Purchase of real estate

Purchasing property by foreigners is governed by the provisions of the Act of 24 March 1920 on Purchase of Real Estate by Foreigners with further amendments.

‘Foreigner’ within the meaning of the Act is:

  • An individual who is not a Polish national
  • A corporate entity having a registered place of business abroad
  • A partnership of persons referred to above, which does not have a legal personality, has a registered place of business abroad and is incorporated under laws of foreign countries
  • A corporate entity which has a registered place of business in the Republic of Poland and is controlled directly or indirectly by persons or partnerships referred to above

The general rule is that foreigners require a permit from the Minister of Internal Affairs to buy real estate.

Cases where a permit is required

A permit is required in each case of real estate purchase, i.e. acquisition of ownership title or perpetual usufruct right to real estate on the basis of a legal transaction.

The following require a permit:

  • Purchase of real estate
  • Purchase or taking up of shares in a commercial company which has a registered place of business in the Republic of Poland and is the legal owner or perpetual usufructuary of the real estate

A permit is required if, by purchasing shares in a company which is the legal owner or perpetual usufructuary of real estate, a foreigner will take control of that company, or if shares in an already-controlled company are acquired or taken up by a foreigner who is not the company’s shareholder. A controlled company is a company in which a foreigner or foreigners holds or hold, directly or indirectly, more than 50% of votes at the meeting of partners or the general meeting of shareholders or has or have a dominating position within the meaning of the Code of Commercial Partnerships and Companies.

The Minister of Internal Affairs may grant the foreigner a permit to purchase real estate or shares in a company owning real estate if there is no probability of threat to national security, public safety or public order and if the foreigner can demonstrate the existence of circumstances confirming his ties with Poland.

The provisions of the Act do not apply to company transformations or transfer of ownership of real estate by intestate succession.

No legal acts or entries of ownership titles or perpetual usufruct rights may be made without a permit from the Minister of Internal Affairs. If special conditions are specified in the permit, evidence must be produced, in the form of official documents, that those conditions have been complied with.

If effected in breach of the provisions of the Act, the purchase of real estate or shares by a foreigner is null and void.

Issuance of permits to entrepreneurs from the European Economic Area (EU plus Iceland, Norway and Lichtenstein)

On 1 May 2004, the general rule whereby a permit is required for purchase by foreigners of real estate or shares in companies which are legal owners or perpetual usufructuaries of real estate ceased to apply to nationals and entrepreneurs residing or established in the territory of the European Economic Area (EEA).

Exceptions from the obligation to obtain a permit

  • Purchase by a controlled corporate entity, for its statutory purposes, of undeveloped real estate in urban areas if their total area in the entire country does not exceed 4,000 m2
  • Purchase of independent residential premises
  • Purchase of real estate by a foreigner who has been residing in Poland for at least five years from the issuance of a permanent residence permit
  • Purchase by a foreigner whose spouse is a Polish national and who has resided in Poland for at least two years from the issuance of a permanent residence permit, of real estate that will become the joint property of both spouses
  • Purchase of real estate by a foreigner if, on the day of purchase, the foreigner is entitled to statutory succession after the assignor of the real estate, provided that the assignor was its legal owner or perpetual usufructuary for at least five years
  • Purchase of real estate by a foreign bank, which is a mortgagee, after an ineffective auction under enforcement proceedings
  • Acquisition or taking up by an indirectly or directly controlled bank of shares in a company which has a registered place of business in the Republic of Poland and is the legal owner or perpetual usufructuary of real estate in connection with enforcement of the bank’s claims for banking services rendered

Exemption from the obligation to obtain a permit does not apply to real estate situated in the vicinity of state borders and agricultural land of more than 1 hectare.