Accounting

Property purchase permit in Poland

Accounting


The acquisition of real estate by the foreigners:

a. Who has to obtain a permit?

The acquisition of real estate by a foreigner requires a permit.  The foreigner, within the meaning of Act of 24 March 1920 on the acquisition of real estate by the foreigners is:

- natural person without Polish citizenship;
- legal person based abroad;
- non-corporate company of persons referred to in points 1 or 2, based abroad, established in compliance with the legislation of foreign states,
- legal person and non-corporate commercial company based in the territory of the Republic of Poland, controlled directly or indirectly by persons or companies referred to in points 1, 2 and 3.

As a rule, it is not required to obtain the permit in case of foreigners who are citizens or business operators in the states being parties to the agreement on the European Economic Area or the Swiss Confederation. 

The permit is issued upon request of the foreigner if:
- the acquisition of real estate by the foreigner does not pose any risk to the defensiveness, national security or public order and is not in contradiction with social policy and public health considerations,
- the foreigner proves that there are the circumstances confirming its bonds with the Republic of Poland.

Who issues a permit?

The permit is issued by way of an administrative decision by the Minister of Interior, if the Minister of National Defence does not raise any objection and in case of agricultural real estate, if the Minister of Rural Development does not raise any objection. The objection is expressed, by way of a decision, within 14 days from the day of providing a request by the Minister of Interior. The refusal to issue the permit not require any application to the Minister of National Defence or the minister responsible for rural development.

What does the procedure of obtaining a permit look like?

1. The foreigner should file an application for issuing the permit, which should contain:
- designation of the applicant and its legal status,
- designation of real estate,
- designation of the seller,
- determination of the legal form of the acquisition,
- information about the purpose and possibility of the acquisition of real estate.

2. Prior to the issuance of the permit, the Minister of Interior may:
- request further evidences or information necessary to consider the application,
- perform, also with the assistance of competent government administration bodies, verification whether the acquisition of real estate by the foreigner would not pose any risk to national security or public order and whether it is in line compliant with the interest of the State.

3. The Minister of Interior may impose, in the permit, special requirements for the foreigner intending to acquire real estate. In such case the permit would be conditioned and effective upon fulfilment of the conditions.  

4. The permit is valid for two years from the day of issuance thereof.

Are there any exceptions to obligation to obtain the permit? 

Mainly the following do not require the permit:
- Acquisition of a separate residential apartment,
- Acquisition of a separate garage unites or share in such units,
- Acquisition of real estate by the foreigner residing in the Republic of Poland for at least 5 years upon permanent residence permit or European Community long-term residence permit,
- Acquisition by the foreigner, being a spouse of a Polish citizen and residing in the Republic of Poland for least 2 years upon permanent residence permit or European Community long-term residence permit, of real estate that as a result of the acquisition shall constitute spousal joint property,
- Acquisition by legal person or other similar entity for its statutory purposes, of undeveloped real estate whose total area in the entire country does not exceed 0,4 ha in cities.

Caution! The acquisition of real estate by the foreigner in violation of the provisions of the Act is invalid.


Marcin Kręglewski

Lawyer

Marcin Kręglewski

Barrister, Senior Counsel

Marcin Kręglewski