Poland

Legal and tax aspects of
investing in real estate
or the purpose of this and, despite a
warning, does not cease to use it in this
way, or if a lessee neglects it to such
an extent that the subject of lease is
at risk of being lost or damaged – the
lessor may terminate the lease contract
without notice.
Lease of premises for residential
purposes
Residential lease agreements, due to their
purpose are subject to special protection
which arises from the provisions of the
Lessee’s Protection Act. This protection
applies mainly to the limited possibility
of termination of the lease. There is also
a specific regulation regarding the rent
increase.
2.6.1.3. Tenancy agreement
(dzierżawa)
By a tenancy agreement, the lessor
commits to hand over a subject of tenancy
to the lessee’s use and collection of profits
for a fixed or a non-fixed term. In exchange,
the lessee commits to pay the agreed rent.
The tenancy agreement gives not only the
right to use the property but also to collect
benefits from it, which is why the tenancy
agreement usually concerns land.
The duration of a tenancy agreement may
be definite or indefinite. However, the
tenancy agreement for a period longer than
one year should be concluded in writing,
otherwise it is considered to be concluded
for an indefinite term. Also a tenancy
agreement executed for a longer period
than thirty years is deemed to be concluded
for a non-fixed term, after this period
passes.
Under the Civil Code, if the rent payment
period is not specified in the contract,
rent is payable in arrears on the date
customarily accepted, and in the absence
of such custom, semiannually in arrears. If
the lessee defaults in payment of rent for at
least two full payment periods and, in the
case of rent paid annually, he defaults in
payment for over three months, the lessor
may terminate the tenancy without notice.
However, the lessor should warn the lessee
by giving the lessee an additional threemonth
period to pay the overdue rent.
The lessee is responsible for the costs of all
repairs to the extent necessary to keep the
subject of tenancy in the same condition.
However, the parties are able to modify
this rule in the tenancy agreement. There
are also some differences between a lease
agreement and a tenancy agreement in the
field of subletting a property. The lessee
cannot sublet the property without the
lessor’s consent. If the above obligation
is violated, the lessor may terminate the
tenancy agreement without notice.
2.6.1.4. Leasing agreement
(leasing nieruchomości)
By a leasing agreement, the financing
party undertakes, within the scope of
operations of its enterprise, to acquire
a property from a specified transferor
and to hand it over to the user to use for
a defined period. In exchange, the user
commits to pay the installments agreed in
the contract. The lessor retains ownership
of the property, however, when the contract
expires, the lessee has a right to take over
the ownership of the property. In practice,
there are two main types of the leasing
agreement:
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