New rules for applying the normative monetary valuation of land: key changes in legislation

The Land and Legal Department of the Higher Educational Institution "Rivne Professional College of NUBiP of Ukraine" informs about important changes in land legislation that came into force on December 1, 2024. In particular, they concern the rules for applying the normative monetary assessment (NMO) when determining the rent for land plots of state and municipal property.

Main legislative innovations

1. Reduction of the terms of application of the new NGO

According to the Law of Ukraine dated 10.10.2024. No. 4015 "On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Ensuring Balanced Budget Revenues during the Period of Martial Law", local governments have the opportunity to apply the new regulatory monetary valuation of land plots of state and municipal property outside settlements from the first day of the second month after the adoption of the relevant decision. This significantly speeds up the process of renewing leases.

For reference: previously, the NGO came into effect at least six months after its approval..

2. Rent increase

Development of technical documentation on NGO allows to determine objectively higher rental rates. For example, for industrial land after approval of NGO, the rent may increase by 10-20 times compared to NGO of arable land in the region, which provides additional revenues to local budgets.

3. Simplification of land auction procedures

The innovations help speed up the process of preparing for land auctions in the form of electronic auctions. This creates a more competitive environment for land leases and stimulates the development of local communities.

Practical importance for local communities

Thanks to innovations, communities are able to adapt more quickly to modern challenges in the field of land management. Reducing the time for approval and application of NGOs for land plots opens up prospects for increasing budget revenues and attracting investors.

Students of the Rivne Vocational College of NUBiP of Ukraine already have the opportunity to familiarize themselves with these new approaches within the framework of educational programs, which prepares them for practical work in the conditions of modern requirements.

Follow the updates on the college website to always be up to date with the latest news in the field of land legislation!