Answer
Question: We, a foreign investor, are going to lease land from Hanoi People’s Committee. What official expenses do we have to pay for the land lease?
Answer:
For leasing land from Hanoi People’s Committee, you may have to pay the following official expenses:
Fee for evaluation: VND 1,000 per square meter of the leased land but not exceeding VND 5,000,000 (as regulated in Decision 15/2009/QD-UBND dated January 9, 2009 of Hanoi People’s Committee).
Fee for measuring and creating cadastral map of the land: VND 500 per square meter of the leased land (as regulated in Decision 37/2009/QD-UBND dated January 9, 2009 of Hanoi People’s Committee).
Land rent: Land rental rate per year is calculated on the percentage (in the range of 0.5% to 2%) of the land price applicable to the land leasing purpose as promulgated by Hanoi People’s Committee (as regulated in Decision 57/2009/QD-UBND dated March 30, 2009 of Hanoi People’s Committee), particularly:
- If the land is used as premises for manufacture, construction, transportation and public facilities for business, the land rental rate per year will be equal to 0.7% to 1% of the land price;
- If the land is used as premises for commerce, tourism, post office, banking and other purposes, the land rental rate per year will be equal to 1.5% to 2% of the land price or 0.7% to 1% if your land is in Soc Son, My Duc and Ba Vi districts, Dong Xuan commune of Quoc Oai district, Yen Binh, Yen Trung and Tien Xuan communes of Thach That district.
You may choose to pay the land rent annually or in lump sum for the whole leasing period. If you pay a lump-sum rent for the whole leasing period, the land rental rate will be the highest one as defined above. In case you lease land for construction of dwelling houses for sale, you have to pay a lump-sum rent equal to the amount of land use fees payable as if the land is allocated.
Expenses for land compensation and assistance with regard to uncleared land: According to Decree 197/2004/ND-CP dated December 3, 2004 of the Government on compensation, support and resettlement when land is recovered by the State, foreign investors leasing land from the State are not required to pay money for land compensation and assistance; where they have paid such money, they shall have the paid money amounts subtracted from the payable land rents.
Fee for granting land use right certificate: VND 100,000 (as regulated in Decision 10/2009/QD-UBND dated January 9, 2009 of Hanoi People’s Committee).
Registration fee: land lessee does not have to pay fee for registration of land use right but fee for registration of ownership of construction works attached to the leased land.
