Land Lease in 2026: Contract Renewal and the Tenant’s Pre-emptive Right

From the first days of the full-scale invasion, Ukraine faced challenges that required non-standard solutions. One of these was the introduction, from 7 April 2022, of a temporary mechanism for the automatic extension of land lease contracts for one year. This decision was aimed at supporting the agricultural sector in conditions where the operation of state registers was complicated or suspended. Despite its temporary nature, this rule provoked much discussion, since it allowed contracts to be extended without the direct expression of will of the parties.

However, the state later began to return to more traditional, market-based principles. A key moment was 19 November 2022, when Law No. 2698-IX came into force, introducing significant changes to the Land Code of Ukraine. This law abolished the automatic extension of lease contracts. From then on, the rules of the game changed once again.

Key changes: what tenants and landlords need to know

The abolition of the automatic extension became a turning point that requires special attention from all participants in land relations. Here is how it affected the situation:

• Contracts that expired before 18 November 2022. The temporary rule applied to them. Their term of validity was automatically extended for one year.
• Contracts whose term expired from 19 November 2022. Automatic prolongation no longer applies. To renew the lease, the parties must conclude new agreements, following the standard procedures.

The legislative changes restore the balance of interests and bring transparency back to land relations, since the indisputable right to use land is now based on direct agreements rather than on temporary provisions.

New rules established by Law No. 2698-IX

In addition to abolishing the automatic prolongation, the new law introduced other significant rules that everyone who works with land should take into account.

Restoring competition and transparency

1. The return of land auctions. The law restored the prohibition on the direct leasing of agricultural land in state and communal ownership. From now on, such plots may be transferred for use exclusively through electronic land auctions. This guarantees fair competition and increases the efficiency of land use.
2. Mandatory registration. The requirement for the mandatory registration of lease contracts and other rights to land in the State Land Cadastre and the State Register of Property Rights was reinstated. For agreements concluded during the absence of registration, a two-month period is provided for their proper formalization.

Opportunities for owners

• Free-of-charge privatization is allowed. The law partially permits the free-of-charge transfer into private ownership of land plots on which residential houses, garages or other buildings owned by citizens are already located. This is an important step for the legalization and formalization of rights to the land under already existing real estate.
• The ban on forming new plots has been lifted. The moratorium on the formation of new agricultural land plots has been abolished. This enables landowners to manage their assets more efficiently, for example, to divide large plots or to combine small ones.

Comparative table: before and after the changes

What does this mean for the agricultural sector?

The changes in land legislation indicate Ukraine’s return to market mechanisms, which is a sign of stabilization. The abolition of automatic prolongation requires greater responsibility from tenants and landlords and timely preparation for the expiry of contracts. This will promote market transparency, the protection of landowners’ rights and the efficient use of agricultural resources, which is extremely important for the country’s post-war recovery.

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Frequently Asked Questions

What has changed in the land lease rules?

The legislation has updated the procedure for land lease; the changes concern the rights and obligations of tenants and landlords and require the attention of both parties.

Which law established the new land lease rules?

The key changes were introduced by Law of Ukraine No. 2698-IX, which should be taken into account when concluding and re-executing lease contracts.

What do the changes mean for tenants?

It is important for tenants to check that their existing contracts comply with the new requirements in order to avoid disputes and the risk of losing the lease right.

What do the changes mean for the agricultural sector?

For agribusiness, this affects planning and the stability of land relations, so contracts should be brought into compliance in advance.

Is a lawyer’s consultation needed regarding land lease?

Yes, a lawyer will help check contracts for compliance with the new rules and protect your interests in the event of a dispute.

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