Basis for converting agricultural land to residential land
According to the provisions of Clause 5, Article 116 of the 2024 Land Law amended by Point a, Clause 2, Article 57 of the 2024 Urban and Rural Planning Law, the basis for converting garden land to residential land is as follows:
Article 116. Basis for land allocation, land lease, and permission to change land use purpose
4. In case of deciding and approving the investment policy of the project with periodic progress or land acquisition, compensation, support, and resettlement according to the progress, the competent state agency for land allocation and land lease shall decide on the allocation and land lease according to the progress of the investment project, land acquisition progress, compensation, support, and resettlement.
5. The basis for allowing the conversion of agricultural land use purposes in residential areas, agricultural land in the same residential land plot to residential land or conversion of non-agricultural land types that are not residential land to residential land for households and individuals is district-level land use planning or general planning or sub-area planning according to the provisions of law on urban and rural planning approved by competent authorities.
Thus, the basis for converting agricultural land to residential land is district-level land use planning or general planning or sub-area planning according to the provisions of law on urban and rural planning that has been approved by competent authorities.
Reduced money for converting agricultural land to residential land
According to point c, clause 2, Article 10 of Resolution 254/2025/QH15 (effective from January 1, 2026) stipulating the case of garden land, pond land, agricultural land in the same land plot with residential land that is determined when recognizing land use rights and changing land use purpose to residential land; converting from land originating from garden land, pond land attached to residential land but land users separating it to transfer land use rights or by the measurement unit when measuring and drawing cadastral maps before July 1, 2014, which has self-measured and separated into separate plots into residential land, land use fees are calculated according to the collection level of:
- 30% of the difference between land use fees calculated according to residential land prices and land use fees calculated according to agricultural land prices at the time of the decision allowing land use purpose conversion (hereinafter referred to as the difference) for the area of land converted for use within the residential land allocation limit in the locality
- 50% difference for land area exceeding the limit but not exceeding 1 time the residential land allocation limit in the locality
- 100% difference for land area exceeding the limit but exceeding 1 time the residential land allocation limit in the locality. The above-mentioned land use fee level is only calculated once for one household or individual (calculated per land plot).
Thus, from January 1, 2026, people will only pay 30% of the difference when converting agricultural land to residential land within the limit, instead of 100% as before.
Conditions for converting agricultural land use rights
Based on Article 47 of the 2024 Land Law, the conditions for converting agricultural land use rights are as follows:
Individuals using agricultural land allocated by the State, due to conversion, transfer, inheritance, or donation of legal land use rights from others are only allowed to convert agricultural land use rights within the same provincial administrative unit to other individuals and are not required to pay income tax from land use rights conversion and registration fees.
