Overview of the development and construction process in Poland

Introduction

The construction and development procedure, i.e. the sequence of actions leading to the completion of a development project, is always a multi-stage process. In every country the regulations are different, involving different authorities and different risks. Therefore, foreign investors often like to get a big picture of the process and the various risks involved at different stages as this is important for determining deadlines and the overall risk profile of a project and also for estimating the costs likely to be incurred.

The sequence of actions in the Polish development and construction process can be divided into the following phases: 1) planning phase; 2) environmental phase; 3) construction permit phase; 4) completion and issuance of an occupancy permit. Sometimes, the planning phase and environmental phase may be in a different order – this depends on the planning status of the property. In cases where the property is included in the local zoning plan, then the first phase is obtaining an environmental decision; in cases where the property is not included in a zoning plan, the investor should first apply for an environmental permit (if the project meets certain requirements) and then for a zoning decision (which is a substitute for not being included in a zoning plan).

After phases 1 and 2 and before the construction permit phase, more specific decisions are sometimes required – such as a decision on public road exit location, water facilities, or a decision of the monument preservation officer. A basic outline of the process is set out below:

This article gives a short overview of the various phases involved.

The local zoning plan

A local zoning plan is adopted by the commune council and is an act of local legislation. It refers to the entire commune or part of it and is adopted following a specific procedure involving the participation of other authorities and the local community. The planning procedure is time-consuming and costly and therefore in many places in Poland such plans have not yet been adopted. The local zoning plan must be compatible with the general planning documents, such as a zoning study or a general zoning plan (which will replace the zoning study and will be adopted in the coming years). All decisions subsequently issued in the construction and development process must be compatible with the zoning plan.

In cases where a plan has been adopted, the first phase of the process is obtaining an environmental decision if the project requires it. If it does not, the investor may apply for a construction permit. In cases where a local zoning plan is not adopted, the investor should first apply for an environmental decision (if it is required) and then apply for a zoning decision, which is a “ substitutesubstitute” for the lack of a zoning plan for the area of the planned development. The investor may then apply for a construction permit.

The existence of a zoning plan speeds up the procedure but provides less flexibility as any amendment to the plan requires the planning procedure to be repeated, which may take a long time and the adoption of the amended plan by the commune council is not guaranteed.

The environmental decision

A decision on the environmental conditions for a development (“environmental decision”) is usually the first decision for which the investor applies. However, it is not always required. An environmental decision is only required for: a) projects that will always significantly affect the environment; and b) projects that may potentially significantly affect the environment. A list of such projects is included in a separate regulation and covers larger projects, such as certain infrastructure and industrial facilities, large shopping malls, large residential complexes etc. In cases where the proposed project does not fall within any of these categories, an environmental decision is not required.

The purpose of the environmental decision is to indicate how the development project (and its subsequent operation) must be undertaken to minimise its impact on the environment. Depending on the features of the project, an environmental decision is issued either by local authorities at the level of commune or, in some cases, by governmental authorities. The procedure involves the participation of neighbours, the local community (as it is open to public) and environmental organizations, The investor does not need to have a legal title to the property to apply for the decision.

During the decision process , the authority asks different stakeholders for their opinions, and, based on the filed petition containing the description of the project, decides whether the preparation of an environmental impact report is necessary or not (in the case of projects that will always significantly affect the environment the report is mandatory). If the report is required, it is prepared by the investor at its own cost. After completion of the report, the authority verifies it and may ask for further amendments. If the report is not required, the process is much quicker, as the authority issues the decision based only on the petition and its attachments.

Once issued, the decision is valid for 6 years, within which the investor should obtain the construction permit. The decision may be transferred to a third party (new investor) – this requires a separate administrative procedure and issuance of a decision.

The zoning decision

In cases where a local zoning plan for the property has not been adopted, the next step after obtaining an environmental decision (if it was required) would be to apply for a decision on development conditions (often called the “zoning decision”). In cases where a local zoning plan has been adopted, zoning decisions are not issued.

A zoning decision specifies the land use and development conditions; it sets out the project’s parameters such as its function, dimensions and other factors. Those parameters should subsequently be followed by the designers in the course of preparing construction documentation for the construction permit.

