In case of land acquisition, no land use fee must be paid
According to Clause 2, Article 121 of the 2024 Land Law, when changing the purpose of land use in cases that must be permitted by a competent state agency, the land user must fulfill financial obligations according to the provisions of law; the land use regime, rights and obligations of the land user are applied according to the type of land after changing the purpose of use.
In addition, Clause 3 of the 2024 Land Law also clearly states that in the case of using land originating from residential land or non-agricultural land with a long-term stable land use term in accordance with the provisions of law and converted to other purposes, but now having a need to convert it to residential land and in accordance with the land use planning, there is no need to pay land use fees.
Thus, according to the above regulations, when converting another land use purpose to residential land, land use fees must be paid.
In particular, in the case of land originating from residential land or non-agricultural land with a long-term stable land use term that has been converted to other purposes but now needs to be converted to residential land and is in accordance with the land use planning, there is no need to pay land use fees.
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 of 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 of 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 in accordance with 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.
