The question of how to sell a land share today concerns many Ukrainian farmers. With the opening of the market, new opportunities have emerged for managing agricultural land plots.
In this article, we will examine the main stages of concluding a deal, necessary documents, tax obligations, and other important aspects to consider. This information will be useful for agrarians, farmers, and land share owners who intend to enter into a purchase and sale agreement.
Land Plot Purchase and Sale: Main Steps
The purchase and sale process has a clear sequence of actions. Let’s consider the main steps:
- Preparation — determining which documents are needed for selling a land plot, checking for the presence of a cadastral number.
- Checking for encumbrances and restrictions — it is necessary to ensure there are no prohibitions on alienation or arrests.
- Obtaining a cadastral number — one should contact a land management organization to produce technical documentation.
- Determining the price — until 2030, the value cannot be less than the normative monetary valuation.
- Checking the tenant’s preemptive right — in this case, the tenant can buy the plot first.
- Choosing a notary — the agreement requires certification, so it’s worth finding a specialist in advance.
- Concluding the contract — after preparing all documents and conducting necessary checks.
- State registration of ownership rights — after signing.
How to sell an agricultural land plot as quickly as possible? It’s important to have all documents in order even before starting to search for a buyer. Those interested in how to sell a land share should consider a number of important conditions, including the requirement to adhere to the minimum sale price.
Documents for selling a land plot should be carefully prepared in advance. This will significantly speed up the process and help avoid delays in finalizing the deal.
Farmers who need financial support for business development should pay attention to the opportunities offered by our online service WEAGRO. We offer agro-installment plans, which can be an important tool for ensuring stability during the expansion of the land bank.
What Documents are Needed for Selling and Buying Land
Let’s consider what specific documents are necessary for selling a land plot.
For the seller:
- passport of a citizen of Ukraine;
- registration number of the taxpayer’s account card (identification code);
- document confirming the right of ownership to the land plot (state act, certificate of ownership, purchase and sale agreement, etc.);
- extract from the State Land Cadastre (SLC);
- extract from the State Register of Real Property Rights;
- extract on the normative monetary valuation of the land plot;
- report on the expert monetary valuation of the land plot;
- notarized consent of the spouse for the sale (if the plot was acquired during marriage);
- lease agreement (if the land plot is leased).
For the buyer:
- passport of a citizen of Ukraine;
- registration number of the taxpayer’s account card;
- documents confirming the sources of funds;
- notarized consent of the spouse for the purchase.
Documents for selling a land plot must be current and valid at the time of concluding the agreement. Extracts from registers and cadastre are valid for 3 months from the date of their receipt.
Choosing a Notary
Notarial certification of agreements is carried out at the location of the land plot or at the place of registration of one of the parties.
When choosing a notary, it’s worth considering:
- experience in processing real estate transactions, particularly agricultural land;
- reviews of their work;
- convenience of the office location.
The cost of notary services consists of:
- State duty — 1% of the contract value.
- Payment for additional legal services.
- Technical support.
The total cost of notary services can range from 3,000 to 10,000 UAH, depending on the price of the plot and the region.
How to sell land correctly and safely? It is necessary to choose an experienced notary who specializes in land issues. This ensures proper checks and helps avoid problems in the future.
For those interested in how to buy agricultural land, it’s important to know that before certifying the agreement, the notary will check not only the documents but also the buyer’s compliance with legal requirements regarding the possibility of acquiring ownership rights.
Land Valuation Features
There are two main types of land valuation:
- normative monetary valuation (NMV) — established according to the methodology of the Cabinet of Ministers of Ukraine, taking into account soil characteristics, plot location, and other factors;
- expert monetary valuation — conducted by an appraiser based on the market value of the land.
How to quickly sell land with maximum benefit? According to legislation, until January 1, 2030, the price of agricultural land plots allocated in kind to share owners cannot be less than their normative monetary valuation.
To determine the real market value, it is recommended to order an expert valuation even in cases where it is not required by law. This will allow for a reasonably established price and avoid claims from tax authorities regarding price understatement.
The valuation report is valid for six months, so it’s worth planning the assessment closer to the date of concluding the agreement.
Permission to Buy and Sell Land
Since July 1, 2021, the moratorium on the sale of agricultural lands has been lifted in Ukraine. However, there are certain restrictions and requirements for buying and selling.
According to legislation, the following can acquire ownership rights:
- citizens of Ukraine;
- legal entities of Ukraine, created and registered under Ukrainian law, whose participants are only citizens of Ukraine, the state, or territorial communities;
- territorial communities;
- the state.
Foreigners are prohibited from buying agricultural lands until a referendum is held. There are also categories of persons who are categorically forbidden to acquire ownership rights to such lands, including:
- Legal entities whose beneficiaries are citizens of the aggressor state.
- Persons belonging to terrorist organizations.
- Legal entities with foreign states among their participants.
- Legal entities registered in offshore zones.
