Charge for the increase in value of a plot of land following a planning decision
Real Estate Attorneys of our Law Firm in Poland would like to inform you that a new law on planning and development is currently being drafted in the Ministry of Development and Technology. One of the important changes will be the need to pay a fee for the increase in the value of the property after the issuance of planning decision. The draft amendments are currently at the post-public consultation stage and the Ministry is working on comments.
The equivalent of the planning fee
The fee to be charged will correspond to the planning fee that the investor is obliged to pay in the event of an increase in the value of the real property following the adoption or amendment of a local spatial development plan. The increase in such value is calculated by comparing the value of the real property before the adoption or amendment of the local spatial development plan and the value after the adoption or amendment. So far, the courts in Poland have taken the position that it is not possible to apply the provisions on the planning fee to the planning decisions.
Amount of the fee and the manner of its calculation
The amount of the fee will be determined as of the date on which the planning decision became final. As in the case of a change in value as a result of adopting or amending a local spatial development plan, the increase in the value of the real property will be the difference between the value of the real property, taking into account the actual use of the real property prior to the issuance of the decision, and the value taking into account the land use and development method specified in the administrative decision. The fee will be charged at a rate of 30% of the increase in the value of the real property.
Are you the owner of a property in Poland and wondering whether you will have to pay a fee on the increase in its value?
If you have questions about your obligation to pay the real estate value increase fee, please contact our Real Estate Law Office in Warsaw, Poznan, Krakow and Wroclaw.