The Slovak Parliament approved an amendment to Act No. 504/2003 Coll., on Agricultural Land Lease, Agricultural Holdings and Forest Land, as amended. The amendment introduces a relatively large number of changes in provisions concerning the lease of agricultural land for business purposes.

The amendment is currently awaiting the President´s signature and the vast majority of changes should come into force on May 1, 2018. The amendment removes the automatic renewal of lease agreements (currently in force in cases where one year before the expiry of a lease agreement neither the lessee nor lessor invites the other party in writing to return/take over the leased land after expiry). There will also be changes in provisions concerning the right to a pre-emptive lease. This right will only be preserved for lessees who use the land and will not apply to cases in which the ownership of leased land has been transferred to another person. In the event of a breach of the pre-emptive right, the lease agreement entered into by the lessor and a third person will be invalid. The Act will also apply to the type of land registered in the cadastral register as "Built-up Areas and Courtyards", but only if it serves for agricultural purposes. The amendment also sets forth a minimum rent for such type of land. The maximum lease period is to be shortened from 25 years to 15 years. Last but not least, for the purposes of arranging lease relations between co-owners and the user of land, only the approval of the majority of co-owners will be required.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.