What is rice land?
Paddy land is a type of agricultural land used specifically for rice production (including wet rice and dry rice). This type of land plays an important role in ensuring food security, and is strictly protected by Vietnamese law to maintain the area of rice land in the context of urbanization and industrialization.
According to the provisions of Article 10 of the 2013 Land Law (still applicable in the provisions of the 2024 Land Law), rice-growing land includes: wet rice land and upland rice land.
- Wetland rice land is land used for regular rice cultivation at least once a year. This type of land has good water retention characteristics, usually located in plains and riverside areas.
- Upland rice land is land for rice cultivation that does not depend on direct irrigation water from the irrigation system, often appearing in mountainous areas.
Cost of converting rice land to residential land
- Land use fee: this is the largest fee when converting to residential land. The calculation of land use fee is regulated as follows:
Land use fee = Difference between residential land price and agricultural land price according to the land price list issued by the Provincial People's Committee.
If the area needs to be priced separately (because the land price list cannot be applied), the competent authority will organize the determination of specific land prices to calculate land use fees.
Example: The price of rice land according to the price list is 1 million VND/m2, the price of residential land is 5 million VND/m2. The difference is 4 million VND/m2 - this will be the fee you need to pay for each converted square meter.
- Application appraisal fee: this fee will be paid when submitting the application for land conversion. The fee varies depending on the locality, area and purpose of conversion.
- Registration tax (if any): if after land conversion, land use rights need to be re-registered, the registration fee is 0.5% of the land value (according to the land price at the time of registration).
Some other costs incurred such as measurement and drawing costs; Notary and certification fees; Personal income tax.
Speaking to Lao Dong reporter, lawyer Truong Anh Tu (TAT Law Firm) said: “To convert rice-growing land to residential land, people need to submit an application for land use purpose conversion, land use right certificate, and current status drawing. Land use fee is calculated based on the price difference between rice-growing land and residential land.
For example, the price of rice land is 2 million VND/m² and the price of residential land is 20 million VND/m², the difference is 18 million VND/m².”
In addition, the lawyer also recommended that for land that changes its purpose of use, people should check local land use planning and prepare all required documents to avoid prolonging the processing time.
