Under the proposal, individual residents transferring real estate would be taxed 20% on the capital gains - calculated as the selling price minus the purchase price and relevant expenses - at each transaction.

However, in cases where the purchase price and related costs cannot be determined, a flat tax based on the length of ownership would apply:

Properties held under 2 years: taxed at 10% of the sale price.
Properties held from 2 to under 5 years: taxed at 6%.
Properties held from 5 to under 10 years: taxed at 4%.
Properties held over 10 years or inherited: taxed at 2%.

The holding period is counted from the time an individual officially obtains the right to use or own the property (from the effective date of the amended law) to the time of transfer.

In the case of inherited property, a flat 2% rate applies, regardless of how long it has been held. The Ministry explains this exception by noting that inheritance involves transferring assets from the deceased to the living - distinct from property gifts. Heirs are already exempt from personal income tax upon receiving the property, but are still required to pay tax when selling it later. However, since this type of transaction is typically not for speculative profit, a lower, unchanged rate is deemed appropriate.

To ensure flexibility and adaptability, the draft law retains a provision allowing the government to provide detailed implementation regulations.

The taxable moment is defined as either the effective date of the sale contract or the official registration of the property’s ownership transfer.

Since 2015, the current law has uniformly taxed personal real estate transfers at 2% of the sale price. The proposed changes aim to more closely reflect actual profit and discourage short-term speculation, while still ensuring fairness for long-term holders and inherited properties.

Nguyen Le