Lawyer Nguyen Pho Dung - Director of OPIC and Associates Law Firm, Hanoi Bar Association - advised:
Reasons to get a red book early in 2025
According to Clause 1, Article 257 of the 2024 Land Law, from January 1, 2026, provinces and centrally run cities will issue and apply a new land price list.
After that, the land price list will be adjusted, amended and supplemented annually (updated with land prices to suit the market for areas and types of land with fluctuations) instead of every 5 years as at present to comply with market principles (according to Clause 3, Article 159 of the 2024 Land Law).
This means that the new land price list will be close to the market land price, accordingly, the land price list from January 1, 2026 is likely to increase a lot compared to the current Land Price List.
On the other hand, among the amounts payable when registering for the first issuance of a red book are the amounts calculated according to the land price on the land price list such as:
- Land use fees.
- Land rent (if any).
- Registration fee.
Of which, the land use fee is the largest amount (however, there are some notable cases that do not have to be paid).
When applying the new land price list, land use fees, land rents (if any) and registration fees will all increase accordingly. Therefore, people who need to issue red books (people who need to issue red books for the first time) should complete the issuance of red books before January 1, 2026 because when there is a new land price list, the cost of making a red book may increase significantly compared to present (according to the provisions of the 2024 Land Law).
11 cases of applying the land price list from January 1, 2026
According to Clause 1, Article 159 of the 2024 Land Law, from January 1, 2026, the land price list will be applied when:
- Calculating land use fees when the State recognizes the right to use residential land of households, individuals or land with changed land use purposes
- Calculating land rent when the State leases land and collects annual fees
- Calculating land use tax
- Calculating income tax from transferring land use rights to households and individuals
- Calculating fees in land management and use
- Calculating fines for administrative violations in the land sector
- Calculating compensation for the State when causing damage in land management and use
- Calculating land use fees and land rents when the State recognizes land use rights in the form of land allocation with land use fees collected, land rents with one-time payment for the entire lease term.
- Calculating starting price for auctioning land use rights when the State allocates land or leases land in cases where the land has been invested in technical infrastructure.
- Calculating land use fees in cases of land allocation without auction.
- Calculating land use fees in cases of selling state-owned houses to tenants.
Thus, from January 1, 2026, the land price list will be applied when calculating land use fees, land rents, land use taxes, income tax from land transfer, land management and use fees, fines or compensation for violations or to calculate starting prices when auctioning land use rights.
In comparison, the 2024 Land Law has added additional cases where the land price list can be applied when calculating land rent, calculating starting price when auctioning land use rights...
