In an interview with Lao Dong Newspaper, Lawyer Nguyen Pho Dung - Director of OPIC Law Firm and Associates, Hanoi Bar Association - advised as follows:
Bases for converting agricultural land to residential land
Clause 5, Article 116 of the 2024 Land Law stipulates the basis for allowing the conversion of agricultural land use purposes in residential areas, agricultural land in the same plot of land with residential land or the conversion of non-agricultural land use purposes other than residential land to residential land for households and individuals.
The regulation is based on district-level land use planning or general planning or zoning planning according to the provisions of law on urban planning approved by competent authorities.
Cost of converting agricultural land to residential land in 2025
* Land use fee
According to Clauses 1 and 2, Article 8 of Decree 103/2024/ND-CP, when households and individuals are issued 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 as follows:
+ For land before changing the purpose, which is agricultural land of households and individuals allocated by the State without collecting land use fees or agricultural land of legal origin transferred by another household or individual that has been allocated land by the State without collecting land use fees:
Land fee before changing land use purpose is calculated = land area x land price of the corresponding agricultural land type in the land price list.
+ For land before changing the purpose which is agricultural land leased by the State with one-time land rent payment for the entire lease term, the land fee before changing the land use purpose is calculated as follows:
* Certificate issuance fee
According to Circular 85/2019/TT-BTC, the fee for granting land use right certificates will be under the authority of the Provincial People's Council.
Fees for granting certificates of land use rights, house ownership rights, and assets attached to land include: granting certificates of land use rights, house ownership rights, and assets attached to land; land change registration certificates; cadastral map extracts; documents; cadastral records data.
Based on specific local conditions and local socio-economic development policies to stipulate appropriate fee collection levels, ensuring the principle: the fee for households and individuals in districts under centrally-run cities, inner-city wards under cities or provincial towns is higher than the fee in other areas; the fee for organizations is higher than the fee for households and individuals.
Thus, the certificate issuance fee will be decided by the People's Councils of provinces and centrally run cities to apply to their localities, so there will be no uniformity across the country. However, the fee will usually be from 100,000 VND or less for each newly issued red book.
* 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%.
* Photo appraisal fee
The appraisal fee is determined by the People's Councils of provinces and cities:
Circular 85/2019/TT-BTC stipulates the fee for appraisal of documents when transferring real estate under the authority of the People's Council at the provincial level (province, centrally run city), so the collection rate between provinces and cities will be different.
