How to determine the amount of rent for communal land?

Land that is in communal ownership can be leased to an individual or legal entity. The list of such lands is contained in the Land Code of Ukraine, and the amount of rent is determined by the Tax Code. About how exactly the rent price for a land plot is calculated, the partner of the law company “DE-JURE”, the head of the forensic and land law practice, lawyer Artem Ripenko, told.

General rule: the amount of rent for land should not exceed the amount of land tax. According to the legal norms of Ukraine, the rent for land is calculated as follows:

• if the normative monetary assessment of the land plot has been carried out, the rent is no more than 3% of this amount. Moreover, for public lands – no more than 1%, and for agricultural lands – from 0.3% to 1% of the normative monetary assessment;
• if the normative monetary assessment was not carried out, then the rent should not exceed 5% of the normative monetary assessment of the arable land area in the Autonomous Republic of Crimea or in the region (similarly for agricultural land – from 0.3 to 5%);

The specific percentage within these limits is determined by the village, settlement or city council, which transfers the land plot for lease. The amount of the rent is indicated in the contract with the tenant.

If you need legal advice on land lease issues, contact “DE-JURE” – we have both specialists and experience.