Compensation for Falling Property Value After a Polish Local Zoning Plan Change

This guide is general legal information, not legal advice. How the rules apply depends on your individual circumstances, and the matter should be assessed by a qualified Polish lawyer. Twoja Sprawa helps you organise the documents for that assessment.

Do you own a plot of land in Poland, and has the local council (gmina) adopted or amended a local zoning plan (miejscowy plan zagospodarowania przestrzennego, MPZP)? If, as a result, your property has lost value — for example, building land was reclassified as agricultural or green space, or building rights were restricted — you may have grounds for compensation for the fall in property value caused by a local zoning plan. The legal basis is Article 36 of the Polish Act on Planning and Spatial Development (ustawa o planowaniu i zagospodarowaniu przestrzennym). This is a completely different situation from compensation for living near an airport (a "limited-use area"); here we are dealing exclusively with the consequences of a planning resolution passed by the local council. This article explains when a claim may arise, how the procedure works, and what to watch out for when running the case from abroad.

How a local zoning plan can reduce your land's value

A local zoning plan (MPZP) is a piece of local law adopted by the municipal council (rada gminy). It sets out what a given area can be used for — residential, commercial, agricultural, green space, infrastructure. Problems arise when the gmina:

• adopts a first-ever plan for land that previously had no plan (and the owner was counting on being able to build, in line with the local development study or the land's existing use),
• amends an existing plan — for example, turning building land into agricultural, forestry, or green land,
• introduces new restrictions — a protection zone, a ban on building, or lower building density than before.

The economic effect can be serious: a plot that was previously suitable for a house or an investment project suddenly loses that status, or sees it significantly curtailed. Market value falls — sometimes sharply, since agricultural land is usually worth far less than building land. The legislator built a compensation mechanism for exactly this kind of situation into Article 36 of the Planning and Spatial Development Act.

Claims under Article 36 of the Planning Act

Article 36(1) and (3) of the Act provides two distinct mechanisms to protect the owner, depending on what happened to the property and whether the owner is selling it.

1. Compensation for actual loss, or a buy-out of the property (Article 36(1))

If, as a result of the adoption or amendment of the plan, using the property in its previous way, or in a way consistent with its previous designation, has become impossible or significantly restricted, the owner can demand from the gmina:

• compensation for the actual loss suffered, or
• that the gmina buy out the property or part of it,
• or — if it was replacement land — a substitute property.

This claim applies where the owner is not selling the property but wants to keep using it (or wants the gmina to buy it back, since it has lost its previous function).

2. Compensation for the drop in value on sale (Article 36(3))

If the owner sells the property and its value has fallen because of the adoption or amendment of the local zoning plan, they can claim from the gmina compensation equal to the drop in the property's value. The condition is that the sale must take place within the period during which the claim is still available (see the deadline section below).

This is the variant that most often affects Poles living abroad — a plot inherited or bought some time ago, whose designation was then changed by a zoning plan, with the real financial loss only becoming apparent as a lower sale price when the plot is eventually sold.

Important: both claims are addressed to the gmina (the mayor or council leader — wójt, burmistrz, prezydent miasta), not straight to court — only a failure to reach agreement, or the gmina's refusal, opens the way to court proceedings.

How this differs from compensation for living near an airport (limited-use area)

This is an important distinction, because both situations involve a "drop in property value" but rest on entirely different legal grounds:

If your property is near an airport and falls within a limited-use area, that rests on a different legal basis, covered in a separate article on our blog once published: "Compensation for a limited-use area (airport)." Don't confuse the two mechanisms — they have different payers and different conditions.

How the amount of compensation is set — the role of the property valuer

The Act does not set fixed amounts or percentages. The level of compensation (whether for actual loss or for the drop in value on sale) is established on the basis of a valuation report (operat szacunkowy) prepared by a licensed property valuer, who compares:

• the property's value under its previous designation (before the new plan took effect, or under the designation that was possible before),
• the property's value under the new designation (after the plan change).

The difference between these two valuations is the starting point for calculating compensation. In practice:

• the gmina may commission its own valuation report, and the owner their own; if they disagree, the dispute goes to court,
• the cost of the valuer is usually paid upfront, and its reimbursement can be claimed together with the compensation,
• every case is different — it depends on location, the previous designation, and the plot's actual condition.

There is no way to say in advance how much compensation will amount to — it is always the result of an individual valuation, and, where disputed, of a court-appointed expert's assessment. Avoid rough "back-of-envelope" estimates without a proper valuation report.

Deadline for bringing a claim — needs individual verification

This is the element that can make or break the claim entirely — and it needs precise checking against your specific facts, ideally with a lawyer, before you decide to sell the plot or decide not to act.

