Land expropriation is the process by which state or local government bodies seize ownership of real estate for public purposes, even against the will of the current owner. Although this is a necessary tool for implementing infrastructure investments and other projects that benefit society as a whole, it carries with it detrimental consequences for those whose properties are subject to expropriation. The Constitution guarantees owners the right to compensation in this regard. Understanding the principles of compensation calculation and the procedures for obtaining compensation is crucial for anyone affected by this process.
When does expropriation occur?
Expropriation can occur in many situations, but it must always be justified by public purposes. The most common are:
- construction of roads, highways, railways, metro lines.
- implementation of energy projects (e.g. construction of transmission lines, power plants).
- creation or expansion of public facilities (schools, hospitals, parks).
- realization of state defense goals.
- counteracting the effects of natural disasters.
The legal basis for expropriation in Poland is primarily the Real Estate Management Act of 21 August 1997 (Journal of Laws 2024.0.1145, i.e.).
The key elements influencing the amount of compensation are:
- Market value of the property – This is the most important element. This value is determined based on an appraisal report prepared by a certified real estate appraiser.
- The condition of the property on the date of issuing the decision – Compensation is determined according to the condition of the property on the date of issuing the expropriation decision, but at prices on the date of determining the compensation.
- Compensation for lost profits – In some cases, in addition to the value of the property itself, compensation may also include compensation for lost profits, such as loss of income from business activities conducted on the property. However, assessing such losses is often complex and requires detailed analysis in court proceedings.
- Costs of Expropriation – Compensation may also cover reasonable costs associated with having to vacate the property, such as moving costs.
The process of expropriation and obtaining compensation is multi-stage:
- Expropriation Decision – The process begins with the issuance of a decision to expropriate real estate by the appropriate public authority (e.g., district governor, city mayor). The decision specifies the purpose of the expropriation and the scope of the right being acquired.
- Negotiations and Agreements – In many cases, the administrative body will attempt to reach an agreement with the property owner regarding the amount of compensation. This is a beneficial solution for both parties, as it speeds up the process and avoids lengthy court proceedings.
- Compensation Determination by the Authority – If no agreement is reached, the compensation amount is determined by an administrative decision. For this purpose, the authority commissions an independent appraiser to prepare a valuation report.
- Compensation Payment: Compensation must be paid within 14 days of the date on which the expropriation decision becomes final, i.e., enforceable (Article 132 of the Real Estate Management Act). In the event of late payment, the entitled party is entitled to interest.
- Possibility of appeal: An owner who does not agree with the amount of compensation determined has the right to appeal against the administrative decision to a higher authority (e.g. the voivode or the National Property Tribunal) and then file a complaint with the Provincial Administrative Court.
To sum up:
As a property owner, you have the right to actively participate in the expropriation process. You have the right to review the valuation report and submit comments. Remember to secure all documentation related to the property (notary deeds, building permits, repair bills, lease agreements, etc.), as they can be helpful in determining the property's value. It's also worth considering seeking the assistance of a law firm or lawyer specializing in real estate law. A lawyer can assist with negotiations, evaluate the valuation report, and represent you in administrative and court proceedings.
This article is for informational purposes only and does not constitute legal advice.
The law is current as of July 23, 2025.
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