Real estate /

Conversion of perpetual usufruct into ownership

Real Estate Attorneys of our Law Firm in Poland would like to inform about the draft amendment to the Real Estate Management Act, which is expected to end perpetual usufruct of land in Poland. Entrepreneurs will be able to buy out land owned by municipalities or the State Treasury.

Purchase of land upon request

According to the draft law, an entrepreneur will be able to apply for a land purchase and the authority will not be able to refuse to sell the land. The price of land bought back from the State Treasury will be 20 times the annual fee in the case of a single payment, and 25 times in the case of payment in instalments (but no more than 60 percent of the value of the land). In the case of land owned by a municipality, it will be twenty times the fee, but no more than the value of the land. In the case of municipality-owned land, local authorities will be left free to shape the rules of sale, only the basic conditions will be rigidly set.

Purpose of the regulation

The purpose of the draft is to accelerate the process of elimination of perpetual usufruct. The enfranchisement is intended to encourage entrepreneurs to invest and to free themselves from having to pay the perpetual usufruct fee, which is raised by the authorities. If the land is to be used for residential purposes, local authorities will be able to grant additional preferences for the purchase.

Are you a perpetual usufructuary of a property located in Poland and thinking about buying it out?

If you have questions about the right to redeem real estate subject to perpetual usufruct, please contact our Real Estate Law Firm in Warsaw, Poznan, Krakow and Wroclaw.

Author team leader DKP Legal
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