September 21, 2026

Property Investment in Da Nang: What Foreign Condo Owners Really Earn

The brochure says 8%. The spreadsheet, once you add management fees, building charges, vacancy and tax, says something closer to 3%. That gap decides whether a Da Nang condo is a good buy or a disappointing one, and it's the reason property investment in Da Nang is a sound long-term play for foreigners, just not the double-digit machine some sales offices describe.

Key Takeaways

Gross yields on Da Nang condos typically run 3.2-4.2% a year, with a city average near 3.8% as of 2026. Net returns after fees, vacancy and tax land closer to 2.5-3.5%.

Foreigners can own units in licensed projects up to the 30% per-building quota, on a 50-year term that can be renewed once.

Rental income is taxed at an effective 10% of gross (5% VAT plus 5% personal income tax) once you pass the annual threshold, and there are no expense deductions.

Location and management style move your return more than the purchase price does.

What Property Investment in Da Nang Actually Pays

Property investment in Da Nang pays a gross yield of roughly 3.2-4.2% a year on condos in prime areas, with the city average around 3.8% in 2026. Once you subtract management, building fees, vacancy and tax, most owners keep 2.5-3.5%.

You will see bigger numbers. Some market pages quote 6-8% for apartments, and those figures often trace back to older data or best-case listings. The lower range is the one we'd plan around. The upside is capital growth: prices in the beachside districts have climbed for several years, and that appreciation is where the rest of your return comes from. If you're still working out whether you can hold a unit at all, start with our guide on how a foreigner buys an apartment in Da Nang and the current stock of Da Nang apartments for sale to foreign buyers.

A worked example

A studio priced around VND 2.2 billion (about US$85,000) that earns a 3.8% gross yield brings in roughly VND 84 million a year, or 7 million a month. Take off 10-15% for a long-term property manager, add building service charges and a month or two of vacancy, and you keep something like 2.5-3.2% of the purchase price. That is a modest income on top of an appreciating asset, not a replacement salary.

Long-Term vs Short-Term: Which Earns More?

Short-term lets earn more per month but keep less of it. Nightly rates on a Son Tra studio run about VND 988,000, yet professional operators typically charge 20-25% of revenue, against 10-15% for long-term leases. Add the seasonal dip, and the gap narrows fast.

Occupancy is the honest variable. According to CVR's 2025 Da Nang yield analysis, Airbnb occupancy in the city was 61% between June 2024 and May 2025, and average host earnings were about VND 229 million (roughly US$9,000) for the year. A 61% occupancy means your unit sits empty for nearly four months of every year.

A common approach is to split the year: a long-term tenant for the slow May-September stretch, then tourist bookings from December to February when the weather is best and Korean and domestic visitors pack the coast. That needs a manager who will handle the turnover, and it's worth checking whether your building even permits short stays before you plan around it. Condotels operate under different rules, which we cover in our piece on condotel ownership for foreigners.

What Costs Eat Into Your Property Investment Returns in Da Nang

Property investment in Da Nang: foreign owner reviewing condo income and costs with a sea view apartment

Four costs take most of your gross income: property management, building fees, vacancy, and tax. Together they usually consume 30-40% of gross yield, which is why a 3.8% gross figure becomes roughly 2.5-3.2% net.

**Management:** 10-15% of rent for long-term leases, 20-25% for short-term.

**Vacancy:** plan on one to two empty months a year, more in the low season.

**Building fees:** monthly service charges are paid whether or not anyone lives there. See [what foreign owners actually pay each month in condo management fees](/blog/condo-management-fees-in-da-nang-what-foreign).

**Tax:** an effective 10% of gross rent (5% VAT plus 5% personal income tax), with no deduction for expenses, depreciation or interest.

**Furnishing:** a one-time budget of roughly US$8,000-15,000 for a two-bedroom to reach a lettable standard.

On tax, the long-standing rule exempts owners whose rental revenue stays under VND 100 million a year (about US$4,000). A revised personal income tax law effective 1 July 2026 is reported to lift that threshold to VND 500 million, so check the current figure with a local accountant before you file. Non-resident owners generally authorize their manager or accountant to do the filing.

The up-front costs matter too, because they reset the starting line of your return. Our breakdown of the total cost of buying a condo in Da Nang as a foreigner covers VAT, registration and the maintenance fund.

Where Property Investment in Da Nang Yields Best

City-center Hai Chau and the suburbs tend to yield the most, around 4-5% gross, while beach areas yield 3-4% but carry stronger appreciation and tourist demand. Pick the area that matches how you plan to hold.

**Hai Chau (city center):** 4-5% gross, steady professional tenants. Browse [apartments in Hai Chau](/districts/hai-chau).

**Ngu Hanh Son (My An, My Khe):** 3.5-5% gross with year-round expat and tourist demand. See [apartments in Ngu Hanh Son](/districts/ngu-hanh-son).

**Son Tra (Man Thai):** 3-4% gross, more seasonal, but the strongest nightly rates. See [apartments in Son Tra](/districts/son-tra).

Our guide to the best areas to buy property in Da Nang goes deeper on prices per square meter.

Frequently Asked Questions

What is a good rental yield in Da Nang?

A good gross rental yield in Da Nang is 4% or higher, since the city average for condos sits near 3.8% as of 2026. After management fees, vacancy and tax, a net return of 3-3.5% is solid. Anything advertised at 8% or above deserves scrutiny of the assumptions behind it.

Can foreigners legally earn rental income from a Da Nang condo?

Yes. Foreigners who own a condo in a licensed project in Vietnam can lease it out and keep the income, on a 50-year ownership term renewable once. Owners pay the same rental tax as Vietnamese landlords: an effective 10% of gross once annual income passes the exemption threshold.

Is short-term or long-term letting better for a Da Nang investment condo?

Long-term leases usually give steadier net income, while short-term letting can gross more in high season. Airbnb occupancy in Da Nang averaged 61% between June 2024 and May 2025, and short-term managers charge 20-25% against 10-15% for long-term. Many owners combine both across the year.

How much tax do foreign owners pay on Da Nang rental income?

Foreign owners pay an effective 10% of gross rental income, made up of 5% VAT and 5% personal income tax, with no expense deductions. Income below the annual threshold (VND 100 million under the long-standing rule) is exempt, and a 2026 law change may raise it, so confirm with an accountant.

Da Nang rewards owners who buy for the ten-year view, hold in a building with solid management, and budget the net figure rather than the brochure figure. If you'd like us to run the numbers on a specific unit before you commit, message us and we'll do it with the real building fees included.