Buying Brownfields in Czechia: Environmental Liabilities and Duties in 2026

Mgr. Karel Huneš
Mgr. Karel Huneš
8.4.2026 | ARROWS law firm

Buying a brownfield site may seem like an ideal opportunity, but the reality is significantly more complex. As the new property owner, you take over not only the land itself, but often also an existing environmental burden. The attorneys at ARROWS, a Prague-based law firm, know what pitfalls await investors who underestimate the preparation. In this article, we will show you what your obligations are in 2026 under Czech legislation and how to avoid mistakes.

The illustrative image shows experts assessing the environmental burden of a brownfield site.

Quick summary

  • As the owner of a brownfield, you bear strict (no-fault) liability for the condition of the land. The water authority or may impose corrective measures to remedy an unlawful condition, even if you did not cause the contamination.
  • The preparation process takes months to years, which significantly affects cash flow and the construction schedule. It includes a preliminary survey, a risk analysis, approval of the remediation plan, and the clean-up itself.
  • Remediation is a financial burden that commonly reaches tens of millions of Czech crowns. An error in preparation or underestimating the extent of contamination can mean a ruinous increase in costs.
  • Without flawless environmental preparation, you will not obtain a project permit. and the Act on the Unified Environmental Opinion have fundamentally changed permitting processes.

Brownfield – definition and developers’ motivation

A brownfield is not defined in the Czech legal system by a single statute; generally, it means a property (land, building, or site) that is underused, neglected, and may be contaminated. It typically arises as a legacy of industrial, agricultural, residential, or military activity.

These are often locations within built-up urban areas with excellent transport accessibility and existing utilities, where “greenfield” development is no longer possible. The state spatial development policy and the Building Act prefer the use of already built-up areas. From the project economics perspective, however, an unforgiving equation applies: the lower purchase price of the land must offset remediation and demolition costs.

Attorneys at ARROWS advokátní kancelář encounter investors who only discovered after registration in the Real Estate Cadastre that the “good price” reflected an environmental burden in the tens of millions of Czech crowns. This often becomes apparent only during the detailed environmental survey required for building permitting. In similar transactions, it makes sense to address due diligence as well as the contractual allocation of liability and warranties within development and construction law.

Risk-based categorisation of brownfields

In practice, an initial assessment uses categorisation based on development potential and the degree of contamination. While Category A represents commercially attractive sites with minimal burden, Categories C and D include sites with a serious environmental burden. In such cases, remediation costs often exceed the market value of the land and the burden threatens human health.

This classification affects the availability of subsidy programmes and the length of the permitting process. Subsidies may be drawn, for example, from the State Environmental Fund of the Czech Republic or programmes of the Ministry of Industry and Trade.

Quick answers to basic legal questions

1. Am I obliged to remediate a brownfield I have just purchased?
Yes, if the water authority or the Czech Environmental Inspectorate (ČIŽP) finds the existence of an unlawful condition (e.g., leakage of hazardous substances into groundwater under the Water Act). The authority may impose corrective measures directly on the property owner if the polluter no longer exists or is unknown, or if the owner acquired the property with knowledge of the burden.

2. What if the previous owner claimed the land was clean?
The seller’s statement does not relieve you of public-law liability towards the state. However, it may give rise to your private-law claim for a discount from the purchase price or withdrawal from the contract due to hidden defects (see Section 2129 of the Civil Code for buildings, or the general provisions on defects). A practical approach on how to defend yourself and how to correctly draft submissions (comments or objections) in subsequent processes is also summarised in How to properly submit comments on a draft zoning plan.

3. Can an authority order remediation without my consent?
Yes. In the event of a threat to the environment (e.g., an emergency spill into waters), the competent administrative authority may impose remedial measures by decision. If you fail to act, you face high fines and the measures may be carried out at your expense through substitute performance of the decision. In practice, it is therefore important to have the parties’ obligations clearly set out in the purchase and related documentation, which also falls within contracts and negotiations.

Obligations of a brownfield owner: law and practice

Owning a brownfield entails specific statutory obligations, arising in particular from the Water Act (No. 254/2001 Coll.), the Waste Act (No. 541/2020 Coll.), and the Act on the Prevention of Environmental Damage (No. 167/2008 Coll.).

Obligation to carry out an environmental survey and risk analysis

Even before commencing the building permitting process, you must have high-quality data. The process begins with investigative works, including a review of the site’s history and then a preliminary and detailed survey with sampling. The key document is the risk analysis, which assesses the level of risk to human health and ecosystems.

