How to determine the compensation amount when land is recovered?
Determine the compensation for land that the person whose land is recovered will receive according to the provisions of Decree 88/2024/ND-CP. Subtract the land use fee and land rent payable as when the land use right certificate was granted at the time of approving the compensation, support and resettlement plan.
The division of compensation and support when the State reclaims land is carried out according to the agreement of the co-owners, in compliance with the provisions of the law on civil matters.
In case the recovered land or property is in dispute and has not been resolved, the compensation and support will be sent to the deposit account of the unit or organization performing the task of compensation, support and resettlement.
Account opening at a commercial bank with a controlling stake held by the State at an interest rate of no term.
After the competent state agency has resolved the issue, it will return it to the rightful person using the land and the owner of the property (Clauses 3, 4 and 5, Article 25 of Decree 88/2024/ND-CP).
How to calculate compensation when reclaiming land
According to Clause 6, Article 158 of the 2024 Land Law, the land price adjustment coefficient method is used to specifically calculate compensation when the State reclaims land in the following cases:
- Reclaiming many adjacent plots of land,
- For the same purpose of use;
- Land prices have been specified in the land price list without meeting the conditions for applying the comparison method.
Point e, Clause 1, Article 160 of the 2024 Land Law, Clause 5, Article 7 of Decree 71/2024/ND-CP stipulates:
- Specific land prices are determined by the land price adjustment coefficient method applied to the case of calculating land compensation when the State reclaims land and is calculated as follows:
The value of the land plot to be valued (1m2) = land price in the land price list x land price adjustment coefficient (coefficient K)
In which:
- Land prices in the land price list developed by the provincial People's Committee, submitted to the People's Council of the same level for the first decision on the land price list for promulgation and application from January 1, 2026.
Accordingly, each locality will decide on the land price list and adjust the price list every year/1 time to match the market land price (instead of every 5 years and based on the minimum and maximum land price issued by the Government as at present).
- The land price adjustment coefficient is determined according to each type of land, land location, area by taking the market land price divided by the land price in the land price list at that land location, area.
