At the stage of drafting and adoption of the Code, the most sensitive topic of discussion was the provisions on the right of private ownership of land. In particular, whether foreigners would receive this right. The new Code gives a concrete answer to this question and defines the necessary actions if a foreign citizen or enterprise has acquired ownership of land of a certain purpose.
A foreign individual or legal entity (including a legal entity with foreign investments in the authorized capital or with a foreigner as a manager, founder or shareholder) may not acquire land for agricultural purposes or intended for the forest fund. But it has the right to acquire land of other purposes.
Also, a foreign citizen or an enterprise may not own agricultural land or land designated for the forest fund on the basis of transactions between living people, as such transactions will not be valid.
However, if agricultural land or forest land was acquired by a foreigner by inheritance, court decision or mortgage, he/she is obliged to alienate it within one year after obtaining such ownership right.
If this has not happened, the local public administration authority on whose territory the lands are located must apply to the court for their alienation.
