Vietnam has no general net-wealth tax and no inheritance or gift tax in the conventional sense. However, gifts and inheritances of certain assets (real estate, securities, capital contributions in a company, and other registrable assets) above a small threshold are taxed as personal income at a flat 10% under the PIT law, functioning as a de facto inheritance/gift tax. There is also an annual non-agricultural land use tax (a form of low-rate property holding tax), covered in more detail under Property Taxes.
Foreign residents planning estate transfers to family in Vietnam (or receiving property from Vietnamese relatives) need to budget for the 10% PIT on gifts/inheritances of real estate, shares, or vehicles — it is often overlooked because Vietnam is popularly described as having 'no inheritance tax'.
Key Facts
No general net-wealth tax on individuals or households — net worth itself is not taxed annually.
Gifts and inheritances of real estate, securities, capital contributions/shares in an enterprise, and registrable assets like cars are taxed as personal income at a flat 10% of the value exceeding VND 10,000,000 per receipt.
Transfers between spouses, and between parents and children (including adoptive relationships) or between siblings/grandparents-grandchildren, are exempt from this 10% inheritance/gift PIT for real estate specifically.
Annual non-agricultural land use tax applies to land (not the building) at low rates (0.03%-0.15% of the land price table value depending on area relative to allotted norms) — a minor recurring holding cost, not a wealth tax.
No estate tax is levied on a deceased person's worldwide estate; Vietnam's approach taxes the recipient's gain, not the donor's estate.
Steps
Confirm whether a family exemption applies — If the gift or inheritance of real estate is between spouses, parents/children, or certain other direct-line relatives, it is exempt from the 10% PIT — verify the relationship documentation carefully before assuming tax is due.
Value the asset for non-exempt transfers — For gifts/inheritances outside the exempt relationships, or for securities and capital contributions regardless of relationship, calculate 10% PIT on the value above the VND 10,000,000 threshold per occurrence.
Declare within the statutory window — The recipient must declare and pay the gift/inheritance PIT, generally within 10 days of completing the asset registration/transfer, at the local tax office where the asset is registered.
Register the annual land use tax — Property owners (including qualifying foreign condo owners with land-use rights attached) should confirm their non-agricultural land use tax registration with the local tax department to avoid penalties on the low annual charge.
Costs
Gift/inheritance PIT (non-exempt relationships): 10% of value above VND 10,000,000 per gift/inheritance
Annual non-agricultural land use tax: 0.03%-0.15% of land price table value
Timelines
Gift/inheritance PIT declaration: Within 10 days of asset registration/transfer
Annual land use tax payment: Typically due by year-end, per local tax office notice
Required Documents
Proof of relationship (birth/marriage certificates) to claim family exemption
Asset transfer/registration documents (land use right certificate, share transfer certificate, vehicle registration)
Valuation basis (local land price table, or securities market value)
Tax code of the recipient
Common Mistakes
Assuming Vietnam has 'no inheritance tax' at all and being surprised by the 10% PIT on gifts/inheritances outside the exempt family relationships.
Not documenting the family relationship properly, causing the tax office to deny the exemption and assess 10% PIT on an otherwise-exempt family property transfer.
Confusing the annual non-agricultural land use tax (a minor recurring charge) with a wealth tax on total net worth — it only applies to the land component of owned property.
Forgetting that gifted/inherited securities and company capital contributions do not benefit from the family-relationship exemption that applies to real estate.