Previously, according to the Housing Law 2014, buyers and renters of social housing were allowed to resell their houses according to the market mechanism after 5 years and had to pay the following 4 taxes and fees:
(1) Land use fee.
(2) Personal income tax.
(3) Notary fee.
(4) Registration fee.
However, from August 1, 2024, the Housing Law 2023 has stipulated that the seller no longer has to pay land use fees but only needs to pay social housing transfer notary fees, personal income tax and registration fees.
This is specifically stipulated in Point e, Clause 1, Article 89 of the 2023 Housing Law as follows:
e) After 5 years, from the date of payment of enough money to buy houses, the social housing buyer is reselled this house according to the market mechanism for subjects in need if the certificate has been granted; The seller does not have to pay land use levies and must pay income tax in accordance with the law on taxes, except for the sale of social houses as individual houses, the seller must pay the land use fee as prescribed by the Government and must pay income tax in accordance with the tax law.
Thus, after 5 years, when selling social housing, the seller will not have to pay land use fees as according to the old regulations. However, it should be noted that Article 42 of Decree No. 100/2024/ND-CP stipulates that in case of selling social housing as individual housing, the seller must still pay personal income tax and 50% of land use fees.
Thus, in the case of selling social housing that is not individual housing (usually apartments), there will be no need to pay land use fees. In addition, in the case of selling social housing as individual houses, 50% of land use fees must be paid. The time to calculate land use fees is the time to submit valid documents to recognize land use rights.
Note: In case of selling social housing that must pay land use fees according to the provisions of the Housing Law 2014 but until August 1, 2024 (the effective date of the Housing Law 2023) has not yet paid, the payment will continue according to the provisions of the Housing Law 2014 and other relevant documents.
