3 regulations that people need to know when converting agricultural land to residential land in 2025

Thạch Lam |

The demand for converting agricultural land to residential land has increased sharply in recent years.

Conditions for converting agricultural land to residential land

According to Clause 5, Article 116 of the 2024 Land Law, households and individuals are allowed to convert the purpose of using agricultural land in residential areas, agricultural land in the same plot of land with residential land to residential land if it is consistent with the district-level land use planning or general planning or zoning planning according to the provisions of the law on urban planning approved by competent authorities.

Accordingly, district-level land use planning is stipulated in Article 62 of the 2024 Land Law for 10 years (20-year vision). And the district-level land use plan is prepared annually.

However, for rice-growing land and forestry land, the land use purpose can only be converted to another purpose after a Resolution of the Provincial People's Council is issued.

According to the above regulations, households and individuals are allowed to convert the purpose of using agricultural land to residential land if it is in accordance with the approved district-level land use planning. As for rice-growing land and forestry land, the land use purpose can only be converted to another purpose after having a Resolution of the Provincial People's Council.

Authority to permit conversion of agricultural land to residential land

According to the provisions of Point m, Clause 1, Article 5 of Decree 151/2025/ND-CP (corrected in Decision 2418/QD-BNNMT in 2025), the authority of the District People's Committee and the Chairman of the District People's Committee is transferred to the Chairman of the Commune People's Committee:

Decision on land allocation, land lease, and permission to change land use purpose for individuals as prescribed in Point a, Clause 2, Article 123 of the Land Law; decision on land allocation for residential communities as prescribed in Point b, Clause 2, Article 123 of the Land Law; decision on agricultural land allocation to individuals as prescribed in Point b, Clause 2, Article 178 of the Land Law.

According to the above regulations, from July 1, 2025, the authority to permit the conversion of agricultural land use to residential land for individuals under the authority of the People's Committee at the commune level.

Procedures for converting land use to residential land

Procedures for converting land use to residential land are stipulated in Article 227 of the 2024 Land Law as follows:

- Land users submit a dossier requesting to change the land use purpose according to regulations.

- The competent land management agency checks the conditions for changing land use purposes. In case the dossier does not meet the regulations, the land user is instructed to supplement the dossier and submit it to the competent land management agency.

- The competent land management agency is responsible for the following:

+ In case of applying land prices in the land price list to calculate land use fees and land rents, the competent land management agency shall prepare a dossier and submit it to the People's Committee at the competent level to issue a decision allowing the change of land use purpose, land allocation and land lease;

+ In case of determining specific land prices to calculate land use fees and land rents, the competent land management agency shall prepare a dossier and submit it to the People's Committee at the competent level to issue a decision allowing the change of land use purpose, land allocation and land lease; organize the determination of land prices and submit them to the competent authority for approval of land prices for calculating land use fees and land rents.

- Land users pay land use fees and land rents according to the provisions of law; in case of reduction in land use fees and land rents, the land use fee and land rent collection agency shall reduce land use fees and land rents for land users.

- The competent land management agency signs a land lease contract in cases where the State leases land; transfers the dossier to the land registration organization or a branch of the land registration organization to carry out the registration, issue a Certificate of land use rights and ownership of assets attached to land, update and correct the land database, cadastral records and issue a Certificate of land use rights and ownership of assets attached to land to the land user.

- In case of receiving the transfer of land use rights and changing the purpose of land use, the procedure for registering the transfer of land use rights must be carried out at the same time as the procedure for changing the purpose of land use according to regulations.

Thạch Lam
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