How to sell agricultural land in accordance with legislation? Before concluding the agreement, the notary is obliged to verify the buyer’s compliance with established requirements, particularly regarding the maximum size of plots that can be owned by one person (the total area cannot exceed 10,000 hectares).
Intended Purpose of the Land Being Sold
Agricultural lands have their own characteristics and restrictions on use.
Such plots include:
- agricultural lands (arable land, perennial plantations, hayfields, pastures, fallow lands);
- non-agricultural lands (roads and driveways, field-protective forest belts and other similar plantations, lands under farm buildings and yards, lands under temporary conservation, etc.).
The question of whether it’s possible to sell a land share and change its intended purpose concerns many landowners. After purchasing a plot, the new owner indeed has the right to initiate a change in its intended purpose, but this requires strict adherence to procedures defined by legislation.
If you’re interested in how to sell an agricultural land plot, it’s important to remember: when concluding a purchase and sale agreement, you need to specify its intended purpose according to existing documents. If the actual use of the land does not correspond to the declared purpose, this can lead to fines or other legal consequences.
Absence of Restrictions
Before concluding a purchase and sale agreement, it is necessary to ensure the absence of any restrictions that may hinder the transaction.
Verification algorithm:
- obtain an extract from the State Register of Real Property Rights, which contains information about encumbrances (arrests, mortgages, prohibitions on alienation);
- check the information in the State Land Cadastre for restrictions on land use;
- check information in the Unified Register of Court Decisions by the cadastral number of the land plot for the presence of legal disputes;
- obtain information from the State Register of Movable Property Encumbrances (if there are real estate objects on the plot);
- check for land tax arrears.
How to sell share land without risks? First of all, it is necessary to ensure that the plot is not under a prohibition of alienation. Special attention should be paid to the fact that, according to legislation, shares located in temporarily occupied territories can only be inherited.
Can a Land Share be Sold if It’s Leased
The answer to this question is positive, but taking into account the peculiarities established by legislation.
The main stages of how to sell a land share if it’s leased:
- The owner must notify the tenant in writing about the intention to sell the plot, specifying the price and other sale conditions.
- The notification is sent by registered mail with a description of the enclosure or delivered personally with a receipt.
- The tenant has 30 days from the receipt of the notification to decide on the purchase.
- If the tenant refuses the preemptive right or does not respond within 30 days, the owner can sell the plot to another person at a price not lower than what was offered.
The purchase of a leased land plot can be carried out by agreement of the parties even before the expiration of the lease agreement. In this case, the agreement terminates from the moment the ownership right transfers to the tenant.
Taxes on Buying and Selling Agricultural Land
The seller pays income tax on the sale of the land plot. Rates depend on the number of sale transactions during the year and the duration of ownership:
- 0% personal income tax and 0% military levy apply during the first sale within a calendar year, provided that the owner has owned the plot for more than 3 years (exception – heirs);
- 5% personal income tax and 1.5% military levy are paid in case of a second sale during the year;
- 18% personal income tax and 1.5% military levy are charged starting from the third sale and each subsequent one within one calendar year.
The tax base is determined as the price specified in the purchase and sale agreement, but not lower than the expert valuation.
The buyer pays:
- State duty — 1% of the contract price.
- Payment for notary services.
- Payment for entering information into registers.
The total amount of taxes when selling an agricultural land plot can range from 0 to 20.5% of the plot’s value, depending on the circumstances.
Any land alienation operation requires a careful approach, as in the process of document preparation, it’s important to consider all legal nuances of selling a land plot: taxes, registration of ownership rights, and other mandatory procedures that affect the final costs.
Cost of Processing the Purchase and Sale of a Land Plot
The total cost of processing the purchase and sale of an agricultural land plot includes several components.
Seller’s expenses:
- obtaining an extract from the State Cadastre — 92 UAH;
- obtaining an extract from the State Register of Real Property Rights — 47 UAH;
- expert monetary valuation — 2,000–4,000 UAH;
- personal income tax — 0–18% of the sale price;
- military levy — 0–1.5% of the sale price.
Buyer’s expenses:
- state duty — 1% of the contract price;
- notary services — 3,000–10,000 UAH;
- registration of ownership rights — 1,000–2,000 UAH.
The total cost of processing the purchase and sale of a land plot can range from 5 to 20% of the value of the plot itself, depending on its price and the circumstances of the deal. The cost of notary services may vary depending on the region and the complexity of the procedure.
How to buy agricultural land as efficiently as possible from a financial perspective? It’s important to plan all expenses in advance and, if possible, agree with the seller that the valuation will be paid 50/50.
Conclusion
The land market reform contributes to the development of the agricultural sector, allowing the realization of the right to dispose of property, as well as forming optimal land use sizes. As of early 2025, thousands of purchase and sale agreements have already been concluded in Ukraine, indicating a positive trend.
For the success of agribusiness, it’s important to effectively plan financial resources. Our online service WEAGRO offers agro-installment plans for agribusiness, allowing farmers to use modern tools for developing their farms when acquiring lands.
