In a report sent to the National Assembly on May 5, the Ministry of Finance proposed to amend the real estate tax policy in the direction of collecting 20% on transfer interest, instead of collecting 2% as at present. However, many experts believe that if you want to regulate the market effectively, ensure fairness, real estate tax should start from owning - especially a second home - instead of focusing only on transactions.
personal income tax is different from property tax - needs to be clearly distinguished
According to experts, personal income tax on real estate transfers only arises when there are sales transactions and there is a profit. This is a "one-time" tax that is applied to income, not to the value of assets held.
Meanwhile, property tax is a periodic collection, hit at the scale of real estate ownership (for example: paying 13% of the house value each year), to limit the situation of hoarding and hoarding real estate and create a long-term source of income for the budget.
Currently, Vietnam does not have a true property tax. The new real estate tax is only focused on trading activities, leaving open most of the assets that are "held waiting for price increase".
Experts propose taxing second homes for more fairness
At the workshop " individual Income Tax Law - Ensuring fairness, promoting development" organized by Lao Dong Newspaper in March 2025, Dr. Nguyen Tri Hieu - Director of the Institute for Research and Development of the Global Financial and Real Estate Market - said that Vietnam should tax assets from the second home onwards.
"The first house should be given incentives because it is associated with real housing needs. But from the second and third houses onwards - often belonging to people with high incomes - it is necessary to put them under tax to create social justice, fight speculation and increase budget revenue," Mr. Hieu analyzed.
He gave an example from the US, where all real estate must pay taxes annually (about 13% of the value). Meanwhile, the interest on home loans can be deducted from taxable income, helping to support real buyers.
International experience shows that it is necessary to control ownership, not just transactions
Associate Professor, Dr. Le Xuan Truong - Head of the Tax Department, Academy of Finance - also emphasized that many developed countries have applied property tax on secondary real estate or vacant houses, to limit speculation and increase efficiency.
"In the UK, when registering to own a second house, the homeowner must pay an additional 30% of the tax. In Korea, Canada or Japan, tax policies are designed in the direction that those who hold many assets will contribute accordingly" - Mr. Truong said.
Meanwhile, Vietnam still lacks an ownership control mechanism. People who own many real estates but do not trade are almost not subject to any significant tax obligations.
Controversial opinions from society: Are rented houses?
The proposal to tax assets especially from the second house has created much debate in public opinion. Some people are concerned that if the regulations are unclear, retirees who live on rental income will also be affected.
"Not everyone speculates about a second home. Many elderly people make a living from renting a house. If they tax like that, what do they get to live on for?" - Mr. Pham Van Thanh (Thanh Xuan, Hanoi) shared.
However, according to experts, the policy can be designed in the direction of exempting or reducing taxes for real renters, or having clear cash flow, and only strictly taxing left-ehold real estate waiting for price increases.
Dr. Nguyen Tri Hieu said: "If we continue to collect taxes only when there are transactions, we will still miss the group that owns many properties but does not create land use value. To healthy the market, we must collect from ownership, not just from transfers.
The implementation of property tax requires clear valuation data, a transparent system and a suitable roadmap. But if it does not start from now, the gap in home ownership opportunities will increase, causing social inequality.
Comparison of current taxes on real estate
