Reducing land use fees for households and individuals when changing land use purposes
To institutionalize Resolution No. 254/2025/QH15, the Government has issued Decree No. 50/2026/ND-CP dated January 31, 2026, detailing the contents related to land use fees and land rent.
Especially a content with a widespread social impact is the new regulation on calculating land use fees when households and individuals convert land use purposes from garden, pond, and agricultural land to residential land.
According to the 2024 Land Law and Decrees detailing its implementation, when converting land use purposes from agricultural land to residential land, it is required to pay at a rate equal to 100% of the difference between land use fees calculated according to residential land prices and land use fees calculated according to agricultural land prices.
According to the provisions of Resolution 254/2025/QH15 and Decree No. 50/2026/ND-CP, the level of land use fees is determined according to the percentage 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 permission to change purposes. Specifically:
- 30% difference for the area within the residential land allocation limit;
- 50% difference for areas exceeding the limit but not exceeding 1 limit; 100% difference for areas exceeding 1 limit.
This regulation is only applied once to each household and individual on a land plot; land users have the right to choose 1 land plot to enjoy this preferential policy and must commit in the application for land use purpose conversion.
To ensure fairness in the transitional period, cases that have had decisions allowing purpose conversion from August 1, 2024 to before January 1, 2026 are allowed to request recalculation of land use fees according to new regulations.
If money has been paid, people are required to refund the difference or compensate for other financial obligations, provided that the application is submitted no later than January 1, 2027.
Minimize procedures and compliance costs, new law stipulates that land users are eligible for land rent exemption
In addition, in order to minimize procedures and compliance costs, the new law stipulates that land users who are eligible for land rent exemption for the entire lease term do not have to carry out procedures to determine land prices and do not need to prepare dossiers requesting exemption.
For cases of land rent reduction, dossiers are processed according to the inter-agency one-stop mechanism, contributing to shortening time and increasing transparency.
Provincial People's Committees are assigned to proactively regulate administrative procedures on land, including the process of transferring dossiers to determine financial obligations on land, based on a number of principles stipulated in Decree No. 49/2026/ND-CP, Decree No. 50/2026/ND-CP of the Government.
