Conversion of the purpose of a land, from agricultural to constructible

29 June 2007 - Comments (0) Procedures

Conversion of the purpose of a land, from agricultural to constructible When you think that you have done almost everything, collected all the necessary papers and paid all taxes needed to get your building permit, it may still be one more thing waiting for you. The one we want to talk about can be a very expensive one.

Purpose of the land

It might sound a bit surprising, but land classified as constructible in the detailed urban planning, might still be assigned as agricultural. In fact, the land that was agricultural and that was reclassified as constructible by urban planning, will still remain agricultural up to the moment a construction starts. At this moment, or actually before the construction can start, it needs to be converted and, of course, a tax has to be paid.

From agricultural to constructible

So if you buy a constructible land, that you paid at the market price of constructible lands, that can have all connections to water, canalization and electricity ready, you still need to convert it.

This is actually well defined by the “Law on agricultural land”. The land that was agricultural and that is classified as constructible by urban planning will still be agricultural up to the moment it is converted and a tax for that act paid. That tax can be very big.

How much does it cost?

The conversion cost for unlimited time (or in other words forever) is at maximum 1500 euros per ha (per 10.000m²), except, and that is the big deal, if the land is classified as I or II cadastral class.

If in the copy of the plan for your land, the paper that you get from the Geodetic Authority, you see that your plot is a field of class I or II, you will pay 50% of the market price of agricultural land determined by the municipality tax office. Useless to say that all lands close to city are probably of one of those 2 classes. It means that the cost of conversion of the land is a major cost to take into account.

How to do it?

To get a final building permit you will be asked in the municipal office the decision that the purpose of your land is changed. To get this paper you need to submit the request to the Secretariat for Economy that will give you a decision with the amount to be paid. From that amount 60% goes to the budget of Republic and 40% to the Municipality.

Getting the decision may take some time (a month or two), so be prepared to do it well in advance.

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