Conditions for
    real estate purchase
    by foreigners in Poland


      The Author:

        Teresa Kielar is an attorney with the firm of Realnosc in Krakow, Poland. She has more than 30 years experience in public economic matters. Her firm specializes in real estate, including representing foreigners purchasing property in Poland. She is a member of the Association of Real Estate Brokers in Middle Poland and has authored articles for the bulletin of that association and the Krakow Institute of Real Estate. She is a past president of the Regional Disciplinary Court for three provinces.

        E-mail: realnosc@kki.krakow.pl
        Web:         www.kki.krakow.pl/realnosc/realang.htm


    By Teresa Kielar

    PURCHASING REAL ESTATE by foreigners on Republic of Poland territory is regulated by an act dated 24 March 1920 (final version of a statute: Journal of law from 1996, No. 54, position 245).

    According to the regulations of a.m. statute, the purchase of ownership or ground usufruct by a foreigner requires permission. Permission is issued by the Minister of Home Affairs by way of administrative decision.

    In the meaning of statute’s regulations, (art. 1, part paragraph 7) a foreigner is:

      a. a natural person not having Polish citizenship

      b. a legal person having a seat abroad

      c. a legal person having a seat in the territory of the Republic of Poland controlled directly or indirectly by the persons mentioned under a. and b.

    In the case of a commercial company, the company is considered to be controlled when persons mentioned under a. and b. have directly or indirectly at least 50% of initial capital.

    Within the statute’s control comes also the purchase or accession by the foreigner of shares and stock in a commercial company with the seat on the territory of the Republic of Poland being the owner or perpetual real estate user.

    WHO MUST OBTAIN PERMISSION?

    THE ACTIVITIES mentioned above require obtaining permission from the Minister of Home Affairs, if:

      a. as a result of purchasing or accession of shares or stock, the company becomes a company controlled in the meaning of statute’s regulations

      b. the company is controlled and the foreigner who is neither shareholder nor stockholder purchases shares or stock

    The foreigner intending to purchase real estate on territory of the Republic of Poland can also compete for issue of a promise of permission by the Minister of Home Affairs.

    This promise is valid for the period of 6 months from the date of its issue. During the period of the promise’s validity, you cannot be refused permission for the real estate purchase unless facts important for the settlement of the matter have been changed.

    Every transaction in which the foreigner purchases ownership or real estate perpetual usufruct which is undertaken in defiance of statute’s regulations, without the required permission, is unvalid!

    The statute, mentioned at the beginning, foresees also exceptions from the obligation of obtaining the permission.

    Its regulations are not used for purchasing the real estate on the way of succession by the persons entitled to statutory succession.

    WHO DOESN'T REQUIRE PERMISSION?

    THE FOLLOWING cases also don’t require obtaining permission:

      a. purchase of individual dwelling flat in the meaning of statute’s regulations dated 24 June 1994 about the ownership of flats (Journal of law No. 85, position 388)

      b. purchase of real estate by the foreigner living on the territory of the Republic of Poland for at least 5 years from the date of obtaining of card of permament stay

      c. purchase by the foreigner being the spouse of a Polish citizen living on the territory of the Republic of Poland for at least 2 years from the date of obtaining the card of permament stay, real estate which in result of purchase will make statutory joint property of husband and wife

      d. the purchase by the foreigner of real estate, if he on the day of purchase is entitled to statutory succession after alienator of real estate and the alienator or real estate is its owner or perpetual user for at least 5 years

      e. the purchase by a legal person having the seat on the territory of Poland controlled by a foreign party, for its statutes’ purposes the unimproved properties the total surface of which on the territory of all the country does not exceed 0,4 hectares on the area of cities.

    However, above exemptions from use of statute’s regulations from the date 24 March 1920 about purchasing of real estate by foreigners are not used for real estate in the frontier zone and to farmland with the surface exceeding 1 hectare.



    Web Law Review, Summer 1997

    Text © 1997, Teresa Kielar
    Web Package © 1997, EagleLink
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