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When foreigner wants to buy a real estate in Poland…


English

2013-01-10

From the moment when Poland joined the European Union not only Polls goes abroad but also foreigners want to settle down in our country. Surely it would be necessary for them to find some place to live in or to conduct the business. There is a possibility to purchase it on less strict restrictions.

 

The acquisition of real estate by foreigners is regulated by the Act of 24th March 1920 about the acquisition of real estate by foreigners. That law acct put restrictions on foreigners who want to purchase real estate in Poland. A foreigner in the meaning of this Act shall mean:

 

1) a natural person without Polish citizenship;

2) a legal person with its seat abroad;

3) a company not being a legal person, of persons provided for in items 1 or 2, having its seat abroad, established in compliance with the legislation of foreign states,

4) a legal person and a commercial partnership not being a legal person, having its seat on the territory of the Republic of Poland, controlled directly or indirectly by persons or companies provided for in items 1, 2 and 3.     

 

The acquisition of real estate by a foreigner requires a permit. A permit is issued through an administrative decision by a minister responsible for internal affairs, if acquisition of real estate by a foreigner does not pose threat 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 arise circumstances confirming their bonds with the Republic of Poland. Circumstances confirming a foreigner’s bonds with the Republic of Poland may include, in particular:

 

- Polish nationality or Polish origin,

- being married to a citizen of the Republic of Poland,

- a permit to reside for a definite time or to settle,

- membership of a managing body of entrepreneurs provided for in Article 1, paragraph 2 item 4,

- conducting business or agricultural activities on the territory of the Republic of Poland in compliance with the Polish law.

 

Information about the request and instructions to fill it in a proper way can be found on the websites of Ministry of Interior. It is worth to mention that acquisition of real estate by a foreigner in breach of the Act is not valid.

 

When the permission is not required? The following cases do not require to obtain a permit, subject to paragraph 3:

 

1) acquisition of a separate living accommodation in the meaning of the Act of 24 June 1994 on the Ownership of Premises (Journal of Laws, No 85, item 388).

1a) acquisition of separate business premises destined for garages or share in such premises, if it relates to providing for the living needs of the purchaser or owner of the real estate or separate living accommodation.

2) acquisition of real estate by a foreigner residing in the Republic of Poland for at least 5 years following the granting of a permit to settle thereto,

 

- acquisition by a foreigner, who is a spouse of a Polish citizen and residing in the Republic of Poland for least 2 years following the granting of a permit to settle thereto or a permit for a long-term resident of the European Communities, of real estate that as a result of acquisition shall constitute marital estate of the spouses,

- acquisition of real estate by a foreigner, if on the day of the acquisition they are entitled to statutory succession from real estate transferor, and the real estate transferor has been the owner or perpetual usufructuary thereof for at least 5 years,

- acquisition by a subject, a legal person and a commercial partnership not being a legal person, having its seat on the territory of the Republic of Poland, controlled directly or indirectly by a foreigner , for their statutory purposes, of undeveloped real estate that the total area whereof in the whole of the country does not exceed 0.4 ha within cities,

- acquisition of real estate by a foreigner, being a bank and simultaneously mortgagee, through taking over the ownership of real estate due to unsuccessful auction in execution proceedings,

- acquisition or take over by a bank, seated on the territory of the Republic of Poland, controlled by a foreigner, due to the bank’s claims resulting from performed banking actions, shares or stocks which are or become a foreigner at the same being the owner or perpetual usufructuary of the real estate seated on the territory of the Republic of Poland.

 

According to the Act of Acquisition of Real Estate by Foreigners (Article 8, paragraph 2), foreigners, who are citizens or entrepreneurs of Member States of the European Economic Area and the Swiss Confederation, are obliged to obtain a permit directly from a minister responsible for internal affairs only for the acquisition of agricultural and forest real estate, during the period of 12 years of the Republic of Poland Accession to the European Union (till 1st of May 2016). Acquisition of real estate, except agricultural and forest real estate, does not require a permit. In this particular regulation, foreigners also do not require a permit in case of acquisition or take over by a foreigner from the European Economic Area and the Swiss Confederation shares or stocks in a commercial partnership  being the owner or perpetual usufructuary of the real estate seated on the territory of the Republic of Poland, also in case of acquisition of agricultural and forest real estate.

 

According to the Ministry of Interior, the Minister of Interior issued 309 permits for the acquisition of land by foreigners last year, with a total area of 1,008.44 hectares. Most of the permits issued in the past year reffered to the agricultural and forest real estate (217).  There were also 71 purchases of residential and business premises. 

 

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