Agricultural Land and Zoning

Your Development Project Starts with the Land Use Plan, Not the ALF

The land use plan is a strategic document that determines the development concept of a municipality and defines how individual plots of land can be used. Under the Czech Building Act (Act No. 283/2021 Coll.), construction can only be permitted on land explicitly designated as a "developable area" in the land use plan. 

If your land is not within a developable area, the only way forward is to initiate a change to the land use plan. While a proposal for a change can be submitted by the landowner, the decision to proceed with and ultimately approve it rests exclusively with the municipal council. This process is not only administratively complex but also politically sensitive.

You must be prepared for a long-haul process that can take two to three years. Moreover, the outcome is uncertain, as the municipality can reject the proposal for many reasons—for example, to protect the landscape character, due to inconsistency with the overall municipal development concept, or because of the high quality of the agricultural land. Thorough preparation and strategic communication with the municipality are therefore absolutely crucial.

Preparing a development project thus requires an in-depth analysis not only of the land's legal status but also of the current land use plan and the political climate in the given locality. An investment without this strategic assessment is highly risky. At ARROWS, our Prague-based legal team can assist you with a legal analysis of your project's compliance with the land use plan, prepare a qualified proposal for its amendment, and represent you in negotiations with the municipality. Contact us at consultation@arws.cz to get a tailor-made legal solution.

The Agricultural Land Fund (ALF): The Second Key Obstacle

Once your project complies with the land use plan, the second crucial phase begins: obtaining consent for the removal of land from the Agricultural Land Fund (ALF). This process is governed by Act No. 334/1992 Coll., on the Protection of the ALF, which protects soil as an irreplaceable natural resource not only for agricultural production but also for its ecological functions, such as water retention in the landscape.

Two key concepts are crucial for a successful procedure, determining both the complexity of the process and the amount of the costs.

• Protection Classes: Agricultural land is divided into five protection classes. Land in Classes I and II is considered the highest quality and is protected most strictly. Its removal for non-agricultural purposes is possible only in exceptional cases.

• BPEJ (Evaluated Soil Ecological Unit): This is a five-digit code that provides a detailed characterisation of the soil's quality and production potential based on climatic and soil properties. This code is essential as it forms the basis for calculating the financial levies for removing land from the ALF.

If you plan to build on the highest quality land in protection classes I and II, prepare for a very demanding process. Under Czech legislation, it is necessary to demonstrate that "another public interest significantly outweighs the public interest in protecting the ALF". This is not a formal criterion but an area for complex legal argumentation, where it is necessary to rely on relevant case law (cf. judgment of the Regional Court in Prague of 27 June 2024, ref. no. 51 A 22/2024-77). A standard commercial project, such as the construction of a warehouse or a shopping centre, will pass this test only in truly exceptional cases.

The ALF Removal Process: A Step-by-Step Guide to Success

The process of removing land from the ALF is a formal administrative procedure that requires careful preparation and complete documentation. Even a small mistake can lead to delays or the rejection of the entire application.

The application is submitted by the party in whose interest the removal is to occur, typically the developer or investor. The competent authority is the municipal office of the municipality with extended powers. An important legislative change is that from July 2024, the process will be handled by the building authority, which will request an opinion from the ALF protection authority itself.

To successfully submit an application, you will need a range of specific documents. The most important ones include:

• An extract from the Land Register and a copy of the cadastral map with the project's layout.

• A precise calculation of the levies for the land removal.

• A balance of the topsoil stripping (humus) and a proposal for its economical use.

• Results of a pedological survey (especially for larger projects).

• A reclamation plan (in the case of temporary land removal).

Financial levies can represent a significant item in the project budget. Their amount is calculated using the formula: Levy amount = area (m²) × base price according to BPEJ (CZK/m²) × protection class coefficient. For example, removing 120 m² of Class II protection land with a BPEJ price of CZK 15.43/m² would result in a levy of CZK 11,109.60 (120 × 15.43 × 6). The levy is paid as a one-off payment after the decision becomes legally effective. At ARROWS, we will handle the comprehensive preparation of all documentation and ensure the smooth running of the proceedings. Need legal assistance? Contact us at consultation@arws.cz.

International Investment and Cross-Border Development

The same rules apply to foreign investors and corporations, but the process can be significantly more complicated due to a lack of familiarity with the Czech legal environment, language barriers, and the complexity of administrative proceedings. This is where the strength of our international presence comes into play.

Thanks to the ARROWS International network, built over ten years, we provide foreign clients with comprehensive legal services that effectively overcome these barriers. We handle matters with an international element on a daily basis, which guarantees not only legal certainty but also efficiency and risk minimisation for your investments in the Czech Republic. Our lawyers are ready to help you with your international project—email us at consultation@arws.cz. 

How to Avoid Million-Crown Penalties and Unnecessary Costs

Non-compliance with the Act on the Protection of the ALF is not just an administrative error; it carries the risk of significant financial penalties. Using agricultural land for non-agricultural purposes without valid consent for its removal can be penalised with a fine of up to CZK 10,000,000 for a legal entity or an enterprising natural person.

However, fines are not the only risk. Much greater damage can result from wasted investments in project documentation, geological surveys, and other preparatory work if the project is rejected due to formal errors. Prevention is therefore always more effective and cheaper than dealing with the consequences.

Legal consultations and the preparation of internal guidelines by ARROWS are the best prevention against fines and unnecessary costs. For an immediate solution to your situation, email us at consultation@arws.cz. 

ARROWS: Your Strategic Partner for Development on Agricultural Land

The conversion of agricultural land into building plots is a complex discipline where land use planning, administrative law, and strategic negotiation intersect. At ARROWS, we offer not just individual legal acts but a comprehensive strategic partnership that will protect your investment from start to finish. Our services cover everything from the initial legal analysis and land due diligence, through representation in proceedings to amend the land use plan, to the complete preparation of documentation for removal from the ALF.

Our experience from long-term cooperation with more than 150 joint-stock companies, 250 limited liability companies, and 51 municipalities and regions gives us a unique insight into our clients' needs and the processes on the authorities' side. We pride ourselves on speed, high quality, and a proactive approach. Furthermore, we actively seek out and connect interesting investment and business opportunities for our clients.

Your project deserves the best legal protection. Do not hesitate to contact our firm at consultation@arws.cz to arrange an initial consultation.