Financial Obligations for Legalizing Land Violations in 2026

Long Phan Consulting frequently receives inquiries about additional financial obligations for legalizing land violations. Many inquiries come from households whose land was encroached, occupied, or allocated without proper authority and who now wish to apply the Law On Land to obtain a Land Use Rights Certificate. The amount payable falls into three groups: land use fees, the amount to be returned for illegal gains (if any), and related fees and charges. The specific amount depends on the type of violation, the time the land was used, and the recognized area. Long Phan Consulting sets out the applicable rules below.

Cases of financial obligations for legalizing land violations Under the Law on Land 2024

The Law on Land 2024 permits legalization for only three specific groups of violations, each governed by its own mechanism for calculating financial obligations. Determining the correct group is the first step before calculating the amount payable.

Land Encroached, Occupied, or Used for the Wrong Purpose Before July 1, 2014

Under Article 139 of the Law on Land 2024, households and individuals using such land may be considered for legalization if planning conditions are met. This applies to land encroached, occupied, or used for the wrong purpose before July 1, 2014. The article is divided into several sub-groups depending on the land’s location and its actual use purpose, which directly determines whether a Certificate can be issued.

Land Allocated Without Proper Authority

Article 140 of the Law on Land 2024 applies to land allocated by an agency or organization without authority to do so. It also applies to land obtained through purchase, liquidation, sale, or distribution of housing or construction works attached to land in a manner not in compliance with regulations. Conditions and land use fee levels depend on three time thresholds: before October 15, 1993; from October 15, 1993 to before July 1, 2004; and from July 1, 2014 onward with proof of payment.

Land Without Documentation but in Stable, Undisputed Use

Article 138 of the Law on Land 2024 governs the issuance of a Certificate for land without documentation under Article 137. This applies where the land has been used stably and is confirmed by the commune-level People’s Committee as undisputed. This is not, strictly speaking, a “violation” case in the administrative sense, but it is often processed alongside encroachment cases when the actual area exceeds what the original documentation shows.

Additional Financial Obligations Payable When Legalizing Land Violations

Once a dossier meets the conditions for issuing a Certificate, the tax authority determines the financial obligation based on three groups of charges, each with its own legal basis and calculation method.

Land Use Fees by Land Type and Time of Use

Land use fees are the primary charge, calculated under Decree 103/2024/ND-CP (as amended and supplemented by Decree 291/2025/ND-CP). For encroachment cases under Article 139 of the Law on Land, the calculation applies Article 11 of Decree 103/2024/ND-CP; for land allocated without proper authority under Article 140, Article 12 of Decree 103/2024/ND-CP applies. The amount depends on the area within the recognized limit, the area exceeding the limit, and the land price at the time the Certificate is issued.

>>>See more: Agricultural to Residential Land Conversion Fees

Amount to Be Returned for Illegal Gains Arising from Land Violations

Alongside land use fees, a violator may also be required to return illegal gains under Articles 8, 9, 10, and 12 of Decree 123/2024/ND-CP on administrative penalties in the land sector. This is a remedial measure accompanying the penalty. It applies only while the violation remains within the administrative penalty statute of limitations, which is two years from the date the violation ceased. It also does not apply where the case is exempt under Clause 3, Article 139 of the Law on Land.

If multiple people jointly committed the violation on the same land plot, the illegal gains are divided equally. Any amount already paid into the state budget in relation to the violating land use is deducted when determining this amount.

Registration Fees, Certificate Issuance Fees, and Other Local Charges

In addition to the two charges above, the land user must also pay a registration fee upon first-time registration of land use rights. A Certificate issuance fee also applies, at the rate set by the provincial People’s Council. These charges are typically much smaller than land use fees but remain mandatory conditions for receiving the results.

Determining the Additional Land Use Fee for Each Type of Violation

The additional land use fee does not follow a single common formula; the tax authority must correctly identify the land type, the time of use, and the applicable article before calculating the specific amount.

Identifying the Land Type as the Basis for Calculating Land Use Fees

Under Clause 2, Article 10 of the Law on Land 2024 and Article 7 of Decree 102/2024/ND-CP, land type is determined by the actual use status where documentation does not prove it. This determination applies at the time of declaration and registration. Where existing documentation records a land type different from actual use, the land type is redetermined under the classification in Article 9 of the Law on Land. This also follows Articles 4, 5, and 6 of Decree 102/2024/ND-CP. An incorrect land type determination at this stage will cause the entire subsequent land use fee calculation to be wrong.

Land Use Fee Principles for Encroached Land Used for Agriculture or Housing Before July 1, 2014

Under Point c, Clause 2, Article 139 of the Law on Land 2024, encroached land currently used for agricultural production or housing since before July 1, 2014 may be considered for Certificate issuance. This applies where the land does not fall within special-use forest or protection forest planning, and does not fall within public infrastructure planning. The land user must also fulfill the applicable financial obligation. The area within the recognized residential land limit is subject to a more favorable land use fee than the area exceeding the limit.

Land Use Fee Principles for Land Allocated Without Proper Authority

Article 12 of Decree 103/2024/ND-CP sets out the land use fee calculation for each time threshold for allocation under Article 140 of the Law on Land 2024. Where documentation proves that payment was made to use the land at the time of allocation, the land user is entitled to a significant exemption or reduction of the additional land use fee payable. Qualifying documentation includes receipts, payment slips, and invoices under Clause 5, Article 12 of this Decree.

