Expropriation compensation and loss of value

Compensation in partial expropriation

If only part of a property is expropriated, compensation is determined according to three scenarios (Expropriation Law (KamK) art. 12): if the value of the remaining part has not changed, the compensation is the value attributable to the expropriated part. If the value of the remaining part has decreased, the decrease is added to the compensation. If the value of the remaining part has increased because of the expropriation (for example, because it now fronts a road), the increase is deducted from the compensation; however, this deduction may not exceed fifty per cent of the expropriation compensation.

If the remaining part cannot be used under the zoning rules, the owner may request in writing, within thirty daysof service of the expropriation decision, that this part also be expropriated (art. 12(5)).

The value is determined by a panel of experts, using criteria such as the type of property, its area, its net income (for agricultural land), comparable sales (for building plots) and construction costs, in a report complying with the valuation standards of the Capital Markets Board (art. 11). Any increase in value created by the project that requires the expropriation is not taken into account.