Based on the risk analysis, the competent authority (usually the environmental department or the Czech Environmental Inspectorate (ČIŽP)) approves the target remediation limits. Without an approved risk analysis and statements from environmental protection authorities, you will not obtain the Unified Environmental Opinion (JES), which is a necessary condition for issuing a project permit under the Building Act. If project permitting gets stuck due to related environmental limits, it may be useful to add context from the article When air pollution may be a reason to stop construction or operations.

The “polluter pays” principle and its limits

Czech and EU law are based on the “Polluter Pays” principle. Primarily, remediation should therefore be paid for by the party that caused the contamination. In the reality of brownfields, however, we encounter the problem of legacy burdens often arising before 1989, when the original state-owned enterprises ceased to exist.

If the polluter cannot be traced or no longer exists without a legal successor, liability in practice is often transferred to the landowner. The landowner must remove the burden if they wish to build on the land, or if the burden endangers the surroundings under Section 42 of the Water Act.

A specific chapter concerns environmental agreements concluded between acquirers of privatised assets and the state, where the state guarantees reimbursement of costs. Even here, however, caution is necessary, as the process of drawing on the guarantees is administratively demanding and subject to strict control.

Old environmental burden vs. Environmental damage

It is necessary to distinguish between two legal regimes. An old environmental burden (SEZ) is contamination that arose in the past (before 2008) and is addressed primarily under the Water Act. Environmental damage under Act No. 167/2008 Coll. concerns damage to natural resources arising after 2008, where strict objective liability applies.

For a developer, it is crucial that new construction does not cause new environmental damage. This could occur, for example, through unprofessional handling of contaminated soil, for which the developer would then bear full liability.

Liability for defects upon purchase

Buyers often mistakenly believe that if the seller did not know about the contamination, no claims can be asserted. However, for real estate purchase agreements, statutory liability for defects applies unless agreed otherwise. In the case of hidden defects in a building, rights may be asserted within 5 years from acquisition.

For land, the situation is more complex and the time limits may be shorter (typically 2 years). The attorneys at ARROWS recommend that liability for environmental defects be expressly addressed in the purchase agreement and that complaint periods be extended.

The Building Act and environmental legislation in 2026

The current Building Act (No. 283/2021 Coll.) and related regulations have brought fundamental changes to the permitting of brownfields in the Czech Republic. Simplification of processes is balanced by stricter requirements for preparation.

Single Environmental Opinion (JES)

Act No. 148/2023 Coll. introduced the instrument of the Single Environmental Opinion (JES). The JES replaces up to dozens of previously separate binding opinions in the areas of air, water, nature and landscape protection. It is issued by the competent administrative authority, typically the municipal authority of a municipality with extended powers or the regional authority.

For a developer, this means simplification in the form of a single stamp, but also the risk that if the remediation project is not prepared perfectly, the authority will not issue the opinion. Without the JES, the building authority cannot permit the project, as the opinion serves as a binding basis for the decision.

The Czech Environmental Inspectorate (ČIŽP) often acts in this process as a consultative body or in cases of specific risks. The entire system emphasises comprehensiveness and interconnection of the individual components of environmental protection.

Planning agreements with municipalities

Brownfield development often requires an amendment to the zoning plan. Under Section 130 et seq. of the Building Act, an investor may conclude a planning agreement with the municipality. In it, the developer undertakes to build infrastructure or make a financial contribution, and the municipality will provide cooperation in amending the zoning plan.

For brownfields, it is essential to include issues of remediation and future use of the area in the planning agreement as well. A poorly drafted agreement may be invalid or unenforceable, jeopardising the entire project.

Permitting process

The Building Act allows for proceedings on permitting a project, which may also integrate an environmental impact assessment (EIA). For brownfields, it is often necessary to undergo screening proceedings to determine whether the remediation and subsequent construction require a full EIA.

Financial and legal risks – what awaits you?

Investing in a brownfield is a risky operation. Underestimating preparation can lead to fatal financial impacts and project delays.

Remediation costs and their unpredictability

Remediation costs are difficult to predict and commonly range in the tens to hundreds of millions of Czech crowns. A major risk is the so-called “volume increase”, when, during excavation of contaminated soil, it is found that the pollution extends deeper or into a wider area than the original survey indicated.

Sanctions and fines

If the owner fails to comply with obligations imposed by the Water Act or the Waste Act, they face significant sanctions. Fines under the Water Act may reach up to CZK 10,000,000; under the Waste Act, in extreme cases up to CZK 25,000,000. In addition, authorities may order a halt to construction works if there is a threat to the environment.

Table of key risks and solutions with ARROWS

Risks and sanctions

ARROWS legal solution (office@arws.cz)

Hidden contamination: Discovery of the burden only after purchasing the land.

Comprehensive legal and environmental due diligence before signing the agreement and setting warranties.

