The new regulations are outlined in Decree No. 96/2024/ND-CP (Decree 96) on detailing a number of articles of the Law on Real Estate Business.
The decree clearly defines the requirements for individuals engaging in small-scale real estate business. Accordingly, individuals conducting small-scale real estate business are not required to establish investment projects.
The number of transactions is limited to less than 10 times per year, and each contract must not exceed VND 300 billion. In the case of a single transaction in a year, the value is not taken into account.
Clarifying the criteria for individuals engaging in small-scale real estate business. Illustration: Hong Khanh |
According to the 2023 Law on Real Estate Business, individuals conducting small-scale real estate business are not required to establish a company, but they must declare and pay taxes.
Similarly, organizations selling or leasing houses, construction works, or a portion of the floor area for non-business purposes are also subject to transaction limits and must declare and pay taxes.
Thus, the new regulations have specifically limited the number of transactions and the value of contracts in this case. This is a new development compared to the previous regulations, which did not specify conditions for individuals engaging in small-scale real estate business.
Many experts believe that clearly defining the criteria for small-scale real estate businesses will help curb speculation and “wave-riding” in the market.
Hong Khanh
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