Rules for Applying Vietnamese Inheritance Law to Foreigners' Estates

With globalization, people and assets increasingly move across borders, making inheritance with foreign elements a complex legal field prone to disputes. When a foreigner dies in Vietnam, a key question arises: which legal system applies to their estate—Vietnamese law or the law of their nationality? The Civil Code 2015, along with international treaties to which Vietnam is a party, establishes fundamental principles to clearly define the scope of regulation, ensure transparency and consistency, and limit conflicts of law. This article analyzes the rules for applying law to the inheritance of estates of foreigners who die in Vietnam, particularly the distinction between movables and immovables, clarifying both the legal basis and practical application.

1. General Principles on Choosing Applicable Law in Inheritance with Foreign Elements
The settlement of a foreigner’s estate in Vietnam is governed mainly by the Civil Code 2015, along with relevant legal documents and international treaties to which Vietnam is a party. The central issue is not the nationality of the heir, but the nationality of the deceased and the type of property (movables or immovables). The principle of determining applicable law rests on two basic points:

• For movables: the estate division is determined by the law of the country of which the deceased was a national immediately before death.
• For immovables: the estate division complies with the law of the country where the property is located. Foreigners’ ownership rights over immovable property are restricted. Foreigners are not granted Certificates of Land Use Rights but can own houses and assets attached to land in Vietnam. For land assets, foreigners can receive the value of the inherited estate through transfer, donation, or sale.

These provisions aim to ensure transparency, consistency, and fairness in resolving cross-border inheritance relations while limiting conflicts of law between different legal systems. relations, while limiting conflicts of law between different legal systems.

2. Applying the Law of Nationality to Movables
Under Clause 1, Article 680 of the Civil Code 2015, movable estates (money, vehicles, shares, movable objects, etc.)—even if located in Vietnam—are divided according to the law of the country of which the deceased was a national immediately before death. When a foreigner dies in Vietnam and leaves movables, Vietnamese law does not apply; instead, the law of their nationality governs the estate division.

If the law of the deceased’s nationality contains provisions contrary to the fundamental principles of Vietnamese law (for example, gender discrimination in inheritance), the Vietnamese court may refuse to apply those provisions to preserve public order.

In disputes resolved in Vietnam, the competent Vietnamese authority has jurisdiction, but when determining division rules, it will refer to and apply the law of the deceased’s nationality.

3. Applying the Law of the Location of Immovable Property
Unlike movables, immovable estates (land, buildings attached to land, or assets attached to immovable property in Vietnam) are subject only to Vietnamese law. This principle is stipulated in Clause 2, Article 680 of the Civil Code 2015 and Article 470 of the Civil Procedure Code 2015, consistent with international practice. All disputes and procedures for dividing immovable estates in Vietnam are resolved by Vietnamese courts, notaries, or competent state authorities, regardless of the nationality of the deceased or heirs.

For immovable property abroad, estate division is determined by the law of the host country. Vietnam can only assist in verifying and certifying documents or recognizing foreign court decisions based on international treaties or the principle of reciprocity.

4. Applying International Treaties in Inheritance
When Vietnam and the country of the deceased or heirs have signed bilateral or multilateral international treaties on civil matters and mutual legal assistance, the provisions of the international treaty take priority. If the international treaty contains provisions different from Vietnamese law, international law is implemented instead of domestic law. This reflects the principle of prioritizing international legal rules to which member states have committed.

For example, mutual legal assistance agreements between Vietnam and countries such as France, Russia, the Czech Republic, Belarus, Mongolia, Poland, and Hungary all emphasize:

• For movables: inheritance matters are governed by the law of the country of which the deceased was a citizen at the time of death.
• For immovables: inheritance rights and obligations are governed by the law of the country where the immovable property is located. The classification of movables and immovables is determined by the law of the country where the estate is located.
• Wills may be recognized if they comply with one of the legal systems (nationality, place of making the will, place where the property is located) according to the international treaty provisions.

5. Inheritance of Persons with Dual Nationality
The Civil Code 2015 and guiding documents do not provide detailed regulations on persons with dual nationality, but the general principle is to determine the nationality with the most practical effect at the time of death. Vietnamese law only recognizes Vietnamese nationality in relations with Vietnamese state authorities, except where international treaties provide otherwise.

When no basis exists to determine which nationality is dominant, priority is given to the place of habitual residence, long-term residence, or the nationality most closely connected legally and practically with the deceased.

