From 2026, the land price list system nationwide will enter a new application phase according to the 2024 Land Law. This makes many households who want to convert agricultural land to residential land ask: Will the cost of converting land use purposes from 2026 increase?
The new land price list will be applied from January 1, 2026
According to Point a, Clause 1, Article 159 of the 2024 Land Law, the land price list is the basis for calculating land use fees in cases where the State:
Recognition of residential land use rights of households and individuals;
Allowing the change of land use purpose of households and individuals;
This means that all cases of converting agricultural land to residential land will have to apply the land price list issued by the provincial People's Committee.
Clause 3, Article 159 of the 2024 Land Law and Clause 2, Article 8 of Decree 151/2025/ND-CP stipulate:
The provincial People's Committee must develop and issue a land price list for the first time to be applied from January 1, 2026.
Every year, the provincial People's Committee is required to review, adjust, amend and supplement the land price list to announce and apply from January 1 of the following year.
In special cases, when there are large market fluctuations, the province can adjust the land price list right in the year. With a regular adjustment mechanism, the land price list will be closer to market prices than in previous stages. The land price list directly affects the land use conversion fee.
According to the general trend of the process of building the 2024 Land Law, many localities plan to adjust the land price list closer to market price, especially in the rapid urbanization area.
Thus, the land price list is applied to cases of changing land use purposes of households and individuals; including cases of converting agricultural land to residential land.
Therefore, when building a new land price list, the cost of converting land use purposes from agricultural land to residential land may increase accordingly.
When converting agricultural land to residential land, people need to clearly understand the costs including: land use fees, registration fees, red book issuance fees and file appraisal fees.
Land use fee is calculated according to the formula: Land use fee payable = Land use fee of the land type after transfer - Land use fee/land rent of the land type before transfer (if any).
Land use fee after transfer = Area × Residential land price according to the land price list.
The land fee before transfer is determined depending on the origin of the land: agricultural land allocated without payment is calculated according to the agricultural land price; land rented with annual payment is not required to pay this amount.
The fee for granting red books is determined by each locality, most of which is not more than 100,000 VND/issuance.
Registration fee is calculated: (Land price according to × Area price list) × 0.5%.
The file appraisal fee can be collected or exempted depending on the province/city.
Some cases are exempted from or have reduced land use fees such as poor households, ethnic minorities in disadvantaged areas, or are transferred within the land allocation limit as prescribed.
