Land lease (grondhuur), pursuant to the Decree allocation of State-owned Land (Decreet uitgifte Domeingrond), is a right in rem (zakelijk recht) to the free enjoyment of a parcel of land subject to use in accordance with the destination and provisions given by the State at the establishment. Land Lease is unilaterally granted by the State at an annual fee set by the State. The duration of the Land Lease is established at the establishment with a minimum duration of fifteen (15) years and a maximum duration of forty (40) years.
The State of Suriname is the legal owner of the land and the Minister of Spatial planning, Land and Woodland management, is the competent authority to issue Land Lease.
Land Lease is only available to residents of Suriname (this includes legal entities).
Land Lease is issued for various purposes, including buildings and habitation, for the exercise of Horticulture, agriculture, etc.
Land Lease is requested through a petition submitted to the Minister of Spatial planning, Land and Woodland management. This petition contains amongst others the name of the applicant, the description of the requested parcel land and the purpose of the requested parcel land.
Within four (4) months of receiving the allocation decision from the Minister of Spatial planning, Land and Woodland management the allocation decision must be submitted to the Mortgage Office (Hypotheekkantoor) for transfer in the relevant register. If the allocation decision is not submitted to the Mortgage Office within this period of four (4) months, the transfer will not have taken place and the allocation decision will lapse by operation of law.
The right of Land Lease is therefore obtained after the transfer has taken place in the relevant register of the Mortgage Office. Similar to Long-term land lease (Erfpacht), it is possible for owners of a Land Lease to establish a mortgage. Transfer of issued Land Lease, by the owner of a Land Lease, requires approval from the Ministry of Spatial planning, Land and Woodland management.
Land Lease and Long-term land lease are very similar and in practice are treated more or less equally. The difference between Land Lease and Long-term land lease is that Long-term land lease can also be issued by non-government entities or individuals.