On the Approval of the Procedure and Conditions for Payment and Exemption from Payment of Compensation for Changing the Designated Purpose of a Plot of Agricultural Land, as well as for Changing the Category of a Plot of Agricultural Land

Ordinance No 396

of 1 July 2020

of the Government of Georgia

Tbilisi

On the Approval of the Procedure and Conditions for Payment and Exemption from Payment of Compensation for Changing the Designated Purpose of a Plot of Agricultural Land, as well as for Changing the Category of a Plot of Agricultural Land

Article 1

In accordance with Article 8(5) and Article 14(2)(a) of the Law of Georgia on Determination of the Designated Purpose of Land and the Sustainable Management of Agricultural Land, the following shall be approved:

1. The amounts of compensation for changing the designated purpose of a plot of agricultural land according to the municipalities and territories of special regulation of Georgia, as well as the procedure and conditions for payment and exemption from payment of compensation (Annex No 1).

2. The procedure and conditions for changing the category of a plot of agricultural land (Annex No 2).

Article 2

The Ordinance shall enter into force on 1 July 2020.

Prime Minister                                                              Giorgi Gakharia

Annex No 1

The amount of compensation for changing the designated purpose of a plot of agricultural land according to the municipalities and territories of special regulation of Georgia, as well as the procedure and conditions for payment and exemption from payment of compensation

Article 1 Scope of regulation

This Annex determines the amount of compensation for agricultural land in case of changing the designated purpose of the plot of agricultural land according to the municipalities and territories of special regulation of Georgia, as well as the procedure and conditions for payment and exemption from payment of the amount of compensation (the Amount of Compensation).

Article 2 Calculation of the amount of compensation for changing the designated purpose of the plot of agricultural land

1. Compensation for changing the purpose of the plot of agricultural land shall be paid if the plot of land is located:

a) within the boundaries of the territory of special regulation;

b) within the administrative boundaries of Tbilisi Municipality and Batumi Municipality.

2. The amount of compensation for changing the purpose of the plot of agricultural land shall be paid in proportion to the area of the plot of land and shall amount to:

a) in case of a plot of land located within the boundaries of the territory of special regulation - GEL 100 000 per hectare;

b) in case of a plot of land located within the administrative boundaries of Tbilisi Municipality and Batumi Municipality - GEL 34 001 per hectare.

Article 3 Exemption from payment of the amount of compensation

Changing the designated purpose of the plot of agricultural land owned by the State, autonomous republic or municipality shall be exempt from payment of compensation.

Article 4 Procedure for payment of the amount of compensation

The amount of compensation shall be paid before the final decision on changing the designated purpose of the plot of land is made and it shall be paid to the State Budget of Georgia.

Annex No 2

The Procedure and Conditions for changing the Category of the Plot of Agricultural Land

Article 1 Scope of regulation

This Annex determines the procedure and conditions for changing the category of the plot of agricultural land and the persons authorised to request the change of category.

Article 2 Categories of the plot of agricultural land and their change

1. The categories of the plot of agricultural land shall be:

a) pasture;

b) hayfield;

c) arable land (including the land under perennial crops);

d) homestead.

2. The category of the plot of agricultural land may be changed in the following manner:

a) by granting the category of a hayfield, an arable land (including the land under perennial crops) or a homestead to a plot of agricultural land of a pasture category;

b) by granting the category of an arable land (including the land under perennial crops) or a homestead to a plot of agricultural land of a hayfield category;

c) by granting the category of homestead to a plot of agricultural land of an arable land (including the land under perennial crops) category.

Article 3 The body authorised to change the category of a plot of agricultural land

1. The decision on changing the category of a plot of agricultural land shall be made by the Legal Entity under Public Law called the National Agency of Public Registry (the Agency) operating under the Ministry of Justice of Georgia, based on the documentation submitted to it and the information (data) stored with it. The change shall be registered in the Public Registry.

2. A plot of agricultural land shall be registered as a plot of agricultural land of the relevant category based on the document certifying the right.

3. If the information stored with the Agency and/or the document certifying the right on the plot of land does not establish the category of the plot of agricultural land, the registration shall be carried out in accordance with the category indicated by the interested person.

4. A change in the category of a plot of agricultural land shall be registered based on the application submitted by the owner.