Answering about paying personal income tax when selling inherited apartments

Reader N.V (Hanoi) asked: After inheriting an apartment from a relative, because there is no need to use it, they want to transfer it. This person wonders whether the money collected from selling the apartment must pay personal income tax or not?

Lawyer Trinh Van Dung (Hanoi Bar Association) answers: According to Law No. 109/2025/QH15 on Personal Income Tax, amended and supplemented by Law No. 09/2026/QH16, there are two cases that need to be distinguished.

First of all, it is necessary to distinguish between inheritance transactions and apartment transfer transactions after inheritance. These are two independent legal relations and being tax-exempt in the first transaction does not mean being tax-exempt in the second transaction.

In case of personal income tax exemption, according to regulations, the heir to the apartment may be exempt from personal income tax in certain cases.

First, inheritance is carried out between relatives who are eligible for tax exemption according to the provisions of law, including: husband and wife; biological parents with biological children; adoptive parents with adopted children; father-in-law, mother-in-law with daughter-in-law; father-in-law, mother-in-law with son-in-law; paternal grandparents with paternal grandchildren; maternal grandparents with maternal grandchildren; siblings with each other.

Second, after receiving inheritance, if the owner transfers the apartment and this is their only house in Vietnam, and fully meets the tax exemption conditions according to the provisions of law, the income arising from the sale of the apartment is also exempt from personal income tax.

In case of having to pay personal income tax, if the transfer does not meet the above-mentioned tax exemption conditions, the money collected from the sale of the apartment will be subject to personal income tax.

The Personal Income Tax Law defines income from real estate transfer as one of the taxable incomes. This includes income from land use rights transfer; transfer of houses and assets attached to land; transfer of land lease rights, water surface lease rights and other income arising from real estate transfer in any form.

In addition, Article 11 of Decree 253/2026/ND-CP dated June 30, 2026 continues to clarify the scope of income from real estate transfers subject to tax.

According to this regulation, transactions subject to tax include transfer of land use rights; transfer of land use rights and assets attached to land such as houses, construction works, including assets formed in the future; transfer of ownership or land use rights of houses; transfer of land lease rights, water surface lease rights and other income arising from real estate transfer, including cases of capital contribution in real estate to establish or increase enterprise capital.

In fact, many people often confuse being exempt from tax when receiving inheritance with being exempt from tax when selling inherited assets.

These are two completely different transactions, and inheritance may be tax-exempt if it belongs to a group of close relationships prescribed by law.

However, when the heir transfers the apartment to another person, the tax authority will consider whether the transfer transaction meets the tax exemption conditions or not, especially the conditions for a single house and related legal requirements.

Therefore, before signing a contract to transfer inherited apartments, people should carefully review legal documents and tax exemption conditions to avoid being subject to tax arrears, late payment penalties or administrative penalties for tax violations.

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