Land Market Opening in Ukraine

Thursday, July 1, 2021
Land Market Opening in Ukraine

From July 1, 2021, within the framework of the "Law on Decentralization", the moratorium on the sale of agricultural land will be canceled

On the very first day of the opening of the land market, as of 14:00 on July 1, 33 transactions on the purchase of agricultural land were registered.

“These are the first agreements with agricultural land, concluded after the lifting of the moratorium,” commented minister of justice Denys Malyshka.

How the law opens the land market for Ukrainian citizens:

  • From July 1, 2021, every Ukrainian individual has the right to buy no more than hectares of land. The total land area of ​​the new owner will be taken into account. If the conditions for the concentration of land per person are violated, the surplus hectares must be either sold or confiscated by the state and sold at land auctions.
  • From January 1, 2024, the opening of the land market for legal entities: up to 10 thousand hectares per person. The total area of ​​all land owned by the ultimate beneficiary will be taken into account.
  • Starting from January 1, 2024 — launch of the market for legal entities with certain restrictions
  • The priority right to purchase land belongs to tenants who have the right to use the land from 2010. In this case, the tenant is granted the right to purchase the plot in installments for 10 years and the status of the legal owner after the first payment.
  • The Bank has the right to own a land plot only as an object of pledged property for outstanding debt obligations. The bank is obliged to sell the land plot at a land auction within two years after obtaining ownership of it.
  • Until 2030, the minimum amount for the site is set — not less than the nominal estimate.
  • You can choose to purchase a plot of land using the online register of the State Land Cadastre. There, an interactive map of the entire land of Ukraine has been compiled, for each site you can see its basic parameters, the intended purpose of the land, and also find out the owner.
  • Only a citizen of Ukraine can be the owner of the land.

According to analysts, the price of Ukrainian land will only grow. The Ministry of economy predicts an annual rise in prices of 10-15%. Economists say that during the first stage of the reform, until 2024, the price will not exceed $2,000 per hectare, and after the market opens for legal entities, the price may rise to $5,000-10,000 per hectare.

Basic requirements of the buying and selling process:

  • Until 2030, the price for a plot must be at least a standard estimate;
  • Payments for the purchase are carried out exclusively in a non-cash form;
  • The buyer is obliged to confirm the legality of the source of money for the purchase of land'
  • After the notarization of the land purchase and sale agreement, you will need to pay two taxes: 5% of the value of the sold land plot (personal income tax) and a military fee of 1,5% of the value specified in the agreement.

What the opening of the Ukrainian land market can give a foreign investor.

In 2021, the opening of the land market regulates relations only between Ukraine and its citizens. Foreign legal entities and individuals will be able to take part in the Ukrainian land market only after the referendum scheduled for 2024.

If the relevant law is adopted, opening the land market for foreign citizens, the latter will receive almost the same opportunities as the Ukrainians. Further, foreign investors will be able to carry out economic activities through a legal entity organized according to Ukrainian legislation.


  • Citizens of countries under sanctions will not be able to participate in land auctions;
  • Citizens of other countries will not be able to buy land located less than 50 km from the state border.

The path from the idea of ​​reform to its implementation July 1, 2021

Anti-raider law — automates the exchange of information between the register of rights and the land cadastre, obliges to digitize and enter in the register of rights information on paper, to register the prices of transactions with land. Adopted and signed by the president;
The bill 2195 — adopted in the first reading, introduces a transparent process of electronic land auctions on electronic auctions and obliges to sell state and communal land exclusively through such auctions;
Deregulation bill — adopted in the first reading, simplifies the procedures for transferring land, decentralizing land management, transfers state land outside settlements to communal ownership of communities and transfers control functions of the State Cadastral Service to the relevant local authorities;
On the National Geospatial Data Infrastructure adopted in the first reading opens free access to the cadastre data and ensures the exchange of information between the register of rights and the cadastre;
The draft law №2280 on spatial planning, approved in the first reading, regulates the issues of establishing the boundaries of communities, the spatial planning of their territories — it eliminates the need to develop several types of urban planning documentation and documentation on land management that are related in content.

“If you want to buy land — look who is the owner, turn to him with an offer. The state does not control this process. You yourself negotiate with the owner. To get answers to all questions about the land market, you can contact the “community” where the person lives, the hotline of the Ministry of justice or the hotline of the State Geocadastre. All calls and information are free ,” Taras Vysotsky, deputy minister of agrarian policy and food of Ukraine.

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