On the Government Portal, a citizen in Hanoi wondered:
Mr. N.V.V (Hanoi) asked, individuals who are eligible to buy social housing and have bought it outright, can they rent it out to others in the first 5 years to earn extra income?
After research, the Ministry of Construction responds in principle as follows:
Time when the 2014 Housing Law takes effect
Clause 7, Article 3 of the 2014 Housing Law stipulates:
7. Social housing is housing with state support for subjects entitled to housing support policies according to the provisions of this Law".
Clauses 4, 5 and 6 of Article 62 of the 2014 Housing Law stipulate:
Article 62. Principles of leasing, leasing-purchasing, and selling social housing
4. Lease-purchasing parties and buyers of social housing are not allowed to resell houses for a minimum period of 5 years, from the time of full payment of lease-purchase money and house purchase money; in case within 5 years, from the date the buyer or lease-purchasing party has paid all purchase and lease-purchase money of the house and has a need to sell this house, they are only allowed to resell it to the social housing management unit or sell it to subjects eligible to buy social housing if this unit does not buy it at a maximum selling price equal to the selling price of social housing of the same type at the same location and time of sale and is not subject to personal income tax.
5. The buyer and lease-purchaser of social housing are allowed to resell this housing according to the market mechanism to subjects in need after a period of 5 years, from the time they have paid off the purchase price and rent for housing and have been granted a Certificate but must pay land use fees according to the Government's regulations and pay income tax according to the provisions of tax law; in case of selling to subjects eligible to buy social housing as prescribed in this Law, they are only allowed to sell at a maximum price equal to the selling price of social housing of the same type at the same location and time of sale and are not subject to personal income tax.
6. In all cases of leasing, leasing-purchasing, or selling social housing not in accordance with the provisions of this Law, the contract for leasing, leasing-purchasing, or buying-selling housing has no legal value and the lessee, lessee-purchaser, or buyer must hand over the house to the social housing management unit; in case of not handing over the house, the Provincial People's Committee where the house is located shall organize coercion to recover that house".
Clause 4, Article 19 of Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government on the development and management of social housing stipulates:
4. Buyers and lease-purchasers of social housing are not allowed to mortgage (except in cases of mortgaging with banks to borrow money to buy or lease-purchase the apartment itself) and are not allowed to transfer houses in any form for a minimum period of 5 years from the time of full payment of house purchase and lease-purchase according to the contract signed with the seller or lease-purchaser; are only allowed to resell, mortgage or lease after being granted a Certificate of land use rights, ownership of houses and other assets attached to land according to the provisions of land law".
Time when the 2023 Housing Law takes effect
Clause 7, Article 2 of the 2023 Housing Law stipulates:
7. Social housing is housing with state support for subjects entitled to housing support policies according to the provisions of this Law".
Points d, d, clause 1, Article 89 of the 2023 Housing Law stipulate:
d) The social housing buyer is not allowed to resell the house within a minimum period of 5 years from the date of full payment of the house purchase price, except for the cases specified in point d of this clause;
e) Within 5 years from the date the social housing buyer has paid the full amount of money to buy the house and has a need to sell this house, it is only allowed to resell it to the investor of the social housing construction investment project or resell it to subjects eligible to buy social housing at a maximum selling price equal to the selling price of this social housing in the purchase and sale contract with the investor of the social housing construction investment project. The payment of personal income tax shall be carried out in accordance with the provisions of the law on taxation;".
Thus, the law on housing (Housing Law 2014, Housing Law 2023) has clearly stipulated that social housing is only for subjects entitled to housing support policies according to the provisions of the Housing Law. It is proposed that you study the above regulations, compare them with your case to implement.
