State Committee on Land Resources (State Land Committee) in its letter dated October 1, 2009 № 15331/17/12-09 provided some clarification on the restrictions on the purchase of land ownership by foreign entities and individuals.
In particular, Goskomzem explained that foreign entities do not have the right to acquire title to land for the construction and maintenance of the building, since the use of land for these purposes does not apply to business. On the basis of Paragraph 3, Article. 1982 Land Code, any such restriction should also apply to joint ventures.
In addition, the State Land Committee in a letter provided clarification of the definitions of "foreign entity" and "joint venture" for the purposes of Art. 1982 Land Code, which defines the circumstances in which such persons may acquire ownership of land.
In particular, clarification of the State Committee, "foreign company" is a company which was established in accordance with Ukrainian legislation, and acts solely on the basis of property of foreign persons or entities, or operating company, acquired the property of foreign persons or entities. From the contents of the letter can be concluded that under the "foreign company" should be understood as "foreign entity". Based on this interpretation, legal entities established in accordance with Ukrainian legislation, which is fully owned by foreigners or foreign legal entities established in accordance with the laws of other countries have the right to acquire ownership of land on the basis of Art. 1982 Land Code.
However, Goskomzem virtually excluded from the number of persons who have the right to acquire ownership of land, legal entities established in accordance with the laws of other countries.
State Land Committee also pointed out that under the joint venture company is to be understood, based Ukrainian and foreign entities.
At the same time we must bear in mind that the letter of the State Committee is the only explanation of the provisions of the Land Code and has no power regulation.
Sergei Piontkovskii Baker & McKenzie
Restricting the rights of nonresidents to acquire ownership of land
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