations of the estate leaver (if any), legal service fees, consular legalization fees, notarized translation fees, and fees for transferring money abroad (if any).

9. Statute of Limitations for Inheritance and Loss of Right to Inherit

9.1. Statute of Limitations for Requesting Division of Estate

According to Article 623 of the Civil Code 2015, the statute of limitations for an heir to request the division of the estate is 30 years for real estate and 10 years for movable property, from the time of opening the inheritance (the date the estate leaver dies). Upon the expiration of this period, the estate belongs to the heir currently managing that estate. If there is no heir managing the estate, the estate belongs to the person possessing it in good faith, continuously, and openly for the corresponding period. If there is no possessor, the estate belongs to the State.

9.2. Statute of Limitations for Requesting Confirmation of Inheritance Rights or Rejection of Inheritance Rights

The statute of limitations for an heir to request confirmation of their inheritance rights or to reject the inheritance rights of another person is 10 years from the time of opening the inheritance.

9.3. Statute of Limitations for Requesting Performance of Property Obligations

The statute of limitations for requesting heirs to perform property obligations left by the deceased is 03 years from the time of opening the inheritance.

9.4. Loss of Right to Inherit

An heir loses the right to inherit if they fall into one of the following cases: intentionally infringing upon the life, health, honor, or dignity of the estate leaver; seriously violating the obligation to nurture; deceiving, coercing, or preventing the estate leaver from making a will; forging, altering, or destroying the will; or being declared by the court as having no right to enjoy the estate.

10. Inheritance Rights Regarding Financial Assets and Securities of Foreigners

10.1. Financial Assets

Foreigners have the right to inherit various types of financial assets in Vietnam, including bank deposits, shares, bonds, capital contributions in enterprises, listed and unlisted securities, and other movable assets with economic value. This right is recognized by law to ensure equality in asset inheritance, while creating conditions for foreign investors to maintain business and investment activities in Vietnam.

Transferring inherited money abroad must strictly comply with legal regulations on foreign exchange management. The heir needs to carry out procedures at a commercial bank permitted to operate foreign exchange, and simultaneously present a complete dossier proving the legal origin of the inherited money. Additionally, the money transfer must comply with regulations on customs declaration for amounts exceeding the threshold allowed to be taken out of the Vietnamese territory, as well as regulations on anti-money laundering to ensure the transparency and legality of the transaction.

For assets that are shares or capital contributions in enterprises, foreigners are entitled to receive inheritance but must meet conditions regarding foreign ownership ratios according to the regulations of the Law on Enterprises, Law on Investment, and guiding documents. In cases where business lines are conditional or limit foreign ownership ratios, the heir is only recognized as having ownership rights within the allowed scope. If the ownership ratio exceeds the limit, the heir is forced to carry out procedures to transfer the excess capital portion to eligible subjects according to legal regulations.

10.2. Procedures for Transferring Financial Assets

To be recognized as having ownership rights regarding inherited financial assets, the heir must fully perform legal procedures. First, it is necessary to proceed with declaring the inheritance at a notarial practice organization or competent authority. The instrument for declaring inheritance must be notarized to ensure legal validity and serve as a basis for registering ownership rights.

After having the instrument for declaring inheritance, the heir must carry out procedures for registering the transfer of ownership rights at the corresponding management agency. For shares or capital contributions, the procedure is conducted at the business registration agency or the enterprise where the shares or capital contributions were issued. For securities, the procedure is performed at the securities company or the Vietnam Securities Depository. For bank deposits, the heir must directly contact the bank where the account is held to carry out procedures for transferring ownership rights and withdrawing money.

Related documents must be consularly legalized if issued abroad, and must be translated into Vietnamese and notarized to ensure legal validity. The heir must also meet financial conditions, including the obligation to pay personal income tax on the inheritance, registration fees, and other fees according to regulations. Only after fully completing financial obligations and legal procedures are ownership rights regarding financial assets legally recognized.

