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On Friday, President Klaus Iohannis promulgated a law amending and supplementing Law 17/2014 establishing measures to regulate the sale-purchase of farmland located outside the built-up area and amending Law 268/2001 regarding the privatisation of commercial companies that administrate land in the public and private property of the government designed for agricultural use and the establishment of the State Estates Agency.
The law says that the alienation by sale of farmland located outside the built-up area is made in compliance with the substantive and formal conditions provided by Law 287/2009 on the Civil Code, recast, as subsequently amended, and the right of preemption, at equal prices and under equal conditions starting from preemptors of rank I - co-owners, next of kin, wives, relatives and relatives up and included three times removed - up to preemptors of rank VII - the Romanian state, through the State Estates Agency.
The law says the lessees who wish to buy the leased farmland located outside the built-up area must have this quality under a valid lease contract concluded and registered according to the legal provisions, at least one year before the date of the sale offer being posted at the town hall.
"In the case of young farmers exercising their right of preemption, the priority for the purchase of land subject to sale shall be vested with has the young farmers who carry out activities in animal husbandry, while observing the condition of domicile/residence established on the national soil for at least one year prior to the registration of the sale of farmland located outside the built-up area."
The law also provides for the way in which the priority is established for the purchase of farmland located outside the built-up area in the case of owners of neighbouring farmland exercising the preemption right.
"As an exception to the provisions of paragraph (1), the alienation by sale of farmland located outside the built-up area on which classified archaeological sites are located shall be made according to the provisions of Law 422/2001 on the protection of historical monuments, recast, as subsequently amended and supplemented."
The law also provides for the cumulative conditions that must be met for the alienation of land in case the holders of the preemption right do not express their intention to buy the land.
"Farmland located outside the built-up area may be alienated, by sale, before the 8th anniversary of the purchase, with the obligation to pay 80% tax on the amount representing the difference between the sale price and the purchase price, based on the notary grid at the time (...) In case of direct or indirect alienation, before the 8th anniversary of the purchase of the control package in the companies that own farmland located outside the built-up area and that represent more than 25% of their assets, the seller shall pay a tax of 80% of the difference in value of those lands calculated on the basis of the notary grid between the moment of acquiring the lands and the moment of alienation of the control package. In such instance, the profit tax on the difference of value of the shares sold will be applied in a reduced percentage in proportion to the percentage of the share of that farmland in the fixed assets, while any double taxation shall be prohibited."
The fines for the sale of farmland located outside the built-up area in violation of the right of pre-emption and without obtaining the necessary approvals are increased to between 100,000 lei and 200,000 lei.
The National Liberal Party (PNL) and the Save Romania Union (USR) challenged the law with the Constitutional Court of Romania (CCR), but the court found against it.
AGERPRES .
