1. How is agricultural land recovered for residential areas compensated?
In case of agricultural land being recovered to build a residential area, the person whose land is recovered will be compensated and compensated for the following items:
- Land compensation: People whose agricultural land is recovered will be compensated for land if they satisfy the conditions in Article 96 of the 2024 Land Law:
Households and individuals who are using agricultural land when the State reclaims the land, if they meet the conditions for compensation prescribed in Article 95 of the 2024 Land Law, will be compensated in agricultural land or in money or in land with a different purpose than the type of reclaimed land or in housing.
Households and individuals who are using agricultural land when the State reclaims the land shall be compensated for agricultural land as follows:
+ The area of agricultural land to be compensated includes the area within the limit prescribed in Articles 176 and 177 of the 2024 Land Law and the area of land received by inheritance.
+ For agricultural land areas due to receiving land use rights transfer exceeding the limit before July 1, 2014, compensation and support shall be implemented in accordance with Government regulations.
For agricultural land used before July 1, 2004, where the land users are households or individuals directly engaged in agricultural production but do not meet the conditions for being granted a Certificate of land use rights and ownership of assets attached to land as prescribed in this Law, compensation shall be implemented in accordance with Government regulations.
- Compensation for remaining investment costs in land: Compensation for remaining investment costs in land is carried out when the person whose land is recovered has documents and papers proving the investment in the land.
In case there are no more documents or papers proving the investment costs in the remaining land, the user whose agricultural land is recovered will be compensated according to the regulations of the People's Committee at the provincial level where the land is located.
- Compensation for crops and livestock on land: The condition for compensation for crops and livestock on land is that the crops and livestock must be legally created on the land and suffered damage during the land recovery process.
2. How to calculate the compensation price for agricultural land when reclaiming land?
According to Point e, Clause 1, Article 160 of the 2024 Land Law, specific land prices are applied in the case of calculating compensation when the State reclaims land.
At the same time, according to Article 30 of Decree 71/2024/ND-CP, specific land valuation must be implemented in accordance with the provisions of Article 158 of the 2024 Land Law and Articles 4, 5, 6, 7 of Decree 71/2024/ND-CP; results of synthesizing and analyzing information on market land prices; factors affecting land prices.
Specific land prices are determined according to each land use purpose, land area is determined in land allocation, land lease, land use right recognition records, permission to change land use purpose, extend land use, adjust land use term, adjust detailed planning, allow change of land use form, equitization of state-owned enterprises, land use right auction plan, land recovery notice, investigation, survey, measurement, and counting results.
Thus, Clause 5, Article 7 of Decree 71/2024/ND-CP, specific land prices are determined by the land price adjustment coefficient method applied to the case of calculating compensation for land when the State reclaims it, which is calculated as follows:
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 once a year to match the market land price.
- 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.
