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The “WZ Bank”: Why Landowners Are Rapidly Establishing Limited Liability Companies

As fears grow that upcoming general zoning plans will strip land of its building status, property owners are moving development permits into limited liability companies and family foundations to secure their investments.

The Shift Toward Corporate Land Protection

Property owners are increasingly concerned that the implementation of new general zoning plans will cause their land to lose its building eligibility. To mitigate this risk, they are not only securing development permits (WZ) under existing rules but are also transferring them into limited liability companies (sp. z o.o.) or family foundations.

This strategy is driven by the fact that individual development permits are neither fully protective nor inheritable. These entities act as “WZ banks,” offering a more stable framework for holding development rights.

Permits Versus Construction Licenses

While the focus is on securing development permits, legal experts emphasize that the ultimate safeguard for an investment is not the permit itself, but obtaining a final building permit and initiating actual construction works.

Impending Legislative Challenges

The situation is set to become more complex due to planned regulatory changes slated for 2027. These amendments will limit the ability to obtain development decisions exclusively to entities that hold the legal right to dispose of the property for construction purposes.

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