Individuals selling the only house are exempt from personal income tax

PHẠM ĐÔNG |

Decree No. 253/2026/ND-CP stipulates that subjects eligible for personal income tax exemption when transferring, receiving inheritance, gifts that are real estate will be

This content is stipulated in Decree No. 253/2026/ND-CP of the Government detailing a number of articles and measures to organize and guide the implementation of the Law on Personal Income Tax (PIT).

The Decree stipulates: PIT 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 (even when husband dies); father-in-law, mother-in-law with son-in-law (even when wife dies); paternal grandfather, paternal grandfather with grandson; maternal grandfather, maternal grandfather with maternal grandchild; siblings with each other.

In the case of 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 and is divided according to an agreement or by a court ruling, income from this property division is eligible for tax exemption.

Regarding income from the transfer of houses, residential land use rights and assets attached to residential land of individuals, the Decree stipulates:

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.

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.

Specifically, in cases of re-issuance or exchange according to the provisions of land law, the time of determining house ownership and residential land use rights is calculated according to the time of issuance of certificates of land use rights, house ownership and other assets attached to land before being re-issued or exchanged.

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.

The regulations take effect from July 1, 2026.

PHẠM ĐÔNG
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