Furthermore, in cases involving foreign elements, heirs need to note the possibility of conflict of laws arising between Vietnam and the country where they hold citizenship. To ensure rights, heirs should consult professional legal advice and coordinate with functional agencies and related financial institutions to carry out procedures correctly and effectively.

11. Influence of Inheritance Regulations on Foreign Investors

11.1. Ensuring Investor Rights

Vietnam’s current inheritance law ensures that foreign investors have the right to receive inheritance, transfer, or donate assets according to regulations. This right applies to many types of assets, including housing ownership rights, land use rights within the scope permitted by law, shares in joint-stock companies, capital contributions in limited liability companies, and other types of assets such as money, securities, and property rights arising from contracts.

However, Vietnamese law still maintains certain limitations to protect national interests and control foreign capital flows. Foreign investors need to note that land ownership rights in Vietnam belong to the entire people and are managed by the State as a representative. Foreigners can only receive land use rights through the form of land lease or receiving inheritance of land use rights in certain cases, but are not recognized as having land ownership rights like Vietnamese citizens.

For housing, the Housing Law allows foreigners to own housing in Vietnam through purchase, gift, or inheritance, but they must comply with limits on the number of apartments in a project and cannot own housing in areas with sensitive national defense and security positions.

In the corporate sector, the law stipulates that the ratio of share ownership and capital contribution of foreign investors may be limited depending on the business line. When receiving inheritance of shares or capital contributions, foreign investors must comply with conditions on maximum ownership ratios and perform procedures to register changes in members or shareholders at the business registration agency. In addition, financial obligations arising from receiving inheritance, including personal income tax, registration fees, and other fees, must be fully performed before ownership rights or asset use rights are recognized.

11.2. Risks and Preventive Solutions

Foreign investors may face many legal risks during the process of inheriting assets in Vietnam. Differences between legal systems of Vietnam and the country where the investor holds citizenship can lead to conflict of laws, especially in cases where a will or inheritance document is made abroad but has validity in Vietnam. Administrative procedures in Vietnam are often complex, requiring many types of documents to be consularly legalized, translated and notarized, and confirmed by competent authorities. Language barriers are also a factor causing difficulties, easily leading to errors in understanding and implementing legal regulations.

Inheritance disputes are a common risk, especially when many heirs participate or when the will is unclear. In cases involving foreign elements, disputes can be prolonged due to differences in legal regulations and jurisdiction. Additionally, investors may also encounter risks from changes in legal policies, when the State adjusts regulations on foreign ownership to ensure economic security and national defense.

To prevent risks, foreign investors should implement the following measures:

• Make a legal will in Vietnam, ensuring full compliance with regulations on form and content, to avoid disputes and ensure legal validity.
• Regularly review and update legal records related to assets, including certificates of ownership, contracts, and documents proving the origin of assets.
• Use professional legal consulting services from law firms experienced in the field of foreign investment and inheritance to ensure rights and minimize risks.
• Proactively update the latest legal regulations, especially in the fields of land, housing, and enterprises, to timely adjust investment strategies and inheritance plans.
• Coordinate closely with functional agencies in Vietnam, and simultaneously contact the embassy or consulate of their country for support regarding legal procedures and protection of rights.

Fully being aware of inheritance legal regulations and applying preventive measures will help foreign investors ensure legal rights, limit risks, and maintain stability in investment activities in Vietnam.

Conclusion

The Vietnam inheritance law system as of January 1, 2026, has undergone many innovations, ensuring the legal rights of foreigners when receiving asset inheritance in Vietnam, while simultaneously setting certain limits on ownership rights regarding land, housing, financial assets, and corporate shares.

Foreigners need to firmly grasp regulations on conditions for receiving inheritance, procedures for declaring inheritance, notarization, registration of ownership rights, financial obligations, statute of limitations for inheritance, dispute resolution, recognition of foreign judgments, making legal wills, and the role of embassies and consulates in legal support. To protect rights and prevent legal risks, foreigners should proactively plan assets, use professional legal consulting services, regularly update the latest legal regulations, and coordinate closely with functional agencies and diplomatic and consular representative organizations in Vietnam.

HARLEY MILLER LAW FIRM

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