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The rock star was refused retrospective permission to keep the secluded timber lodge in the grounds of Woodlands Farm in Brede Lane, Peasemarsh.
Representatives for Sir Paul said he needed the two-bedroom lodge to maintain his privacy, but members of Rother District Council's planning committee threw out the bid.
Macca should technically now remove the one-and-a-half-storey lodge and return the land to its original state, but he is expected to appeal against the council's decision and could win.
A supporting statement on behalf of the ex-Beatle to the council said: "The owner has a requirement for privacy, seclusion and security that the buildings at Woodlands Farm cannot provide.
"This is due to the proximity of the public footpath that passes by the farmhouse and through the farmyard and also the activities connected with the working farm and machinery movements creating noise disturbance and safety issues.
"The lodge provides quiet, secluded and secure accommodation and is used only in lieu of the farmhouse, which will always be vacant when the lodge is occupied. The intention is not to increase the amount of residential property."
The letter added that Sir Paul had been a landowner in the area for many years, with his farm producing "crops and wool".
The letter said: "There is a commitment to natural methods and the farms and produce have gained recognition and designation as organic status."
But in refusing the application, the planning committee found: "No compelling justification for such a location has been demonstrated to the satisfaction of the Local Planning Authority.
"The proposal harms the intrinsic landscape quality and character of the High Weald. The new dwelling is not essential to the running of an enterprise which must be in a countryside location."
PA
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