Agricultural land rules and KOWR: when the sale of agricultural land requires consent

Many plots that developers want to buy for multifamily housing are still formally agricultural property. This applies especially to land on the edges of cities and in suburban municipalities, but also to sites within Kraków. In such cases, the sale is subject to the Act on shaping the agricultural system (ustawa o kształtowaniu ustroju rolnego): the purchase may require the consent of the Director General of the National Agricultural Support Centre (Krajowy Ośrodek Wsparcia Rolnictwa, KOWR), and where consent is not needed, KOWR may exercise a pre-emption right. Overlooking this at the start of talks can delay a transaction by many months.

When is a plot agricultural property

The Act on shaping the agricultural system refers to the Civil Code definition of agricultural property – property that is or may be used for agricultural production. The act, however, excludes from this concept property located in areas designated in local zoning plans for purposes other than agriculture.

In practice this means that:

• a plot covered by a local zoning plan that designates it entirely for non-agricultural purposes (e.g. multifamily housing) – is, as a rule, not subject to the act's restrictions,
• a plot without a local zoning plan, recorded in the land and building register (ewidencja gruntów) as agricultural land – is, as a rule, agricultural property within the meaning of the act,
• a plot for which the local zoning plan provides a partly agricultural designation – requires a detailed analysis.

A zoning decision does not change the status of the land

This is one of the most common misunderstandings. A zoning decision (WZ) does not change the agricultural character of property within the meaning of the Act on shaping the agricultural system. The exclusion depends on the designation in the local zoning plan, not on a WZ decision. A plot with a final WZ for a multifamily building, but without a local zoning plan and recorded as agricultural land, may still require KOWR consent when sold to a developer.

Similarly, the provisions of the municipal land-use study are not equivalent to a designation in a local zoning plan. Whether a general plan can have that effect has not yet been settled – until it is, it is safer to assume that the local zoning plan is decisive.

Restrictions on trading

If a plot is agricultural property within the meaning of the act and its agricultural land covers at least 0.3 ha (below that threshold the act does not apply at all):

1. As a rule, a plot of 1 ha or more may only be bought by an individual farmer. Other entities – including development companies – may acquire it after obtaining the consent of the Director General of KOWR, issued as an administrative decision, unless a statutory exemption applies. A developer may buy a plot of less than 1 ha without consent.
2. KOWR has a pre-emption right when agricultural property is sold without the consent of the Director General of KOWR – for example, a plot of 0.3 to 1 ha sold to a developer, or land sold to a farmer. The sale agreement is then concluded as a conditional agreement, and KOWR has one month to declare whether it exercises its pre-emption right. If the acquisition takes place with the consent of the Director General of KOWR, the pre-emption right does not apply.
3. In certain cases KOWR has a right of acquisition, e.g. when ownership is transferred other than by sale.

The act also provides for a number of other exemptions – including in certain family relationships. Each case, however, requires an individual assessment.

A word of caution on companies

Since 2016, KOWR has had a pre-emption right over shares in companies that own agricultural property with a total area of at least 5 ha, and since October 2023 also over shares in their parent companies. This matters in transactions in which land is sold indirectly – through the sale of a company.

How to plan the sale of agricultural land to a developer

Based on transaction practice, it is worth:

1. Establishing the status at the very start. An extract from the land and building register and an extract from the local zoning plan (if one exists) make it possible to assess quickly whether the act applies.
2. Building the time needed for KOWR consent into the timetable (for plots of 1 ha or more). The procedure requires an application with justification and documents, and the decision takes months.
3. Structuring the preliminary agreement accordingly. The conclusion of the final agreement should be conditional on obtaining KOWR consent, with a realistic deadline and clear rules in case of refusal.
4. Allowing for pre-emption. If KOWR consent is not needed (e.g. a plot of less than 1 ha), the final agreement will be concluded as a conditional agreement, and ownership will only pass once the deadline for exercising the pre-emption right has expired.
5. Considering alternatives. In some situations, the solution may be to wait for a local zoning plan designating the land for non-agricultural purposes – which, however, means an uncertain time horizon: since 1 September 2026, in municipalities without a general plan, including Kraków, new local zoning plans can only be adopted once a general plan is in place.

Frequently asked questions

This article does not constitute legal advice. The status of a specific property should be verified with a lawyer.