Ultime Guide to Expatriation in Vietnam: A top destination in Asia
Last Updated on 6 January 2025
Asia bursts with awesome spots for expats, with popular picks like Indonesia and Thailand. But, there are lesser-known gems that are super cool too! **Vietnam** stands out as a fantastic place to call home.
Advantages of Living in Vietnam
There are many benefits to living in Vietnam: the low cost of living, quality housing, the country’s safety, and more. But one of the most enjoyable aspects is the extreme kindness of the Vietnamese people. You have to visit to understand!
Language and Currency
- Main language: Vietnamese
- Local currency: Dong
Vietnamese Taxation
Key takeaways about Vietnamese taxation:
- Resident tax rules
- Employment and non-employment income
- Tax on employment income
- Tax on non-employment income
- Corporate tax
Resident Tax Rules
To be considered a Vietnamese tax resident, you must:
- Reside in Vietnam for more than 183 days in a calendar year or within 12 months of your arrival.
- Have a permanent residence in Vietnam.
Employment and Non-Employment Income
The Vietnamese tax code distinguishes between two types of income:
- Employment income
- Non-employment income
The definition of taxable employment income is broad, including all cash remuneration and in-kind benefits.
Non-employment income includes (but is not limited to):
- Business income
- Investment income (interest, dividends, etc.)
- Gains from the sale of shares and real estate
Tax on Employment Income
Employment income is taxed according to a progressive tax scale ranging from 0% to 35%.
Tax on Non-Employment Income
Non-employment income is taxed as follows:
- Business income: 0% to 5%*
- Investment income (interest, dividends, etc.): 5%
- Gains from the sale of shares: 0.1% of the sale proceeds
- Gains from the sale of real estate: 2% of the sale proceeds *Depends on the type of business income.
Corporate Tax in Vietnam: 20%
Resident companies in Vietnam are taxed at a rate of 20%. Reduced rates of 10%, 15%, and 17% may apply if certain conditions are met.
Administrative Procedures for Moving to Vietnam
Short-term stay
For short-term stays in Vietnam, you can purchase a tourist visa valid for up to 3 months.
Long-term stay
For long-term stays, there are several types of visas:
- Business visas (DN1, DN2)
- Student/internship visa (DH)
- Investor visas (DT1, DT2, DT3, DT4)
Business visas can be a good solution for remote workers. To obtain these visas, you will need to be sponsored by a company.
Best Cities for Expatriation in Vietnam
Here are the top 3 cities to live in Vietnam:
- Ho Chi Minh City
- Da Nang
- Phu Quoc
Ho Chi Minh City
Living in Ho Chi Minh City offers the perks of a bustling metropolis with nearly 10 million inhabitants. The city is divided into 24 districts, and all the amenities of a large city are available.
The metro is under construction, signaling a constantly evolving city. The best districts are A1/A2/A3/A3/A7/A10. Binh Thanh is another interesting area not included in the 24 districts. Housing is excellent, and the cost of living is quite low, with a monthly average of around €1,100.
Da Nang
Living in Da Nang is a great option, as it’s a coastal city well-known for its stunning beaches. Some even describe it as “Chiang Mai but with a beach.” The cost of living is quite low, with an average monthly expense of around €900, and there’s a thriving community of expats working online.
Phu Quoc
Living in Phu Quoc is paradise if you want to be surrounded by white sandy beaches and palm trees. Whether you plan to stay for a few months or long-term, take the time to explore this beautiful city. The cost of living is incredibly low, with an average monthly expense of just €1,000.
Cost of Living
Compared to Europe, life in Da Nang is about 50 to 75% less expensive. Your expenses will depend on your lifestyle. Some examples of costs include:
- 🏠 City center studio: Between €300 and €650 per month
- 🏨 Hotel night: €20/night
- 🍽️ Basic meal: €3.10/person
- 🍺 Beer (0.5L): €2.25
- 🏢 Coworking: €150/month
- 🌐 Internet subscription: €10/month
Opening a Bank Account in Vietnam
Opening a bank account in Vietnam is a necessity for residents. The two most suitable banks for expats are:
- AZN Bank
- Vietcom Bank
To open a bank account, you must have a resident visa. Tourist visas do not allow you to open a bank account.
As an expat, opening a multi-currency account with TransferWise will be extremely useful for your daily life.
Advantages of TransferWise:
- Free multi-currency account
- Free MasterCard debit card
- No account opening or maintenance fees
- Fast and reliable international transfers
Climate
The climate in Vietnam is tropical, with hot and humid weather and the sun almost always shining. Temperatures rarely drop below 30 degrees Celsius (86 degrees Fahrenheit).
Conclusion
Moving to Vietnam is an excellent option for those looking for a low-cost, culturally rich, and welcoming environment.
With its beautiful cities, friendly people, and tropical climate, it’s no wonder that Vietnam is becoming a popular destination for expats. Explore the country and experience the unique charm that Vietnam has to offer!
FAQs
- Is Vietnam a safe country for expats? Yes, Vietnam is considered a safe country for expats, with low crime rates and a welcoming local population.
- Do I need to speak Vietnamese to live in Vietnam? While knowing Vietnamese can be helpful, many locals in larger cities and tourist areas speak English. Expats can get by with English, but learning some Vietnamese will enrich your experience.