A zoning decision is issued following an administrative procedure in which the owners of the neighbouring land usually participate as parties. The decision may only be issued if certain conditions are met, for example that there is adjacent development of similar function and size, that there is access to the public road and access to the infrastructure. Further conditions refer to agricultural land and its protection and lack of conflict with key network infrastructure. An important part of the proceedings is the urban analysis, prepared by the urban planner, the results of which provide the parameters of the future development. During the analysis, the urban planner analyses the “analysis area” and compares the parameters of neighboring developments.

Following the latest amendment to the Law on Planning and Spatial Development, from 1 January 2026 zoning decisions will only be issued for areas designated in the commune's general zoning plans and such plans will be the legal basis for the zoning decision. This will decrease the role played by the zoning decision in the development process due to the fact that their issuance will only be possible in relation to certain, very limited, areas. To date, zoning decisions have been very popular and commonly used by investors as they are comparatively easy to obtain. However, the practice of issuing them has, after many years, resulted in urban chaos in many areas and therefore the legislators decided to limit their role to exceptional cases.

Currently, a zoning decision is issued for an indefinite period of time. Following the aforementioned amendment, zoning decisions issued after 31 December 2025 will cease to be valid 5 years after they become final.

The investor does not need to have legal title to the property to apply for a zoning decision. As in the case of environmental decisions, zoning decisions may be transferred to a third party. This requires completion of a specific administrative procedure and issuance of a decision. A zoning decision usually expires when a local zoning plan is adopted (there are, however, some exceptions).

Other decisions required before the construction permit

Sometimes, due to the specific features of a project, such as its location or technical parameters, other specific decisions may be required before applying for the construction permit. Those decisions may refer to: a) public road issues, such as the location of a public road exit or locating infrastructure under a public road , b) water law issues – such as water facilities, bridges, water discharge etc., c) monument or archaeological protection.

Those decisions are issued by different authorities and should be attached to the petition for issuance of the construction permit. It is important that, as with all the previously described decisions, they are addressed to the same investor as applies for the construction permit.

The construction permit

A construction permit in Polish law is an administrative decision that, subject to certain exceptions, is necessary to start and carry out construction work. Some minor works specified in law require only prior notification, or some may even be exempt from that duty.

The content of the construction permit can be divided into two parts. The first states that the planned construction project complies with the law (the authority approves the construction project for the planned development) and with the previous decisions – the zoning decision, environmental decision etc.. In the second part, the authority authorizes the implementation of the planned construction project.

An application for a construction permit requires a special form and many accompanying documents, including designs prepared in accordance with the requirements set out in specific regulations. The design should be compatible with the zoning plan or zoning decision, should take into account the environmental requirements and should comply with technical regulations. It is sometimes necessary to supplement or correct deficiencies in the design documentation in the course of the process.

The proceedings involve third parties, the owners of land located within the “impact area” of the development. Those third parties may question the decision by filing an appeal and later a claim to the administrative court.

A construction permit decision expires if construction has not begun before the expiration of 3 years from the date on which the decision became final, or if construction has been interrupted for more than 3 years. The commencement of works is indicated in the construction log, which is issued to the investor after notification of the intention to commence works.

Like the environmental decision and the zoning decision, the construction permit may also be transferred to a third party. This requires a separate administrative procedure and issuance of a decision. In order to apply for the construction permit, the investor must have a legal title to use the property – usually it is ownership right but can also be a lease or tenancy agreement or preliminary sale agreement granting right to use the property for construction purposes.

The occupancy permit

The occupancy permit is issued at the end of the construction process. It is preceded by inspection by certain authorities (such as the fire service, sanitary inspectors and construction inspectors), although, the procedure itself only involves the construction supervision authority and the investor. The occupancy permit, once issued, is not limited in time. Sometimes it may be conditional, for example upon completion of certain elements within a given timeframe. There is no need to transfer the decision after it is issued as it is linked to the building, rather than the legal owner.

Summary

The development and construction process is considered by many to be complicated, and the time to obtain all the administrative decisions necessary to start construction work in Poland is sometimes calculated in years, although this depends on the status of the property and the features of the project. It is worth mentioning that the most important public projects enjoy separate regulations. In order to develop public roads, railways, airports, gas lines, power networks, fewer decisions are required and many phases, such as plot division or expropriation, are often merged into one decision, which speeds-up the entire process. This enables Poland to develop its public infrastructure quickly and effectively, using European funds.

Compared to other countries in the CEE region, Poland has relatively fast procedures and is becoming more and more attractive to foreign investors. However, having a good understanding of the requirements imposed by the law at each stage of the process helps facilitate the entire process and minimize the risks.