Compulsory Acquisitions: Legislative amendment and modernisation of the process

One of the key legal developments of 2024 is the introduction of the “Compulsory Acquisition (Amendment) Law of 2024.” This new bill, prepared by the Ministry of Interior, brings significant changes aimed at modernising and improving the functionality of the current legal framework for acquisitions.

Key Changes and Provisions of the New Law:

1. Expansion of the Definition of the Acquiring Authority: Community authorities are now explicitly included in the definition of the acquiring authority, broadening the scope of the law.
2. Special Provisions for Archaeological Purposes: The new law facilitates the acquisition of properties for the preservation, protection, and enhancement of archaeological sites and ancient monuments.
3. Electronic Notifications: The law introduces a requirement for notifications and related information to be published through electronic means, such as websites and emails, ensuring greater transparency and accessibility.
4. Deadlines for Court Applications and Compensation Distribution: A 12-month deadline is set for filing court applications to determine compensation, providing legal certainty. For ongoing cases, a transitional period of three years is retained for property owners to file for compensation. In certain circumstances, affected parties may request an extension of the deadline for filing court referrals. The law also allows for the distribution of compensation among multiple interested parties upon request.
5. Management and Interest on Compensation: The law regulates the payment of interest on compensation and allows the deposit of the owed amount into a special account under the supervision of the General Accountant. For private agreements, tax, fee, and levy exemptions are provided.
6. Ownership of Acquired Properties: With the approval of the Council of Ministers, the acquiring authority may retain ownership of acquired properties after achieving the purpose of the acquisition, avoiding public auctions.
7. Economic Impact and Financial Management: The Ministry of Finance assures that public finances will not be burdened, provided that compensation payments are managed effectively and disbursed gradually in line with budgetary constraints and approved credits.
8. Transitional Provisions: The law includes transitional provisions to ensure a smooth transition from the existing legal framework to the new regulations.

This new law represents an important step toward improving the compulsory acquisition process, addressing modern needs and challenges. Its implementation is expected to ensure greater transparency, efficiency, and fairness in acquisition procedures. These changes bring significant opportunities for property owners, investors, and authorities involved in such processes.

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