How many villas does an individual need to sell to be required to establish a business?

"Organizations and individuals engaging in real estate business must establish an enterprise in accordance with the law on enterprises or establish a cooperative or union of cooperatives in accordance with the law on cooperatives, with real estate business as a registered business sector (collectively referred to as real estate business enterprises), except for the cases specified in Clauses 3 and 4 of this Article."

Organizations and individuals engaging in real estate services shall comply with the provisions of Clause 5 of this Article.

Thus, it can be seen that there are two cases where establishing a business entity is not required when engaging in real estate business, including:

Individuals engaged in small-scale real estate business are not required to establish a real estate business enterprise, but they must declare and pay taxes in accordance with the law.

Organizations and individuals selling houses, construction works, or floor areas within construction works not intended for business purposes, or selling, leasing, or lease-purchasing houses, construction works, or floor areas within construction works on a small scale, are not required to comply with the provisions of this Law but must declare and pay taxes as prescribed by law.

In the case of individuals selling or leasing houses, construction works, or floor areas within construction works, notarization and certification must also be carried out in accordance with the provisions of Clause 5, Article 44.

Regulations on small-scale real estate business

The government has just issued Decree No. 96/2024 detailing and guiding the implementation of several articles of the Law on Real Estate Business, effective from August 1st. Article 7 of Decree 96 clearly states the criteria for real estate business on a small scale, not for commercial purposes, and below the small scale level.

Individuals engaged in small-scale real estate business must meet the following requirements:

Firstly, it does not fall under the category of cases requiring the preparation of an investment project according to the law on construction and housing.

Secondly, the transaction value must not exceed 300 billion VND per contract and must not exceed 10 transactions per year. Transactions made only once a year are not counted.

Organizations and individuals selling houses, construction works, or floor areas within construction works not for commercial purposes, or selling, leasing, or renting houses, construction works, or floor areas within construction works on a small scale, including:

Individuals who are not required to prepare investment projects according to the laws on construction and housing.

Organizations that do not fall under the category of having contracts valued at over 300 billion VND per contract and conducting more than 10 transactions per year are not eligible for consideration. Transactions conducted only once a year are not counted towards the value of the contract.