Foreigners and real estate in Poland' Human feel and legal touch

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Foreigners and real estate in Poland.Human feel
and legal touch

• Lukasz Bernatowicz

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Forms of the legal title to real estate

• Ownership pursuant to art. 140 of the Civil
  Code, the complete right to use and dispose the
  land.
• Perpetual Usufruct a right which pursuant to
  art. 232 of the Civil Code, provides the holder
  with similar rights to ownership for a defined
  period of time, from 40 to 99 years
• Usufruct
• Lease
• Tenancy

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Legal basis
Currently binding regulations Act on
Acquisition of Real Estate by Foreigners Civil
Code as to general regulations concerning real
estate transactions
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A foreigner is defined as

• a person who is not a Polish citizen or
• a legal person having its registered seat outside
  Poland or
• a partnership of persons mentioned above, having
  its registered seat abroad, established under
  legal provisions of a foreign country or
• a company or a legal person having its registered
  seat in Poland, controlled directly or indirectly
  by person/s mentioned above

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General Rule
Purchase of ownership title or perpetual usufruct
title to a real estate by foreigners requires
permission of the Minister of Internal Affairs
and Administration.
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Purchase of shares in a commercial company by
foreign investors requires permission if

• the company which owns or is a perpetual
  usufructor of a real estate becomes a
  controlled company.
• the company in which the shares are purchased is
  an owner or perpetual usufructor of a real estate.

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Purchase rules after Poland joined the EU

• EEA citizens do not need permission to purchase
  real estate or shares in companies which own or
  hold a real estate under perpetual usufruct (with
  certain exclusions).
• EEA entrepreneurs do not need permission to
  purchase real estate or shares in companies which
  own or hold a real estate under perpetual
  usufruct (with certain exclusions).

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Exclusions
Permission is required for all foreigners in case
of purchase of

• agricultural land (12-year transition period)
• forest (12-year transition period)
• real estate within border zone
• second houses (5-year transition period)

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Second House - housing or recreational real
estate that will not constitute foreign citizens
permanent residence
Can be bought without permission by a EEA citizen
who

• legally resides in Poland for at least 4 years
• acquires the land for touristic services

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Purchase of agricultural forest land

• Direct purchase of the agricultural or forest
  land is subject to the permission
• Purchase of shares in companies which are owners
  or perpetual usufructors of agricultural land or
  forest is free from the obligation of obtaining
  permission from the Ministry of Internal Affairs.
• The buyer of the shares must be a citizen of the
  EEA or an entrepreneur with its seat within the
  EEA

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Avoiding permission duty
Investors from non EEA countries can establish in
Poland or in other EEA country a subsidiary or a
branch company which will be entitled to purchase
real estate or shares in a Polish company without
the obligation of obtaining the permission from
the Ministry.