New tax plan: real estate prices in danger – what comes next!

New tax plan: real estate prices in danger – what comes next!

On June 3, 2025, the Ministry of Finance presented a new plan for personal income tax (PIT) on real estate transfers. This plan proposes to introduce an additional taxation of the profit of 20%, based on the difference between the selling price and the purchase price, less legal costs. This new regulation is in addition to the existing tax of 2% on the total transfer price. The aim of the plan is to promote tax fairness and transparency while at the same time curbing speculation and price increases.

Despite this intention, experts are critical. There are concerns that the new tax will not hit the speculators it was intended to target and that it could inadvertently lead to a rise in property prices. Lawyer Nguyen Phuong Lien supported the 20% tax plan as internationally practical and fair. However, there are challenges in enforceability, particularly because complete purchase price data is often not available for properties that were inherited or donated.

Expert opinions and challenges

An important obstacle is inadequate valuation and information management, which makes it difficult to determine profits. Experts largely agree that profit-oriented taxation makes sense. However, they also call for detailed regulations on deductible expenses. Flexible handling, depending on proof of the original purchase price, is considered sensible.

However, the introduction of this new tax could also have an impact on liquidity in the real estate market. If sellers factor tax costs into the sales price, this could further increase prices. For example, Ms. Ngoc Mai chose the 2% tax option for her financial stability, while Mr. Bui Thanh Long preferred the 20% option to make a more realistic calculation of actual profits and losses.

Criticism and suggestions for alternatives

Mr Tran Khanh Quang has criticized the 2% tax as inappropriate during weak market periods, while Mr Nguyen Tan Phong has supported the introduction of profit-based taxation and suggested offering both options in parallel. Dr. TRAN QUANG THANG warns about the possible negative impact of high tax rates on the market and also the likelihood of tax evasion.

In addition, other tax options such as progressive taxation or taxation based on the number of properties held were considered. These could contribute to the current discussion as possible alternatives and promote the desired fairness in the real estate sector.

For more in-depth information on this topic refer to Springer to further literature and analysis.

A more comprehensive picture of the situation can also be seen in the reports from Vietnam.vn, who place the topics of tax transparency and market stability at the center of their analyses.