{"id":35154,"date":"2016-11-21T15:46:56","date_gmt":"2016-11-21T08:46:56","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/3-reasons-vietnams-proposed-second-home-tax-is-complicated\/"},"modified":"2016-11-21T16:01:57","modified_gmt":"2016-11-21T09:01:57","slug":"3-reasons-vietnams-proposed-second-home-tax-is-complicated","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/3-reasons-vietnams-proposed-second-home-tax-is-complicated\/","title":{"rendered":"3 reasons Vietnam\u2019s proposed second-home tax is complicated"},"content":{"rendered":"


\nMore consideration please, experts say
\nAerial view of Hanoi at sunset. Jimmy Tran \/ Shutterstock.com
\nVietnam is mulling a levy on\u00a0buyers of second homes by 2020, the state news agency announced earlier this month.
\nA proposal at least five years in the making, the property tax is undergoing studies by the Finance Ministry.
\nSuch plans have sent ripples throughout the country\u2019s real estate arena. The Vietnam National Real Estate Association (VNREA) warned that a second-home tax might reduce the \u201cattraction power\u201d of the property market and affect real estate trading volumes. The HCMC Real Estate Association (HoREA), on the other, is backing the proposal as an effective initiative against a speculative bubble.
\nHere are some reasons why the proposed cooling measure is not as simple as you think in Vietnam, according to property consultants:
\n1. Different circumstances
\nFrom China to Canada, taxing second homes is common practice around the world, an effective way to cool down overheating markets while bringing in much-needed sums to government coffers. Bringing this kind of taxation to Vietnam comes with complications however, said Stephen Wyatt, general director of Jones Lang LaSalle Vietnam, in a recent interview. \u201cIn Vietnam we do not have a computerised registry for land registration, where you can actually see who buys a property. So, if you are going to introduce a second home tax it is very difficult to trace who owns a property without a computerised land registry system.\u201d
\nMore: Vietnam Property Awards adds Malloca as 2017 co-sponsor
\n2. What \u201csecond home\u201d?
\nSince land registration is still largely a paper-based process in Vietnam, it can be tricky for authorities to know you already own another property. \u201cI think that in order for this to work effectively you need a dedicated computerized system so you can see who owns property,\u201d Wyatt said. \u201cIt will be a challenge, as family members can combine different names when buying a property.\u201d
\n3. Possible slowdown of the second-home market
\nThe levy could have dire consequences in the short term, according to Nguyen Hoai An, director of research and consulting at CBRE Hanoi. \u201cThe application will affect demand and sales rate of projects that must pay second-home tax,\u201d she said.
\nWyatt agrees, saying that Vietnamese investors are not unheard of to splurge on third or even fourth homes. \u201cMany people want to buy a second home,\u201d he said, \u201cso this idea would slow down the second home market.\u201d
\nOverall, the tax could reverse gains that the Vietnamese real estate market has achieved in recent years. \u201cWe recommend that a lot of consultation takes place before a new tax is introduced,\u201d he said. \u201cWe need to fully understand the implications for the property market.\u201d
\nRead next: Danang, Vietnam: why foreign investors should pay attention
\n
\nSource : property-report.com
\nRead more…3 reasons Vietnam\u2019s proposed second-home tax is complicated<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

More consideration please, experts say Aerial view of Hanoi at sunset. Jimmy Tran \/ Shutterstock.com...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-35154","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-990","jetpack-related-posts":[{"id":4068,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/apartments-buildings-in-vietnam-may-soon-follow-3-tier-classifications\/","url_meta":{"origin":35154,"position":0},"title":"Apartments buildings in Vietnam may soon follow 3-tier classifications","date":"February 8, 2016","format":false,"excerpt":"\r The ABCs of Vietnam\u2019s construction ministry proposal that got people talking Hanoi | Image credit: St. Rosenzweig (Wiki Commons) A draft circular proposed by Vietnam\u2019s Ministry of Construction is drawing mixed reaction from industry players and experts in the country, according to Vietnam News, with some developers welcoming the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2016\/02\/Hanoi_St.-Rosenzweig.jpg?fit=740%2C518&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":14356,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/japanese-firms-take-bigger-slice-of-vietnam-property-pie\/","url_meta":{"origin":35154,"position":1},"title":"Japanese firms take bigger slice of Vietnam property pie","date":"May 25, 2016","format":false,"excerpt":"\r Vietnam\u2019s star is rising in the Land of the Rising Sun Image credit: Vietnamplus.vn Lured by an upwardly mobile and young populace, investors from Japan are making inroads into the Vietnamese real estate market. 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