In today's article from the series "Tuesday Mornings for the Construction Industry," we continue our discussion of local development plans ("MPZP") and discuss the planning fee. This is a public levy payable by landowners or perpetual usufructuaries who sell real estate after the local plan comes into effect. Legal literature indicates that it represents a form of participation by property owners or perpetual usufructuaries in the costs of adopting a local plan, which increases the value of their properties.
Calculation rules
The principles for calculating the planning fee, also known as planning rent, are specified in the Spatial Planning and Development Act of 27 March 2003 ("SDP"). Pursuant to Article 36, Section 4 of the SDP, the fee is paid once to the municipality by the owner or perpetual user of the property if, as a result of the adoption or amendment of a local plan, the value of the property or perpetual usufruct has increased, and the owner or perpetual user sells the property or perpetual usufruct.
The municipality is entitled to request payment of a planning annuity from the property owner or perpetual user if within five years of the date the local plan or its amendment became effective. The owner or perpetual user is obligated to pay the annuity at the time the local plan comes into effect.
Moreover, the planning fee is charged not only in the case of sale of the entire property, but also in the case of sale of part of the property (this view was expressed by the Supreme Administrative Court in Warsaw in the resolution of 17 May 1999, file reference number OPK 17/98).
The planning fee is determined by means of an administrative decision , which should be issued immediately after the head of the commune (mayor, city president) receives a copy of the notarial deed documenting the sale of the property (perpetual usufruct). In our experience, proceedings in this matter have sometimes been initiated only in the last, fifth year after the property sale. The increase in property value is determined based on a property appraisal report, specifying the property's value before and at the time the local spatial development plan comes into effect.
A municipality does not have the right to establish a planning fee if the increase in property value is caused by the issuance of a decision on development conditions or a decision establishing the location of a public-purpose investment. This position is confirmed by administrative court rulings, which the legislature used to attempt to introduce such a provision during the 2023 planning reform, but ultimately withdrew from the initiative.
It's worth remembering that, pursuant to Article 37, Section 7 of the Spatial Development Act, a property owner (perpetual usufructuary) may, on their own initiative, even before the property (perpetual usufruct) is sold, apply to the municipality to determine the amount of the potential planning fee. The municipality is obligated to provide the owner (perpetual usufructuary) with this information in the form of an administrative decision.
Planning fee rates
The right of a municipality to charge a planning fee arises only if the local spatial development plan (MPZP) itself specifies the rate or percentages of this fee. Failure to specify percentage rates in the MPZP makes it impossible for the municipal executive body to collect the fee. These percentages can amount to up to 30% of the property's increase in value.
In practice, it is becoming increasingly common for municipalities to set different rates for this fee depending on the function and intended use of a given area. For example, for services or residential development, these are most often the maximum rates of 30%, and for habitat or recreational development, 10%. This is entirely acceptable.
In turn, the failure to specify rates in the local spatial development plan, as well as the failure to charge fees, is considered a violation of the principles of public finance discipline.
Sale of real estate as a condition for charging the fee
Regarding the concept of real estate transfer, it's worth noting that it's not just about the sale itself. For example, in its judgment of 10 October 2013, file reference II OSK 1076/12, the Supreme Administrative Court found that the contribution of real estate by an individual to a capital company corresponds to the concept of real estate transfer used in Article 36, Section 4 of the Land and Building Act, meaning that such an act creates an obligation to pay a planning fee.
However, the collection of a planning fee does not cover situations where the property has been donated to a close person.
Planning fee and betterment fee
The planning fee should not be confused with the betterment fee, which is understood as a fee established in connection with the increase in the value of real estate caused by the construction of technical infrastructure facilities, as well as a fee established in connection with the consolidation and division of real estate or just the division of real estate.
In summary, the planning fee is a one-time public levy payable to the municipality in the event of a property's value increasing due to the implementation of the local spatial development plan. Although it is not a tax, its payment is compulsory and constitutes the municipality's own revenue. The authority responsible for determining and collecting it is the commune's mayor, mayor, or city president.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of August 18, 2025
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