The Government has just issued Decree No. 253/2026/ND-CP detailing a number of articles and measures to organize and guide the implementation of the Personal Income Tax Law. Among them, noteworthy is the regulation on personal income tax exemption when transferring real estate. This Decree takes effect from July 1, 2026.
Tax exemption for income from transfer, inheritance, and gifts that are real estate
Personal income tax exemption for income from transfer, inheritance, gifts that are real estate (including houses, construction works formed in the future according to the provisions of the law on real estate business) between: husband and wife; biological father, biological mother with biological children; adoptive father, adoptive mother with adopted children; father-in-law, mother-in-law with daughter-in-law (including when husband dies); father-in-law, mother-in-law with son-in-law (including when wife dies); paternal grandfather, paternal grandfather with grandson; maternal grandfather, maternal grandfather with maternal grandchild; siblings.
In case real estate (including houses, construction works formed in the future according to the provisions of law on real estate business) when the wife/husband divorces is divided according to an agreement or by a court ruling, the income from this property division is eligible for tax exemption.
Dossiers and procedures for tax exemption are implemented according to tax management laws.
Individuals transferring only one house, residential land use rights are exempt from tax
Personal income tax exemption for income from the transfer of houses, residential land use rights and assets attached to residential land of individuals in cases where the transferor only has one house, residential land use rights in Vietnam.
This tax exemption regulation does not apply to cases of transferring houses and construction works formed in the future.
Transferring individuals with only one house or land use right in Vietnam who are tax-exempt must meet the following conditions:
There is only the ownership of one house or the right to use one residential land plot (including cases where there is a house or construction attached to that land plot) at the time of transfer. In case an individual has additional houses or constructions formed in the future at the time of transfer, this transfer is not defined as the sole residential house or residential land use right of the individual.
In case of transferring houses with joint ownership, residential land with joint use rights (including spouses with joint house ownership, residential land use rights), only individuals who do not have ownership of houses or land use rights elsewhere are exempt from tax; individuals with joint house ownership or land use rights who still have ownership of houses or other residential land use rights are not exempt from tax.
Having housing ownership and residential land use rights up to the time of transfer is at least 183 days.
The time to determine housing ownership and residential land use rights is the date of issuance of the Certificate of residential land use rights, housing ownership and other assets attached to land. In case of re-issuance or exchange according to the provisions of land law, the time to determine housing ownership and residential land use rights is calculated according to the time of issuance of the Certificate of land use rights, housing ownership and other assets attached to land before being re-issued or exchanged.
Transferring the entire house and residential land use rights. In case an individual has the right or common ownership of a house or residential land use right only but transfers a part, they are not exempt from tax for that transfer.
Housing and residential land use rights are only tax-exempt because individuals transferring real estate self-declare and are responsible. In case incorrect declaration is detected, tax will be retroactively collected and penalized according to the provisions of tax management law and other relevant laws. Dossiers and procedures for tax exemption are carried out according to tax management law.
