Privatization has been a term frequently mentioned in the past decades by both governments of transition countries and governments of developed countries. Privatization is a socio-economic process, which involves changes and as such becomes a world trend. The privatization process is usually initiated by the difficult economic situation, high debts, or a process initiated by the global trend of moving from one economic system to another. Privatization should, together with other transition reforms, accelerate the change of economic structure, foster entrepreneurship, improve competitiveness, all of which should result in the creation of an appropriate market environment in which it would be possible to implement the transition to a market economy. Privatization should provide clear and open ownership structure that will provide the entry of strategic investors into state economy. The authors of this paper discuss the current issue of privatization of agricultural land from the viewpoint of countries in transition. The authors also point out some issues and current views regarding the privatization of land in the Republic of Serbia and the new agreement with the EU.