Developer Infrastructure Contribution
Money or works a developer gives a municipality for roads, utilities, schools or kindergartens, via a contract or a statutory local development levy.
What is a developer infrastructure contribution?
A developer infrastructure contribution (príspevok investora na infraštruktúru obce) is money or works that a developer or builder provides to a municipality toward public infrastructure that a new project needs, such as access roads, water and sewer lines, power connections, schools or kindergartens. It is a practice name rather than one statutory term. In Slovakia it covers two different mechanisms: a voluntary arrangement agreed in a contract with the municipality, and a statutory miestny poplatok za rozvoj (local development levy) that a municipality may introduce by its own ordinance. From the builder's side the two can look alike, but their legal basis is different, and that difference decides whether the amount can be negotiated at all.
How does a voluntary contribution through a municipal contract work?
When a municipality wants a larger project to pay toward infrastructure, it usually asks the investor to sign a contract. The contract might commit the investor to build a road section or extend a water main to the site, to transfer part of the plot for a public road, or to pay a sum toward a municipal project. Such terms are checked against the municipal land-use plan (územný plán obce), which shows where roads and utilities are expected to run.
A municipality can also state its expectations in a binding opinion (záväzné stanovisko) issued during permitting. A condition written into a binding opinion is not a negotiated term. An investor who considers such a condition unlawful needs legal advice on the remedies available, rather than simply signing.
Read any draft contract for four things: what exactly is promised, when payment falls due, what happens if the municipal project is delayed or never built, and whether your obligations depend on a permit being issued. Demands with no clear link to what the project actually adds to the infrastructure are a common source of dispute.
What is the local development levy and how is it set?
The miestny poplatok za rozvoj is governed by act 447/2015 Z. z. It is not automatic. A municipality has to introduce it by a generally binding municipal ordinance, a všeobecne záväzné nariadenie (VZN), which can apply to the whole municipal territory, to part of it, or to a single cadastral area. A municipality that has not adopted such an ordinance cannot charge the levy. Where it is in force, the levy is calculated on the above-ground floor area of the new building. The act sets the range within which the municipality chooses its rate, and rates can vary by building type or by cadastral area, so two neighbouring municipalities can charge very different amounts for similar houses.
Only buildings whose permits become final after the ordinance takes effect are affected. The obligation generally arises when the building permit becomes final, and the municipality issues a levy decision payable within a short period after that decision becomes final. It may allow instalments on request. The 2025 amendments aligned the act with the new Building Act 25/2025 Z. z., which applies since 1 April 2025, so guidance written for the 1976 procedure may no longer be accurate.
How is a voluntary contract different from a statutory levy?
The distinction comes down to three questions: whether the payment is agreed or imposed, whether the amount is negotiable, and what the money can be used for. The table sets the two side by side.
| Feature | Voluntary contract | Statutory levy |
|---|---|---|
| Legal basis | Agreement between the municipality and the investor | Act 447/2015 Z. z., applied through the municipal VZN |
| How it arises | Negotiated, or set as a condition in a binding opinion | Imposed by the municipality once the VZN is in force and the permit is final |
| Can the amount be negotiated? | Yes, within the contract | No, the rate comes from the VZN and the floor area |
| Form of contribution | Money, works, or land transfer | Money only |
| Limits on use of the money | Whatever the contract states | Closed list of capital purposes in the act |
In practice the levy is a predictable cost once the ordinance is in force and the permit is final. A contract is open-ended, and its size depends on the bargaining position of both sides. A municipality can use both on the same project, so any contract that asks for money should be checked for overlap with the levy.
Who pays, and what can the money be spent on?
For the levy, the payer is the builder named in the building decision. A municipality, the state or a self-governing region building on its own territory is not a payer. If several builders are named, the levy is shared between them in equal parts unless they agree otherwise. Levy revenue is municipal budget income, but it can be spent only on capital expenditure from a closed list in the act. That list includes local roads and technical infrastructure, along with facilities for children and schools, health care and parks.
A contract is not bound by that list. The purpose is whatever the parties agree, so the project and its timetable should be written into the agreement.
Why does this matter for satellite settlements?
A satellite settlement is typically built on the edge of an existing village or town, often on land with little technical infrastructure. New residents bring new demand for roads, water, sewerage and power, so municipalities commonly look to the developers of those houses to help pay. A single builder of one house in the same settlement can face the levy, or a condition in the permit, on the same logic.
How should you check the rules for a specific site?
Start with the municipality's VZN on the local development levy: confirm that it is in force, which parts of the municipality it covers, and how it applies to your building type. Ordinances are published on the municipality's notice board and website, and the current text of the act is on slov-lex.sk. Then check the planning and permit documents in the table below.
| Document or source | What to check | Why it matters |
|---|---|---|
| VZN on the local development levy | Whether it is in force, its territorial scope, and the rate for your building type | The levy exists only where the ordinance has been adopted |
| Municipal land-use plan | Zoning of the plot and planned road and utility corridors | Shows where the municipality expects infrastructure to be built |
| Draft or signed contract | Scope, payment deadlines, and what happens if the municipal project is delayed | A voluntary term binds you once you sign |
| Binding opinions in the permit file | Any condition requiring infrastructure works or payments | Conditions can change the cost and timing of the project |
| Current text of act 447/2015 Z. z. | Recent amendments and exemptions | The act was amended in 2025, so older summaries may be out of date |
Ask the municipality for any contribution demand in writing, with its legal basis stated. A demand that cannot be tied to a VZN, a land-use plan or a signed contract needs legal review before any payment is made.
Frequently asked questions
- Is a developer infrastructure contribution the same as the local development levy?
- No. A contribution is usually negotiated in a contract or appears as a condition in a binding opinion, while the levy is a charge a municipality can impose only through its own ordinance under act 447/2015 Z. z. Both can apply to the same project, so check both.
- Can a municipality charge the levy if it has not adopted an ordinance?
- No. The levy exists only where the municipality has introduced it by a VZN; which permits and building types it applies to is set by the act and by that ordinance, so read the current VZN.
- Who pays the levy when a building has several builders?
- The builders named in the decision share it in equal parts unless they agree on a different split. A municipality, the state or a self-governing region building on its own territory is not a payer.
- Can the levy be paid in instalments?
- The municipality may allow instalments on the builder's request. Make the request as soon as the levy decision arrives, and keep the agreed payment schedule in writing.
- Where do I find the rules that apply to my plot?
- Look for the municipality's VZN on the local development levy and its land-use plan. The current text of the act is on slov-lex.sk, and your building office can confirm how the rules apply to a specific project.