More than six months have passed since the launch of the land market in Ukraine. Thus, from July 1, 2021, the moratorium on the sale of agricultural land was canceled. With the implementation of the reform, land relations have become one of the most discussed topics both in the media and in society. The UAC Deputy Chairman Denys Marchuk told "Comments" about the development of the land market and the main legislative changes that have affected it.

“It can be stated that the land market develops gradually and without "sharp turns". The price of agricultural land also does not show large fluctuations. Significant changes are possible when from 2024 the right to buy land will be legal entities. Then the owners can expect more advantageous offers," said Denys Marchuk.

However, the expert notes some legislative changes, that have taken place during this time, which will affect all market participants. First of all, last week the Verkhovna Rada of Ukraine adopted in the first reading the draft bill №6199, which simplifies the purchase of certain types of agricultural land. We are talking primarily about land for horticulture and personal farming (PF) within the settlements.

"The problem is that a notary has to do a lot of inspections. This makes the procedure much more expensive and takes a lot of time. This is despite the fact that previously there was no prohibited on the sale of such land, they did not fall under the general moratorium on agricultural land. These lands came under general regulation during the introduction of the land market," the UAC Deputy Chairman continued.

To simplify the procedure, the draft bill №6199 abolishes notarial inspections of buyers of some agricultural land for compliance with restrictions on land ownership of up to 100 hectares. The norm applies to:

• land plots with an area of ​​up to 0.25 hectares, with a purpose for horticulture;
• land plots with an area of ​​up to 2 hectares, with a purpose for personal farming (OSG), which are located within the settlement.

The rules of taxation during the sale of agricultural land are being amended by the draft bill №5600, which has already entered into force on January 1 this year. According to it, the first sale of real estate, which includes agricultural land, will be taxed at a rate of 0%. During the second sale of land during the year, the tax rate will be 5%, the third - 18%. Until now, the Tax Code of Ukraine provided for taxation on the sale of shares at a rate of 5%. However, benefits are provided for the sale of the third land plot: the costs incurred for its acquisition can be deducted from the tax base. The tax rate of 18% will be calculated from the difference between the purchase price and the sale price.

"Another indisputable advantage in improving the regulation of land relations was the regulation of the service of automatic real estate appraisal of the State Property Fund of Ukraine. The problem was that the program incorrectly estimated the value of the land and the price of the plot could reach several hundred thousand UAH, which did not correspond to the market at all. Farmers associations, including the UAC, raised this issue during a meeting of the Land Office under the Ministry of Agrarian Policy. Recently, Minister of Agrarian Policy Roman Leshchenko reported on the algorithm improvement for calculating the appraised value and assured that the appraised value of land plots is calculated correctly," Denys Marchuk summed up.