6. Land Fee
Main Legislative and Normative Acts and Statutes that One should Follow:
  • The Law of Ukraine as of March 13, 1992 N&2200-XII «Land Code of Ukraine»;
  • The Law of Ukraine as of September 19, 1996 No378/96-BP «0n Payment for Land»;
  • The Law of Ukraine as of October 06, 1998 Nol61-XIV «0n Land Rent».
  • The complete collection of legislative acts «Land Relationships in Ukraine» was edited under the editorship of the «Visnyk Podatkovoyi Sluzhby» («Herald of the Tax Service») magazine in April, 1999.
  • The exploitation of land in Ukraine is chargeable. The land fee is levied in the form of land tax or rent fee, which is determined depending on land value estimation. The amount of the tax for land plots the value of which have not been evaluated, is defined till the evaluation in compliance with the procedure stipulated by the Law of Ukraine as of September 19, 1996 «0n Payment for Land».
  • The land owners and land users, except for landholders, pay the land fee.
  • The rent fee is levied for the leased land plots.
  • Local Radas of people's deputies manage the land; they hand over the lands into the property or lease and take it back within the framework of their ple-nary powers.
  • The property right or the right of continuous use of the land is certified by government acts which are issued and registered by local village, town or city Radas of people's deputies in accordance with the procedure.
  • The right of temporary use of the land (including on lease terms) is legalized by an agreement (contract).


Payers of Land Fee and Rent Fee from the Category of Non-residents Include:
Foreign citizens, international associations and organizations with partici-pation of Ukrainian and foreign legal entities and individuals, enterprises that belong in full to foreign investors to whom land plots are handed over into their property or for their exploitation, including on the lease terms.

Object and Subject of the Land Fee
The object of the land fee is land plot that is in possession or in exploitation including on the lease terms. The subject of the land fee (payer) is land owner and lend exploiter, includ-ing landholder.

Calculation Algorithm
Land area (in hectares) X Rate of land fee = Sum of the Land fee
Rates of the Land Fee
    The rates of the land fee depend on:
  • Specific region;
  • Purpose of the land plot exploitation, i.e. its agricultural or non-agricultural destination.


Accordingly to Exploitation Purpose All Lands of Ukraine Are Divided into:
  • lands of agricultural destination
  • lands of settlements (cities, towns and villages)
  • industrial lands, lands of transport, communications, defense and of other destination
  • lands of nature protection, sanitary, recreational and history/culture destination
  • lands of forest reserves
  • lands of water reserves
  • reserve lands


Payment for Lands of Agricultural Destination
On lands of agricultural destination for which a value evaluation was con-ducted, the land fee is levied in percents from the value evaluation of a particu-lar type of agricultural grounds.
The rates of the land fee from one hectare of agricultural grounds are estab-lished in percents from their value evaluation in the following amounts:
for plowed fields, hay fields and pastures - 0.1;
for longstanding plantings - 0.03.

Payment for Lands of Settlements
The rates of the land fee levied for land plots for which a value evaluation was conducted are established in the amount of one percent from their value evaluation.

If a value evaluation for such land plots was not conducted, the rate of the land fee is established differentially by the correspondent village, town or city Radas stemming from the average tax rates, functional exploitation and land plot location, but not higher than twice of the average tax rates including cor-rection factors.

In settlements attributed by the Cabinet of Ministers of Ukraine to resorts, the rates of the land fee established by the part 2 of this Article include the fol-lowing factors (table 4): Table 4.
Factors Used for Resort Settlements
Territorial Location of Land Plot Amount of Factor
On the southern coast of the Autonomous Republic of Crimea 3.0
On the south-eastern coast of the Autonomous Republic of Crimea 2.5
on the western coast of the Autonomous Republic of Crimea 2.2
on the Black sea coast of Mykolayiv, Odesa and Kherson regions [oblasts] 2.0
in mountain and foothills districts of Zakarpatye, Lviv, Ivano-Frankivsk and Chernivtsi regions 2.3
on the coast of Azov sea and other resort localities 1.5

The list of settlements attributed to resorts is approved by the Decree of the Cabinet of Ministers of Ukraine as of December 28, 1996 No 1576 «0n Ap-proval of the List of Settlements Attributed to Resorts». When determining the amount of the land fee for land plots occupied by production, cultural and welfare facilities, household buildings and premises located on territories and objects of historical/cultural purpose, that are not re-lated with the functional purpose of these objects, the following factors shall be used (table 5):
Table 5.
Territorial Location of Land Plot Amount of Factor
of international importance 7.5
of all-state importance 3.75
of local importance 1.5
Payment for Land Plots Located Outside the Boundaries of Settlements
The land fee for land plots given to enterprises of industry, transport, com-munications or other destination, is levied on the basis of 5 percents from monetary value of a plowed field unit in region.

