The fee for converting agricultural land to residential land from January 1, 2026
The National Assembly has passed a Resolution stipulating a number of mechanisms and policies to remove difficulties and obstacles in the organization of the implementation of the Land Law, which stipulates the level of land use fees when converting agricultural land to residential land. This Resolution takes effect from January 1, 2026.
Regarding exemption and reduction of land use fees and land rent, the Resolution clearly states: In case of exemption from land use fees and land rent, there is no need to determine land prices, calculate money and no need to carry out procedures to request exemption (except for cases of exemption according to the deadline). In case of annual land rent reduction according to the Government's regulations, there is no need to carry out procedures to request reduction.
When changing the land use purpose, people must pay land use fees and land rent once for the remaining time, calculated according to the difference between the type of land after and before changing the purpose.
For garden land, pond land or agricultural land in the same plot with residential land identified when recognizing land use rights and changing land use purpose to residential land, land use fees are calculated according to the collection level:
- 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 for the land area changing land use purpose within the residential land allocation limit in the locality;
- 50% difference from the portion exceeding the limit but not exceeding 1 time the residential land allocation limit in the locality;
- 100% difference with the portion exceeding the above level.
(This collection level is only calculated once for a household or individual on a land plot).
Limit for receiving agricultural land use rights transfer from individuals
Limits for receiving agricultural land use rights transfer from individuals according to Article 177 of the 2024 Land Law are as follows:
- The limit for receiving the transfer of agricultural land use rights of individuals is no more than 15 times the limit for allocating agricultural land of individuals for each type of land specified in Clauses 1, 2 and 3, Article 176 of the 2024 Land Law.
- The determination of the limit for receiving the transfer of agricultural land use rights specified in Clause 1, Article 177 of the 2024 Land Law must be based on the following factors:
+ Conditions on land and production technology;
+ Labor force transfer, economic structure; urbanization process.
- Provincial People's Committees, based on the provisions of Clauses 1 and 2, Article 177 of the 2024 Land Law, stipulate the limit for receiving the transfer of agricultural land use rights of individuals in accordance with the specific conditions of the locality.