Sanctions from authorities: Fines in the millions of CZK for breach of obligations.

Defence against imposed fines, negotiations with ČIŽP and water authorities.

Failure to issue the JES: Blocking the construction permitting process.

Ensuring documentation compliance with legislative requirements for smooth issuance of the JES.

Disputes with the municipality: Blocking the zoning plan amendment.

Preparation of balanced agreements under the Building Act (Section 130) that protect the developer’s investment.

Exhausted state guarantees: Lack of funds for remediation.

Legal support in asserting claims under environmental agreements and seeking alternative financing.

Remediation process in practice

The remediation process is strictly regulated and is divided into several phases, starting with preparation of the survey works project and historical research. This is followed by physical sampling, risk assessment and setting contamination limits that must be achieved. Only then is the remediation project prepared, which must be approved by the competent authorities.

The remediation itself may take months to years and includes methods such as excavation, groundwater pumping or in-situ biodegradation. After completion of the works, long-term post-remediation monitoring follows. Formally, the process is concluded only upon approval of the final report by the authority.

How to deal with legal obstacles?

Effective resolution of legal issues in brownfields requires a strategic approach and strict compliance with deadlines.

Contact our experts:

Assertion of liability for defects (Complaint)

If you discover contamination after the purchase, speed is key. Under the Civil Code, you must notify defects without undue delay after you could have discovered them through a timely inspection and due care. For hidden defects in buildings, a 5-year period from acquisition applies.

The attorneys at ARROWS help clients formulate defect notices and negotiate a price reduction or withdrawal from the agreement. If you do not raise the defect in time and the seller objects that it is late, the court will not grant your claim.

State guarantees and privatisation agreements

Many sites still have valid so-called environmental agreements in place. If remediation costs exceed the state guarantee, the difference is paid by the owner. It is essential to verify the current remaining balance of the guarantee and the conditions for drawing on it before purchasing the company or the property.

Relations with the public and the municipality

Public opposition (the NIMBY effect) can delay a project for years, because participants in the proceedings may file appeals against permits. Transparent communication, supported by strong legal arguments and expert studies, is the best prevention of these complications.

Conclusion

Brownfields represent both an opportunity and a threat for developers, and a project’s success depends on thorough technical and legal preparation. The owner’s legal liability is strict, and in 2026 the public authorities have effective tools to enforce compliance with obligations under Czech legislation.

The new Building Act and the JES system have centralised processes, but they place higher demands on the quality of the input documentation. Flawless risk analysis and precise contractual protection in the purchase of real estate are the foundation of success.

ARROWS, a Prague-based law firm, provides comprehensive legal services for brownfield developers – from due diligence and contractual documentation to representation in administrative proceedings.

FAQ – Most common legal questions on brownfields

1. What happens if I discover hidden contamination after the purchase?
You have the right to assert claims for defective performance (a price reduction, repair, withdrawal). You must do so without undue delay. For buildings, the objective time limit for asserting a hidden defect in court is 5 years. We recommend contacting an attorney immediately to assess the situation and preserve the applicable time limits.

2. What are the fines for failing to address an environmental burden?
Fines can reach millions of Czech crowns. Under the Water Act, up to CZK 5,000,000 or CZK 10,000,000 depending on the type of offence; under the Waste Act, up to CZK 25,000,000. Repeated fines are possible.

3. Who pays for remediation of an old environmental burden at a privatised company?
If an environmental agreement was concluded with the Ministry of Finance of the Czech Republic, the state covers the costs up to the amount of the guarantee. If no guarantee exists or it has been exhausted, liability usually passes to the acquirer (owner) if the original polluter cannot be identified.

4. Do I need a planning agreement with the municipality for a brownfield?
The law does not strictly require it in all cases, but if an amendment to the zoning plan is necessary or new infrastructure must be built, a planning agreement is a standard tool and, from the perspective of legal certainty, an essential one.

5. Can I build at the same time as remediation?
Yes, this is possible if approved by the competent authorities within the permitting procedure and the remediation schedule. Phasing is often used, where part of the site is cleaned and construction begins there while remediation continues elsewhere.

Notice: The information contained in this article is of a general informational nature only and is intended for basic orientation in the matter based on the legal status as of 2026. Although we take the utmost care to ensure accuracy, legal regulations and their interpretation evolve over time. We are ARROWS advokátní kancelář, an entity registered with the Czech Bar Association (our supervisory authority), and for maximum client protection we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of regulations and their application to your specific situation, it is necessary to contact ARROWS advokátní kancelář directly (office@arws.cz). We accept no liability for any damages arising from the independent use of the information in this article without prior individual legal consultation.

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