Can a foreigner own or run a homestay or guesthouse in Vietnam?

HostBooking · Updated Nov 2, 2026 · 9 min read

Yes, a foreigner can run a homestay or guesthouse in Vietnam legally, but usually not in their own name as a private person. The usual route is a foreign-invested company that leases a building and holds the accommodation licences. Foreigners cannot hold land use rights, may own apartments only within limits, and cannot work on a tourist visa.

This is general information as of November 2026, not legal advice. Vietnamese rules change often and local practice varies. Confirm your plan with a Vietnamese lawyer and the local authorities before you sign a lease or transfer money.

What can a foreigner own in Vietnam?

Land in Vietnam belongs to the people, with the State as its representative; what people hold is a land use right. Under the Land Law 2024 (31/2024/QH15), a foreign individual who is not of Vietnamese origin cannot hold land use rights in their own name. Buying a plot of land or a village house to turn into a guesthouse is therefore not open to you as an individual.

Housing is different. The Housing Law 2023 (27/2023/QH15), in force since 1 August 2024, lets foreign individuals who are allowed to enter Vietnam own homes in commercial housing projects, outside areas reserved for defence and security:

• At most 30% of the apartments in one building.
• At most 250 villas or townhouses in an area with the population of about one ward.
• Ownership lasts up to 50 years from the date the certificate is issued, and can be extended once, for up to 50 more years.
• A foreign owner may lease the home out for lawful purposes, after notifying the housing authority and paying tax on the rent.

So a foreigner can buy an apartment and rent it out long term. Running a short-stay homestay in that apartment is another matter (see the pitfalls below).

The realistic ways to run a homestay or guesthouse

1. A foreign-invested company (FDI)

This is the structure lawyers usually recommend for a foreigner who wants to own and control the business. Under the Investment Law 2025 (143/2025/QH15), in force since 1 March 2026, a project of a foreign investor normally needs an investment registration certificate, and the company itself needs an enterprise registration certificate. Outside industrial and economic zones, the investment certificate is issued by the provincial Department of Finance. The company then leases a building, registers the accommodation business line (usually short-term accommodation, code 5510) and applies for the operating licences in its own name.

Accommodation is a conditional business line, and foreign investors can face extra market access conditions. Budget for legal fees, a registered office, accounting and annual reports. A company also needs a bank account for its direct investment capital, through which the capital you bring in must pass.

2. A Vietnamese spouse or partner as household business owner

Many small homestays run as a household business (hộ kinh doanh). Only a Vietnamese citizen can register one; a foreigner cannot be the owner. In practice, many couples register the business in the Vietnamese spouse’s name. It is cheaper and faster, with lighter accounting and the simplified household tax regime.

The risks are real. Legally, the business, the licences, the lease and often the bank account belong to the Vietnamese person. The foreign partner has no ownership rights in the business if the relationship ends, if there is a dispute with family, or if the Vietnamese owner dies. If the foreigner works in the business day to day, they still need the right visa and work authorisation. Put any money you contribute in writing, and get advice on marital property before you invest.

3. Leasing a property and operating it

Whichever entity you use, leasing is usually more realistic than buying. Check that the landlord holds the land use and house ownership certificate, that the lease allows commercial accommodation use, and that the building can meet fire safety rules. A long, registered lease with a clear right to renovate and sublet rooms protects your investment better than a handshake deal with a relative.

Licences and conditions for accommodation

• Business registration: the company or household business must list accommodation as a business line.
• Security and order certificate: accommodation is a business line with security and order conditions, so you need a certificate of eligibility from the police before you open. These rules were amended in 2026; ask the commune or ward police what they currently require.
• Fire safety: since 1 July 2025 the Law on Fire Prevention, Fighting and Rescue (55/2024/QH15) applies. Requirements depend on the size and type of building. Expect extinguishers, alarms, emergency lighting and escape routes, and a fire safety inspection for larger buildings.
• Tourism accommodation: under the Tourism Law 2017 (09/2017/QH14), a homestay is a type of tourism accommodation ("house with rooms for tourists to rent"). Decree 168/2017/NĐ-CP asks you to notify the provincial tourism authority in writing at least 15 days before opening. Star classification is voluntary, and the star system covers hotels, villas, serviced apartments and boats, not homestays.

Registering guests with the police, including foreigners

Every overnight guest must be reported to the police. For Vietnamese guests, this is the stay notice (form CT14); see the stay notice guide.

For foreign guests, Circular 87/2026/TT-BCA (in force since 24 July 2026) sets the method. You get an account on the electronic temporary residence declaration system and declare each guest right after they arrive, with name, gender, date of birth, nationality, passport number, visa or residence document and expected stay. The fallback is the paper form NA17, delivered to the commune police within 12 hours (24 hours in remote areas). Always check the passport before you let a foreign guest stay.

Taxes, at a high level

A household business follows the household tax rules, which changed in 2026: no presumptive tax, and no VAT or personal income tax up to VND 500 million of revenue a year. See homestay tax in 2026. A company pays corporate income tax and VAT, files returns and keeps proper books, so you will need an accountant. A foreign owner renting out their own home also pays tax on the rent.

Banking and taking deposits

Open a VND business account in the name of the company or household business, not a personal account. Vietnamese guests usually pay by bank transfer, usually by scanning a VietQR code. Make a deposit QR code with the amount and booking code filled in using the free deposit QR tool, or read how QR deposits work.

Selling on OTAs versus direct

Airbnb, Booking.com and Agoda bring foreign guests quickly, but take a commission on every booking. Vietnamese guests often book directly through Facebook, Zalo or your own website. Most guesthouses do both: OTAs for reach, direct bookings for margin. To avoid double bookings, sync the calendars. See how to rely less on Booking and Agoda.

HostBooking works in English as well as Vietnamese. It gives you a bilingual booking website, VietQR deposits paid straight into your own account, calendar sync with OTAs and a guest list export for the police registration, with a monthly plan and no commission on bookings. It does not register a business for you or file anything with the police.

Common pitfalls

• Short-term rentals in apartment buildings. The Housing Law 2023 bans using an apartment for purposes other than living in it, and many buildings in Ho Chi Minh City and Hanoi ban stays by the night or hour. Listing an apartment on Airbnb without licences risks fines and disputes with the building.
• Working on a tourist visa. Foreigners must act within the purpose of their visa. A tourist visa does not allow you to run or work in a business. You need a work permit (or a confirmed exemption) with a matching visa or temporary residence card, or an investor visa (ĐT1–ĐT4, by capital invested) if you are the investor. Work permits are governed by Decree 219/2025/NĐ-CP.
• Buying land through a nominee. Putting land or a house in a Vietnamese friend’s name to get around ownership limits leaves you with no enforceable rights.
• Skipping guest registration. Fines for missing stay notices grow with the number of guests not declared, and the declaration is your record if a guest causes trouble.
• Assuming a Facebook page is a licence. Without registration, the security certificate and fire safety compliance, the business is unlicensed, however long it has operated.