6. Inheritance of Stateless Persons
For stateless persons, the applicable law is determined by the law of the country where the person habitually resided when the inheritance relationship arose. If the place of residence cannot be determined, the law of the country with the closest connection applies.

7. Principles on the Form of Wills with Foreign Elements
7.1 Determining the Law Governing the Form
Clause 2, Article 681 of the Civil Code 2015 stipulates that the form of a will with foreign elements is determined by the law of the country where the will is made. Additionally, the form is recognized in Vietnam if it complies with the law of one of the following countries:

• The country where the testator resided at the time of making the will or at the time of death;
• The country of which the testator was a national at the time of making the will or at the time of death;
• The country where the immovable property is located if the estate is immovable property.

7.2 Legal Validity and Notarization
For wills made abroad to be recognized and valid in Vietnam, two mandatory conditions must be met:

• The will is legally valid in form according to one of the points listed above;
• The will does not contravene the fundamental principles of Vietnamese law.

For Vietnamese citizens making wills abroad, such wills are considered valid if certified by Vietnamese diplomatic or consular authorities in the host country, or if the will complies with the law of the country where the will was made, the place of residence or last residence, or the place where the property is located.

All wills and documents made abroad used in inheritance settlement in Vietnam (notarization, declaration of inheritance, litigation, etc.) must be legalized by consular authorities and translated into Vietnamese according to regulations to ensure legal validity.nslated into Vietnamese in accordance with regulations to ensure legal validity.

8. Practical Difficulties in Inheritance of Foreigners’ Estates

• Conflicts of law between Vietnam and foreign countries regarding the order of heirs, conditions of lawful heirs, and validity of wills.
• Changes in nationality, residence, or connections make it difficult to determine applicable law.
• Administrative barriers in consular legalization and verification of foreign documents.
• Restrictions on land and immovable property ownership for foreigners and stateless persons, leading to the right to receive only value rather than being registered as owners.
• Prolonged inheritance disputes when many co-heirs are in multiple countries, while standards for determining property, order of heirs, and even concepts of marriage, adoption, or illegitimate children differ between countries.

9. Summary of Principles on Applying Law in Handling the Estate of Foreigners Who Die in Vietnam

• If the estate is immovable property in Vietnam: Vietnamese law is fully applied to divide the inheritance, regardless of the nationality of the deceased or heirs.
• If the estate is movables: division follows the law of the country of which the deceased was a national immediately before death.
• If an international treaty (bilateral or multilateral) with different provisions exists, the international treaty takes priority.
• When the deceased had multiple nationalities, the most effective nationality at the time of death is chosen to apply the law. For stateless persons, the law of the country of habitual residence applies.
• All issues regarding the form of wills with foreign elements are resolved flexibly: a will is valid in form if it complies with the law of one of the countries of nationality, residence, place of making the will, or place where the property is located.
• Jurisdiction to resolve inheritance of immovable property in Vietnam belongs to the court or competent authority at the location of the immovable property and cannot be transferred to foreign courts.
• Documents, wills, and records made abroad that are to be effective in Vietnam must be legalized by consular authorities and translated according to current regulations.
• When foreign law is applied but contains provisions contrary to the fundamental principles of Vietnamese law, it will not be recognized in Vietnam.

Harley Miller Law Firm provides professional services in drafting, reviewing testaments and resolving inheritance disputes, ensuring that the testator’s wishes are clearly expressed while effectively preventing and handling potential conflicts. With a team of highly experienced lawyers in civil and inheritance law, we are committed to delivering comprehensive legal solutions in compliance with Vietnamese law and international practices.

Our services include:

• Testament drafting and review: Advising on the appropriate form of testament (notarized, certified, or with witnesses), drafting clear and legally sound content, and minimizing risks of invalidity.
• Consultation and dispute prevention: Anticipating potential conflicts (heirs refusing inheritance, debt obligations, division of joint and separate property) and providing preventive solutions.
• Inheritance dispute resolution: Representing clients in negotiations, mediation, or litigation before the Court to protect their legitimate rights and interests.
• Estate management and distribution: Assisting with procedures for estate declaration, division, and determination of heirs’ rights and obligations.
• Testament storage and preservation: Advising on safe storage of the original testament, preparing certified copies, or depositing it with a notarial practice organization to ensure legal security.

Contact us for consultation and to receive free testament templates, guidance on notarization/certification procedures, and effective solutions for preventing and resolving inheritance disputes.

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