Since the land market reform officially lifted the long-standing moratorium on farmland sales in 2021, purchasing agricultural land in Ukraine has become more relevant.
Although there are now more opportunities for investment and development, buyers must carefully consider any legal issues that could affect the validity, security or profitability of such a transaction. Several legal issues can complicate or delay the process of acquiring agricultural land. Usually, when you depend on help from a real estate agency, it is easier to buy land https://largos-real.com/en/buyers/zemelna-dilyanka-en/, as the specialists can check the deal on basic issues:
Ownership restrictions
Under current Ukrainian legislation, only Ukrainian citizens and legal entities owned by Ukrainian citizens can purchase agricultural land. Foreigners, stateless persons and companies with foreign capital are prohibited from acquiring ownership. Any attempt to bypass this restriction through intermediaries or fictitious arrangements risks being declared invalid.
Land documentation
Many plots have outdated or incomplete cadastral records, unclear boundaries or discrepancies between the registered data and the actual situation on the ground. If land is not properly registered in the State Land Cadastre, or if there are overlapping claims, the buyer may face disputes or delays in finalising the purchase.
Tenants’ rights
The pre-emptive rights of tenants also play a role. According to Ukrainian law, when agricultural land is offered for sale, the current tenant has the right of first refusal. Failure to recognise this priority could result in legal challenges, potentially invalidating the sale.
Plot size restrictions
Restrictions on plot size can also complicate transactions. Individuals are limited in terms of how many hectares of agricultural land they can own, and exceeding these limits may result in the deal being annulled. Therefore, buyers must carefully calculate their total landholdings before entering into agreements.
Land debts
Some plots may be mortgaged, pledged or the subject of court disputes. Purchasing such land without thorough due diligence could leave the new owner liable for existing obligations or caught up in lengthy litigation.
Land zoning
Zoning and designated use regulations must be respected. There are strict rules regarding the use of agricultural land. Converting farmland for industrial or residential purposes without the correct permits can result in penalties or the land being returned to its original use.
Finally, administrative delays remain a practical obstacle. Obtaining the necessary approvals, registering ownership or resolving disputes may involve bureaucratic hurdles that complicate the process, particularly in rural regions.