⚠️ The exact limitation period for Article 36 claims — and the rule on how long after a sale a claim for the drop in value on disposal can still be brought — depends on the specific facts of your case and must be confirmed with a lawyer before you act; it is not stated here to avoid giving you an inaccurate deadline to rely on. Practical implications:

• if you are planning to sell the plot, check before the transaction whether the claim for the drop in value (Article 36(3)) has not already lapsed,
• if you are not selling, but want to claim a buy-out or compensation for being unable to use the property (Article 36(1)), check when the deadline started running and how much time is left,
• putting the decision off "for later" is risky — for claims of this type, deadlines are often counted from when the plan came into force, not from when the owner found out about it.

⚠️ Do not decide to sell the plot without first checking the deadline for the claim — if you sell first and only check the deadline afterwards, you may lose the ability to claim compensation at all.

Pursuing the claim remotely from abroad

Living in the UK, Ireland, or anywhere else, while the plot is in Poland? The case can be run without travelling:

1. Power of attorney — you grant power of attorney to a Polish advocate (adwokat) or legal counsel (radca prawny) to represent you before the gmina and, if needed, before the court. A power of attorney for property-related matters usually requires written form with a notarially certified signature, or a full akt notarialny (notarial deed) — your representative will confirm which form applies to your specific case.
2. Gathering documents — proof of ownership, an extract from the księga wieczysta (the land and mortgage register), the resolution adopting the local zoning plan (available from the gmina office or the Public Information Bulletin, BIP), and, where available, a valuation report.
3. Application to the gmina — your representative files a formal demand for compensation or a buy-out, citing the legal basis (Article 36(1) or (3)) and the reasoning.
4. Negotiation or court proceedings — if the gmina refuses or offers an unacceptable amount, the case goes to the ordinary courts; hearings in many courts can be followed remotely, but key procedural decisions are taken by your representative on the ground.

Frequently asked questions

Does every local zoning plan change give a right to compensation? No. There must be a genuine deterioration in the owner's position — either the property can no longer be used as before (Article 36(1)), or an actual drop in value is revealed on sale (Article 36(3)). The mere adoption of a plan that does not really change how the land can be used is usually not enough.

Who is the defendant — the gmina, or the State Treasury? Article 36 claims are brought against the gmina that adopted or amended the local zoning plan — the gmina is liable for the consequences of its own planning resolutions.

Do I have to sell the plot to get compensation? Not always. If the property has lost its previous function and you can no longer use it as before, you can claim compensation for the actual loss, or a buy-out, without selling to a third party. Compensation for the drop in value (Article 36(3)), however, does require the property to be sold.

Is the amount of compensation known in advance? No. Every case requires a valuation report from a licensed property valuer comparing the property's value before and after the plan change. There are no tables or fixed rates.

Can I run a case like this while living abroad? Yes, through a representative in Poland. You don't need to be physically present at every stage — your representative handles correspondence with the gmina and represents you in the proceedings.

How does this claim differ from the "planning levy"? The planning levy (renta planistyczna, Article 36(4) of the same Act) is a fee that the owner pays to the gmina when they sell a property whose value has increased because of a plan change. That is the opposite situation to the one described in this article — here we are talking about a drop in value and compensation from the gmina to the owner, not the other way round.

Free review of your case

Has your plot in Poland lost value after a local zoning plan change? Not sure whether the deadline for a claim has already passed, or how any compensation would be calculated? Get in touch with Twoja Sprawa at twojasprawa.com. We will connect you with a Polish advocate or legal counsel who can assess your situation and the grounds for a claim.

Disclaimer

Twoja Sprawa (twojasprawa.com) is a platform that connects clients with regulated Polish advocates and legal counsel (adwokaci and radcowie prawni) — it is not a law firm. This article is provided for information purposes and does not constitute legal advice. The deadlines for pursuing claims under Article 36 of the Act on Planning and Spatial Development need to be verified against your specific facts — always consult a lawyer before making a decision, especially before selling a property. We do not guarantee the outcome of any case or the amount of any compensation.

Sources

• Act of 27 March 2003 on Planning and Spatial Development, Articles 36–37 — ISAP
• Act of 27 April 2001, Environmental Protection Law, Article 129 (for comparison — a different legal basis, limited-use areas) — ISAP

Related articles

• Right of first refusal on Polish property — when and how it applies
• Buying agricultural land in Poland — restrictions and KOWR
• Compensation for a limited-use area around an airport — a different legal basis (Article 129 Environmental Protection Law)