1. Conditions for converting agricultural land to residential land
According to Clause 5, Article 116 of the 2024 Land Law, households and individuals are allowed to convert the purpose of using agricultural land in residential areas, agricultural land in the same plot of land with residential land to residential land if it is consistent with the district-level land use planning or general planning or zoning planning according to the provisions of the law on urban planning approved by competent authorities.
Accordingly, district-level land use planning is stipulated in Article 62 of the 2024 Land Law for 10 years (20-year vision). And the district-level land use plan is prepared annually.
However, for rice-growing land and forestry land, the land use purpose can only be converted to another purpose after a Resolution of the Provincial People's Council is issued.
2. How to calculate land use fees
According to Clause 1, Article 8 of Decree 103/2024/ND-CP, when households and individuals are granted a decision by a competent state agency allowing the conversion of land use purposes to residential land, land use fees are calculated as follows:
In which:
- Land use fee of the land type after conversion is calculated as follows:
- Land use fee, land rent of land types before changing land use purpose (hereinafter referred to as land fee before changing land use purpose) is calculated according to the provisions of Clause 2.
- In case the land use fee of the land type after changing the land use purpose is smaller than or equal to the land fee before changing the land use purpose, the land use fee when changing the land use purpose is 0 = 0.
3. Authority to permit conversion of agricultural land to residential land
Pursuant to the provisions of Point m, Clause 1, Article 5 of Decree 151/2025/ND-CP (corrected in Decision 2418/QD-BNNMT in 2025), from July 1, 2025, the authority to permit the conversion of agricultural land use purposes to residential land for individuals under the authority of the People's Committee at the commune level.
4. Procedures for converting land use to residential land
Procedures for converting land use to residential land are stipulated in Article 227 of the 2024 Land Law as follows:
Cases of changing land use purposes must be permitted by competent state agencies and are carried out according to the following procedures:
- Land users submit a dossier requesting to change the land use purpose according to regulations.
- The competent land management agency checks the conditions for changing land use purposes. In case the dossier does not meet the regulations, the land user is instructed to supplement the dossier and submit it to the competent land management agency.
- The competent land management agency is responsible for the following:
+ In case of applying land prices in the land price list to calculate land use fees and land rents, the competent land management agency shall prepare a dossier and submit it to the People's Committee at the competent level to issue a decision allowing the change of land use purpose, land allocation and land lease;
+ In case of determining specific land prices to calculate land use fees and land rents, the competent land management agency shall prepare a dossier and submit it to the People's Committee at the competent level to issue a decision allowing the change of land use purpose, land allocation and land lease; organize the determination of land prices and submit them to the competent authority for approval of land prices for calculating land use fees and land rents.
- Land users pay land use fees and land rents according to the provisions of law; in case of reduction in land use fees and land rents, the land use fee and land rent collection agency shall reduce land use fees and land rents for land users.
- The competent land management agency signs a land lease contract in cases where the State leases land; transfers the dossier to the land registration organization or a branch of the land registration organization to carry out the registration, issue a Certificate of land use rights and ownership of assets attached to land, update and correct the land database, cadastral records and issue a Certificate of land use rights and ownership of assets attached to land to the land user.
- In case of receiving the transfer of land use rights and changing the purpose of land use, the procedure for registering the transfer of land use rights must be carried out at the same time as the procedure for changing the purpose of land use according to regulations.
5. Red book issuance fee, registration fee
- Certificate issuance fee: According to Circular 85/2019/TT-BTC, the fee for granting a Certificate of Land Use Rights will be under the authority of the Provincial People's Council.
- Registration fee: Pursuant to Article 3 of Decree 10/2020/ND-CP, organizations and individuals must pay registration fees when registering home ownership and land use rights. The current registration fee for houses and land is 0.5%.