The land fee for land plots given into exploitation on lands of nature protec-tion, sanitary, recreational and history/culture destination, except for plots stated in part 2, Article 6 of the Law of Ukraine «0n Land Fee,» is levied in amount of 50 percents from monetary unit of a plowed field in region.

The land fee for land plots from the forest reserve and are occupied by pro-duction, cultural and welfare facilities, dwelling houses, household buildings and premises is levied in amount of 0.3 percent percents from monetary unit of a plowed field in region. The land fee for plots given on lands of water reserve is levied in amount of 0.3 percent percents from monetary unit of a plowed field in region.

*1he land value evaluation is carried out in compliance with the Procedure for Value Evalua-tion of Lands of Non-agricultural Destination (Except for Settlements), approved by the Decree of State Land Committee of Ukraine, Ministry of Agricultural Industry of Ukraine, State Com-mittee on Construction, Architecture and Dwelling Policy of Ukraine, State Committee of For-estry of Ukraine, State Water Management of Ukraine, Ukrainian Academy of Agricultural Sci-ences as of August 29, 1997 No86/19/148/86/76/88, registered in the Ministry of Justice of Ukraine as of October 14, 1997 No477/2281.

As of January 01, 1999 the following indexing factors for land value evalua-tion are established in Ukraine:
for lands of settlements, which value was established - 1.8;
s for lands of agricultural destination - 2.07.

Calculation and Terms of the Land Fee Payment
The ground for assessment of the land fee is data of the state land survey [ca-dastre].
Legal entities calculate on their own the sum of the land fee each year, as per in effect before February 1 they submit the data to the state tax office near-est to land plot location.
The assessment of the land fee to citizens is carried out by the state tax of-fices that issue to the payer the land fee payment notification before July 15 of the current year.
The register of payers (producers of agricultural goods and citizens) and as-sessment of the land fee is carried out yearly as per m effect on May 1, of other taxpayer subjects - as per in effect on February 1.

The Law of Ukraine as of September 19, 1996 «0n Payment for Land» es-tablished the terms of the land fee payment which is paid in equal parts by land owners and land exploiters - producers of agricultural and fish goods, as well as citizens before August 15 and November 15, and by all other payers - on the quarterly basis before the 15th of the month that follows the accounting one.

The terms of payment of the land fee for each year are regulated by the cor-responding laws on the State budget of Ukraine. Thus, the Law of Ukraine as of December 31, 1998 «0n the State Budget of Ukraine for the year 1999" has established that the land fee is paid by payers (except for citizens and produc-ers of agricultural and fish goods) monthly before the 15th of the month that follows the accounting one.

Peculiarities of Land Renting for Non-residents
The rent relationships in Ukraine are regulated by the Law of Ukraine as of October 6, 1998 «0n Land Renting».
The land rent is paid possession and exploitation of a land plot for a fixed period based on a contract needed to landholder for providing business activ-ity.
Landholders of land plots can be: international associations and organiza-tions, as well as foreign states, foreign individuals and legal entities.
Lessors of land plots are village, town, city, district Radas of people's depu-ties and land owners.
Land can be given into rent for a short-term exploitation - up to three years, and for a long-term exploitation - up to fifty years. The conditions and terms, as well as land rent fee are established by an agreement between Parties and are stipulated in the land rent agreement.
Peculiarities of Land Plot Title while Transferring Titles on Buildings and Premises

While transferring titles on buildings or premises, the land plot title or the right on the land plot exploitation without changing the type of its earmarked use is transferred, if not otherwise stipulated in the building/premise alienation contract, together with those objects in amounts stipulated by Article 67 of the Land Code of Ukraine. If changing the type of its earmarked use, the transfer of the land plot title into the ownership or exploitation is carried out according to the procedure of siting.

When enterprises, establishments and organizations transfer buildings and premises to other enterprises, establishments and organizations, the right to exploit the land plot, on which the said buildings and premises are located, is transferred together with these objects to them.

The title or the right to exploit land plot is certified by Radas of people's deputies for listed above cases in compliance with requirements of Article 23 of the Land Code of Ukraine.

Particular issues related to acquisition of a land plot indicated by the Decree of the President of Ukraine as of January 19, 1999 No32 «0n Sale of Land Plots of Non-agricultural Destination on the grounds of which the Procedure for Submitting a Request on Sale of Land Plots for Non-agricultural Use was drafted and approved by the Cabinet of Ministers of Ukraine as of March 24, 1999 No440.