Introduction of the land market - acquisition of land according to the new laws
Already in a year, the land market in Ukraine should become more active - this is exactly the forecast that was voiced in the Cabinet of Ministers during the consideration of the relevant draft law. Nevertheless, there remains a huge number of questions related to the further development of events — from the possibility of transferring land plots to ownership for free, to the inventory of shares and the determination of their owners.
So, let's figure out how to buy land from the state in Ukraine, and under what conditions you can get a loan.
How to buy agricultural land in Ukraine?
Undoubtedly, the government's intentions to lift the moratorium on the sale of land and make it a full-fledged commodity that can be purchased led to a wide public outcry.
Meanwhile, the Verkhovna Rada of Ukraine has already considered the draft of the new law in the first reading at the plenary session.
According to the document, the total area of agricultural land plots owned by a citizen (or a legal entity):
- should not exceed 0.5% of agricultural lands of Ukraine;
- within one oblast, it should not exceed 15% of the oblast's agricultural land.
When buying land, priority will be given to tenants. Simply put, the owner of the land must first offer it to his tenants, and only if he is refused, to others.
For the free circulation of agricultural lands, it is necessary to completely complete their inventory and enter the received information into the State Land Cadastre (DZK).
Also, new legislative initiatives provide for the introduction of auctioneers — individuals who conduct auctions and fix the highest price that was announced during land auctions. Their licensing will be handled by the State Land Resources Agency of Ukraine.
As for foreign experience, in many European countries, land alienation is carried out only if certain conditions are met. For example, in Poland, the so-called "family farms" that cultivate about 75-80% of the land are widely developed. The area of such a plot for one owner should not exceed 500 hectares. The land market is strictly controlled by the state body — the Agricultural Property Agency.
In Germany, about 55% of agricultural land belongs to agricultural enterprises (or is leased by them). The size of the plots is from 400 to 500 hectares. All other lands are owned by small and medium-sized farms.
In Bulgaria, not only citizens of the state can purchase a plot of land, but also citizens of EU member states, as well as legal entities and individuals who have currently lived in the country for more than five years (this rule applies only to representatives of countries with whom Bulgaria concluded international agreements). A similar situation is observed in Estonia, where even citizens of other states can purchase plots of land for farming, and sometimes even change their purpose after five years.
Who can purchase agricultural land?
Another important point concerns persons who can obtain the right of ownership of land plots for agricultural purposes. According to the new draft law, they will include:
- citizen of Ukraine;
- legal entities of Ukraine;
- the state;
- territorial communities.
As for foreigners and stateless persons, they will be able to inherit land. One of the mandatory conditions is the alienation of plots within one year from the moment of acquisition of ownership.
How to buy land on credit?
The Minister of Economic Development, Trade and Agriculture of Ukraine Tymofiy Milovanov said on the air of TSN.Tizhden that the state compensates the NBU discount rate when buying land. In this case, a citizen will be able to take out a loan at 3-5% (in hryvnias) for a period of five years or more to purchase a plot of land.
In order to avoid fraud, such support will be provided only if the borrower officially registers ownership and will purchase up to 500-1000 hectares. A special system of control of the final beneficiary will ensure that fraudsters do not issue a large number of small loans through bogus persons. That is why, first of all, small and medium-sized farms can count on state support.
Also, according to the minister, other financial instruments will be developed, in which not only the state will be involved, but also banking structures, as well as a number of international companies.
According to forecasts, the land market will start its work in October next year. At the same time, the moratorium on the free turnover of agricultural land plots will be lifted. According to various estimates of experts, about 3 million hectares of land will appear on the market.
