Changing land use in a local development plan (MPZP) is one of the most powerful manifestations of a municipality's so-called planning authority . Although a municipality has the right to shape spatial order, it cannot do so at the expense of the legitimate interests of property owners without appropriate compensation. Adopting or amending a local development plan (MPZP) is the moment when property rights collide with the public interest. For property owners, this change can mean a drastic decline in liquidity and asset value.
The key legal act regulating this issue is the Spatial Planning and Development Act . According to its provisions, if, due to the adoption of a local plan or its amendment, the use of real estate or part thereof in its previous manner or consistent with its previous purpose has become impossible or significantly limited, the owner may seek compensation from the municipality.
Types of claims available
An owner whose property has lost value or functionality has three main options available to them:
- Compensation for actual loss: Monetary compensation for the decline in value of a property.
- Real estate purchase: A request that the municipality purchase a property (or part of it) at market price if a change to the zoning plan prevents its continued use in the current manner.
- Provision of a replacement property: An amicable solution in which the municipality provides another plot of land in exchange for the one affected by the unfavorable change.
The essence of planning damage
A key point of dispute in courts is the definition of using real estate in a manner consistent with its current intended use . Municipalities often argue that if a plot of land was previously unused, changing its designation to "greenery" does not cause harm because the owner "wasn't building anything there anyway."
Courts (including the established case law of the Supreme Court) hold that "intended use" encompasses not only the actual use (e.g., potato cultivation), but primarily the legal potential of the property . If, prior to the plan change, the owner could have obtained development conditions (WZ), or the previous plan permitted construction, but the new plan prevents it, there is damage that is subject to redress.
Conditions for effective compensation claims
In order to successfully apply for so-called planning compensation , the following conditions must be met:
- Entry into force of a new local spatial development plan or its amendments.
- Causal link: The decrease in value must be a direct result of the adoption of the plan (e.g. transformation of a building plot into an undeveloped green area).
- Property disposal: In the case of a claim based on Article 36, Section 3 of the Act, the key moment is often the sale of the property. The owner may claim compensation equal to the diminution in value of the property if they dispose of it without first exercising their rights to repurchase or compensation for actual loss.
Litigation strategy: How to win against the Municipality?
- Securing “historical” evidence: Before the new plan comes into force, it is worth obtaining a certificate of land use in the old plan or applying for development conditions (WZ) to confirm the potential of the plot.
- Attempt to settle: Before taking the case to court, a demand for payment must be made against the municipality. Municipalities rarely pay voluntarily, but a demand is necessary to accrue statutory interest.
- Verification of the General Plan: It is necessary to check whether the decrease in value is due to a superior document (the General Plan), which may complicate the evidentiary process.
It's important to emphasize that time works against the owner. Claims for depreciation in the value of a property sold must be filed within five years of the date the local zoning plan or its amendments became effective. Failure to do so will result in the loss of the right to compensation.
Planning annuity and compensation
Be wary of situations where a zoning change reduces the value in one respect (e.g., limiting building height) but increases it in another (e.g., allowing services). If the balance is zero or positive, the municipality not only refuses to pay compensation but may also charge a zoning fee (up to 30% of the increase in value) upon sale of the plot.
Procedure and damage assessment
The compensation process is divided into an amicable and judicial stage:
- Application to the Municipality: The first step is to submit an official demand for payment or a request for redemption.
- Valuation Report: The key evidence in a case is a report prepared by a real estate appraiser . It compares the property's value immediately before and immediately after the plan change takes effect.
- Legal action: In the event of refusal by the municipality (which often happens due to the budgetary discipline of local governments), a civil action against the municipality remains.
Pursuing claims for property impairment requires a precise combination of administrative and civil law expertise. The key to success is demonstrating that the restriction of property rights violated the principle of proportionality and resulted in tangible property loss.
This article is for informational purposes only and does not constitute legal advice.
The law is current as of January 21, 2026.
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