The painting had been on display in the city of Eindhoven (pictured) since the 1950s. In 2018, the Dutch Restitutions Committee received an application from the family of Johanna Margarethe Stern-Lippmann, a Jewish woman who was murdered in the Holocaust.
Although Stern-Lippmann's great-grandchildren said the work had enjoyed "a prominent position hanging in [her] house", the Committee decided there wasn't enough evidence to support their claim that the painting had been looted during the Nazi regime.
Four years later, however, the Committee reversed its decision on the basis of new evidence, including documents that showed that members of the Stern-Lippmann family believed the painting was in the family's possession in 1952.
Blick auf Murnau mit Kirche was returned to the descendants of its rightful owner and sold at auction for £37.2 million ($45m) in March this year, making it the most valuable Kandinsky painting ever to go under the hammer.
The proceeds are due to be shared between 13 Stern heirs, who have said they'll use some of the money to recover more of the family's looted art collection.