CONDOTEL BUSINESS IN VIETNAM
Condotel is a compound word of two English words: condominium - apartment and hotel - hotel, understood as a hotel apartment, simply understood as an apartment building operated as a hotel.
Approaches to Condotel in Vietnam:
First, land use regime
• Commercial and service land
• Land use period not exceeding 50 years and land use can be extended for a maximum of 20 years.
Second, conditions for putting Condotel into business
Condotel has been officially stipulated in Clause 2, Article 5 of the 2023 Real Estate Business Law effective from August 1, 2024 as a construction work with the function of serving the purpose of... tourism, accommodation and construction work with mixed functions.
To be put into business, Condotel projects must:
• Must meet the conditions for putting into business in the Law on Real Estate Business
• From May 20, 2023, after Decree 10/2023/ND-CP takes effect, Condotel construction projects will be granted a Certificate of ownership of works attached to land when meeting the conditions of land law, real estate business, and construction.
Third, Subjects participating in the Condotel business market
• New points in the Law on Real Estate Business 2023: Foreign investors are allowed to buy, rent, or lease-purchase tourist apartments (Condotels) for use and business.
Thus, with the provisions of the Law on Real Estate Business 2023, foreign investors, including 100% foreign-owned economic organizations, can own Condotel apartments.
A 100% Taiwanese-invested real estate company can buy back a Condotel apartment or a Condotel apartment building for use and business through leasing, hire-purchase, or sale of this apartment.
However, when conducting transactions related to Condotel, investors need to consider the risks when there is no legal basis for the following issues:
i. Confirming the private ownership and common ownership of the Condotel
ii. Determining maintenance responsibilities, maintenance costs, and management of the use of maintenance costs for the common ownership
iii. Building management mechanism
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Vigorous Consulting Group is proud to provide comprehensive services related to Condotel investment and business in Vietnam. We are committed to accompanying our customers to optimize investment benefits with professional services:
• Analyze and evaluate the risk level of Condotel projects
• Draft and review contracts related to Condotel business
• Advise on appropriate business strategies
Contact Vigorous Consulting Group now to maximize investment opportunities, optimize your time and investment costs in Vietnam.
Southern Vietnam Ho Chi Minh Office
A1-16 KDC EVER RICH 3, Đường Phú Thuận, Phường Tân Phú, Quận 7, Hồ Chí Minh, Việt Nam
Open: Mon to Fri , 9:30AM to 5:30 PM
Hotline: +84 0357619861
Email: servicecenter@vigorouscg.com