>>See more: Easier Land Use Conversion Under New Law

Comparison of Financial Obligations Across the Three Case Groups

Financial obligations upon Certificate issuance are not determined identically for every case of undocumented land. The competent authority must consider the origin of land use, the time use began, the violation, whether the allocation was made with proper authority, and documentation of amounts already paid, before determining the amount payable. The three common groups are governed respectively by Articles 138, 139, and 140 of the Law on Land 2024. The corresponding land use fee calculations are set out in Articles 10, 11, and 12 of Decree 103/2024/ND-CP, as amended and supplemented by Decree 291/2025/ND-CP.

Process for Fulfilling Financial Obligations When Legalizing Land Violations

The process consists of five steps under Decree 101/2024/ND-CP on land registration and Certificate issuance, carried out sequentially from declaration to receipt of results.

1. Declare and register the land for the first time at the Branch of the Land Registration Office or the one-stop-shop department where the land is located. Include a dossier proving the origin and time of land use.
2. Obtain confirmation of the land’s origin and current use status from the commune-level People’s Committee, including confirmation of no dispute and confirmation of planning conformity at the time of review.
3. The tax authority determines the financial obligation based on the cadastral dossier forwarded by the land registration authority. It then issues a notice of the land use fee, illegal gains amount (if any), and other fees and charges payable.
4. Pay the land use fee and other financial obligations as notified, and retain the payment receipts for reconciliation upon receiving the results.
5. Receive the Certificate of land use rights and ownership of assets attached to land once the land registration authority confirms that the financial obligation has been fulfilled.

Cases Not Eligible for Legalization and the Legal Consequences

Not every area of violating land has an opportunity to receive a Certificate. Under Clause 1, Article 139 of the Law on Land 2024, the following types of encroached land are subject to State recovery and are not eligible for a Certificate:

• Land encroaching on the safety corridor of public works, after the State has announced and marked the corridor boundary.
• Land encroaching on roadways, road shoulders, or sidewalks, after the construction boundary has been announced.
• Land encroaching on land used for agency headquarters, public service works, or other public works.

In parallel, Article 13 of Decree 123/2024/ND-CP requires the remedial measure of restoring the land to its original condition before the violation in these cases.

In practice, Long Phan Consulting has observed that many people confuse “meeting the time-of-use condition” with “meeting the land-location condition” when assessing their own eligibility for legalization. A plot that has been used stably for decades may still fall outside the scope of Certificate issuance if it lies within an announced public works safety corridor or construction boundary. Such a plot may also remain subject to forced recovery at any time under the locality’s plan. Checking the applicable planning, construction boundary, and safety corridor markers with the local land management authority should be done before filing the dossier, rather than relying solely on the actual duration of land use.

Common Risks and Errors in Calculating Additional Financial Obligations

Determining the financial obligation when recognizing land use rights over land with a violating origin or land allocated without proper authority requires cross-checking several factors at the same time. These factors are the land’s origin, time of use, land type, recognized area, and documentation of amounts already paid. An incorrect determination of any single factor can result in an underpayment or overpayment of the financial obligation, directly affecting the Certificate issuance process. Common risks include the following.

• Incorrectly determining the time of land use, leading to the wrong threshold being applied before or after July 1, 2014 or October 15, 1993.
• Incorrectly determining the land type used as the basis for calculating the fee, particularly where older documentation records a type different from the actual use status.
• Overlooking the amount to be returned for illegal gains while the violation remains within the administrative penalty statute of limitations.
• Underpaying the financial obligation, resulting in the dossier being rejected for Certificate issuance or in retroactive collection with late payment interest by the tax authority after the Certificate has already been issued.
• Failing to retain documentation proving past payment for the right to use the land, resulting in the exemption or reduction under Article 140 of the Law on Land not being applied.

Consulting Services for Legalizing Land with Violations at Long Phan Consulting

Calculating financial obligations without sufficient legal experience may lead to incorrect payments or missed lawful exemptions and reductions. Where a land dossier involves multiple periods of land use or disputes over planning boundaries, land users should have the documents reviewed before filing the registration application. Long Phan Consulting provides the following services:

• Reviewing dossiers and original documents to determine the correct applicable case under Articles 138, 139, or 140 of the 2024 Law on Land.
• Checking planning information, construction boundaries, and public infrastructure safety corridors with the local land management authority.
• Providing a preliminary calculation of land use fees and the amount of unlawful gains to be surrendered, if applicable, before the dossier is submitted.
• Drafting and completing land registration dossiers and applications for certification of the origin of land use.
• Representing clients in working with commune-level People’s Committees and tax authorities where issues arise regarding the legal basis for calculating financial obligations.
• Filing complaints against land use fee payment notices where the tax authority is found to have applied an incorrect legal basis.

Clients may send their case documents via email at info@longphanpmt.com or via Zalo at 0906.735.386 for a preliminary assessment.

Frequently Asked Questions About Legalizing Land with Violations

During procedures for recognition of land use rights arising from land violations, land users often encounter issues relating to payable amounts, the calculation of financial obligations, and additional remedial measures. The following frequently asked questions clarify these matters.

Conclusion

Additional financial obligations arising from the legalization of land with violations are not fixed amounts. They depend on correctly determining whether Articles 138, 139, or 140 of the 2024 Law on Land apply, the relevant period of land use, and the land category used as the basis for calculation. Errors at any stage may result in the dossier being returned or additional amounts being collected later. Clients who need a review of land violation dossiers or assistance in working with tax authorities or land registration authorities may contact Long Phan Consulting via Hotline 1900636389 for timely assistance.